20-07 Adopt a Policy Procurement of Goods and Services March 10, 2020COUNTY OF ELGIN
By -Law No. 20-07
"BEING A BY-LAW TO ADOPT A POLICY FOR THE PROCUREMENT OF GOODS
AND SERVICES FOR THE CORPORATION OF THE COUNTY OF ELGIN AND TO
REPEAL BY-LAW NO. 13-19"
WHEREAS pursuant to Section 270(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. 13-19 which standardized
procedures to ensure fair and equitable practices for the procurement of all County
goods and services; and,
WHEREAS, pursuant to Section 270(1) of the Municipal Act, 2001, S.O. 2001, c.25, as
amended, it is necessary to amend Elgin County's procurement procedures in
accordance with legislation.
NOW THEREFORE the Municipal Council of the Corporation of the County of Elgin
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.
2. THAT By -Law No. 13-19 be repealed.
3. THAT this By -Law shall come into force and take effect upon its passing.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 10th DAY
OF MARCH 2O20.
z
Julie Gonyou, Dave Vennill,
hief Administrative Officer. Warden.
Corporation of the County of Elgin
Procurement Policy
SCHEDULE A
By -Law No. 20-07
PROCUREMENT POLICY
1.0 OBJECTIVE
By -Law No. 20-07
1.1 This Procurement 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.
1.2 The Procurement Policy will promote and maintain the integrity of the purchasing process and protect
Council, Suppliers 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 to County Council.
1.3 The Council of the Corporation of the County of Elgin recognizes its responsibility for reviewing and
updating the existing Procurement Policy to ensure compliance with respect to the Municipal Act,
2001, Part VI, Section 270, as amended.
2.0 DEFINITIONS
In this policy, unless a contrary intention appears, the following definitions apply:
"Agreement" means a formal written legal agreement or contract for the supply of goods, services,
equipment or construction.
"Authority" means the legal right to conduct the tasks outlined in this policy as directed by Council and
delegated through the County's Director of Financial Services to the Purchasing Coordinator.
"Blanket Order" shall mean the agreement wherein a Supplier will sell certain items to the County for
an agreed period of time with established terms and conditions.
"Bid" shall mean a submission from a prospective Supplier in response to a request for the purchase of
goods or services issued by the County.
"Bidder" means supplier or contractor from whom the County has received a Tender or Quotation,
that is subject to acceptance or rejection.
"Bid Irregularity" means a deviation between the requirements of the Bid and the information
provided or received in a Bid response.
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Corporation of the County of Elgin
Procurement Policy
By -Law No. 20-07
"Consultant" means the person or firm, who by virtue of a particular expertise is selected by the
County to undertake a specific task or assignment that may include designing specifications and
preparing plans or programs.
"Contract" or "contract" means a commitment for the purchase and supply of Goods and Services
evidenced in writing by an Agreement or other documentation appropriate to the transaction and
duly authorized on behalf of the County in accordance with this Policy.
"Contractor" means a person or company that agrees to conduct work for the County as specified
under the terms of a contract.
"County" or "Corporation" means the Corporation of the County of Elgin, and, for purposes of this
Procurement Policy includes its User Departments.
"Cooperative Purchasing" means the participation of two or more public agencies in a Request for
Quotation, Tender or Proposal call.
"Council" shall mean the elected Municipal Council of the Corporation of the County of Elgin.
"Designate" means a person authorized by the Directorto act on their behalf for the purposes of this
policy.
"Director" refers to a head of a County User Department operating within the County of Elgin.
"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 specifically by or on behalf of the County, to be executed by the Supplier and the County.
"Expression of Interest" means a submission in response to a Request for Expression of Interest (RFEI).
"Goods and Services" includes supplies, materials, equipment, property and contracts for construction,
maintenance, service or consulting and professional services.
"In -House Bids" also known as "Managed Bids" shall mean that during the Public Procurement Process,
an agency within 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 Supplier is
insured in accordance with the County's insurance requirements as contained in the bid documents.
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Corporation of the County of Elgin
Procurement Policy
By -Law No. 20-07
"Irregularities Contained in Bids" include but are not necessarily limited to those items identified in
Appendix C hereto and further include the associated consequence specified therein.
"Labour and Material Bond" means a bond issued by a surety company executed in connection with a
contract to ensure that the contractor will pay their suppliers and thereby protects the County
against claims which might be pursued by a supplierto the contractor should the contractor not
make proper payments.
"Normal Operating Expenditure" means expenditure of an operational recurring nature and does not
include one-time special or capital expenditure.
