HomeMy Public PortalAbout21-039 - Procurement PolicyTHE CORPORATION OF THE TOWNSHIP OF LEEDS AND THE
THOUSAND ISLANDS
BY-LAW NO.21-039
BEING A BY-LAW TO ESTABLISH A PROCUREMENT POLICY FOR
THE TOWNSHIP OF LEEDS AND THE THOUSAND ISLANDS.
WHEREAS Section 8 of the Municipal Act,S.O.2001,c.25,a
municipality has the capacity,rights,powers and privileges of a
natural person for the purpose of exercising authority;
AND WHEREAS 20(1)of the Municipal Act,S.O.2001,c.25,as
amended provides the authority for adjoining municipalities to enter
into agreements for joint undertakings;
AND WHEREAS Section 270 (1)of the Municipal Act,S.O.2001 c.
25 as amended,requires that municipalities enact a procurement
policy;
AND WHEREAS the Council of The Corporation of the Township of
Leeds and the Thousand Islands has determined it expedient to
repeal the existing Procurement Policy and replace it with a new
Procurement Policy;
NOW THEREFORE the Council of The Corporation of the Township
of Leeds and the Thousand Islands enacts as follows:
1.That By—|aw l6—O48 is hereby repealed in its entirety.
2.That Schedule ‘A’attached hereto is incorporated herein and
forms part of this By-law.
3.That this By-law shall be known and may be cited as the
“Procurement Policy”.
4.That this By-law shall come into force and effect on the date of
passing hereof.
READ A FIRST AND SECOND TIME THIS 12"‘DAY OF JULY 2021.
READ A THIRD TIME AND FINALLY PASSED THIS 12"‘DAY OF
JULY 2021.
Corinna Smith-Gatcke,Mayor Kimberly Wes
Township of Leeds and the
Thousand Islands
Procurement Policy
Contents
Definitions and interpretations ...3
Procurement Policy Goals .....................................................................................................................
......
..5
Policy Principles ................................................................................................................................
..........
..5
Application of this Policy .......................................................................................................................
......
..5
Compliance with Legislation and Trade Agreements ...................................................................................6
Accessibility for Ontarians with Disabilities Act ........................................................................................6
Trade Agreements...7
Municipal Freedom of information and Protection of Privacy Act ...........................................................7
Conflict of interest ..............................................................................................................................
........
..7
Unsolicited Proposals ...........................................................................................................................
.......
..8
No Contract Splitting .....................................................................................................................................8
Roles and Responsibilities ......................................................................................................................
.....
..8
Council.8
Chief Administrative Of?cer (CAO)........................................................................................................
.
..9
Department Heads ...........................................................................................................................
.......
..9
Departmental Staff ...................................................................................................................................9
Emergency Procurement ......................................................................................................................
......
..9
Direct Acquisition for Goods and Services Valued at $O—$5,000..................................................................9
...10RequestsforQuotationsValuedat$5,001-$50,000...
Procurement Valued at $50,001 and Above ...............................................................................................10
Requests for Proposals (RFP)...............................................................................................................
.
..1O
Proposal Requirements .......................................................................................................................10
Request for Tender ..........................................................................................................................
.....
..11
Tender Requirements ....................................................................................................................
...
..11
...12RequestforExpressionofInterest(RFEI)
Request for Supplier Qualification (RFSQ)..................................................................................................12
Advertising ....................................................................................................................................
........
..12
Review of Bid Documents ...................................................................................................................
..
..13
identical Bids .......................................................................................................................................13
Unresponsive or Excessive Bids ..........................................................................................................13
Bid irregularities..14
Where Only One Bid Received ............................................................................................................15
Where No Bids are Received ...............................................................................................................15
Withdrawal of Bids..............................................................................................................................15
Acceptance of Bid ...............................................................................................................................16
Bid Security ...................................................................................................................................
........
..16
lnsurance........l6
Action When Successful Bidder Does Not Enter Contract ..........................................................................17
Bidder Debriefings ..............................................................................................................................
......
..17
Cooperative Purchasing ........................................................................................................................
....
..18
Non—Competitive Procurement ..................................................................................................................18
Single Source ...........................................................................................................................................18
Sole Source....18
Standardization ...............................................................................................................................
......
..18
Other Non—Competitive Procurement ....................................................................................................19
Exclusion of Bidders Due to Poor Performance ..........................................................................................19
Contract Management and Supplier Performance .....................................................................................20
Reporting ........................................................................................................................................
..........
