05-10
COUNTY OF ELGIN
By-Law No. 05-10
BEING A BY-LAW TO ESTABLISH A POLICY FOR THE PROCUREMENT OF GOODS
AND SERVICES FOR THE CORPORATION OF THE COUNTY OF ELGIN AND TO
01-11 '
REPEAL BY-LAW NO
WHEREAS pursuant to Section 271 (1) of the Municipal Act, 2001, S,O. 2001, c.25,
as amended, a municipality shall adopt policies with respect to its procurement of goods
and services; and
WHEREAS Council did previously pass By-Law No. 01-11 which codified
standardized procedures to ensure fair and equitable practices for the procurement of a
County goods and services and
WHEREAS, pursuant to Section 271 (1) of the Municipal Act, 2001, S.O. 2001, c.25
as amended, it is necessary to establish procurement procedures in accordance with
legislation.
the Municipal Council of the Corporation of the County of Elgin
NOW THEREFORE
enacts as follows
1 THAT the County of Elgin Procurement Policy, attached as Schedule "A", be and is
hereby authorized as the standard to be followed for the procurement of all goods and
services for the County of Elgin
its passing
the same IS hereby repealed
take effect upon
this By-Law shall come Into force and
be and
THAT By-Law No. 01-11
THAT
2
3
March 2005
March 2005
this 22nd day of
this 22nd day of
third time and finally passed
and second time
READ a first
READ a
McDo ,
Chief Administrative Officer
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
SCHEDULE "A"
By-Law No. 05-10
CORPORATION OF THE COUNTY OF ELGIN
PROCUREMENT POLICY
1.0 OBJECTIVE
This policy outlines the processes to be followed in order to obtain the best value when purchasing
goods, or contracting services for the County of Elgin. The guiding principle is that procurement
decisions will be made using a competitive process that is open, honest, fair and impartial.
1.1
The Purchasing Policy will promote and maintain the integrity of the purchasing process and protect
Council, vendors and staff involved in the process by providing clear direction and accountabilities.
The procedures described in this Policy shall be followed to make a contract award or to make a
recommendation of a contract to County Council.
.2
The Council of the Corporation of the County of Elgin recognizes its responsibility for reviewing and
updating the existing Purchasing Policy to ensure compliance with respect to The Municipal Act
2001, Part VI, Section 271, as amended.
1.3
2.0 PURCHASING RESPONSIBILITIES/AUTHORITY
County Council has ultimate authority for all expenditures. Council delegates this authority by the
authorization of budgets or by specific resolution. Payment for any item that has not been authorized
by Council through budget appropriation or specific resolution will not be permitted. This purchasing
policy provides guidelines outlining how spending authority is to be used. Levels of contract
approval authority are also summarized in Appendix "A".
2.
The Director of the Department shall be responsible for approvai of accounts within the approved
budget for their department including any amendments to the budget as approved by Council.
2.2
bids
Prior to Council's approval of the Current Budget a Department may Incur normal operating
expenditures up to 40% of the previous year's Budget. Directors will have the authority to solicit
prior to the approval of Council.
2.3
Resolutions approving budget amendments, capital expenditures or special appropriations shal
contain purpose of expenditure, cost estimates or expenditure limitation, and the fund in which an
appropriation has been provided.
2.4
may appoint a Purchasing Designate to exercise any or al
The Director
this policy.
2.5
responsibilities assigned In
not be considered
The Director of Financial Services may review departmental purchases on an ongoing basis to
review the effectiveness and integrity of the process and policy adherence. This Policy will be
reviewed and revised on a periodic basis. It is anticipated that reviews will be conducted every five
years or more frequently as required.
n-house bids wi
During the public procurement process
2.6
2.7
1
Goods and Services that are not subject to this By-Law are listed in "Appendix B'
For bids valued at $50,000.00 or less, the Director may award a contract provided tha1
Financial Services is in receipt of a Quotation Request Form, the product or service is contained
within the approved budget and the requirements of the Procurement Policy are met.
2.8
2.9
Policy # 2005-01
Approval Date: March 22. 2005
Revision Date:
County of Elgin
Financial Services
Purchasing
i
r
Director's or their designate who choose to exercise this authority are
I
provision of this Policy, the fOllowing contracts are subject to count~
Guidelines/Goals to assist
included in "Appendix E"
Cou nci
Despite any other
approval;
2.10
any contract requiring approval from the Ontario Municipal Board
any contract prescribed by Statute to be made by Council,
where the cost amount proposed for acceptance is 10% greater than the Cou~ty Co unci
approved budget for that expenditure or where the expenditure would resuit inlinsufficient
remaining funds in the project budget to complete the project as budgeted,
where the net revenue amount proposed for acceptance is iower than the County Counci
approved budget; I
where a substantive objection emanating from the bid solicitation has been filed with a
Director; I
where a major irregularity precludes the award of a tender to the supplier SUbrritling the
lowest bid.
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v.