"Performance Bond" means a bond issued by a surety company executed in connection with a
contract and which secures the performance and fulfillment of the undertakings, covenants, terms,
conditions and obligations contained in an agreement with the County.
"Performance Security" shall mean a financial guarantee to ensure the successful Bidder will enter into
an agreement.
"Procurement" or "Purchase" means to acquire by purchase, rental, lease or trade.
"Proponent" means supplier, consultant or service provider from whom the County has received a
formal Proposal, in response to a publicly advertised Request for Proposal, that is subject to
acceptance or rejection.
"Proposal" means a submission to provide specified services, or to provide certain goods, which
contains pricing and options, in response to a Request for Proposal.
"Purchase Order" means the purchasing document used to formalize a purchasing transaction with a
Supplier.
"Purchasing Coordinator" means a person responsible for administering and coordinating the
purchasing function at the County.
"Request for Quotation" or "RFC" means a competitive request for prices on specific goods and/or
services from Suppliers which are submitted as specified in the Request for Quotation.
"Request for Expression of Interest" or "RFEI" means a public request made by the County seeking
responses from potential Suppliers for the purposes of compiling a list of Suppliers who may be
interested in providing Goods and/or Services to the County from time to time.
"Request for Information" is used as a general market research tool to determine what products and
services are available, scope -out business requirements, and/or estimate project costs.
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Corporation of the County of Elgin
Procurement Policy
By -Law No. 20-07
"Request for Pre -Qualification" or "RFPQ" is a procurement process used to prequalify potential
Suppliers in which factors such as financial capability, experience, and reputation are considered in
order to develop a list of qualified Suppliers for subsequent participation in an invitational bid
opportunity.
"Request for Proposal" or "RFP" means a competitive process where a need is identified, but the
method by which it will be achieved is unknown at the outset. This process allows Proponents to
propose solutions or methods to arrive at the desired result.
"Request for Tender" or "RIFT" means a competitive request for prices on specific goods and/or
services from Suppliers which are submitted as specified in the Request for Tender.
"Single Source" means there is more than one source in the open market but only for reasons of
function or service one Supplier is recommended for consideration of the particular goods and/or
services.
"Sole Source" means there is only one source of supply of particular goods and services.
"Supplier" means any individual or organization offering goods or services to the County including but
not limited to contractors, consultants, vendors and service organizations.
"Tender" means a bid which contains an offerto execute some specified services or to supply certain
specified goods, at a certain price, in response to a publicly advertised Request for Tender.
"User Department" means the Department within the County Administration that requires the Goods
and Services.
3.0 PURCHASING RESPONSIBILITIES/AUTHORITY
3.1 To protect Council and the integrity of the Procurement process, the procurement process will be free
from political influence or interference. Council will appoint staff to ensure the procurement process
remains open, fair and transparent.
3.2 The Director of Finance may appoint a Purchasing Coordinator to exercise any or all responsibilities
assigned in this policy.
3.3 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
Procurement Policy provides guidelines outlining how spending authority is to be used. Levels of
contract approval authority are summarized in Appendix "A".
3.4 Budget approvals by Council, of capital works and operating expenditures, shall constitute
authorization for any purchase of materials and services necessary to carry out work within the
Corporation of the County of Elgin
Procurement Policy
By -Law No. 20-07
approved cost of an approved project, provided such purchases are made in accordance with this
Procurement policy. The requisitioning User Department, in conjunction with the Purchasing
Coordinator, will ensure that the Goods and Services are properly approved and that funds are
available.
3.5 Where expenditure estimates approved in the budget have been subject to a Request for Quotation,
Request for Tender or Request for Proposal, which subsequently quote an amount greater than the
estimated expenditure for that item, notice of a staff report regarding such amendment to the budget
shall be included in the Report to Council.
3.6 New projects that have not been included in the annual budget shall be detailed in a staff report
regarding amendment to the budget shall be included in a Report to Council.
3.7 Normal Operating Expenditures incurred prior to the adoption of the annual budget shall not require
approval of such expenditures and shall be deemed ratified upon the adoption of the annual budget.
3.8 It is the responsibility of the User Department to enforce any terms, conditions and specifications from
the award of any Contract resulting from the purchasing process. Where terms, conditions or
specifications are not being adhered to, the User Department may request the Purchasing Coordinator
contact the Supplier and attempt to negotiate to have said deficiencies corrected.
3.9 Prior to Council's approval of the current Budget, a User Department may incur Normal Operating
Expenditures up to 40% of the previous year's budget. Directors will have the authority to solicit bids
prior to the approval of Council.
3.10 Resolutions approving budget amendments, capital expenditures or special appropriations shall
contain the purpose of expenditure, cost estimates or expenditure limitation, and the fund in which an
appropriation has been provided.