..20
Definitions and interpretations
in this Policy,unless a contrary intention appears:
”Authorized Person”means a Person who is authorized by Council through bylaw or policy to
perform duties on behalf of the Township.
"Award”means a bid formally accepted by the Township and has obtained the required
approval to enter a Contract through a purchase order,contract record or formal agreement.
”Best Value”means the approach of obtaining the maximum benefit based on available
resources.Factors such as quality,timelines,cost of the purchasing process and price are
considered,notjust the lowest price.
"Bid”means a submission by a prospective vendor in response to a competitive procurement
process.
"Bid Request"means a written request by the Township for Bids in connection with the
provision of Good and or Services and includes,but is not limited to,requests for proposals,
requests for tenders,requests for quotations and calls for tenders.
”Committee”means a committee appointed by the Council of the Township of Leeds and the
Thousand islands.
”Construction”when used to describe a class of procurement means a construction
reconstruction,demolition,repair or renovation of a building,structure or other civil
engineering or architectural work and includes site preparation,excavation drilling,seismic
investigation,the supply of supporting services if they are included in and incidental to the
construction,and the installation and repair of fixtures of a building,structure or other civil
engineering or architectural work,but does not included in professional services related to
construction contract unless they are included in the procurement.
"Contract”means the acceptance by the Township of a Bid in a form of a duly signed
agreement or Purchase Order between a chosen Bidder and the Township for the provision of
Goods and or Services.
'’Council’’means the Municipal Council of the Township of Leeds and the Thousand Islands.
”Department”means an organizational business or service unit of the Township to which
Council has allocated a budget.
”Department Head”means a Township staff person responsible for the directional and
operational control of a department,including,without limitation,the Department’s budget.
"Designate”means a Person to whom authority to conduct Procurement activities has been
delegated by the Authorized Person.
”E|ectronic Bidding”means a method of issuing solicitations and/or receiving written bids
where the process of issuing and/or submitting procurement documents is facilitated through a
web application.
”Emergency”means an event which,in the opinion of Council or the CA0,or his designate,
requires immediate repair or replacement of equipment,services,infrastructure or facilities to
maintain a required public service or to prevent danger to life,limb,or property.
"Goods and Services”means all supplies,equipment,material,services (including without
limitation,insurance,professional consulting services,and construction contracts)to be
supplied or furnished by a vendor.
”|rregu|arity”means a departure from the requirements of a Bid Request.
”Person”includes staff,Council,Committees of Council and any other person or entity
authorized to procure goods and/or services on behalf of the Township.
”Po|icy”means this procurement policy.
”Professional or Consulting Services”includes architects,engineers,auditors,banking services,
insurance providers,surveyors,management consultants,legal representation and other
consulting and professional services.
”Purchase/Procure”means the acquisition of Goods and/or Services by or on behalf of the
Township by way of purchase,lease,or rental.
”Purchase Order”means the Township's agreement document issued by an authorized
employee to a supplier formalizing the terms and conditions ofthe purchase and supply ofthe
goods or services identified on the purchase order.
”Quotation”means an offer to provide stipulated goods or services.
”Tender”means a sealed offer/submissionby a prospective vendor in a response to a publicly
advertised invitation to supply a product or service;offer may be subject to acceptance or
rejection.
"Total Acquisition Cost”means the estimated amount of a particular Contract plus applicable
taxes (less any applicable rebates)plus the estimated value of all options to renew or extend
the Contract.
"Township”means the Township of Leeds and the Thousand Islands.
”Trade Agreement”means an agreement between the Government of Canada or Province of
Ontario and either domestic or foreign government or governments relating to matters of trade
which apply to the Township.
”Vendor”means any entity supplying Goods and or Services to the Township in accordance
with the terms of a Contract.
Procurement Policy Goals
To ensure procurement activities for Goods and Services are conducted in a manner that
promotes openness,fairness,transparency and best value.
To promote and maintain the integrity of the purchase process.
To describe the roles,responsibilities and delegation of authority to the Township's employees.
The goal of each procurement is to secure the required quality and quantity of Good and
Services in an efficient,timely and cost-effective manner and to encourage open competitive
bidding for the acquisition of Goods and Services in accordance with applicable legislation and
Trade Agreements.
Policy Principles
To achieve Best Value,the full life cycle cost of products are considered as well as their impact,
such as economic,environmental and social costs and benefits.
In order to contribute to waste reduction,water conservation,energy conservation,pollution
prevention and to increase the development and awareness of environmentally sound
procurement,acquisitions of goods and/or services will ensure that,where possible,
specifications are amended to provide for expanded use of efficient and durable products,
reusable products and products that contain post—consumer,recyclable,and/or nontoxic
content,without significantly affecting the intended use of the product or service.