3.0 METHODS OF PROCUREMENT
CO-OPERA TIVEJ'URCHASING
The County shall participate with other government agencies or public authorities in Gø-Operative
Purchasing where it is in the best interest of the County to do so. I
be mJde by
3,1
3.1(1)
3.1(2)
the
in specific Co-Operative Purchasing agreements wi
The decision to participate
Purchasing Co-Ordinator.
ing the co-operative rnder
In deciding to purchase goods or services through the procurement process for the us~ of
itself, its employees or the public, County Council, to the extent possible, shall have regard
accessibility for persons with disabilities to the goods or services. 2001,c32,s.13.
are to
The policies of the government agencies or public authorities cal
be the accepted policy for that particular tender.
3.1(3)
the
to
3.2 THE ONTARIANS WITH DISABILITIES ACT IODA 2001
3.2
3.3 ENVIRONMENTAL CONSIDERATIONS
In order to contribute to waste reduction and to increase the development and awaren~ss of
environmentally sound purchasing, acquisitions of goods and services, specifications will provide for
expanded use of durable products, reusable products and products(including those usbd in services)
that contain the minimum level of post consumer waste and/or maximum level of recydlable content
without significantly affecting the intended use of the product or service. i
3.4 SMALL ORDER PURCHASES IUD to $5.000.001 I
The Director and/or designate shall be authorized to make Small Order Purchases of ¿oods and
services up to an amount of $5,000.00 from such vendor and upon such terms and cohditions as the
Director deems appropriate.
1)
3.4(1
3.3
2
3.5 REQUEST FOR QUOTATION
Informal or Formal Request for Quotation procedures shall be used where:
I. the item is greater than $5,000.00 but not greater than $100,000.00
il. the requirement can be fUlly defined; and,
1)
3.5
Policy # 2005-01
Approval Date: March 22. 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
best value for the County can be achieved by an award selection made on the basis of the
iowest bid that meets specifications.
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50,000.!)0
The Director or designate in consultation with the Director of Financial Services or designate shall be
authorized to make purchases of goods and services for estimated expenditures exceeding
$5,000.00 and less than $50,000.00 from such vendor. Bid documents do not have to be sealed.
Specifications (as applicable) can be issued and quotes can be received bye-mail and/or fax
transmission at the using department location. At least 3 bids must be obtained whenever possible.
reaterthan
Greater thanS5,000.00but not
UOTATION
NFORMAL
3.6(1)
3.6
the
10%
When the preferred Quotation exceeds the approved budget appropriation by more than
Director shali submit a report to Council for direction.
3.6(2)
right to accept or reject any submission
The County reserves the
3.6(3)
10!),000.00
The Director or designate and the Director of Finance or designate shall be authorized to make
Formal Quotation Purchases for goods and services for estimated expenditures exceeding
$50,000.00 and less than $100,000.00. Bid forms to be provided to Bidders in written format and
must close in a formal sealed process. Bids must be submitted to Financial Services at a specified
location. At least three (3) bids must be obtained whenever possible. All bids will close on a
specified weekday at a specified time. Bids must have a submission label detailing project name
and number.
reater than
50,000.00 J~ut not
Greater than
UOTATlON
3.7 FORMAL
3.7(1
The Director shall be responsible to review the quote submission and verify that ali specifications of
the quote are met and that the total submitted price does not exceed the approved budget allocation
for the project
3.7(2)
When the preferred Quotation exceeds the approved budget for a specific project, the Director shal
submit a report to Council for direction.
3.7(3)
right to accept or reject any submission.
The County reserves the
3.7(4)
100,000.!)0
The Director or designate and the Director of Finance or designate shall be authorized to solici
tenders for goods and services for estimated expenditures exceeding $100,000.00 if the item is
specificaliy included within the approved budget. County Council shall award all Tenders.
J.8 REQUEST FOR TENDER (GREATER THAN
3.8(1
Request for Tender procedures shall be used where:
i. the item is greater than $100,000.00;
ii. the requirement can be fully defined; and,
iii best value for the County can be achieved by an award selection made on the basis of the
iowest bid that meets specifications
3.8(2)
Tender forms are to be provided to Bidders in written format and must close in a formal sealed
process. Tenders must be submitted to Financial Services at a specified location. At least three (3)
tenders must be obtained whenever possible. All tenders wili close on a specified weekday at a
specified time. Bids must have a submission label detailing project name and number.
3.8(3)
The Director shall be responsible to review the tender submission and verify that all specifications of
the tender are met and that the totai subm itted price does not exceed the approved budget allocation
for the project.
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3.8(4)
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
The Financial Services Department shall be responsible for arranging for the public opening of the
Tender Bids at the time and date specified by the tender call. There shail be in attendance at that
time a minimum of:
i. The Director of Financial Services or designate
ii. The Director of the issuing department or designate
3.8(5)
The Financial Services Department shall forward to the issuing Department a summary of the bids
subject to review by the Director.