3.11 During the public procurement process, in-house bids will not be considered.
3.12 The Purchasing Coordinator and/or Director of Financial Services may review User Department
purchases on an ongoing basis to review the effectiveness and integrity of the process and policy
adherence.
3.13 This Procurement 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.
3.14 Goods and Services that are not subject to this By -Law are listed in "Appendix B".
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Corporation of the County of Elgin
Procurement Policy By -Law No. 20-07
4.0 METHODS OF PROCUREMENT
4.1 Low Dollar Value Procurements (up to $15,000)
a) Procurements up to $15,000 shall be considered low dollar value procurements.
b) All low dollar value procurements shall utilize applicable County contracts and shall otherwise be
in accordance with this policy.
c) The Director may delegate approval authority to their staff for low dollar value procurements. It is
the responsibility of the respective Director to ensure that the Procurement Policy is adhered to.
d) All information on low dollar value procurements must be documented and maintained on file.
e) Low dollar value procurements do not require a Request for Quotation (RFQ), Request for Proposal
(RFP) or Request for Tender (RFT). However, obtaining competitive quotes is considered a good
business practice and should be exercised.
f) The Purchasing Coordinator may conduct reviews to ensure the requirements of this section and
all other applicable sections of this policy have been met.
4.2 Request for Quotation (up to $100,000)
a) For Goods and Services for estimated expenditures greater than $15,000, the Director or
designate, in consultation with the Director of Financial Services or Purchasing Coordinator, shall
be authorized to make purchases of goods and services provided:
i. the requirement can be fully defined;
ii. best value for the County can be achieved by an award selection made on the basis of the
lowest compliant bid that meets all terms, conditions and specifications;
iii. The Director or any employee exercising delegated authority approval shall provide the
Purchasing Coordinator, in writing, the relevant specifications, budget authorization, terms
and conditions for the purchase of the good, services or construction;
iv. At least three (3) written bids must be obtained from three (3) separate potential suppliers
to ensure a more competitive process. If staff has exhausted all efforts to obtain three (3)
bids and can support this with documented evidence, a minimum of two (2) written bids is
acceptable;
V. A "No Bid" response shall not be considered a valid bid;
vi. The User Department shall be responsible to review the competitive bid and verify that all
terms, conditions and specifications of the bid are met;
vii. The County reserves the right in its absolute sole discretion to accept or reject any bid;
viii. The Purchasing Coordinator may conduct reviews to ensure the requirements of this section
and all other applicable sections of this policy have been met;
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Corporation of the County of Elgin
Procurement Policy
By -Law No. 20-07
ix. If the compliant low bid exceeds the approved budget appropriation by more than 10%, the
Director or designate shall submit a report to Council for direction.
b) Informal Quotation (greater than $15 000 but not greater than $50,000)
In addition to the requirements set forth in Section 4.2a above and for procurement of goods and
services of a value greater than $15,000 but not greater than $50,000 the following requirements
also apply:
i. Specifications (as applicable) can be issued and Bids can be received by electronic
transmission;
5. Bids may be submitted on a specified weekday at a specified time;
iii. The e-bidding system may be utilized for Request for Quotations in this dollar value range.
c) Formal Quotation (greater than $50,000 but not greater than $100,000)
In addition to the requirements set forth in Section 4.2a above and for procurement of goods and
services of a value greater than $50,000 but not greaterthan $100,000 the following requirements
also apply:
i. Request for Quotation documents will be provided to Bidders;
ii. Bids must be submitted electronically on a specified weekday at a specified time;
iii. The e-bidding system will be utilized for Request for Quotations in this dollar value range.
Submissions will be electronically sealed by the bidding system until the closing date and
time.
d) Approval
i. In addition to the requirements set forth in Section 4.2a,b and c above, the Director or any
employee exercising delegated authority approval and the Purchasing Coordinator must
0 ointly approve the award.
4.3 Request for Tender (greater than $100,000)
a) For goods and services for estimated expenditures greater than $100,000, the Director or
Designate and the Director of Financial Services or Purchasing Coordinator shall be authorized to
issue a Request for Tender provided:
I. Request for Tender documents are to be provided to Bidders;
ii. Bids must be submitted electronically on a specified weekday at a specified time;
iii. The project is specifically included within the approved budget and the total submitted price
does not exceed the approved budget allocation forthe project.
b) The e-bidding system will be utilized for all Tenders and submissions will be electronically sealed
by the bidding system until the closing date and time.
c) The Purchasing Coordinator shall forward to the User Department a summary of the bids subject
to review by the Director.
