HomeMy WebLinkAboutCOD-027-06
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REPORT
CORPORATE SERVICES DEPARTMENT
Meeting:
GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Date:
June 5th, 2006
Report #: COD-027 -06
File#_
By-law #
(;PA - /J 7 <!- 0 Co
Subject:
PURCHASING BY-LAW
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report COD-027-06 be received;
2. THAT Purchasing By-law #94-129 be repealed; and
3. THAT the attached By-law marked Schedule "A" be forwarded to Council for approval.
Submitted by:
{Jp-
rie Marano, H.B.Sc., C.M.O.
Director of Corporate Services
Reviewed bY:~~
anklin Wu,
~ Chief Administrative Officer
MM\LAB\km
COD-027 -06
Paoe 2
BACKGROUND AND COMMENT
The existing Purchasing By-law was implemented in 1994, with several minor changes being made
since that time.
For information purposes a complete copy of the existing by-law is attached, marked Schedule "C".
As the Municipality continues to grow, so too does the need for efficient and effective procedures.
With increasing prices and demand for services, the dollar limits for purchase orders and tenders is
hindering the performance of the various departments within the Municipality of Clarington.
In addition, recent changes made to the Municipal Act require that the Municipality of Clarington
update their purchasing by-law to meet various requirements stated in the Act.
The changes in the new by-law include; expanded definitions, addition of purpose, goals and
objectives, rejection of bids, negotiation, changes to dollar amounts, provisions for the existing
Totten Sims Hubicki Agreement, summer recess approval, the inclusion of Appendix "A", as well as
various other minor changes. A list of the major changes is attached marked Schedule "B".
A copy of all proposed amendments has been circulated to and discussed with all Department
Heads.
For the information of Council, a recent survey of area municipalities with respect to their Purchasing
By-law and their established dollar limits reflects inconsistency and ranges from a low of $0 for the
issuance of a purchase order to a high of $5,000.00. The changes proposed in the Municipality of
Clarington's by-law reflect an increase from $300.00 to $750.00.
Due to the number of changes required, it is recommended that the existing Purchasing By-law #94-
129 be repealed and that the attached By-law marked Schedule "A" be forwarded to Council for
approval.
Schedule A
Schedule B
Schedule C CORPORATION OF THE MUNICIPALITY OF CLARINGTON
40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L 1 C 3A6 T(905)623-3379 F (905)623-4169
Schedule"A"
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NUMBER 2006-
being a By-law to provide for purchasing and tendering
policies and procedures applying to the purchase of all types
of Goods and/or Services by The Corporation of the
Municipality of Clarington,and to repeal By-law No. 94-129.
WHEREAS the purpose of this By-law is to provide authority and
rules to conduct purchasing and disposal transactions to satisfy the needs
of The Corporation of the Municipality of Clarington,
The Corporation of the Municipality of Clarington hereby enacts as
follows:
1. DEFINITIONS
Acquisition — means the process for obtaining Goods and/or
Services for use whether on a permanent or on a temporary basis.
Authorized Signature—shall mean the approval of a person who is
authorized to approve purchase requisitions and invoices on behalf
of the Corporation conforming to the limits of the signing authority for
the Cost of the required Goods and/or Services as shown on the
record maintained by the Treasurer.
Bid—includes a Proposal,a Quotation or a Tender.
Bidder — is the person who responds to the Bid Solicitation and
includes that person's heirs, executors, administrators, successors
and assigns.
Bid Solicitation — means a request by the Corporation for Bids for
the provision of Goods and/or Services which may be made
informally and verbally or in writing where the estimated Cost of the
Goods and/or Services is Twenty Thousand ($20,000.00) Dollars or
less, provided that where the estimated Cost of the Goods and/or
Services is in excess of Twenty Thousand ($20,000.00) Dollars, the
Bid Solicitation shall be made formally and in writing in the form of a
Request for Quotation, Request for Tender or Request for Proposal.
Page 2
Schedule"A"
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Chief Administrative Officer — means the Chief Administrative
Officer of the Corporation appointed by Council.
Clerk— means the Municipal Clerk of the Corporation appointed by
Council.
Committee — means the General Purpose and Administration
Committee of Council.
Contract—means a binding agreement between two or more parties
one of whom is the Corporation,
Consulting and Professional Services — shall mean services
provided by architects, engineers, designers, environmental
consultants, surveyors, management and financial consultants,
brokers, soil consultants, real estate appraisers, Ontario land
surveyors, and any other consulting and professional services not
specifically otherwise noted. The term does not include any
consulting and professional services referred to in Appendix "A"
attached to and forming part of this By-law.
Co-operative Purchasing — means the participation of the
Corporation with one or more public agencies, school board, or
hospital, in a Bid Solicitation.
Corporation — means The Corporation of the Municipality of
Clarington.
Cost—means the actual price of Acquisition, including all applicable
custom duties and taxes other than Goods and Services Tax and
Federal Sales Tax unless otherwise specified in the Request for
Tender, Request for Proposal or Request for Quotation and freight
charges, less term discounts.
Council—means the Council of the Corporation.
Departments — means the Departments of the Corporation which
comprise the Finance/Treasury, Clerk's, Emergency and Fire
Services, Community Services, Operations, Engineering Services,
Corporate Services and Planning Services Departments.
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Schedule"N'
Designated Official — means the head of each Department of the
Corporation appointed by Council, or the person(s) shown on a
record maintained by the Treasurer to be authorized or assigned by
the head of a Department to administer the procedures and to
exercise the powers set out in this By-law on behalf of the
Corporation.
Director of Corporate Services — means the Director of Corporate
Services appointed by Council.
Electronic Advertising — means the use of a computer based
system directly accessible by suppliers of Goods and/or Services
irrespective of their location that provides suppliers with information
related to Bid Solicitations.
Emergency — means a situation or the threat of an impending
situation determined by a head of a Department or a Designated
Official of a Department to be one where the immediate lease or
purchase of Goods and/or Services is essential to prevent serious
delays, or damage to a basic service, or to maintain or restore a
basic service provided by the Corporation.
Goods and/or Services — means any one or more of supplies,
personal property, construction materials, construction services,
insurance, employee benefits, construction, maintenance and
service contracts. The term does not include Consulting and
Professional Services,and the goods and services listed in Appendix
"A" to this By-law. It also does not include the services provided
pursuant to the TSH Agreement referred to in Appendix "A" to this
By-law.
In House Bid—means a Bid made by a Department or Local Union
or Association authorized by the Chief Administrative Officer to make
a Bid, submitted in response to a Bid Solicitation, where the
provision of Goods and/or Services will be provided by the
employees of the Corporation in competition with external entities for
procurement opportunities.
Instructions to Bidders — means the instructions given to
prospective Bidders in a Bid Solicitation.
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Schedule"N'
Local Bid—shall mean a Bid submitted by a Bidder who operates a
business within the Municipality of Clarington and which Bid is in j
accordance with all applicable provincial statues and regulations,
regulations of Local Boards,and By-laws of the Corporation.
Local Boards—means any board, commission, committee, body or
local authority established or exercising any power or authority under
any general or special Act with respect to any of the affairs or
purposes of a municipality.
Number — words imparting the singular number include more
Persons, parties or things of the same kind than one, and the
reverse. A word interpreted in the singular number has a
corresponding meaning when used in the plural.
Person — means an individual, association, firm, partnership,
corporation, trust, organization, trustee or agent, and their heirs,
executors,administrators,successors and assigns.
Personal Purchase— means a purchase of Goods and/or Services
requested by an elected official, an appointed official or by any other
employee of the Corporation, which is not required for the purposes
of the Corporation but is for the benefit and use of the Person
requesting the purchase.
Prequalification — means a procedure whereby a prospective
Bidder satisfies the Corporation that he or she is capable of
supplying the Goods and/or Services in question as a condition of
being allowed to submit a Tender or Proposal.
Professional and Consulting Services — includes the services
provided by: architects, brokers, and/or lawyers, and any other
consulting and professional services rendered on behalf of the
Corporation.