Application of this Policy
This Policy applies to the procurement of Goods and Services on behalf of the Township unless
otherwise excluded.
This Policy does not apply to the following expenditures which may be processed through other
mechanisms or controls:
-employment contracts;
0 travel and hospitality expenses;
0 utilities,telephone and cell phone expenses which are of a non—capital nature;
-banking,investment and cash management services;
0 no-cost memoranda of understanding;and
0 contracts with the Government of Ontario,Government of Canada,Ontario municipal
governments and provincial or federal government agencies or crown corporations.
No employee,elected official or Committee member of the Township shall purchase Goods or
Services,request quotes,proposals or tenders,or enter into contracts and agreements on
behalf of the Township except in accordance with the provisions of this Policy.
Council can waive any part of this Policy,or the Policy in its entirety,by resolution for specific
purchase or project.
The inclusion of any item in a department's operating budget or capital budget shall confer to
Department Head the authority to incur such expenditures.
The provision of this Policy shall be followed by all Persons who act on behalf of the Township
in;
I.the issuance of a Bid Request;
ll.the conduct of a Bid Request;and
Ill.the making of an Award.
Council must approve any expenditure for Goods or Services that is not originally included in
the municipal operating or capital budget.
Prior to Council adopting the operating budget and capital budget,no employee,elected official
or Committee member of the Township is authorized to purchase Goods or Services other than
those goods or services required on a recurring basis for the day—to—dayoperations of the
Township.
No expenditure shall be authorized or permitted whereby a debt is incurred requiring
authorization by By-law until Council passes the said by—lawand all statutory authorization is
received.
Compliance with Legislation and Trade Agreements
All procurement conducted pursuant to the Policy shall be undertaken in compliance with all
applicable legislation and Trade Agreements.
Accessibility for Ontarians with Disabilities Act
All procurement activities shall be undertaken in compliance with the Accessibilityfor Ontarians
with Disabilities Act,2005.Bid Documents shall be made available in an accessible format to
persons with a disability upon request and at no additional charge.
Vendors and all sub—contractors hired by the Vendor in completion of its work,will meet or
exceed compliance with all applicable regulations under the Accessibility for Ontarians with
Disabilities Act 2005,as may be amended from time to time.It is the responsibility of the
Vendor to ensure that they are fully aware of and meet all requirements under the Act.
Trade Agreements
Procurement may be subject to international and/or domestic trade agreements such as the
Comprehensive Economic and Trade Agreement (CETA)and the Canadian Free Trade
Agreement (CFTA).Generally,trade agreements promote economic growth by reducing
barriers to the movement of goods and services between the signatories.Both CETA and CFTA
have specific provisions relating to procurement for goods and services by government entities.
Application of a Trade Agreement is usually based on procurement that has a total acquisition
cost that meets a minimum threshold value specified in the particular agreement.
Municipal Freedom of Information and Protection of Privacy Act
The request for disclosure of information relevant to the issue of competitive bids or the award
of contracts from competitive bids shall be made to Township Clerk in accordance with the
provisions of the Municipal Freedom of lnformation and Protection of Privacy Act,R.S.O.1990,
as amended.All records and information pertaining to competitive bids,which reveal a trade
secret or scientific,technical,commercial,financial,or other labour relations information,
supplied in confidence implicitly or explicitly,shall remain confidential if the disclosure could
reasonably be expected to:
I.significantly prejudice the competitive position or significantly interfere with the
contractual or other negotiations of a person,corporation or other entity that responds,
or intends to respond to a request for bids;
ll.result in similar information no longer being supplied to the Township where it is in the
public interest that similar information continues to be so supplied;
Ill.result in undue loss or gain to any person,group,committee or financial institution or
agency;or,
IV.result in information whose disclosure could reasonably be expected to be injurious to
the financial interests of the Township.
Conflict of Interest
The Township's procurement activities must be conducted with integrity to maintain the
pub|ic’s trust.All participants in a procurement process,including any external consultants or
other service providers acting on the Township's behalf,must declare any perceived,possible
or actual conflict of interest.
No purchase will be processed for personal items of direct benefit to employees of the
Township or any member of Council except where permitted by policy.
No goods or services will be purchased from an officer or employee of the Township,or any
associate or family member of an officer or employee,unless the extent of the interest of such
individual has been fully disclosed to the CA0 and received approval.