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Corporation of the County of Elgin
Procurement Policy
By-law No. 20-07
d) Council reports initiated for a Request for Tender shall contain a recommendation outlining the
sources of financing, allocation of revenues, and other financial commentary as considered
appropriate.
e) Approval
I. Approval of a Request for Tender must follow the process detailed in Section 5.0.
4.4 Request for Proposal
a) The Request for Proposal process shall be used where:
i. The requirement is best described in a general performance specification;
H. Innovative solutions are sought;
iii. 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.
b) A Request for Information or a Request for Expression of Interest maybe issued in advance of an
RFP to assist in the development of a more definitive set of terms and conditions, scope of
work/service and/or the selection of qualified suppliers.
c) The Purchasing Coordinator shall maintain a list of suggested evaluation criteria for assistance in
formulating an evaluation method for use in an RFP. This may include but is not limited to factors
such as qualifications and experience, strategy, approach, methodology, scheduling, past
performance, facilities, equipment, pricing, life cycle costing, standardization of product and
aspects that would support environmental procurement.
d) Directors or any employee exercising delegated authority approval shall identify appropriate
evaluation criteria from the list maintained by the Purchasing Coordinator for use in an RFP but are
not limited to criteria from the list. Cost will always be included as a significant factor, as best
value includes but is not limited to quality and cost.
e) An optional two -envelope process may be used for RFP's. The two -envelope process means the
proposal is submitted with the pricing sealed separately. The pricing is un-sealed if the Proponent
meets the minimum threshold score listed in the RFP document.
f) The Director or any employee exercising delegated authority approval shall provide to the
Purchasing Coordinator in writing, the budget authorization, terms of reference and evaluation
criteria to be applied in evaluating the proposals submitted.
g) The Purchasing Coordinator will be the lead in the evaluation process. A selection committee will
be formed with a minimum of three evaluators and be comprised of at least two representatives
from User Department(s). Evaluators shall review all proposals against the established criteria,
reach consensus on the final rating results, and ensure that the final rating results, with supporting
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Corporation of the County of Elgin
Procurement Policy By -Law No. 20-07
documents, are kept in the procurement file. The Purchasing Coordinator may or may not
participate in the scoring of the proposals.
h) During the proposal process, all communication with Proponents shall be through the Purchasing
Coordinator.
i) The Purchasing Coordinator shall forward to the Director an evaluation summary of the
procurement, as well as the Evaluation Committee's recommendation for award of contract to the
Proponent meeting all mandatory requirements and providing best value as stipulated in the RFP.
The Purchasing Coordinator is responsible for documenting the determination of best value.
j) With respect to all Reports to Council initiated for the RFP, the following information will be
included:
I. sources of financing and/or allocation of revenues and other financial commentary as
considered appropriate;
ii. criteria and analysis to determine best value;
iii. recommended successful Proponent and cost;
iv. a copy of the RFP document (as attachment 1);
v. a summary of the RFP document posting including dates, submissions and plan takers (as
attachment 2);
vi. a summary of the evaluation committee and confirmation that the evaluators have no
pecuniary interests (as attachment 3).
k) Reporting will not include a summary of prices, as this information will remain confidential. Any
disclosure of information shall be made by the appropriate officer in accordance with the
provisions of the Municipal Freedom of Information and Protection of Privacy Act, (R.S.O. 1990), as
amended.
Unsuccessful Proponents may, upon request, attend a debriefing session with the Purchasing
Coordinator to review the Proposal. Discussions relating to any Proposal other than that of the
Proponent present, will be strictly prohibited. This debriefing session is intended to provide
general feedback regarding the Proponent's rating on various criteria in order to allow the
Proponent to understand where future improvements might be applicable.
m) The e-bidding system will be utilized for Request for Proposals and submissions will be
electronically sealed by the bidding system until the closing date and time.
n) The County shall publish an award notice using the bidding system.
o) Approval
i. Approval of a Request for Proposal must follow the process detailed in Section 5.0.
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Corporation of the County of Elgin
Procurement Policy
4.5 Request for Pre -Qualification
By -Law No. 20-07
a) A Request for Pre -Qualification may be issued to pre -qualify Suppliers for various projects. The
purpose of the RFPQ is to determine whether the qualifications of a Supplier, as required by the
County, are at a level that will allow participation in a subsequent bid opportunity that takes place
as a direct result of the RFPQ.
b) A Supplier may be pre -qualified by providing an acceptable response to a RFPQ. Selection of pre -
qualified Suppliers will be based on disclosed evaluation criteria.
c) Supplier submissions will be evaluated and ranked by an Evaluation Committee and may consist of
County staff and Consultant staff (if applicable).
d) Only the Suppliers that reach the established threshold contained in the RFPQ document will be
pre -qualified and invited to bid on the particular bid opportunity.
e) Approval
I. Approval of Pre -Qualified Suppliers will be made by the Purchasing Coordinator based on the
evaluation committees ranking and scoring of Suppliers based on the established threshold
noted in the RFPQ document.