Proposal — means an offer from a Bidder to provide Goods and/or
Services, acceptance of which may be subject to further negotiation.
It is the response submitted to a Request for Proposal.
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Schedule"N'
Purchase Order — means a written Contract to purchase Goods
and/or Services, or a written acceptance of a Proposal, issued on
forms prescribed by the Purchasing Manager.
Purchasing Card — means a credit card issued by the Designated
Official of the Corporate Services Department in accordance with the
Purchasing Card Policy to Purchase Goods and/or Services.
Purchasing Manager — means the Purchasing Manager of the
Corporation or the Director of Corporate Services, or his designate
appointed by Council.
Purchasing Procedures Manual — means the Purchasing
Procedures Manual included in the Corporate Services Department
Procedures Manual outlining all daily procedures related to the
procurement of goods and services.
Quotation — means an offer from a Bidder to sell Goods and/or
Services to or to buy them from the Corporation at a specified rate or
Cost. A Quotation may be made in response to a Request for
Quotation,or otherwise.
Record of Received and Opened Tenders — means the written
record maintained by the Clerk on which when Bids are received and
opened in response to a Request for Tender, the Clerk records the
names of the Bidders and the amounts of the Bids. The record is
signed by the Clerk or a designate and the Purchasing Manager or a
designate.
Regional Bid — shall mean a Bid submitted by a Bidder who
operates a business within the Regional Municipality of Durham,
Request for Proposal — is a form of Bid Solicitation whereby the
Corporation invites a certain individual(s) or an identified supplier to
submit Proposals with respect to a particular project, or the supply of
Goods and/or Services, which the Purchasing Manager in
consultation with the Designated Official of the requesting
Department deems to be appropriate because acceptance of any
Bids resulting from the Request for Proposal may be dependent on
non-price factors which may require negotiations between a Bidder
and the Corporation before a Contract is made between them.
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Schedule"N'
Request for Quotation — is a form of Bid Solicitation whereby the
Corporation requests Cost Quotations with respect to a particular
project or the Acquisition of particular Goods and/or Services. In the
case of a Bid Solicitation for the provision of Goods and/or Services
with an estimated Cost of Twenty Thousand ($20,000.00) Dollars or
less, the Bid Solicitation may be informal and made verbally or in
writing. In the case of a Bid Solicitation for the provision of Goods
and/or Services with an estimated Cost in excess of Twenty
Thousand ($20,000.00) Dollars, the Bid Solicitation shall be formal
and made in writing.
Request for Tender — is a form of Bid Solicitation whereby the
Corporation publishes the specifications, terms, conditions and any
and all details concerning the proposed Contract, and advertises for,
or invites prospective Bidders to submit sealed Bids in accordance
with detailed published procedures.
Responsive and Responsible Bidder— is a Person responding to
a Bid Solicitation who complies with its provisions by being
responsive to the specifications, and the contractual terms and
conditions that are provided to him, and who can reasonably be
expected to provide satisfactory performance of the proposed
Contract based on his reputation, references, performance on
previous contracts, and proof of sufficiency of financial and other
resources.
Senior Buyer — shall mean the Senior Buyer of the Corporation
appointed by Council.
Tender — means an offer received from a Bidder of Goods and/or
Services in response to a Request for Tender, the acceptance of
which will result in the formation of a binding Contract between the
Corporation and the Person submitting the Tender.
Treasurer— means the Director of Finance/Treasurer appointed by
Council.
TSH Agreement — means the agreement between the Corporation
and Totten Sims Hubicki Associates (1991) Limited dated
September 1, 1993.
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Schedule"A"
2. INTERPRETATION
2.1 Gender—Words imparting the male or female gender include other
genders including the neutral gender,where the context so implies.
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2.2 Number — Words imparting the singular number include more
Persons, parties or things of the same kind than one, and the
reverse. A word interpreted in the singular number has a
corresponding meaning when used in the plural.
3. PURPOSE GOALS AND OBJECTIVES
3.01 The purpose, goals and objectives of the By-law and of each
of the methods of procurement authorized are:
a) To encourage competition among suppliers;
b) ' To maximize savings for taxpayers;
c) To procure the required quality and quantity of Goods and/or
Services in the most efficient and cost effective manner
possible in the circumstances;
d) To ensure fairness among Bidders;and
e) To ensure openness, accountability and transparency while
protecting the financial best interests of the Corporation.
4. COUNCIL RECESS PROCEDURES
Where a matter which would have otherwise been submitted to
Council pursuant to this By-law, requires approval during any of
Council's recesses, the Chief Administrative Officer, the Treasurer,
the Director of Corporate Services or their designates or the
Designated Officials for the relevant requesting Department in the
absence of the above shall be authorized to award Contracts which
are the result of a Request for Tender,where the recommended Bid
is made by the lowest Responsive and Responsible Bid/Quotation or
is a Proposal in response to a Request for Proposal where the
recommended Proposal is that of the highest ranked scoring
proponent, provided that the price does not exceed the approved
budget allocation, and at least two of the above noted officials, one
of whom must be the Chief Administrative Officer or his designate,
have authorized the award. The Purchasing Manager will report all
such awards following the specific recess period to a meeting as
soon as possible of the Committee after the conclusion of the recess
in question,and then to Council.
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Schedule"N'
Any exception to the above provisions of this paragraph requires the
prior specific written approval of the Treasurer,
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5. PRE-QUALIFICATION PROCESS
Subject to contrary direction by Council, where in the opinion of the
Purchasing Manager, Prequalification is required, the Contract, if
awarded at all, must be awarded to the lowest Responsive and
Responsible Bidder who has been prequalified pursuant to this By-
law.
6. PURCHASING CARDS
Purchasing Cards may be used for all purchases less than $500.00
or where the Goods and/or Services do not fall under the
requirements of the By-law. Purchasing Cards are issued on an as
needed basis upon approval of the Purchasing Manager and the
Director of Corporate Services and at the request of the Department
Head. The Purchasing Manager is responsible for the program
outlined in the Corporation's Purchasing Card Policy.as approved by
Council.
7. IN-HOUSE BIDS
In House Bids may be used for the procurement of Goods and/or
Services in circumstances where the Chief Administrative Officer
considers it appropriate to do so. The Corporation does not consider
any comparison done by management of the Corporation for cost
analysis purposes of internal and external services to be an in-house
Bid.
8. BY-LAW REVIEW
The Purchasing Manager in consultation with appropriate staff of the
Corporation shall conduct a detailed review of the Purchasing By-law
on an as required basis, but not later than five(5)years following the
passing by Council of the current By-law. The Purchasing Manager
shall recommend any revisions to Council for consideration.
9. REJECTION OF BIDS
In a Request for Proposal, Request for Quotation and Request for
Tender, the Corporation shall reserve the right to reject a Bid from
any Bidder based on the following considerations:
• a Bidder or a subcontractor of a Bidder has an outstanding
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Schedule"N'
legal action against the Corporation, or the Corporation has
an outstanding legal action against a Bidder or a
subcontractor of the Bidder;
• a Bidder owes money including, but not limited to outstanding
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property taxes owed to the Corporation;and
• a Bidder is not in compliance with the Corporation's Corporate
Policies and by-laws including Property Standards By-law,
10. NEGOTIATIONS
10.01 Alternative to Bid Solicitation - In place of a Bid Solicitation,
purchase by negotiation, except as otherwise provided in a
Request for Tender, Request for Proposal or Request for
Quotation in which case in accordance with the Request for
Tender, Request for Proposal or Request for Quotation may
be undertaken by the Corporation when, in the judgement of
the Designated Official of the requesting Department and the
Purchasing Manager,any of the following conditions apply:
(a) when,due to market conditions, Goods and/or Services are in
short supply;
(b) where the sources of supply of Goods and/or Services are
restricted to the extent that there is not effective price
competition, and consideration of substitutes is precluded due
to any of the following:
(i) the purchase involves a type of Goods and/or Services
for which there is no reasonable substitute or
competitive product;
(ii) the purchase involves a component or replacement
part for which there is no substitute;
(iii) the purchase involves a type of Goods and/or Service
for which compatibility with an existing product is the
overriding consideration;
(iv) the purchase involves Goods and/or Services only in
accordance with standards adopted by Council which
are not incorporated in this By-law;or
(v) in other situations specifically authorized by Council;
(c) where the Bid, Quotation or Proposal from the lowest
Responsive and Responsible Bidder received through a
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Schedule"N'
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Request for Tender, Request for Proposal or a Request for
Quotation substantially exceeds the Corporation's estimated
cost of the Goods and/or Services;
(d) when no Bid, Quotation or Proposal from a Responsive and
Responsible Bidder received through a Request for Tender,
Request for Proposal or Request for Quotation is received
and it is impractical to issue a further Request for Tender,
Request for Quotations or Request for Proposal;
(e) when the extension or reinstatement of an existing Contract
would prove most cost-effective or beneficial to the
Corporation;
(f) when the terms and conditions of a Proposal provide for
negotiation with the selected proponent of any minor changes
to the Proposal received;or
(g) consulting services referred to in paragraph 15.15(a).