3.8(6)
right to accept or reject any subm ission
The County reserves the
3.8(7)
3.9, REQUESTS FOR PROPOSALS
The Request for Proposal procedure shall be used in place of a Tender or Quotation when
i. The requirement is best described in a general performance specification;
ii. Innovative solutions are sought;
iii Estimated expenditures not exceeding $50,000.00, the evaluation criteria and process shal
be approved by the Director prior to issuance of the Request for Proposal;
Expenditure exceeding $50,000.00, the evaluation criteria and process shall be approved
by Council resolution prior to the issuance of the Request for Proposal;
To achieve best value, the award selection will be made on an evaluated point per item or
other method involving a combination of mandatory and desirable requirements;
The Request for Proposal method of purchase is a competitive method of purchase that may
or may not include Vendor pre-qualification;
A Request for Information or Request for Expression of Interest may be issued in advance of
a proposal to assist in the development of a more definitive set of terms and conditions,
scope of work/service and the seiection of qualified Vendors:
Where the requirement is not straightforward or an excessive workload would be required to
evaiuate proposals, either due to their compiexity, length, number of any combination
thereof, a procedure may be used that would include a pre-qualification phase;
The Financial Services Department shall maintain a list of suggested evaluation criteria for
assistance in formulating an evaluation scheme using a Request for Proposal. This may
include factors such as qualifications and experience strategy, approach, methodology,
scheduling and past performance, facilities equipment, and pricing;
Directors shall provide the Financial Services Department with a request in writing containing
the budget authorization, terms of reference and evaiuation criteria to be applied in
assessing the proposals submitted;
A Selection Committee, composed of a minimum of one representative from the Department
and the Director of Financial Services or designate shall review ali proposals against the
established criteria, reach consensus on the final rating results, and ensure that the final
rating results, with supporting documents, are kept in the procurement file.
During the proposal process all communication with bidders shall be through the Financial
Services Department.
Financial Services Department shall forward to the Director an evaluation summary of the
procurement, as well as the Committee's recommendation for award of contract to the
suppiier meeting all mandatory requirements and providing best value as stipulated in the
Request for Proposal. Where the lowest bid is not accepted, the Director of the Department
is responsible for documenting the determination of best value, in a confidential report to the
Management Team prior to award of contract;
Reporting will not include summaries of bids, as this information will remain confidential.
Any disclosure of information shall be made by the appropriate officer in accordance with
provisions of the Municipal Freedom of Information and Protection of Privacy Act, R.S.O.)
1990, Section 10;
Unsuccessful proponents may, upon request
4
the
attend a debriefing session
xiv.
xv.
iv.
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v.
x.
vi
vi
vi
xi
xi
xi
3.9(1
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
as required with the Director of Financial Services or designate as well as the Director to
review their bid submission. Discussions relating to any bid submissions other than that of
the proponent present will be strictly prohibited;
The County reserves the right to accept or reject any submissions
xvi
BLANKET CONTRACT PURCHASES
A Blanket Order may be used where:
i. one or more departments repetitively order the same goods or services and
demand is not known in advance;
a need is anticipated for a range of goods and services for a specific purpose, but the actual
demand is not known at the outset, and delivery is to be made when a requirement arises.
The Purchasing Co-Ordinator shall establish and maintain Blanket Order Contracts that
define source and price where available with selected suppliers for all frequently used goods
or services;
Blanket Orders may be issued as the result of a bid process such as Request for Quotation,
Request for Tender, Request for Proposal and from Co-operative Purchasing consortium.
To establish prices and select sources, the Director in consultation with the Purchasing Co-
Ordinator shall employ the provisions contained in this Policy for the acquisition of goods,
services and construction;
More than one supplier may be selected where it is in the best interest of the County and the
bid solicitation allows for more than one;
Where purchasing action is initiated by a department for frequently used goods or services, it
is to be made with the supplier or suppliers listed in the Blanket Order Contract;
In a Request for Blanket Order, the expected quantity of the specified goods or services to
be purchased over the time period of the agreement will be as accurate an estimate as
practical and be based, to the extent possibie, on previous usage adjusted for any known
factors that may change said usage.
Blanket Orders shall be issued for a specific time period with ali ordering departments
responsible for maintaining purchases within budget allocations.
the actual
iv.
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v.
vi
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(1)
3.10
3.10
t
SINGLE/SOLE SOURCING
In circumstances where there may be more than one source of supply in the
open market, but only one of these is recommended for consideration on the grounds that
is more cost effective or beneficial to the County and where the expenditure wiii exceed
$25,000.00, approval must be obtained from the Senior Management Team and County
Council prior to negotiations with the single source. The Director or designate shall be
responsible for submitting a report detailing the rationale supporting the use of the single
source.
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3.11
3.11(1)
If the Director requires goods, services or equipment deemed to be available from only one
source of supply, and where the expenditure will exceed $25,000.00, the Director shall
initiate a report to County Council requesting that the tendering procedure be waived and
that the Director in consultation with the Director of Financial Services or the Chief
Administrative Officer be authorized to negotiate with the sole source supplier.