Staff shall act fairly,bargain in good faith and not give any Bidder an unfair advantage over
other Bidders and shall not conduct bid shopping or procedures akin to bid shopping.
Unsolicited Proposals
All unsolicited proposals,including any offers for presentations or Goods/Servicetrials
submitted to the Township will not be given preference.Purchases will follow the requirements
and processes outlined in this Policy.
In the event that a Goods/Servicespresentation or demonstration would be required in
advance of a purchase decision,such presentation or demonstration should be included as part
of the formal competitive bid process.
No Contract Splitting
Contract splitting is the division of a procurement requirement into smaller pieces in order to
avoid the need to conduct a competitive procurement.Contract splitting is not permitted under
the Policy.
Roles and Responsibilities
Cou ncil
In accordance with best practices in municipal procurement,Council recognizes the need for a
clear separation of political and administrative functions in relation to the Township's
procurement operations.It is the role of Council to establish policy and to approve
expenditures through the Township's budget approval process.Through this Policy,Council
delegates to the Township's employees the authority to incur expenditures in accordance with
approved budgets through the procurement of goods,sen/ices and construction in accordance
with the rules and processes set out in this Policy.
To facilitate Council's oversight role in respect of significant projects,Council may require
departments to obtain Council's authority to initiate specific procurements by identifying
procurement projects of interest,such as procurements that are of a high value or involve
significant risk,security concerns or significant community interest.
To avoid the potential appearance of bias or political influence in the procurement process,
members of Council will have no involvement in competitive procurement processes from the
time those procurement process have been initiated through the advertisement or issuance of
the solicitation document until a contract has been entered into with the successful bidder,
except where Council is required to approve the contract award.
Chief Administrative Officer (CAO)
It is the role of the CA0 or designate to implement and promote this Policy and oversee the
conduct and activities of the Township's employees in carrying out the Township's procurement
operations.The CAO will approve procurement procedures and protocols and ensure
compliance with this Policy.
Department Heads
Department Heads will ensure that their requirements for goods and services are met in
accordance with the goals and objectives ofthis Policy.They will ensure that all procurement
activities and decisions are authorized by this Policy and carried out in accordance with the
Township’s procurement procedures and protocols.All contract expenditures will be monitored
to ensure compliance with financial limits.Upon discovery of instances of non-compliance,the
Department Head shall notify the CA0 to obtain advice with respect to mitigating potential risk
to the Township.
Departmental Staff
Employees of all departments are responsible for complying with this Policy.Employees
involved in procurement activities must clearly understand their obligations and responsibilities
under this Policy and all applicable procedures and protocols and should consult with their
department head as appropriate.Staff are to inspect all deliveries of supplies and services to
ensure that they meet the specifications in the purchase order or contract prior to processing
through the financial system.
Emergency Procurement
ln the event of an emergency where time does not permit for a competitive procurement
process,purchases may be made as follows:
I.A Department Head may authorize emergency purchases having total acquisition costs
of $5,000 or less.
ll.Emergency purchases having a total acquisition cost up to $50,000 may be approved by
the CA0 and reported to Council at the following Council meeting.
Ill.Emergency purchases having a total acquisition cost greater than $50,000 must be
approved by Council.
in the event of a Township-wide declared emergency,to the extent of any conflict between this
Policy and the provisions of the Township's Emergency Response Plan,the latter shall prevail.
Direct Acquisition for Goods and Services Valued at S0—S5,000.
Township employees are authorized to purchase goods and/or services in accordance with the
approved municipal budget.The Department Head of the initiating department must approve
the purchase,in advance,in writing.Purchases must demonstrate best value for money and
follow the principles of this Policy.
Requests for Quotations Valued at $5,001—S50,000.
Requests for Quotations are used when the contract requirements and performance terms and
conditions are relatively straightforward and can be incorporated in the solicitation document
to permit the finalization of the contract with the successful bidder with minor negotiations.
Requests of Quotations involve the selection of either the lowest bid meeting mandatory
requirements or the highest scoring bid based on a relatively simple evaluation of price and
non—pricefactors.The evaluation criteria,scoring results and decision making rationale must
be documented and filed appropriately.A minimum of three quotations must be received.
Specifications of the goods and/or services must be provided to each supplier/vendor in writing
in the same manner with a deadline to provide a quote.Any revisions to the original
specifications must be provided to each vendor in the same manner and format.
The Department Head shall review the quotations and award the contract if it falls within the
budgeted amount of the project.lfthe quotation exceeds the amount budgeted for the project,
the Department Head shall submit a report to Council for approval.