10.02 Negotiations Provided for in Tender Documents - In the case
of a Request for Tender for a construction project,
negotiations shall be conducted in accordance with the
C.C.D.C. Document 23 published by the Canadian
Construction Association where expressly required by the
provisions of a Request for Tender.
11. PURCHASE BY NEGOTIATION
When any of the conditions in section 10.01(a) to (g) apply, the
Purchasing Manager may, in consultation with Designated Official of
the Department which requests the Acquisition, negotiate, make,
extend or reinstate a Contract for the supply of Goods and/or
Services. In the event that the Cost of such Contract, extension or
reinstatement exceeds Seventy-Five Thousand ($75,000.00)Dollars,
the Purchasing Manager in consultation with the initiating Designated
Official, shall prepare a report and recommendation to an
appropriate meeting of Committee and Council for approval before a
Contract is made with the Corporation.
12. PURCHASE REQUISITIONS
12.01 Each Designated Official of a Department shall submit to the
Purchasing Manager a written request in the form of an
"electronic purchase requisition"for the requirements of such
Designated Official's Department for all Goods and/or
Services.The assurance of the allocation of funds in the
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Schedule"N'
approved budget and the provision of the appropriate
accounting charge number shall be the responsibility of the
Designated Official of the particular Department which has
requested the Acquisition of the Goods and/or Services in
question.
12.02 All electronic purchase requisitions submitted shall also bear
an Authorized Signature conforming to the limits of the signing
authority for the Cost of the required Goods and/or Services.
13. REQUESTS FOR PRODUCT INFORMATION
Requests on behalf of the Corporation may be made by Designated
Officials for product and technical information, catalogues and price
lists for Goods and/or Services. Each Designated Official will provide
the Purchasing Manager with such data, specification details and
information relating to the procurement of Goods and/or Services,
including the Corporation's approved budget prices. The Purchasing
Manager shall obtain all firm and/or estimated prices provided by
Bidders.
14. DISPOSAL OF GOODS
The disposal of surplus or redundant goods and materials of the
Corporation shall be the responsibility of the Purchasing Manager
unless otherwise directed by Council. At least once each calendar
year, the head or Designated Official of each Department shall
provide the Purchasing Manager with that Department's list of
surplus or redundant goods and materials. The Purchasing Manager
is authorized to determine the appropriate method of disposal of
surplus or redundant goods and materials in the particular
circumstances. Without limiting the generality of the foregoing,
appropriate methods of disposal that may be selected by the
Purchasing Manager include but are not limited to sale, Request for
Tender, Request for Proposal, auction, gratuitous transfer to a
Department, Local Board, other municipality or a charity, or by sale
to the Corporation's staff by sealed Bid. The Purchasing Manager in
his discretion may periodically circulate a list of surplus or redundant
goods and materials to all Departments and Local Boards where
appropriate.
15. PURCHASING PROCEDURES
15.01 Local Preference-If in the determination of the Purchasing
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Schedule"N'
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Manager, a competitive market exists and two or more Bids
are received which are identical in Cost, provided quality,
service and delivery terms are similar, then priority of
acceptance shall be first to a Local Bid, if any, and second to
a Regional Bid, if any. In all other cases, the lowest Bid
submitted by the Responsive and Responsible Bidder shall be
accepted.
The Province of Ontario's Discriminatory Business Practices
Act (R.S.O. 1990) has been established to prevent
discrimination in Ontario on the grounds of race, creed,
colour, nationality, arresting, place of origin, sex, or
geographical location of persons employed in engaging in
business. Therefore, other than noted above, preference to a
Local Bid or a Regional Bid for the supply of Goods and/or
Services to the Corporation shall not be given.
15.02 Purchase of Goods and/or Services-The following provisions
shall apply to the purchase of Goods and/or Services: Subject
to any direction that may be given from time to time by
Council, the Purchasing Manager shall determine the method
of Requisition of Goods and/or Services, having regard to the
nature, importance or urgency associated with the purchase
requisition, subject to the general trade practice, market
conditions and the provisions of this By-law. The Purchasing
Manager, at his discretion, may make Contracts with vendors
in the form of:
a) term orders;
b) standing offer agreements;
c) Contract orders;
d) service agreement orders;
e) systems contracts;
f) lease or rental agreements;
provided, however, that for individual transactions, the Cost
will not exceed either the approved budgetary allocation, or
the financial limits established by this By-law.
15.03 Purchase Order—The Acquisition of Goods and/or Services
which Cost more than Seven Hundred and Fifty($750.00)
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Dollars shall be pursuant to a Purchase Order issued by the j
Purchasing Manager or the Senior Buyer.
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15.04 INFORMAL REQUEST FOR QUOTATION
Purchase of Goods greater than Five Hundred ($750.00)
Dollars, but less than Twenty Thousand ($20,000.00) Dollars
— Subject to paragraph 15.01, the Purchasing Manager is
authorized to make Acquisitions of Goods and/or Services
which Cost between Five Hundred ($750.00) Dollars and
Twenty Thousand ($20,000.00)Dollars at the lowest available
Cost, if(a)a minimum of three separate proposed Costs have
been received by the Purchasing Manager, or if (b) three
separate proposed Costs, in the opinion of the Purchasing
Manager, cannot be obtained as a practical matter having
regard to the urgency of the purchase requisition and/or
availability of the Goods and/or Services in the marketplace,
then such lesser number of proposed Costs as in the opinion
of the Purchasing Manager could be obtained, in fact have
been obtained, before the Acquisition of the Goods and/or
Services in question is completed.
15.05 FORMAL REQUEST FOR QUOTATION
Purchasing of Goods Greater than Twenty Thousand
($20,000.00) Dollars, but less than Fifty Thousand
($50.000.00) Dollars - Subject to compliance with paragraph
15.06, the Purchasing Manager shall be authorized to make
Acquisitions of Goods and/or Services which Cost between
Twenty Thousand ($20,000.00) Dollars and Fifty Thousand
($50,000.00) Dollars at the lowest available Cost, provided
that:
a) at least three formal, written Quotations of Costs are
received or clause 15.04(b)is satisfied;
b) the lowest Responsive and Responsible Bid received
is accepted;and
c) documents for all Quotations received are retained for
inspection by the Treasurer or appropriate officials of
the Finance/Treasury Department for audit purposes.
15.06 Reports to Designated Official. Committee or Council - The
Purchasing Manager shall submit a report to the appropriate
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Schedule"K
Designated Official providing a list of written Quotations
Received with recommendations for award.The Acquisition of
Goods and/or Services in this situation will be subject to the
Designated Official of the requesting Department's approval.