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an employee while
personal property
safety of an official or
real or
$,12 PROCUREMENT IN EMERGENCIES
"Emergency" includes:
an imminent or actual danger
acting on the County's behalf;
an imminent or actual danger of injury to or destruction of
belonging to the County;
an unexpected interruption of an essential public service;
health or
ife,
the
to
An
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3.12(1
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
Chapter E.9 and the
R.S.O
an emergency as defined by the Emergency Plans Act,
emergency plan formulated thereunder by the County;
a spill of a pOllutant as contemplated by Part X of the Environmental Protection Act,
1990, Chapter E. 19 and,
mandate of a non-compliance order.
990,
1
R.S.O
iv.
v.
vi
(2) This method of purchasing may be used when the circumstances warrant immediate action or when
health and safety or the public interest are in jeopardy, and where this method of purchasing would
result in an over-expenditure or a non-budgeted expenditure of $2,500.00 or more. The Director
must consult with the Warden or designate for approval prior to making an emergency purchase and
must be reported to Council at the next scheduled meeting.
3.12
Unless otherwise provided in accordance with the Purchasing By-Law and this Policy, goods and
services may be purchased using the Direct Negotiation method only if one or more of the fOllowing
conditions apply;
i. the required goods and services are reasonably available from only one source (also known
as single source), by reason of the scarcity of supply in the market or the existence of
exclusive rights held by any supplier or the need for compatibility with goods and services
previously acquired and there are no reasonable alternatives or substitutes;
The required goods and services will be additional to similar goods and services being
supplied under an existing contract (i.e. contract extension or renewal);
An attempt to purchase the required goods and services has been made in good faith using
a method other than Direct Negotiation within this policy which has failed to identify a
successful supplier and it is not reasonable or desirable that a further attempt to purchase
the goods and services be made using a method other than Direct Negotiation;
The goods and services are required as a result of an emergency, which would not
reasonably permit the use of a method other than Direct Negotiation;
The required goods and services are to be supplied by a particular vendor or supplier having
special knowledge, skills, expertise or experience.
3.13 DIRECT NEGOTIATIQN
3.13(1)
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an annual basis must be
over
v.
3(2) Any expenditure exceeding $50,000.00 for a one-time purchase or
reported to Council.
3.
3.14 LEASING
The Council of the County of Elgin may enter into a ieasing agreement in accordance with the
Municipal Act, 2001, OReg,46/94,O.Reg. 266/02.
(1)
3.14
3.14 (2) In certain circumstances, it may be economically advisable for the County to enter into a Financing
Lease to acquire the right to use capital property and equipment rather than an outright purchase.
3.14 (3) Leasing is approved as an acceptable means to acquire municipal capital facilities when one or
more of the following conditions (goals) are met:
i. The municipal capital facility cannot be purchased;
ii. The lease arrangement provide financially attractive interest rates over the entire life of the
lease;
iii. The risk of obsolescence on the leased asset rests with the lessor;
iv. The leased asset has a high purchase value and is not required on an ongoing basis
v. Short term revenues versus capital needs
6
3.14 (4)A by-law is required for all lease agreements with the exception of leases made in emergency
situations. These leases will be reported to Council at the first available opportunity. A bylaw is not
required for leases that are short term in nature of 120 days or less.
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
report to Council outlining al
(5) Once each fiscal year the Director of Financial Services shall provide a
current leasing arrangements
3.14
4.0 DISPUTE RESOLUTION
resolved as follows:
Disputes shall be
4.1
the Director of the Department and the Purchasing
Meeting between the bidder,
Co-Ordinator,
If (I) does not
Services and
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of Financial
lead to a resolution, the decision can be appealed to the Director
the Chief Administrative Officer,
5.0 EXCEPTIONS
A Department may request exemption from any or all the purchasing methods outlined in this policy
by submission of a report requesting the same to County Council. Such one time exemption may be
granted by resolution.
5.1
GIJARANTEES OF CONTRACT EXECUTION AND PERFORMANCE
For all tenders valued at over $100,000, the following guarantees, bonds, certificates and insurance
must form part of the contract unless other securities are deemed appropriate as determined by the
Director.
6.0
6.1
(WSIB)
Bid Bond or
Insurance
Certificate of Clearance from the Workplace Safety and Insurance Board
Performance Bond valued at 100% of the amount of the Tender bid.
Labour and Materials Bond valued at 100% of the amount of the Tender
Bid Deposit (Certified Cheque)
1)
2)
3)
4)
5)
bid
In addition to these requirements, the Director shall select additional appropriate means to guarantee
execution and performance of the contract. Means may include one or more of, but are not limited
to, financial bonds, letters of credit, agreement to bond or other forms of security deposits, provisions
for liquidated damages, progress payments and hold backs. Only those able to bind the Corporation
are authorized to execute the agreements/contracts.
6.2
Contracts valued at less than $100,000 may include guarantees at the discretion of the Director.