4.6 Request for Expression of Interest
a) A Request for Expression of Interest (RFEI) may be issued for the purpose of determining the
availability of Suppliers and for the purpose of compiling a list of Suppliers. A RFEI may be used as
a pre -condition to a Request for Proposal.
b) The receipt of an Expression of Interest by the County does not create any obligation between the
potential Supplier and the County.
4.7 Non -Competitive Purchases
(Emergency, Sole and Single Source)
The requirement for a competitive bid process for the selection of a supplier for goods, services and
construction (except for Emergencies) may be waived under joint authority of the appropriate Director
and Director of Finance and replaced with direct negotiations by the Director (or delegate) and the
Purchasing Coordinator if the procurement qualified as a, Sole Source or Single Source purchase.
a) Emergency Procurement
An "Emergency" includes immediate threat to:
I. Public Health;
ii. The maintenance of essential County services; and,
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Corporation of the County of Elgin
Procurement Policy By -Law No. 20-07
V. Another organization is funding or substantially funding the acquisition and has determined
the supplier and the terms and conditions of the commitment into which the County will
enter are acceptable to the County.
vi. Where due to abnormal market conditions, the goods, services or construction required are
in short supply.
d) Approval
i) Awards which qualify to be considered as a Sole Source or Single Source must follow the
process detailed in Section 5.0.
4.8 Blanket Order Contracts
a) Blanket order contracts typically occur as a result of a previous competitive bid, which establishes
a Supplier as the preferred source for Goods and Services, over a specified term.
b) A Blanket Order may be used where:
i. one or more User Department repetitively order the same goods or services and the actual
demand is not known in advance;
ii. 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;
ill. The Purchasing Coordinator shall establish and maintain Blanket Order Contracts that define
source and price where available with selected suppliers for all frequently used goods or
services;
iv. Blanket Orders may be issued as the result of a bid process such as Request for Quotation,
Request for Tender, Request for Proposal, Co-operative Purchasing consortium and
Provincial Vendor of Record contracts;
V. 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;
vi. Where procurement action is initiated by a User Department for frequently used goods or
services, it is to be made with the supplier or suppliers listed in the Blanket Order Contract;
vii. Blanket Orders shall indicate the expected quantity of the specified goods or services to be
purchased over the time period of the agreement and will be as accurate an estimate as
practical and be based, to the extent possible, on previous usage adjusted for any known
factors that may change said usage;
viii. Blanket Orders shall be issued for a specific time period with all ordering User Departments
responsible for maintaining purchases within budget allocations.
4.9 Cooperative Purchasing
a) The County may participate with other government agencies or public authorities in cooperative
purchasing where it is in the best interests of the County to do so.
b) The decision to participate in cooperative purchasing agreements will be made by the Purchasing
Coordinator in conjunction with the Director of Finance.
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c) The individual policies of the government agencies or public authorities participating in the
cooperative competitive bid are to be the accepted by-law for that particular competitive bid.
4.10 Leasing
a) The Council of the County of Elgin may enter into a leasing agreement in accordance with the
Municipal Act, 2001.
b) In certain circumstances, it maybe 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.
c) 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 provides 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.
d) 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 by-law is
not required for leases that are short term in nature of 120 days or less.
4.11 Exceptions
a) A User 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.
5.0 PROCUREMENT APPROVAL
5.1 Any person delegated approval pursuant to this policy shall ensure that an approved budget exists for
the proposed procurement and that such procurement does not violate any County policies or any
applicable law. Any such procurement must also satisfy any applicable audit and documentation
requirements of the County.
5.2 The following body and persons shall have the respective approval authority as set out below (see
summary in Appendix "A"). All dollar amounts are based on annual amounts and must be within pre -
approved budget limits.
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a) County Council
i. RFT greater than $250,000
ii. RFP greater than $250,000
ill. Sole Source or Single Source greaterthan $50,000
b) Directors (and Purchasing Coordinator jointly)
i. RFQ/RFT not exceeding $250,000
ii. RFP not exceeding $250,000
iii. Sole Source or Single Source not exceeding $50,000
c) Employees exercising delegated authority
i. Non-competitive procurements not exceeding $15,000
By -Law No. 20-07
Approvals may be overridden in the case of an emergency as defined in Section 4.7(a) of this policy.