Where the Bid made by the lowest Responsive and
Responsible Bidder is not accepted, or where the lowest
Responsive and Responsible Bid exceeds the approved
budget allocation, the Purchasing Manager shall, in
consultation with the appropriate Designated Official of the
requesting Department, submit a report to the Committee
and/or Council providing a list of written Quotations received
with recommendations for award of the Contract. The
purchase of Goods and/or Services in this situation shall be
subject to the Committee's and/or Council's approval.
15.07 REQUEST FOR TENDER REQUIRED — All purchases not
otherwise identified in this By-law which have a Cost in
excess of Fifty Thousand ($50,000.00) Dollars shall be made
through Request for Tender, unless otherwise directed by
Council.
15.08 Emergency Purchase Order — Under the direction of the
Purchasing Manager, a person authorized to make purchases
by Purchase Order on behalf of the Operations Department
and Emergency and Fire Services Department, may issue an
Emergency Purchase Order for vehicle parts necessary to
maintain the Corporation's vehicles,subject to the following:
a) that the Cost of the Goods and/or Services referred to
in each separate order shall not exceed Five Thousand
($5,000.00)Dollars
15.09 Purchase Order Not to be Split— Purchase Orders shall not
be split so as to circumvent the established method of
purchase and the dollar limits imposed by this By-law.
15.10 Disclosure — Subject to the provisions of The Municipal
Freedom of Information and Protection of Privacy Act, R.S.O.
1990, Chapter M.56, no Corporation employee nor any
member of Council shall provide the Cost Bid for any Goods
and/or Services except:
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Schedule"A"
(a) in the case of Requests for Tender the total Bid
amount; and
(b) in the case of sealed Bid submitted in response to a
Request for Proposal or a formal Request for
Quotation in writing, the total Bid amount shall be
provided on request of any person.
Notwithstanding this paragraph 15.10, except as otherwise
provided in the Municipal Freedom of Information and
Protection of Privacy Act all Costs recorded during the
opening of Tenders, that are part of the Corporation's
permanent record and maintained in the Clerk's Department,
shall be made available to the public, upon request, pursuant
to the provisions of the Municipal Act. R.S.O., 1990, Chapter
M.45.
15.11 Emergency Purchase—Notwithstanding the provisions of this
By-law, the Acquisition of Goods and/or Services in an
Emergency may be made by the Purchasing Manager or
Senior Buyer. In all such cases, a report shall be filed jointly
by the Designated Official of the requesting Department and
the Purchasing Manager to the Committee and/or Council,
should the Cost of the Acquisition exceeds either the limits
established by this By-law for the Acquisition of Goods and/or
Services without a Bid Solicitation, or exceeds the
Corporation's approved budget allocation for such Acquisition.
In the absence of the Purchasing Manager or Senior Buyer,
purchases for Emergency purposes may be made by a
Designated Official provided that such Acquisitions are
confirmed by a Purchase Order issued by the Purchasing
Manager,as soon as possible thereafter.
15.12 Co-operative Purchasing — Notwithstanding the provisions of
paragraphs 2 to 23, inclusive, of this By-law, Co-operative
Purchasing with other municipalities, school boards, hospitals,
or other public agencies shall be utilized,when advantageous
and practical. The purchasing by-law and tendering practices
of the municipality, school board, hospital or other public
agency issuing such Tender(s)shall take precedence over the
provisions of this By-law with respect to requesting, receiving
and opening of the Tenders. Subsequent to the award of the
Contract, paragraphs 24 and 26 of this By-law shall apply.
Page 16
Schedule"N'
15.13 Requests for Proposal —Where it has been determined that
Requests for Proposal are to be used, the Purchasing
Manager shall be authorized to make purchases using the
Requests for Proposal for purchases at a Cost which
exceeds Fifty Thousand ($50,000.00) Dollars, provided that
wherever possible three written Proposals are received, and
in consultation with the Designated Official, a report is
submitted to the Committee and/or Council providing a list of
Proposal amounts received with recommendations for
award. The purchase of Goods and/or Services in this
manner will be subject to Committee and/or Council
approval. Purchase of Goods and/or Services may be made
through the use of Requests for Proposal to obtain unique
Proposals designed in order to meet broad outcomes to a
complex problem or need for which there is no clear or single
solution. It is the Corporation's policy generally, to select the
Proposal that earns the highest ranked scoring and meets the
requirements specified based on qualitative, technical and
pricing considerations.
When appropriate, Requests for Proposal shall be called by
public advertisement and/or invitation to specific proponents.
Request for Proposal must be submitted in the prescribed
form and delivered to the Purchasing Manager's Office prior
to the closing time and date established for the submission of
Proposals. All Proposals received after the closing time and
date shall be rejected.
15.14 Consulting and Professional Services -Where it is estimated
that Consulting and Professional Services will cost less than
Thirty Thousand ($30,000.00) Dollars and funds are allocated
in the approved budget, the requesting Department may
obtain the services on behalf of the Corporation, provided that
if the requested consulting services are engineering or related
services referred to in the TSH Agreement, the Director of
Engineering Services shall be consulted before the services
are purchased.
Where it is estimated that Consulting and Professional
Services will Cost more than Thirty Thousand ($30,000.00)
Dollars and funds are allocated in the approved budget, the
Purchasing Manager shall issue a Request for Proposal and
Page 17
Schedule"A"
in consultation with the Designated Official of the requesting
Department, shall submit a report to Committee and/or
Council providing a list of Bid amounts received with
recommendations for award. The purchase of Goods and/or
Services in this situation will be subject to Committee and/or
Council approval.
Contracts for Consulting and Professional Services at a Cost
in excess of Thirty Thousand ($30,000.00) Dollars may be
made either by a formal agreement signed by the Mayor and
Clerk for the Corporation, or by a Purchase Order issued by
the Purchasing Manager as is determined by the Purchasing
Manager to be appropriate in the circumstances.
15.15 Exceptions for Consulting and Professional Services
(a) Where the requesting Department is the Engineering
Department and the Consulting and Professional
Services are for the construction and/or reconstruction
of roads, sanitary sewers and/or Ontario Municipal
Board hearing representation, a Request for Proposal
is not required and the Contract may be approved on
behalf of the Corporation by the Director of
Engineering Services provided that it is based on an
authorization approved by Council to acquire such
Consulting and Professional Services. Where the
Contract Cost exceeds Thirty Thousand ($30,000.00)
Dollars a by-law authorizing the Mayor and Clerk to
execute the Contract on behalf of the Corporation is
required.
(b) Where the requesting Department is the Planning
Services Department and the Consulting and
Professional Services are for the purpose of the
preparation of an Environmental Study as referred to in
NOTE: Report should Report PDIM-96, a Request for Proposal will be
be PD-163-96 issued on an as-needed basis and a subsequent roster
of consultants as approved by Council will be issued.
Individual contracts for such Consulting and
Professional services may then be approved by the
Director of Planning Services.
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Page 18
Schedule"N'
Any consultant authorized to issue a Bid Solicitation on
behalf of the Corporation shall comply with this By-law,
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15.16 Personal Purchases - No personal purchases of Goods
and/or Services shall be made by the Corporation for
Members of Council, or any appointed member of a Local
Board of the Corporation, or for employees of the
Corporation, unless specifically authorized by Council.
15.17 Conflict of Interest— In order to avoid any person from having
an unfair advantage in making a Bid and to ensure the Bid
process is open and transparent with no one Bidder having
confidential information that other Bidders do not have,
a) no employee of the Corporation or Member of Council
shall Bid on the sale of Goods and/or Services except
those disposed of by public auction, unless explicitly
approved by the Chief Administrative Officer,and
b) no Member of Council or employee of the Corporation
shall sell Goods and/or Services to the Corporation or
have a direct or indirect interest in a company or own a
company which sells Goods and/or Services to the
Corporation.
An external consultant who has entered into a Contract with
the Corporation for the provision of consulting services for a
particular phase of a project, may be deemed to have a
conflict of interest and be disqualified from soliciting a Bid on
a later phase of consulting services for the same project. Any
issue as to whether there is a conflict of interest will be
determined by the Purchasing Manager in consultation with
the Designated Officer of the requesting Department.