6.3
amount shall be as specified in the following table:
Total Tender Amount Bid Deposit
Reauired
$100,000.01 to $250,000.00 $10,000.00
$250,000.01 to $500,000.00 $20,000.00
$500,000.01 to $1,000,000.00 $40,000.00
$1,000,000.01 to $2,000,000.00 $75,000.00
$2,000,000.01 and Over $150,000.00
Bid Deposit
The Bid Bond or
6.4
7
Financial Services is authorized to cash and deposit any bid deposit cheques in the County's
possession which are forfeited as a result of non-compliance with the terms, conditions and/or
specifications of a sealed bid.
6.5
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
NSURANCE
The standard insurance minimums are as foliows
$2 million - commercial general liability policy
$2 million - for each occurrence for bOdily injury and property damage
$2 million - automobile liability policy
$2 million - homeowners(e.g. for rental of facilities)
$5 million - commercial general liability and automobile liability policies - for contracts exceeding
$100,000.00
$5 million - for each occurrence for bodily injury and property damage for contracts exceeding
$100,000.00
$1 million - professional errors and omissions
Builder's Risk - the amount of the project cost
liability
1)
7.0
7.1
requirements to be provided by the successfu
Bid documents must clearly indicate insurance
bidder's insurance company.
(2)
7.
Prior to commencement of work and where 'deemed appropriate, evidence of Insurance Coverage
satisfactory to the Director, must be obtained ensuring indemnification of the County of Elgin from
any and all claims, demands, losses, costs or damages resulting from the performance of a
supplier's obligations under the contract.
7.2
The successful bidder must furnish the County at his/her cost a "certified copy" of a liability insurance
policy covering public liability and property damage for no less than the minimum amounts stated in
7.1 (1) to the satisfaction of the County and in force for the entire contract period. The policy must
contain:
(1
7.3
the successful
a "Cross Liability" clause or endorsement;
an endorsement certifying that The Corporation of the County of Elgin and
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 Elgin County.
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Contractor's Liability Insurance Policy shali not contain any exclusions of
property, building or land arising from:
i. the removal or weakening of support of any property, building or
be natural or otherwise;
the use of explosives for blasting;
the vibration from pile driving or caisson work,
such loss or damage shall be $5,000,000.00.
liability for damage, etc. to
7.3 (2)
land whether such support
for any
the minimum coverage
that
provided
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8.0 EXCLUSION OF BIDDERS
EXCLUSION OF BIDDERS IN LlTIGATlQN
The County may, in its absolute discretion, reject a Tender or Proposal submitted by the bidder if the
bidder, or any officer or director of the bidder is or has been engaged, either directly or indirectly
through another corporation, in a legal action against the County, its elected or appointed officers
and employees in relation to:
i. any other contract or services; or
ii. any matter arising from the County's exercise of its powers, duties, or functions
8.1
8.1(1)
In determining whether or not to reject a quotation, tender or proposal under this clause, the County
will consider whether the litigation is likely to affect the bidder's ability to work with the County, its
consultants and representatives, and whether the County's experience with the bidder indicates that
8
8.1(2
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
is
t
ncreased staff and legal costs In the administration of the contract if
the County is likely to incur
awarded to the bidder.
8.2 EXCLUSION OF BIDDERS DUE TO POOR PERFORMANCE
The Director shall document evidence and advise Financial Services in writing where the
performance of a supplier has been unsatisfactory in terms of failure to meet contract specifications
terms and conditions or for Health and Safety violations. The Financial Services Department shall
centralize the information for future reference.
8.2(1)
an
The Director of Financial Services may, in consultation with the County Solicitor, prohibit
unsatisfactory supplier from bidding on future contracts for a period of up to three years
8.2(2)
9.0 RECEIPT OF GOODS
The Director or designate shall,
i. arrange for prompt inspection of goods on receipt to confirm conformance with the terms of
the contract, and
inform the Purchasing Co-Ordinator
9.
any discrepancies
immediately of
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10.0 REPORTING TO SENIOR MANAGEMENT TEAM AND COUNTY J;OUNCIL
The Director of Financial Services or designate shall submit to the Senior Management Team and
County Council an information report (semi-annually) containing the detaiis relevant to the exercise
of delegated authority for all contracts awarded that exceed $5,000.00 including amendments and
renewals. The Director of Financial Services shall certify in the report that the awards are in
compliance with the Purchasing Policy.
10.
ACCESS TO INFORMATION
The disclosure of information received relevant to the issue of bid solicitations or the award of
contracts emanating from bid solicitations shall be made by the appropriate officers in accordance
with the provisions of the Municipal Freedom of Information and Privacy Act., R.S.O. 1990, as
amended.
11.0
11.1
AIi records and information pertaining to tenders, proposals and other sealed 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. prejudice significantly the competitive position or Interfere significantly with the contractual or
other negotiations of a person, group of persons, or organizations;
result in similar information no longer being supplied to the County where it is in
interest that similar information continue to be so supplied;
result in undue loss or gain to any person, group, committee or financial
the public
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11.2
institution or
reasonably be expected to be Injurious to the
agency; or
result in information whose disclosure could
financial interests of the County.