If three written quotations are not received,the initiating Department Head along with the CA0
shall decide if the quotations that have been received are satisfactory to warrant procurement.
The successful and unsuccessful companies from which quotes were received shall be notified.
Procurement Valued at $50,001 and Above
Requests for Proposals (RFP)
Requests for Proposals are used for goods and/or services which are often unique,complex or
consist of many variables.A Request for Proposal may be used for procurement valued under
$50,000 when deemed appropriate within the intent of this Policy.
Proposal Requirements
The electronic bidding system must be used for proposal submissions.
The Department Head,in consultation with the other members of the evaluation team,must
ensure that the mandatory requirements per the bid document have been satisfied.The
evaluation criteria may include but is not limited to factors such as qualifications and
experience,strategy,approach,methodology,scheduling,past performance,equipment,
pricing,life cycle costing,standardization of product,and aspects that would support
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environmental procurement.The evaluation team will review the bid responses and evaluate
based on the criteria outlined in the RFP to determine the highest—ranking proponent.
A report to Council,endorsed by the CA0,shall be initiated by Department Head for Council
consideration and approval for procurement with a total acquisition cost of over $50,000.
Procurements of goods and services with a total acquisition cost under $50,000 shall be
evaluated,documented,and filed appropriately pursuant to CAO approval.
Upon approval,the Department Head shall ensure that a legally binding agreement is duly
executed in accordance with the By—Law#1S—0l2 Delegation of Authority as may be amended,
repealed,or replaced from time to time.
The initiating Department Head is responsible for maintaining current insurance certificates and
other documentation as required in the bid documents.
Request for Tender
A Request for Tender is used when the business requirements and technical specifications can
be clearly defined and incorporated into the bid document:
0 For Goods,Services,or Construction where there are valid business reasons for
requiring legally binding irrevocable bids,with or without security.
-Straightforward eligibility requirements can be determined on a pass/fail basis.
I All contract requirements and performance terms and conditions can be clearly defined
and incorporated in the bid document to permit the finalization of the contract with the
successful bidder without negotiations.
Tender Requirements
The electronic bidding system must be used for Tender submissions;therefore all tenders are in
the form of a competitive secure electronic bid.Tenders not received on or before the closing
date and time will be rejected by the bidding system.
At the direction of the Department Head,changes or amendments to the tender specifications
are published through the electronic bidding system as Addendums and bidders must
acknowledge receipt.Unsolicited or alternate proposals to the tender specifications will not be
considered.
Bids received through the electronic bidding system are unsealed simultaneously.For Tenders
and Request for Quotes,the names of the bidders and total bid prices are made available as
‘unofficial results’.
The issuing Department Head and another staff member will review the submissions for errors
and omissions and will confirm the mandatory requirements have been met.A summary of the
bids with the recommended award will be prepared and provided in a report for Council
approval.The report will contain the approved funding source and any other relevant financial
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information.By way of Council resolution,the Tender is awarded and the successful bidder is
notified.Results of the competition will be published on the electronic bidding system.
Request for Expression of Interest (RFEI)
Staff may issue a Request for Expression of Interest for the purpose of determining the
availability of suppliers and or for the purpose of compiling a list of suppliers that may be used
as a specific pre—conditionfor a future procurement.The receipt of an expression of interest by
the Township does not create any obligation between the potential supplier and the Township.
Request for Supplier Qualification (RFSQ)
A Request for Supplier Qualification (pre-qualification)may be used to confirm a supplier's
ability to provide the necessary expertise and resources to satisfactorily complete the required
work.
Pre-qualifications may be considered in the following circumstances:
I.The work will require substantial project management by the Township and could result
in substantial cost to the Township if the supplier is not appropriately experienced;
I].The work involves complex,mu|ti—disciplinary activities,specialized expertise,
equipment,materials,or financial requirements;
Ill.Miscellaneous goods,repairs,or services as required by the Township such as office
supplies,plumbers,electricians,and drywall contractors;
IV.There could be substantial impact on the Township's operations if the work is not
satisfactorily performed the first time;or
V.Any circumstance as deemed appropriate by the CA0.
Only prequalified suppliers shall be invited to respond to a subsequent Bid document for the
services outlined within the Request for Supplier Qualification.The RFSQprocess can establish
a supplier roster for specific services within a specific time period.
Advertising
All procurement projects valued over $50,000 shall be advertised using electronic advertising
for a minimum of 10 calendar days.Other advertising may be used as appropriate.