For clarity, this paragraph does not take precedence over or
derogate from the Corporation's Code of Ethics as approved
by Council.
16. TENDERING PROCEDURES
The following procedures shall apply to the purchase by Tender of
Goods and/or Services of an estimated Cost in excess of Fifty
T housand ($50,000.00)Dollars.
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Page 19
Schedule"A"
16.01 Advertising- All Requests for Tenders shall be made by
Electronic Advertisement deemed by the Purchasing Manager
to be appropriate in the circumstances, unless otherwise
directed by the Committee and/or by Council. Other
advertising methods such as in periodicals or newspapers
may be used as deemed appropriate by the Purchasing
Manager.
16.02 Tender Closing Time - All Tender closing times shall be
established by the Purchasing Manager or his designate.
16.03 Release of Information to Bidders -The Purchasing Manager
or his designate shall supply the following materials to all
prospective Bidders:
a) one copy of the official Tender form relating to the
Request for Tender;
b) one standard Tender envelope or label appropriately
Imprinted;
c) Tender information including plans, specifications,
profiles and other relevant information;and
d) where a fee is required for the Tender documents,
such fee shall be paid to the Corporation by cash,
money order, bank draft or certified cheque unless
otherwise directed in the Request for Tender.
16.04 Recording and Control of Tender Material
All names, addresses including e-mail addresses and
facsimile numbers of all prospective Bidders who have been
supplied with or who have requested the material set out in
Section 16.03 shall be recorded when Requests for Tenders
are issued in order to facilitate distribution of addenda when
necessary or to extend or cancel a Tender under call.
17. CHANGES TO TENDERS UNDER CALL
17.01 Preparation of Addendum' Interpretation or qualifications of a
Tender document shall be made in the form of a written
addendum. Addenda shall be necessary to revise, delete,
substitute or add to Tender material under call. The
Purchasing Manager shall approve the issuance of an
addendum or the cancellation of the Request for Tenders.
Page 20
Schedule"N'
17.02 Notification of Addenda to Bidders- If an addendum notice is j
prepared too late to allow notification by registered mail or
courier prior to the Tender closing time, in addition to mailing
the notice, each prospective Bidder shall be notified of the
addendum by telegram or facsimile or electronic means.
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17.03 Addenda Issued after Receipt of Tender - Where an
addendum is released after the receipt of one or more
Tenders which in the opinion of the Purchasing Manager may
affect a Bidder's Tender, all Tenders received and deposited
prior to the Tender opening may be withdrawn and the
Bidder(s)shall be given a new set of Tender documents to be
resubmitted in accordance with a further addendum.
17.04 Cancellation of Tender Under Call — Where the
circumstances require it to protect the interests of the
Corporation and the Request for Tender permits it, the
Purchasing Manager in consultation with the Designated
Official of the requesting Department may cancel a Request
for Tender either before or after Tenders are opened. The
procedure for the notification of Bidders of a cancellation shall
apply, as in paragraph 17.02 with all necessary changes
being considered to have been made to give effect to this
sentence. If a Request for Tender is cancelled prior to
opening, all Tenders received after cancellation will be
returned unopened to the Bidder by registered mail or courier
with notification of the cancellation.
Page 21
Schedule"N'
18. CONDITIONS OF TENDER SUBMISSION
All Tenders shall be submitted to the Office of the Clerk and shall be
subject to the following requirements:
18.01 The correct Tender form and envelope or label (with no extra
exterior covering) as supplied by the Corporation must be
used.
18.02 Tenders must be properly sealed and delivered to the Office
of the Clerk prior to the Tender closing time established for
that Tender.
18.03 Time of delivery of any Tender shall be determined by the
Clerk or his delegate.
18.04 When received by the Office of the Clerk, the envelope(s)
shall have the date and time of receipt noted on them by the
Clerk or his delegate. Each Tender received shall be
recorded in a Tender Register maintained by the Office of the
Clerk.
18.05 All Tenders received by the Office of the Clerk shall be placed
unopened in a suitable locked receptacle and shall remain
under the control of the Clerk.
18.06 All Tenders delivered after the Tender closing time or in other
than the Tender envelope or label supplied shall not be
accepted by the Clerk and shall not be deposited in the
Tender box maintained by the Clerk. The Purchasing
Manager shall be advised of the circumstances and the
Tender returned unopened to the Bidder, accompanied by a
letter which states"not accepted".
18.07 Where no return address is visible on the outside of a Tender
that is delivered after the close of Tenders, it shall be opened
in the presence of the Clerk by the Purchasing Manager, a
return address determined,the facts noted for the record and
the documents returned to the Bidder accompanied by a letter
as in 18.06 above.
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Page 22
Schedule"A"
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19. FORM OF TENDER
19.01 All Tenders must be legible,written in ink or typed.
19.02 All items must be bid unless otherwise specified in the
Request for Tender documents.
19.03 All entries including unit prices for each item referred to in the
Bid must be clearly stated.
19.04 The Tender cannot contain any restrictive statements, nor can
the Tender be qualified by separate letter.
19.05 All Tenders submitted must be signed by an authorized
person.
19.06 All erasures, overwriting, strike-outs and other similar
alterations inserted in the Bidder's Tender must be initialled by
the person authorized to execute the documents on behalf of
the Bidder.
20. BONDS AND DEPOSITS
20.01 Bid Deposit and Bid Bonds-All Requests for Tender requiring
Bid deposits shall have such deposits made payable to 'The
Corporation of the Municipality of Clarington", shall be
provided by a certified cheque, bank draft, money order or
cash which shall be enclosed in the same envelope as the
Bid. All Bid bonds for Contracts with a value of Fifty
Thousand ($50,000.00)Dollars or more that are required by a
Request for Tender shall be issued by a surety approved by
the Treasurer and shall be in an amount, and in a form
containing terms and conditions satisfactory to the Treasurer.
Bid deposits shall be submitted in accordance with the
following schedule, unless otherwise specified by the
Purchasing Manager in the Request for Tenders.
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Page 23
Schedule"A"
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Total Amount of Bid Minimum Bid Deposit Required
$ 20,000.00 or LESS $ 1,000.00
$ 20,000.01 to$ 50,000.00 $ 2,000.00
$ 50,000.01 to$ 100,000.00 $ 5,000.00
$ 100,000.01 to$ 250,000.00 $10,000.00
$ 250,000.01 to$ 500,000.00 $25,000.00
$ 500,000.01 to$1,000,000.00 $50,000.00
$1,000,000.01 to$2,000,000.00 $100,000.00
$2,000,000.01 or OVER $200,000.00
20.02 Forfeiture of Bid Deposit or Bid Bond - Should the successful
Bidder fail to enter into a Contract with the Corporation, the
amount of the Bid deposit provided by the Bidder in question
shall be forfeited to and become the property of the
Corporation. If a Bid Bond is deposited, it may be called by
the Treasurer and the amount of money thereby obtained
forfeited to and made the property of the Corporation.
20.03 Bonds Other Than Bid Bonds Required by Request for
Tender— When the deposit of a Performance Bond and/or a
Labour and Material Payment Bond is a requirement of a
Request for Tender, such Bonds in the amounts specified in
the Tender documents issued by a surety approved by the
Treasurer and in a form and containing terms and conditions
approved by the Treasurer must be delivered by the Bidder to
the Purchasing Manager prior to execution of the Contract by
the Corporation.
21. WITHDRAWAL OF TENDERS
21.01 Withdrawal of Bid - Anyone submitting a Bid can only
withdraw the Bid prior to the close of Tenders. Requests to
withdraw received following the close of Tenders will not be
accepted.
21.02 Procedure—Any Bidder wishing to withdraw a Bid must do so
in writing and deliver the same to the Office of the Clerk.
21.03 Return of Certain Withdrawn Bids—All Bids withdrawn prior to
being deposited in the Tender box kept by the Clerk shall be
returned and the withdrawal of the Tender acknowledged in
writing by the Bidder.