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circulation of
to exceed $50,000.00
newspapers having a minimum
ADVERTISING
Advertising for Quotations, Tenders or Proposals estimated
excluding taxes and freight shall be placed in all local
4000.
12.0
12.1(1)
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
In compliance with trade laws, purchases in excess of $50,000.00 shall also be posted on the
County web site to ensure access to all vendors across Canada. Bid documents of a lesser amount
may also be posted on the County web site.
12.1(2)
Contracts estimated to exceed $100,000 in value may also be advertised in the London Free Press
and/or a trade paper at the discretion of the Director.
12.2
13.0 RETENTION OF DOCUMENTATION
13.1 (1) All background information, information submitted by vendors, and any other relevant information
involved in obtaining prices for goods and services shall be retained for the entire budget year and
six (6) years in records retention.
10
All background information, information submitted by successful vendor, resulting in a contract or
agreement shall be retained for a minimum of twenty (20) years in record retention.
(2)
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
APPENDIX A
LEVELS OF ,CONTRACT APPROVAL AUTHORITY
Note: Sales taxes, excise taxes, goods and service taxes and duties shall be exciuded in determining the
price of a contract for the supply of goods or services for the purpose of the relationship of the price to the
pre-authorized expenditure limit.
refer to
shal
imit
the pre-authorized expenditure
In the case of multi-year supply and/or service contracts
the estimated annual expenditure under the contract.
No report to
Council required
Purchases made
from the
competitive
market place.
formal quotes required
Director.
No Report to
Council required
if within 10% of
the approved
budç¡et allocation
No Report to
Council required
if within approved
budget.
3 written quotes
to be obtained.
Director.
Informal Quotations (3 quotes
required - written) or Direct
negotiation as a result of Single
or Sole Source.
Advertised in
Local paper and
on Couhty web
site.
Director and Director
of Financial Services
Formai Quotations (3 written
quotes required)
Bequest for Tender
Report to Counci
No Report to
Council required
if within approved
budget allocation.
Advertised on
web site, iocal
paper, may
advertise in
regional and/or
trade paper.
Advertise on web
site, may
advertise in local
and/or regional,
and/or trade
paper.
County Counci
Director and Director
of Financial Services.
The evaiuation criteria
and process shall be
approved by the
Director prior to
issuance of the
Request for Pro!
County Counci
I.
to Counci
11
Repor
Advertise on web
site, local paper
and regionai,
and/or trade
paper.
osal
Request for Proposa
In place of a Tender or
Quotation when goods and
services cannot be specifically
stipulated or when alternative
methods are being sought to
perform certain functions or
services.
Request for Proposal
The evaluation criteria and
process shall be approved by
Council resolution prior to the
issuance of the Request for
Proposal. When the preferred
proposal i) Exceeds the
approved budget appropriation
and/or ii) exceeds $50,000.00,
the Director shall submit a report
to Council for direction.
Greater
than $5,000
but less
than
$50,000
Greater
than
$50,000 but
less than
$100,000
Greater
than
$100,000
Less than
$50,000
Greater
than
$50,000
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
APPENDIX B
GOQDS AND SERVICES NOT SUBJECTTO THIS POLICY
Petty Cash Items
1
Training and Education including:
Conferences
Courses
Conventions
Magazi nes
Memberships
Periodicals
Seminars
Staff Development
Staff Workshops
Staff Relations
i.
ii.
iii
iv.
v.
vi.
vii
vii
ix.
x.
2.
Refundable Employee Expenses including
Cash Advances
Meal Allowances
Travel Expenses
Accommodation
i.
ii.
iii
iv.
3.
Employer's General Expenses Including:
Payroll Deduction Remittances
Medicals
Insurance Premiums
Tax Remittances
i
ii.
iii
iv.
4.
Licenses, certificates
5.
existing computer hardware and software.
Professional and skilled services provided to individuals as part of approved programs within the
Corporation including but not limited to medical services, counseling services.
Ongoing maintenance for
6.
7.
Consulting Services (up to $100,000) where a previously retained firm has provided similar services
or has an intimate knowledge of the project and it would be beneficial to have that same firm provide
new or extended services.
8.
Sale of Land and Appraisai of
12
Demolition,
Professional and Special Services up to $100,000 including:
Additional non-recurring Accounting and Auditing Services
Legal Services
Banking Services where covered by agreements
Public Debenture Sales
Group Benefits
Realty Services regarding
Land.
Acquisition
the Lease,
Other
i.
ii.
iii.
iv.
v.
vi
9.
Policy # 2005-01
Approval Date: March 22. 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
APPENDIX "c"
RREGULARITIES CONTAINED IN BIDS
returned
illti
Automatic rejection, no'
unopened to the bidder.
Automatic Relection
Automatic Rejection
Automatic Rejection.
May be rejected as informal
Automatic Rejection.