The Township shall advertise on a designated electronic Canada-wide single point of access
bidding system.
Sufficient time between posting and the procurement closing time shall be allowed to permit a
bidder to examine the specifications,obtain procurement documents and complete and submit
the bid response.
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The advertisement shall contain the following information:
0 The name of the municipality
0 The type of service,equipment,or project
0 The staff member designated to receive the bids
0 The date and local time bids shall be received until
0 The staff member to whom queries shall be directed
Review of Bid Documents
Bid documents shall be reviewed by staff in accordance with the evaluation criteria contained
in the procurement document.
When a bid is rejected,the reason must be noted and the Bidder shall be advised in writing as
to the reason for rejection of the bid.
The report to Council shall include the rejected bidder(s)and state the reason for the rejection
of the bid.
Identical Bids
if the lowest compliant bids from two or more Bidders are identical in total cost or unit price,an
attempt to obtain a lesser price shall be explored through negotiations and documented
appropriately.
The CAO,or respective Department Head shall not reveal information pertaining to such
negotiations or the manner in which the final price was determined.Staff shall include as part
of the record,a report concerning the results of such negotiations.
if the lowest compliant bids from two or more bidders are identical in total cost or unit price,as
the case may be and negotiations for the purposes of obtaining a lower price have not been
successful,the CA0 or respective Department Head may break the tie in a manner consistent
with the provisions of the Bid Request.If the Bid Request is silent,the CA0 may select a chance
method to break a tie (e.g.coin flip,card cut,etc).
Unresponsive or Excessive Bids
Where Bids are received in response to a Bid Request,but all are in excess of project estimates
or are non-compliant with,or unresponsive to,the Bid Documents the:
a)Department Head in consultation with the CA0,may cancel and reissue a revised
Bid Request;or
b)Department Head,Director of Finance and CAO mayjointly enter negotiations with
the lowest compliant Bidder to achieve an acceptable Bid within the project
estimate.
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When it is necessary to revise,delete,substitute or add to the procurement material for a
contract under call,the CA0 or Department Head shall approve the issuance of an addendum,
an extension of the closing date,a change,or cancellation of competition.
Bid irregularities
A bid irregularity is a variance between the requirements (terms,conditions,specifications,
special instructions)of a bid request and the information provided in a bid response.
For the purposes of this Policy,a submission showing irregularities are classified as "major
irregularities"or "minor irregularities"or "mathematical errors"and defined as follows:
A "major irregularity"is a deviation from the competitive procurement process request that
affects the price,quality,quantity or delivery,and is material to the award.The bidder will be
disqualified from the process.The Township must reject any offer submitted,which contains a
major irregularity.The bidder will be notified of the rejection due to the major irregularity.
A "minor irregularity"is a deviation from the competitive procurement process request,which
affects form,rather than substance.The effect on the price,quality,quantity or delivery is not
material to the award.The bidder will be given the opportunity to adjust the irregularity and
continue in the process.The Township may permit the person to correct a minor irregularity to
make the submission compliant.
A "mathematical error"is a deviation in addition,subtraction,multiplication or division,or a
transposition error which may or may not affect the total price.A mathematical error will be
corrected based on the unit bid price,including sales tax amounts if applicable.Where the
intent of the price,unit or otherwise is unclear,the bid may be declared noncompliant.
The following are examples of irregularities.This is not an exhaustive list:
Bid/Quoteirregularity irregularity Response
Failure to provide bid securities as Major Automatic Rejection
required
Documents in which addenda with Major Automatic Rejection
financial implications have not
been acknowledged
Bids (Quotes)written in pencil Major Automatic Rejection
rather than typed or completed
legibly in ink
Price,mandatory items required Major Automatic Rejection
for evaluation or signature page
are missing from submission
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Restricted or Qualified bids Major/Minor Rejection depends on significance of a
bid restriction or qualification,and
whether Bid Request prohibits
restrictions or qualifications.
Bids containing clerical and/or Minor Rejection unless Bidder provides
arithmetical errors written correction within 24 hours of
notice.
Overwrites,strikethroughs,or Minor Rejection unless Bidder provides
erasures of Biddefs entries written correction within 24 hours of
notice.
Failure to attend mandatory site Major Automatic Rejection
meeting
All other irregularities Major/Minor Depending on the significance of the
irregularity,at the discretion of the
Department Head,in consultation with
the CA0,the bid will either be
automatically rejected,24 hours will be
given to correct and initial,or the bid
may be accepted with the irregularities
With respect of a particular irregularity,the Department Head shall seek the direction ofthe
CAO.Where the Department Head is the CA0,the CA0 shall seek direction of Council.In any
case the Department Head may seek the opinion of the Township's legal Counsel.