Page 24
Schedule"A'
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21.04 Return of Documents—All withdrawals of Tenders that relate
to Tenders deposited in the Tender box and all of the related
documentation returned unopened following the Tender
opening.
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21.05 Withdrawal of Bids During Opening — During a Tender
opening at the conclusion of the reading out of Bids for a
particular Contract, the low Bidder may withdraw any of his
remaining Tenders on other Contracts. Tenders withdrawn
under this procedure cannot be reinstated. The Bidder must
certify in writing to his identity and state the Contract(s) on
which he/she desires to withdraw. A written notice of
withdrawal of tender in a form satisfactory to the Purchasing
Manager must be signed by the prospective Bidder. This
Notice must be handed to the Clerk or his delegate before
the reading out of the first Tender on the Contract(s) to
which it applies. The Clerk or his delegate shall attach it to
the applicable Tender. The Bidder's name shall be read out
and it shall be announced that the Tender has been
withdrawn in accordance with established procedure. The
bid amount of the Tender shall not be read out.
22. OPENING TENDERS
22.01 All Tenders shall be opened by the Clerk or his designate for
the Corporation and the Purchasing Manager or his designate
and the Bids shall be duly recorded in the Record of Tenders.
22.02 Any interested person may attend a Tender opening.
22.03 Where two or more Tenders are called for at the same time,
the Tenders shall be opened in numerical order, with the
lowest numbered Tender being opened first.
22.04 Having established the order of precedence, the Clerk or his
designate shall remove the Tenders from the Tender box.
22.05 Where a Tender cannot be identified as to the author or
Contract number, such an envelope shall be opened and the
documents placed with the appropriate group of Tenders.
22.06 Where a conflict exists in respect of the envelope and its
contents as to the Contract number, the Contract number on
the Tender documents shall prevail.
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Page 25
Schedule"A"
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22.07 When all Tenders have been sorted, opened and withdrawn
Tenders segregated pursuant to paragraph 21.04, the Clerk
shall compare the number of Tenders opened to the number
of Tenders recorded in the Record of Tenders. Where a
discrepancy exists, the proceedings shall be delayed until all
Tenders have been accounted for.
22.08 When all Tenders are accounted for,the Clerk or his
designate shall announce each Tender publicly in the
following manner:
i) Tender number and specifications;
ii) Bidder's name and location;
iii) Bid deposit and bonding letter(if required);and
iv) total Bid amount.
22.09 All Tenders shall be checked to determine that each Bidder
has submitted one Bid only. Should more than one bid be
submitted, the lowest Bid submitted shall be deemed to be
the intended Bid, unless that Bid has been withdrawn in the
manner prescribed in paragraph 21.
22.10 Following the opening and recording of Tenders by the Clerk,
the Record of Tenders shall be closed and the record signed
attesting to that fact.
22.11 With the exception of the Clerk and the Purchasing Manager
or their designates, no dialogue will be permitted with respect
to the proceedings on the opening of Tenders.
23. VERIFICATION OF TENDERS
23.01 Duty of Purchasinq Manager-All Tenders will be delivered to
the Purchasing Manager who shall ensure that:
a) all Bids comply with the Tender requirements;
b) all unit prices have been correctly extended, provided
that unit prices shall determine the amount of the Bid,
in the event of arithmetic errors;and
c) all extensions have been correctly totalled.
Page 26
Schedule"N'
23.02 Reservation and Review of Improper Bids—Any Bid that does
not appear on initial examination by the Purchasing Manager
or his designate to satisfy the requirements of the Request for
Tender shall be deemed to be "improper Bids", and be
subject to further examination by the Purchasing Manager so
that the Purchasing Manager can determine whether it shall
be rejected pursuant to paragraph 23.03.
23.03 Resection of Non-Compliant Bids — Notwithstanding
paragraph 9 of this By-law,all Bids shall be rejected that are:
a) received after the Tender closing time;
b) delivered in other than the Tender envelope with the
label or labels prescribed in the Request for Tender;
c) that are not completed in ink or by typewriter;
d) incomplete or do not comply with specifications;
e) restrictive or contain conditional statements which are
intended to alter the form or intent of the Tender
submitted to the Corporation's response to the
Request for Tenders;
f) submitted with documents that are not signed by the
Bidder with his original signature;or
g) unaccompanied by bonding documents or bid deposits
where required.
23.04 Exceptions
The Purchasing Manager may at his discretion accept or
reject a Bid when:
a) the agreement to bond required by a Request for
Tender has not been signed by the surety with his
original signature; provided that if the Bid is accepted,
the Purchasing Manager may allow a period of time to
have the agreement to bond correctly signed by the
surety;
b) the envelope is improperly sealed;
c) the documents are illegible;
d) the envelope contains an improper Bid deposit or an
insufficient amount;or
e) the arithmetic extensions of the Cost contain gross
errors.
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Page 27
Schedule"A"
24. AWARD OF TENDERS
24.01 Purchasing Manager to Review Bids Tendered - The
Purchasing Manager shall review the Tender with the
requesting Department in accordance with the provisions of
paragraph 13.05 for all Tenders with a Cost under Seventy-
five Thousand ($75,000.00) Dollars. For Tenders with a Cost
over Seventy-Five Thousand ($75,000.00) Dollars the
Purchasing Manager shall review the Tender with the
requesting Department and shall then report to the General
Purpose and Administration Committee and/or Council.
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Where the Tender amount exceeds the Corporation's
approved budget allocation, the report shall contain the
requisite information with respect to the source of additional
funding.
24.02 Issue of Purchase Order— Upon approval of the Tender the
Purchasing Manager, Senior Buyer or Director of Corporate
Services or his designate shall make the award and issue a
Purchase Order in accordance with the conditions of the
Request for Tender.
24.03 Approval of Over Expenditure — Subsequent to the award of
the Contract to the lowest Responsive and Responsible
Bidder, the approval of any over expenditure shall be in
accordance with the Corporation's Finance Policy as
approved by Council.
25. DISPOSITION OF BID DEPOSITS
Except as provided in paragraph 22.03, following the awarding or
cancellation of a Tender, all deposits, with the exception of the
lowest and the second lowest Bidders in the case of an award, shall
be returned to the unsuccessful Bidders by registered mail or courier,
or if picked up, receipt acknowledged in writing. The retained
deposits will be held until the Contract is executed by the
Corporation.
26. EXECUTION OF CONTRACT
The successful Bidder shall be allowed ten (10) working days from
the date of mailing of the form of Contract to execute and return the
same to the Purchasing Manager.
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Page 28
Schedule"K
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27. DEFAULT BY SUCCESSFUL BIDDER
If the successful Bidder fails to execute the Contract or fails to meet j
any of the requirements of the Contract within the prescribed time,
the Tender may be awarded to the next lowest Bidder(s) or
cancelled. In the event a successful Bidder fails to execute, finalize
and/or provide acceptable surety for a Contract, the Bidder's
deposit(s)will be forfeited.
28. TSH AGREEMENT
For clarity, none of the provisions of this By-law is intended to or
shall be deemed to affect any provisions of or the rights, obligations
and responsibilities of the parties to the TSH Agreement including
the responsibilities of the official of the Corporation named in the
TSH Agreement.
29. ABSOLUTE RIGHT
Notwithstanding the provisions of this By-law except as may be
otherwise provided in a Request for Tender, the Corporation shall
have absolute discretion in the awarding of contracts and retains the
right to reject any or all Tenders.
30. SEVERABILITY
Should any provisions,clauses, sections, phrases or parts of this By-
law, or the application thereof under certain circumstances, be held
by a Court of competent jurisdiction to be invalid, the remainder of
this By-law, or the application of such provision, clause or part under
other circumstances, shall not be affected.
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Page 29
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Schedule"N'
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31. By-Law#94-129 as amended is hereby repealed.
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BY-LAW read a first time this day of 2006.
BY-LAW read a second time this day of ,2006.