5.3 At the discretion of the Director of Financial Services, CAD or County Council, Council approval may be
required irrespective of the value of the contract, if deemed in the best interest of the County.
5.4 Despite any other provision of this policy, the following contracts are subject to County Council
approval;
a) any contract requiring approval of the Ontario Municipal Board or any successor thereto,
including but not limited to the Local Planning and Appeal Tribunal;
b) any contract prescribed by statute to be made by the Municipality with the approval of Council or
otherwise to be made by Council on behalf of and as binding upon the Municipality;
c) where the cost amount proposed for acceptance is 10% greater than the County Council
approved budget for that expenditure;
d) where the net revenue amount proposed for acceptance is lower than the County Council
approved budget;
e) where a substantive objection emanating from the bid solicitation has been filed with a Director,
f) where a major irregularity precludes the award of a contract to a Supplier.
5.5 Delegation of Approval Authority
a) Delegation of Approval Authority means the formal delegation of authority to perform a task or
approval by person in a position with authority under this policy, resulting in a'delegate'.
b) The CAD and Directors shall prepare a 'delegation of approval authority list' within their
respective areas.
i. The list will provide evidence that the staff listed have been delegated approval authority
by the Director;
ii. The list shall include the staff person's name, title and approval limit;
ill. The list shall be updated upon any change in staff or position;
iv. A copy of the list shall be sent to the Director of Finance and Purchasing Coordinator each
time there is a revision and at the start of every year.
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c) Staff that have been delegated approval authority from the CAO or Director shall have no
authority to delegate this approval to any other person.
d) From time to time temporary delegation must be defined in writing.
6.0 PERFORMANCE SECURITY INSURANCE AND WSIB REQUIREMENTS
For all tenders valued at over $100,000, the following guarantees, bonds, certificates and insurance
must form part of the contract.
6.1 Performance Security
a) Performance Security to guarantee the completion of the Contract is required for the supply and
installation of equipment and materials and all services/construction involving County property.
Where Performance Security is deemed necessary, it shall take the form of one or a combination
of one or more of the following;
I. Bid bond (minimum 10% of the bid amount)
ii. Performance bond (minimum 50%of the bid amount)
iii. Labour and material payment bond (minimum 50%of the bid amount)
b) Contracts valued at less than $100,000 may include guarantees at the discretion of the Director
and Purchasing Coordinator.
6.2 Other Guarantees
The Purchasing Coordinator, in consultation with the appropriate Director shall select any other
appropriate means to guarantee execution and performance of the contract. Guarantees may include
but are not necessarily limited to, one or more of the following; financial security deposit, provisions
for liquidated damages, progress payments and holdbacks.
6.3 Insurance Documents and Workplace Safety and Insurance Board (WSIB)
a) In order to further protect the County, the following documents will be required from all successful
Bidders/Proponents performing work on County property;
i. a current and valid certificate of insurance for the amount specified in the bid document;
ii. a current and valid Workplace Safety and Insurance Board (WSIB) clearance certificate;
ill. confirmation of compliance with AODA requirements;
iv. confirmation of compliance with County policies.
7.0 CONTRACT ADMINISTRATION
7.1 The award of a contract may be made by way of an Agreement and/or purchase order.
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7.2 A purchase order will be used when the resulting contract award is over $15,000. The Purchasing
Coordinator will issue an authorized purchase order incorporating the terms and conditions relevant to
the contract award.
7.3 An Agreement shall be used when the resulting contract is complex and contains special terms and
conditions.
7.4 It shall be the responsibility of the Purchasing Coordinator to determine if it is in the best interest of
the County to establish an Agreement with a Supplier.
7.5 Where an Agreement is required as a result of a contract award, the Warden and Chief Administrative
Officer shall execute the Agreement in the name of the County.
7.6 Contract Renewal Options
Where a contract contains an option for renewal, the Director and Purchasing Coordinator may jointly
exercise such option provided that all of the following apply:
a) The Supplier's performance in supplying the good and/or services or construction is considered
to have met the requirements of the contract;
b) Any price increases are consistent with the prevailing market conditions for the goods or services
being purchased;
c) The facts justifying the decision to award to this Supplier previously are still relevant at the time
of contract renewal;
d) The original report to Council (if applicable) clearly identified the options to extend the contract;
e) Funds are available or will be available in appropriate accounts within the approved budget to
meet the proposed expenditure;
f) The contract renewal option is in the best interest of the County.