Where Only One Bid Received
In the case where only one Bid is received in response to a Bid Request,and the Bid amount is
within the approved Budget and is acceptable to the Department Head,the Department Head
may recommend for approval by the CA0 for the acceptance of the bid.
Where No Bids are Received
in the event where no response is received to a Bid Request,the responsible Department Head
is authorized to offer the contract on an invitational basis,subject to the approval of the CA0.
Withdrawal of Bids
A bidder who has submitted a bid may withdraw the bid through the electronic bidding system
at any time.
The withdrawal of a bid does not disqualify a bidderfrom submitting another bid on the same
competition if such bid is received before the specified closing date and time in the Bid
Request.
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Acceptance of Bid
Following the review of bid responses for a procurement valued over $50,000,the Department
Head shall submit a report and recommendation for contract award to Council for approval.
The report and recommendation for acceptance are not necessarily for the lowest price
submitted,but for the total highest ranking score based on the evaluation criteria outlined in
the procurement document.Reference should be made in the report to budget implications.
Upon Council's approval,the successful Bidder shall be notified that its Bid has been accepted
within 30 Days.Notice of acceptance of Bid may be by telephone or email,or a combination of
both.
Subsequent to Council's approval,the successful bidder will be awarded the procurement and
all bidders will be notified through the bidding system.
Bid Secu rity
The Department Head in consultation with the Finance Department may require that a Bid be
accompanied by a performance bond,a labour and material payment bond,a Tender deposit or
other similar security.
Security requirements,when stipulated within the specifications of a procurement,provide the
appropriate means to guarantee execution and performance of the contract.Means may
include one or more of,but are not limited to,certified cheque,bank draft irrevocable letter of
credit,money order and where appropriate a digital Bid Bond issued by an approved
guaranteed company properly licensed in the province of Ontario,on bond forms acceptable to
the Township before the contractor signs the contract.
Insurance
As part of the Bid Request,the successful Bidder will be required to provide:
0 evidence of insurance coverage satisfactory to the CA0,indemnification of the
Township from any and all claims,demands,losses,costs or damages resulting from the
performance of the Vendor's obligations under the contract and from any other risk
determined by the CA0 as requiring coverage.
0 A certificate of Clearance from the Workplace Safety and insurance Board ensuring all
premiums or levies have been paid by the vendor to the Workplace Safety and
Insurance Board to the date of payment for all contracts with a labor component shall
be provided.
0 An acknowledgment by the vendor of its obligations under the Occupational Health and
Safety Act,and the Township's safety policy satisfactory to the Department Head or
CAO in his or her sole discretion.
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0 Where the Contract contemplates work within the traveled portion of a roadway,an
acknowledgement of its understanding of the Ontario Traffic Manual and agreement to
abide by that manual prior to performing any work within the roadway.
-Evidence of compliance with any other legislation by which the trade or activity is
governed is to be provided.
The successful Bidder must furnish the Township at its cost a ”certified copy ”of a liability
insurance policy covering public liability and property damage for no less than the minimum
amounts required within this Policy and in the bid document to satisfaction of the Township
and in force for the entire contract period.
The insurance coverage shall include:
0 A ”Cross Liability”clause or endorsement.
-An endorsement certifying that The Corporation of The Township of Leeds and the
Thousand Islands and the successful bidder are included as an additional named insured.
-An endorsement to the effect that the policy or policies will not be altered,cancelled,or
allowed to lapse without thirty days prior written notice to the Township
0 Contractor's Liability Insurance Policy shall not contain any exclusions of liability for
damage,etc.to property,building or land.
Action When Successful Bidder Does Not Enter Contract
If the successful bidderfails to enter into a contract or indicates that it will not perform the
contract,Council may authorize that:
-a contract be awarded to another bidder;or
I the procurement be cancelled.
Bidder Debriefings
A bid debrief may be requested in writing to the Department Head.A debriefing session with a
bidder is intended to provide general feedback regarding the proponent’s rating on various
criteria to allow the proponent to understand where future improvements might be available.
When a bidder or supplier provides a written challenge or complaint regarding a procurement
process,the CA0,respective Department Head and Director of Finance will review the matter
with the objective of presenting a solution,recommendation or otherwise resolution to the
issue.