BY-LAW read a third time and finally passed this day of ,2006.
Mayor
Municipal Clerk
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Schedule"A'
APPENDIX"A"
To By-Law#2006-
The Purchasing By-law and a Purchase Order are not required unless specifically requested
by a Department Head or the vendor or supplier of the Goods and/or Services in question
does not apply to the items listed below.
1. Petty Cash Items
2. Training and Education
a. Conferences
b. Courses
C. Conventions
d. Magazines
e. Memberships
f. Periodicals
g. Seminars
h. Staff Development
I. Staff Workshops
j. Staff Reports
k. Subscriptions
3. Refundable Employee Expenses
a. Advances
b. Meal Allowances
C. Miscellaneous—Non—Travel
d. Travel Expenses
e. Entertainment Expenses
4. Employer's General Expenses
a. Payroll Deduction Remittances
b. Medicals
C. Licenses(Vehicles,Communications,etc.)
d. Debenture Payments
e. Insurance
f. Grants and Agencies
g. Damage Claims
h. Petty Cash Replenishment
I. Land&Building Lease Payments
j. Tax Remittances
k. Sinking Fund Payments
I. Newspaper Advertising and Public Notices
M. Day Camp or other similar Admission Fees
5. Certain Professional and other Services
a. Committee Fees
b. Counselling Services
C. Laboratory Services
d. Nursing Services
e. Physician Fees
f. Temporary Help
g. Banking and Underwriting Services,where covered by Agreements
h. Legal Services
I. Engineering and Consulting Services provided for in a contract between the
Corporation and Totten Sims Hubicki Associates(1991)Limited dated
September 1,1993
j. Newspaper,radio,TV advertising
k. Policing
I. Red Cross Supplies
6.1 Utilities
a. Postage
b. Water
C. Hydro
d. Gas
e. Telephones—excluding cellular
f. Cable television
6.2 Canadian National and Canadian Pacific Railways
6.3 Provincial and/or Federal Government Agencies or Crown Corporations
6.4 Regional Municipality of Durham or other municipalities located within the Regional
Municipality of Durham goods or services
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Leading the Way
Municipality of Clarington
Schedule "B"
PURCHASING BY-LAW
SUMMARY OF MAJOR CHANGES
1. Definitions have been expanded: Reference: Pages 1-7
2. Purpose, Goals, and Objectives have been added and is a requirement of the
new Municipal Act. — Reference: Page 7, item 3
3. Council recess procedures have been added and expanded upon - by doing this
we will no longer need to take a report to council at the start of each council term.
— Reference: Page 7, item 4
4. Prequalification process has been added - although this is something we do on a
fairly regular basis it was not addressed in the by law and is something that was
lacking. — Reference: Page 8, item 5
5. In house Bids has been added- it is a requirement of the new Municipal Act to
state when in house bids will be considered. — Reference: Page 8, item 7
6 By-Law Review has been added - again this is a requirement of the new
Municipal Act to state how and when the by-law will be reviewed. — Reference:
Page 8, item 8
7. Legal Action - Rejection of Bids -this has been added to address some of the
issues we have had over the past few years ie: dealing with someone who is not
in compliance with our property standards or who owes us monies, bidder or
subcontractor who is taking legal action against the municipality, bidder who
Municipality of Clarington is taking legal action against. — Reference: Page 8-9,
item 9
8. Negotiation Instead of Bid Solicitation - this has been added and is a requirement
of the new Municipal Act -we must now state in our by-law why we will negotiate
rather than go out for competitive bids. — Reference: Page 9-10, item 10 and 11
9. The dollar amount for issuing a purchase order has been increased from $300 to
$750. — Reference: Page 12, item 15.03
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Leading the Way
Municipality of Clarington
Schedule "B"
PURCHASING BY-LAW
SUMMARY OF CHANGES
10. The dollar amount for issuing a formal quotation (3 written) has been increased
from $10,000.00 to $20,000.00. — Reference: Page 13, item 15.05
11. The dollar amount for issuing a tender has been increased from $30,000.00 to
$50,000.00. — Reference: Page 14, item 15.07
12. The dollar amount for obtaining Council approval to award a tender or Request
for Proposal has increased from $50,000.00 to $75,000.00. — Reference: Page
26, item 24
13. Consulting —dollar amount increased from $20,000.00 to $30,000.00. —
Reference: Page 16, item 15.14
Added: If using TSH — must consult with Director of Engineering.
14. Exceptions for Consulting and Professional Services — Engineering/TSH,
Environmental Studies — Reference: Page 17, item 15.15
15. Awarding Tenders — reference to Finance Policy added — Reference page 26,
item 24.03 (Note: a report from Finance Department to be provided under
separate cover).
16. TSH Agreement—added clause — Reference Page 27, item 28
17. Appendix"A" has been added which lists all items excluded from the Purchasing
By-law. This also is a requirement of the new Municipal Act. — Reference:
Appendix "A"
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Schedule T"
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY-LAW NUMBER 94-129
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being a By-law to define the purchasing and tendering policies and
procedures applying to the purchase of all types of goods, works and
services by The Corporation of The Municipality of Clarington,and to repeal
By-law#82-96 and#83-16.
BE IT ENACTED AND IT IS HEREBY ENACTED as a By-law of The
Corporation of the Municipality of Clarington thereof as follows:
1. DEFINITIONS
Bidder(s) - shall mean supplier, vendor, contractor, developer,
professionals and/or their heirs, executors, administrators and
assigns.
Clerk-shall mean the Clerk of the Corporation appointed by Council.
Council-shall mean the elected Council of the Corporation.
Committee - shall mean a "standing or ad-hoc committee" of the
Corporation.
Corporation - shall mean The Corporation of the Municipality of
Clarington.
Designated Official-shall mean the head of each department of the
Corporation appointed by Council or the person authorized or
assigned by the Designated Official to administer the procedures set
out in this by-law on behalf of and for the Corporation in respect of
such Designated Official's department.
Report Goods - shall mean all goods and services, which include all
#TR-29-95 May supplies, materials, equipment, general maintenance and services,
1/95
See construction and works contracts, leases, rentals and repairs of
Amendment#1 p
S mmandment equipment. Specifically excluded from this definition shall be the
borrowing, lending and/or investing of money; conventions;
seminars; postage; conferences; courses; memberships; legal
representation; appointment of external auditors and information
from a professional consulting entity for a specific Planning
Feasibility Study required by the Corporation.
i
Schedule T"
Page 2
"Purchasing Agent -shall mean the Purchasing Manager of the
Report Corporation appointed by Council. All references in this by-law
#TR-43-00
July 3100 to Purchasing and Supply Agent shall be interpreted to mean
See
Amendment#1 the Purchasing Manager".
In Amendment
Summary
Treasurer - shall mean the Treasurer of the Corporation appointed
by Council.
Consulting and Professional Services-shall mean services provided
by architects, engineers, designers, surveyors, management and
financial consultants, brokers, soil consultants, real estate
appraisers, Ontario land surveyors, and any other consulting and
professional services not specifically otherwise noted.
Co-operative Purchasing - refers to the participation of two or more
public agencies in a tender call.
Local Bid - shall mean a bid submitted by a Bidder who operates a
business within the Municipality of Clarington.
Purchase Order- shall mean a written offer to purchase goods and
services or a written acceptance of an offer from another party, by
the Corporation.
Purchasinq Procedures Manual - shall mean the Purchasing
Procedures Manual as included in the Treasury Department
Procedures Manual outlining all daily procedures related to the
procurement of goods and services.
Authorized Signatures-shall mean those persons authorized to sign
purchase requisitions and invoices on behalf of the Municipality
conforming to the limits of the signing authority for the value of the
goods required. The list of authorized signatures shall be maintained
by the Treasurer.
Responsible Quotation - shall mean the quotation most responsive
to terms, conditions and time of performance. The organization and
personnel shall show evidence of good organizational and
management practices, qualified personnel, proven experience in
past performance and sound financial condition.