8.0 CONTRACTOR PERFORMANCE APPRAISAL SYSTEM
8.1 The Contractor Performance Appraisal System is a standard process for assessing and recording
contractor performance. It is designed to serve as a permanent record for the County and as a means
of evaluating and comparing contractor performance on an ongoing basis throughout the project.
8.2 The implementation of the Contractor Performance Appraisal System will be at the discretion of the
Director and/or the Purchasing Coordinator. The Contractor Performance Appraisal System is
mandatory for all contracts valued over $100,000.
8.3 If issues arise, under the direction of the Purchasing Coordinator, the County's Project Manager will be
asked to record their concerns using the Supplier Incident Reporting Form. Results will be shared with
the Supplier and a verbal warning may be issued by the Purchasing Coordinator. If performance does
not improve, a second Supplier Incident Reporting Form will be issued and results will be shared with
the Supplier. The Purchasing Coordinator will issue a written warning to the Supplier. If performance
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does not improve a third Supplier Incident Reporting Form will be initiated by the Project Manager and
the results will be shared with the Supplier. Upon completion of the project, if a third Supplier Incident
Reporting Form is issued, under the direction of the Purchasing Coordinator, the Project Manager will
complete the applicable Performance Report.
8.4 Once the ranking on the applicable Performance Report has been completed, the results will be shared
with the Supplier to discuss the overall ranking for the project.
8.5 The performance evaluation shall determine whether a Supplier will be:
a) allowed to bid on future projects;
b) placed on a probationary list for two years to closely monitor future work, (fees required to
monitor future work may be added to the project); or,
c) not recommended for future work for a maximum of three years.
8.6 In the event that a Supplier disputes the results of a Performance Report, recourse is available through
the dispute resolution process set forth in section 9.0 below.
9.0 DISPUTE RESOLUTION
In the event that a Supplier identifies a dispute regarding any process outlined in this policy, the County
shall follow the steps below:
a) meeting between the Supplier, the Director of the User Department and the Purchasing
Coordinator,
b) if (a) does not lead to a resolution, the decision can be appealed to the Director of Financial
Services who will then convene a Review Committee.
c) The Review Committee shall hear from both County staff and the Supplier at a time and place
decided by the Committee. The Review Committee shall be comprised of the Chief Administrative
Officer, Director of Financial Services and two (2) Directors or their designates. A quorum of the
Review Committee shall be two of the four members. The decision of the Review Committee shall
be in writing, a copy of which shall be provided to the Supplier and the Purchasing Coordinator.
The decision of the Review Committee shall be final.
10.0 DOCUMENT ACCESS AND RETENTION
10.1 Access to Information
a) 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 Protection of Privacy Act., R.S.O.
1990, as amended.
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b) All records and information pertaining to tenders, proposals and other 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;
ii. result in similar information no longer being supplied to the County where it is in the public
interest that similar information continue to be so supplied;
iii. 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 County.
c) In addition to the restriction against disclosure set forth in section 10.1b above, no records or
information pertaining to Tenders, Proposals and Bids shall be disclosed in violation of the
Municipal Freedom of Information and Protection of Privacy Act.
10.2 Document Retention
a) All background information, information submitted by Suppliers, and any other relevant
information involved in obtaining prices for goods and services through a formal competitive
procurement process, shall be retained forthe entire budget year and six (6) years in records
retention.
b) All background information, information submitted by a successful Supplier, resulting in a Contract
or Agreement, shall be retained for a minimum of twenty (20) years in record retention.
11.0 ADVERTISING / BID POSTING
11.1 Advertising for bid opportunities estimated to exceed $50,000 excluding taxes shall be posted on one
or more public tendering website with a direct link from the County's website.
12.0 GENERAL
12.1 Exclusion of Bidders in Litigation
No. Tender, Proposal or Quotation will be accepted from any Supplier inclusive of its subcontractors,
which has a claim or instituted a legal proceeding against the County or against whom the County has a
claim or instituted a legal proceeding with respect to any previous Contract, without prior approval by
Council.
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12.2 Quarterly Report to Senior Management Team and County Council
The Purchasing Coordinator shall submit to the Senior Management Team and County Council an
information report (quarterly) containing the details relevant to the exercise of delegated authority for
all contracts awarded that exceed $15,000 including amendments, renewals and leases. The Director of
Financial Services shall certify in the report that the awards are in compliance with the Procurement
Policy.
12.3 Accessibility for Ontarians with Disabilities Act (AODA)
The County, to the extent possible, shall incorporate accessibility design, criteria and features, when
procuring or acquiring goods, services or facilities in accordance with the AODA. Where it is not
practicable to incorporate the said accessibility design, criteria and features when procuring or
acquiring goods, services or facilities, the County shall be prepared to provide, upon request, an
explanation as to why this is the case. (Ontario Regulation 191/11).