Automatic Rejection.
Automatic Rejection.
Automatic Rejection.
Automatic Rejection.
Automatic Rejection
or
Depos it
(No Bid
Failure to include signature of the person
authorized to bind the Tenderer in the space
provided in the Form of Tender.
Conditions placed by the Tenderer on the Total
Contract Price.
Bids Containing Minor
13
If the amount tendered for a unit price item does
not agree with the extension of the estimated
quantity and the tendered unit price, or if the
extension has not been made, the unit price shal
govern and the total price shall be corrected
accordingly.
If both the unit price and the total price are left
blank, then both shall be considered as zero.
If the unit price is left blank but a total price is
shown for the item, the unit price shall be
established by dividing the total price by the
estimated quantity.
If the total price is left blank for a lump sum item, i
shall be considered zero.
If the Tender contains an error in addition and/or
subtraction and/or transcription in the approved
tender documentation format reauested (I.e. not
the additionai supportina documentation supplied)
the error shall be corrected and the corrected total
contract price shall govern.
Tenders containing prices which appear to be so
unbalanced as to likely affect the interest of the
County adversely may be rejected.
a)
b)
c)
d)
e)
f)
Unsealed Envelopes
Insufficient Financial Security
Insufficient Bid Deposit)
Failure to insert the name of the Bonding Company
in the space provided in the Form of Tender.
Incomplete, illegibie or obscure bids or bids which
contain additions not called for, erasures,
alterations, errors or irreÇJularities of any kind.
Documents, in which all necessary Addenda have
not been acknowledÇJed.
Failure to attend mandatory site visit.
Bids received on documents other than those
provided by the County of EIÇJin.
Failure to insert the Tenderer's business name in
one of the two spaces provided in the Form of
Tender.
Errors
Mathematical
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
APPENDIX "D'
DEFINITIONS
In this policy, unless a contrary Intention appears:
"Agreement" means a formal written legal agreement or contract for the supply of goods
services, equipment or construction;
"Blanket Order" shall mean the agreement wherein a vendor will sell certain items to the County
for an agreed period of time with established terms and conditions
request for the
response to a
"Bid" shall mean a submission from a prospective vendor in
purchase of goods or services issued by the County;
wi
financial guarantee to ensure the successful bidder
"Bid Deposit" shall mean a
agreement;
into an
enter
"Contract" means any formal or deliberate written agreement for the purchase of goods
services, equipment or construction
which outlines the terms and conditions of the agreement;
Record" is a document
"Contract
Elgin
"Declaration Respecting Workers' Compensation Act, R.S.O. 1990/Corporation Tax Act'
"Certificate of Clearance" means a declaration that a bidder has paid all assessments or
compensation payable and has otherwise complied with all requirements of the Workplace
Safety and Insurance Board and that the bidder has paid all taxes and/or penalties imposed
on it pursuant to the Corporation Tax Act, R.S.O. 1990;
the Municipal Council of the Corporation of the County of
shall mean
"Counci
"Director" refers to a head of a department operating within the County of Elgin being
responsible for: Administrative Services, Library Services, Financial Services, Engineering
Services, Information Technology, Terrace Lodge, Elgin Manor, Bobier Villa, Human
Resources;
"Emergency" means an occurrence resulting from an unforeseen action or consequence of an
unforeseen event, (trigger event)which must be remedied on a time sensitive basis to avoid
a material financial risk, serious delays, injury, further damage or to restore or maintain
services;
"Executed Agreement" means a form of agreement, either incorporated in the bid documents or
prepared by the County, to be executed by the successful bidder and the County;
required to be
"Goods and Services" includes supplies, materials and equipment of every kind
used to carry out the operations of a department;
"In-House Bids" also known as "Managed Bids" shall mean that during the Public Procurement
Process, an agency within the Corporation of the County of Elgin is not permitted to submit a
bid.