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Cooperative Purchasing
The Township may procure goods and services through procurement vehicles (e.g.standing
offers and supply arrangements)available from federal,provincial,or municipal public sectors,
agencies,or association of municipalities to which the Township has access as an authorized
user,without the need to conduct a separate competitive procurement process.
Council may authorize a Department Head to participate in a joint procurement with other
municipalities.Such procurements should be consistent with this Policy.
Non—Competitive Procurement
In certain circumstances,the Township may not have the ability to go through a competitive
process for its procurement activity.
Single Source
Purchases may be made through a selected supplier,even though there are other suppliers that
provide similar supplies or services in the following circumstances:
0 When it is necessary to ensure compatibility with existing products or to avoid violating
warranty/guarantee requirements when service is required;
0 Where it is necessary to maintain critical ongoing operations in a complex and technical
environment,which would be at risk if vendors were changed from time to time in response
to a competitive process;
-When specialized experience,knowledge or expertise is required;
0 When the total acquisition cost for the first twelve months of a contract is up to $5,000;
0 Temporary staffing or recruitment activities;
0 Resource subscriptions;
0 Membership and association fees;
-Continuing education and training;
-Event participation costs or other event-related costs where the vendor selection is limited
by the venue or host organization;and
I In other special cases authorized by the CA0.
Sole Sou rce
Where there is only one available supplierfor the source of the Goods or Service,a sole source
can occur when the required item is covered by an exclusive right such as a patent,copyright or
exclusive license.
Standardization
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Standardization is the adoption of a single product,service,or support activity to be used by
one department or a number of departments,whereby a particular supplier may be identified
based on technical specifications and sourced to the exclusion of others.This process allows for
a reduction in the number of supplies and services required,maximizes volume buying
opportunities,reduces handling,training,and storage costs.
For non—competitive procurement under single source,sole source or standardization,the
Department Head shall initiate a non-competitive award report including rationale for
requesting non-competitive procurement prior to making a commitment to a supplier or prior
to commencing any work.
Other Non—Competitive Procurement
Other instances where a non—competitive procurement process may happen:
0 Consulting services,where it has been deemed beneficial to the Township to retain a
Consultant on a project where previous involvement in earlier stages of the project may
have ensued and the funds are budgeted.
-When there is a statutory or market-based monopoly on the item,such as utilities.
0 When no bids were received in a competitive process.
0 When competitive sourcing for low value procurement would be uneconomical or would
not attract bids.
-When competitive procurement may be found to be impractical for such items as meal
expenses,incidental travel expenses (e.g.taxi service,phone calls)and training and
education expenses.
0 General corporate expenses such as ongoing hardware and software licensing,debenture
payments,refund payments,vehicle and other licensing costs,bank charges,government
remittances and other statutorily required payments.
0 When by legislation or regulation,the service can be provided only by the following licensed
professionals:medical doctors,dentist,nurses,pharmacists,veterinarians,engineers,[and
surveyors,architects,chartered accountants,lawyers and notaries.
Exclusion of Bidders Due to Poor Performance
The CAO in consultation with the Department Head and /or legal counsel,may prohibit
unsatisfactory suppliers and contractors from bidding on any future competitive bids for a
period of time appropriate with the results of past performance results.Performance
deficiencies may include,but are not limited to,failure to meet contract specifications,terms
and conditions,health and safety violations or exceeding the approved cost.Performance
issues must be noted in any project meeting minutes.Appropriate and sufficient
documentation of unsatisfactory performance ofa supplier or contractor will be completed and
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submitted to the CA0 within 30 days upon completion of the service or good being provided.A
summary of the performance record will be provided to the supplier,contractor or consultant.
Contract Management and Supplier Performance
Once a contract has been signed,the respective Department Head is responsible for all aspects
of the contract management.The following principles must be followed:
I The scope ofeach contract must be appropriately managed to ensure that all
deliverables are properly received,quality control is undertaken,payments are
appropriately made,all timelines are met,and any extension options are properly
exercised.
0 All payments are made in accordance with the contract and for reviewing,coding and
approving supplier invoices in a timely fashion.
0 Scope changes and contract amendments are to be managed prudently when
unforeseen events arise during a project.A supplier must submit a change order request
including rationale,cost,and timing implications.The change must be approved by the
Township and funded within the approved budget.Amendments resulting in an increase
of greater than 10%of the original contract value must be approved by the CA0.
Reporting
The CAO shall report to Council at its next regularly scheduled meeting:
-Any special case authorized by the CA0 to award a contract on a single source basis
0 Any significant issues respecting the administration ofthis Policy and the steps taken or
underway to deal with the matter.
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