12.4 Environmental Considerations
In order to contribute to waste reduction and to increase the development and awareness of
environmentally sound procurement of goods and services, specifications will provide for expanded
use of durable products, reusable products and products (including those used in services) that contain
the minimum level of post consumer waste and/or maximum level of recyclable content without
significantly affecting the intended use of the product or service.
12.5 Trade Agreements
The Procurement Policy shall comply with all applicable trade agreements such as the Canada Free
Trade Agreement (CFTA), the Comprehensive Economic and Trade Agreement (CETA) and any future
trade agreements that are applicable to the County.
12.6 Local or Geographical Preference
The County shall not give any local or geographical preference during the competitive bid process. The
County may mandate certain bona fide on -site response time requirements for specific situations.
12.7 Receipt of Goods
The Director or designate shall arrange for prompt inspection of goods on receipt to confirm
conformance with the terms of the contract and inform the Purchasing Coordinator immediately of any
discrepancies.
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APPENDIX A
LEVELS OF CONTRACT APPROVAL AUTHORITY
By -Law No. 20-07
Dollar Value
Procurement
Approval Authority
Report to
Policy
(excluding taxes)
Process
Council
Section
Required
Up to $15,000
Director or any employee exercising
No
4.1
delegated authority approval
Greater than
Director or any employee exercising
No
4.2 a,b
$15,000 but less
Informal RFQ
delegated authority approval and
than $50,000
Purchasing Coordinator
Greater than
RFQ
Director or any employee exercising
No
4.2 a,c
$50,000 but less
delegated authority approval and
than $100,000
Purchasing Coordinator
Up to $250,000
RFT / RFP
Director or any employee exercising
No
4.3 / 4.4
delegated authority approval and
Purchasing Coordinator
Greater than
RFT/ RFP
County Council
Yes
4.3 / 4.4
$250,000
Up to $50,000
Single Source
Director and Director of Financial
No
4.7 b,c
or Sole Source
Services or employee exercising
delegated authority approval (jointly)
Greater than
Single Source
County Council
Yes
4.7 b,c
$50,000
or Sole Source
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APPENDIX B
GOODS AND SERVICES NOT SUBJECT TO THIS POLICY
Competitive Bids shall not be required for the following Goods and Services;
a) Petty Cash Items
b) Advertising services (radio, television, newspaper, magazine)
c) Government Agencies
d) Travel expenses including meals, conferences, seminars, conventions, trade shows and
accommodations
e) Courses
f) Staff development / workshops
g) Memberships
h) Magazines, Books, Periodicals
i) Licenses / Certificates (including hardware and software licenses)
j) Ongoing maintenance for existing computer hardware and software
k) Professional and skilled services provided to individuals as part of an approved program(s)
within the Corporation including but not limited to medical services and counselling services
1) Postage
m) Utilities (Water, Sewage, Hydro, Gas, Telephone and Cable TV)
n) Council approved grants
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APPENDIX C
IRREGULARITIES CONTAINED IN BIDS
By -Law No. 20-07
IRREGULARITY
CONSEQUENCE
Late Bids
Automatic Rejection
Bidding system will not accept late bids.
Incomplete, illegible or obscure bids
Automatic Rejection.
Documents, in which all necessary
Bidding System does not accept bids that have not
Addenda have not been acknowledged.
acknowledged all addenda
Failure to attend mandatory site visit.
Automatic Rejection.
Bids received on documents other than
Automatic Rejection.
those provided by the County.
Conditions placed by the Bidder on the
Automatic Rejection.
Total Contract Price.
Bids Containing Minor Mathematical
The County has the right to correct minor
Errors.
mathematical errors.
Performance Security
a) Insufficient Performance Security (no
Automatic Rejection.
bid bond or insufficient bid bond).
b) Signature of bidder and/or bonding
company missing when bid bond
Automatic Rejection.
requested.
Part bids (all items not bid).
Automatic Rejection unless allowed for in the
request.
Withdrawal of Bids
Withdrawal of bids received after the closing time
will not be allowed.
Tie Bids
The Purchasing Coordinator may use one of the
following methods of dealing with tie bids, based
upon the specific situation:
1) use a coin toss to select a recommended bid;
2) request the tie bidders to submit new bids;
3) negotiate with the tied bidders to break the tie.
Other minor irregularities
The Purchasing Coordinator, in conjunction with
the Director of Finance shall have the authority to
waive irregularities, which theyjointly consider to
be minor.
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