Insurance Documents" shall mean certified documents issued by an insurance company
licensed to operate by the Government of Canada or the Province of Ontario certifying that
the bidder is insured in accordance with the County's insurance requirements as contained
in the bid documents;
14
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
rregularities Contained in Bids" is defined in Appendix C and include the appropriate
response to those irregularities;
"Labour and Material Bond" means a bond issued by a surety company on the County of Elgin
standard Form of Bond to ensure that the contractor will pay his or her suppliers and thereby
protects the Corporation against items which might be granted to a supplier should the
contractor not make proper payments
if
Letter of Agreement to Bond" means a letter or other form issued by a bonding agency
licensed to operate by the Government of Canada or the Province of Ontario advising that
the bidder is successful the bonding agency will issue the required bonds
requirements and
"Lowest Acceptable Bid" means the lowest price submitted which meets the
specifications as set out in the bid request, minor deviations excepted;
recurring nature and
"Normal Operating Expenditure" means expenditure of an operational
does not include one-time special or Capital expenditure;
"Performance Bond" means a bond issued by a surety company on the County of Elgin standard
Form of Bond executed in connection with a contract and which secures the performance
and fuifillment of the undertakings, covenants, terms, conditions and agreements contained
in the contracts
rental. iease or trade;
Professional Service Supplier" means a supplier of services requiring professional skills for a
defined service requirement including,
i. Architects, auditors, engineers, designers, management and financiai
ii. Firms or individuals having specialized competence in environmental,
other disciplines;
Information Technology
consultants;
planning or
"Purchase" means to acquire by purchase
HProcure" "Procurement'
i
Purchasing Designate or Delegate" means a person authorized by the Director to execute the
purchase of goods and services
n an approved format and duly authorize
"Quotation Summary Form" means a written request
to obtain goods and services
"Quotation" means a request for prices on specific goods and/or services from selected vendors
which are submitted verbaliy, in writing or transmitted by facsimile as specified in the
Request for Quotation
Request for ExpresSion of Interest" is a focused market research tool used to determine
vendor interest in a proposed procurement. It may be issued simultaneously with a Request
for Qualifications when the proposed procurement is well defined and the purchaser has
clear expectations for the procurement;
"Request for Information" is used prior to issuing a tender call as a general market research tool
to determine what products and services are available, scope out business requirements,
and/or estimate project costs;
"Request for Proposal" means a process where a need is identified, but the method by which it
will be achieved is unknown at the outset. This process allows vendors to propose solutions
or methods to arrive at the desired result;
15
tender or
of a quotation
received as a par
"Sealed Bid" means a formal sealed response
proposal
March 22, 2005
Policy # 2005-01
Approval Date:
Revision Date:
Purchasing
County of Elgin
Financial Services
"Single Source" means there is more than one source in the open market but only for reasons of
function or service one vendor is recommended for consideration of the particular goods
and/or services
goods and services;
means any individual or organization providing goods or services to the County of
including but not limited to contractors, consultants, vendors, service organizations
supply of particular
means there is only one source of
"Sole Source"
"Supplier"
Elgin
etc.;
"Tender" means a sealed bid which contains an offer in writing to execute some specified
services, or to supply certain specified goods, at a certain price, in response to a publicly
advertised request for bids;
16
"Value Analysis" typically refers to a life cycle costing approach to valuing a given alternative,
which calculates the long-term expected impacts of implementing the particular option.
Policy # 2005-01
Approval Date: March 22, 2005
Revision Date:
Purchasing
County of Elgin
Financial Services
APPENDIX "E'
Guidelines for the Execution of Purchases
These guidelines are provided to assist the Director and/or designate should they choose to exercise
their authority to purchase goods or services. Guidelines are organized by objective as follows:
Obiective 1: Comorate Efficienc'
Purchases under this authority must be for unique Departmental requirements, and therefore not
duplicated in other Departments, such that Corporate purchasing power or standardization is not a
factor in costing. Requirements cannot be split in order to qualify for this process.
Obiective 2: ComDetitive Process
A competitive process is undertaken whereby a minimum of 3 bids is obtained, and the lowest
compliant bid is awarded the contract. Care must be taken as to how bids are sought, bidder lists
are maintained and how competition is encouraged. Although a minimum of 3 bids is required, an
open process without a minimum number of bids will be more competitive, and is encouraged.
Obiective 3: ODen Process
Departmental needs are communicated to bidders, who are able to bid on goods or services they are
qualified to provide. There should be no limitation of bids to an established listing.
Obiective 4: TransDarent Process
The process is undertaken based on clear definition of the product or service requirement, and a
clear outline of the review and criteria to be undertaken. The decision to choose the low bidder wi
be based solely on the requirements as documented, the bidder document, and the application of
the review criteria. The same decision should be arrived at each time given the same set of facts,
which will facilitate the dispute resolution process.
Obiective 5: Fair Process
The process will be fair, such that no action is undertaken by the County staff to allow any given
bidder an unfair advantage. This does not however, require County action to ensure that existing
conditions are changed to ensure that any conversion costs from an incumbent to another supplier
are ignored in an evaluation - it is in the best interest of the County to ensure that such "leveling of
the playing field" is not required.
Obiective 6: Insurance and Risk Manaaement
A Liability Insurance Form and WSIB Certificates of Clearance may be submitted as deemed
appropriate at the commencement of the project and periodically as the work is completed. The
Director may choose to request Performance and Labour and Material Bonds for informal quotations
if it is believed to serve the County's best interest.
Obiective 7: Authorization for Pavment
Quotation Summary Form must be completed. ensuring that the appropriate account has sufficient
funds to pay for the contract.
Obiective 8: ReDortina of Items Conducted under Deleaated Authorit
The Director of Finance shall produce a report of all purchases in excess of $5,000 carried out under
this authority, in a semi-annual reporting of contracts to Council.
Obiective 9: Standardization
In order to assist in cross training, enable multiple bidders to understand the process requirements
and ensure that legal and insurance risks are controlled, standard formats will be used for Requests
for Quotations. These forms will be updated by Financial Services as appropriate
17