Schedule"C"
Page 3
Departments - shall mean the Departments of the Municipality of
Clarington and shall include: Treasury, Clerk's, Fire, Community
Services, Administrator's, Public Works and Planning and
Development Departments.
Local Boards-shall mean any board, commission, committee, body
or local authority established or exercising any power or authority
under any general or special act with respect to any of the affairs or
purposes of a Municipality.
Regional Bid - shall mean a bid submitted by a bidder who operates
a business within the Regional Municipality of Durham.
Personal Purchase - shall mean a purchase of goods or services
requested by an elected official, an appointed official or by any other
employee of the Corporation,the requirement for which is not for the
Corporation or any of its purposes but is for the benefit and use of
the person requesting the purchase.
AMENDMENTS: Bolded sections have been amended. See
corresponding amendment pages attached.
2. PURCHASE REQUISITIONS
2.01 Each Designated Official of the Corporation shall submit to
the Purchasing Agent a written request in the form of a
"purchase requisition" for the requirements of such
Designated Official's department for all Goods with the
exception of those Goods detailed in the "Purchasing
Procedures manual". The assurance of the allocation of
funds and accounting charge number shall be the
responsibility of the Designated Official for all purchase
requisitions submitted.
2.02 All purchase requisitions submitted shall also bear an
Authorized Signature conforming to the limits of the signing
authority for the value of the Goods required. The list of
Authorized Signatures shall be maintained by the Treasurer.
i
Schedule"C
Page 4
3. Requests on behalf of the Corporation may be made by Designated
Officials for product and technical information, catalogues and price
lists for Goods. Each Designated Official will furnish the Purchasing
Agent, such data, specification details and information relating to the
procurement of Goods, and the Purchasing Agent shall obtain all
firm and/or token prices.
4. The disposal of surplus or redundant materials shall be the
Report Purchasing Agent where appropriate.The Purchasing Agent will
#TR-43-00
July 3/00
See periodically circulate a list of surplus materials to all
Amendment
in Amendment Departments and Local Boards where appropriate.
Summary
5. PURCHASING PROCEDURES
5.1 Local Preference- If in the determination of the Purchasing Agent, if
a competitive market exists and two or more bids are received and
are identical in price, provided quality, service and delivery are
similar, then priority of acceptance shall be first for a Local Bid, if
any, and then for a Regional Bid, if any, otherwise the lowest
responsible bid shall be accepted.
The following provisions shall apply to the purchase of Goods:
5.01 Subject to any direction that may be given from time to time
by Council, the Purchasing Agent shall determine the method
by which Goods shall be acquired, having regard to the
nature, importance or urgency associated with the purchase
requisition, subject to the general trade practice, market
conditions and the guidelines of this By-law. The Purchasing
Agent, at his/her discretion, may establish contracts with
vendors in the form of:
a) blanket orders;
b) standing offer agreements;
c) contract orders;
d) service agreement orders;
e) systems contracts;
f) lease or rental agreements;
provided, however, that for individual transactions, the dollar
amount will not exceed the budgetary allocation or the limits
established by this By-law.
Schedule"C"
Page 5
Report 5.02 "All Goods purchased valued over Three Hundred Dollars
#TR-43-00
July 3100 ($300.00) shall be covered by a Purchase Order, issued
See
Amendment#3 by the Purchasing Agent."
In Amendment
Summary
5.03 The Purchasing Agent shall be authorized to make purchases
not exceeding Ten Thousand Dollars ($10,000.00), if (a) a
minimum of three separate prices or quotes have been
received, or(b)where three separate prices or quotes, in the
opinion of the Purchasing Agent cannot be practically
obtained having regard to the urgency of the Purchase
Requisition and/or availability of the Goods in the
marketplace. Then such lesser number of prices or quotes as
in the opinion of the Purchasing Agent can be obtained are
obtained.
5.04 "The Purchasing Agent shall be authorized to make
Report
#TR-43-00 purchases exceeding Ten Thousand Dollars ($10,000.00)
July 3/00
See but not exceeding Thirty Thousand Dollars ($30,000.00),
Amendment#4
in Amendment provided that:"
Summary
a) at least three or more written quotations are received,
whenever possible;
b) the lowest responsible quotation received is accepted;
c) documents for all quotations received are retained for
inspection by the Treasurer or appropriate officials for
audit purposes.
5.05 Referring to paragraph 5.04, the Purchasing Agent shall
submit a Report to the appropriate Designated Official
providing a list of written quotations received with
recommendations for award. The purchase of Goods in this
situation will be subject to the appropriate Designated
Official's approval. Where the lowest responsible quotation is
not accepted or where the lowest responsible quotation
exceeds the budget allocation, the Purchasing Agent shall, in
consultation with the appropriate Designated Official,submit a
Report to Committee and/or Council providing a list of written
quotations received with recommendations for award. The
purchase of Goods in this situation shall be subject to
Committee and/or Council approval.
i
i
Schedule"C"
Page 6
Report 5.06 "All purchases not otherwise identified in this By-law and
#TR-43-00
July 3/00 in excess of Thirty Thousand Dollars ($30,000.00)shall be
See
Amendment#5 by tender, unless otherwise determined and directed by a
in Amendment
Summary Resolution of Council."
5.07 "Under the direction of the Purchasing Agent, the
Report person(s) authorized to make purchases on behalf of the
July//-00 department of Public Works Fire and Community
July 3/00 p , , y
See Services y p necessary Amendment#6 , may order vehicle arts necessa to maintain
in Amendment
Summary the Corporation's vehicles,subject to the following:
a) that the value of each separate order shall not
exceed$1,000.00; and
b) that the emergency purchase order is signed by
the Purchasing Agent prior to sending to the
supplier."
5.08 Purchase orders shall not be split so as to circumvent the
established method of purchase and the dollar limits imposed
by this By-law.
5.09 Subject to the provisions of The Municipal Freedom of
Information and Protection of Privacy Act, R.S.O. 1990,
Chapter M.56, no Corporation employee nor any member of
Council shall divulge prices received for any Goods except;
(a) the total bid amount in the case of "public tenders";
and
(b) the total bid amount in the case of "sealed bid
requests"shall be divulged on request.
Notwithstanding this Section 5.09, all prices recorded during
the opening of tenders, that are part of the Corporation's
permanent record and maintained in the Clerk's Department,
shall be made available to the public, upon request, pursuant
to the provisions of the Municipal Act. R.S.O., 1990, Chapter
M.45.
5.10 Notwithstanding the provisions of this By-law, the purchase of
Goods for emergency purposes may be made by the
Purchasing Agent in circumstances which could result in
costly departmental downtime, danger to life and/or property
damage. In all such cases, a Report shall be filed jointly by
the Designated Official and the Purchasing Agent to the
i
Schedule T"
Page 7
Committee and/or Council, should the value of the purchase
exceed the guidelines established within this By-law. In the
absence of the Purchasing Agent, purchases for emergency
purposes may be made by a Designated Official and such
purchases confirmed by a purchase order issued by the
Purchasing Agent, as soon as possible.
5.11 Co-operative Purchasinq - The co-operative method of
purchasing with regard to tenders with other Municipality's
shall be utilized, when advantageous and practical. The
purchasing by-law and tendering practices of the Municipality
issuing such tender(s)shall take precedence over this By-law
with respect to calling, receiving and opening of the tender
documents.. Subsequent to the opening of the tender
documents, all other terms and conditions of this By-law shall
apply.
Subject to the Committee and/or Council approval, all
subsequent co-operative by-laws and constitutions will hereby
form part of this by-law.
Report 5.12 "Requests for Proposals - Purchasing may be made
-00
July 3/00 through the use of proposals in those specific situations
See where a product or service cannot be adequately
Amendment#7 p q y
in Amendment
Summary specified. This would apply to highly technical products
or specialty services."
When appropriate, proposals shall be called by public
advertisement and/or invitation.
"Where it has been determined that proposals are to be
used, the Purchasing Agent shall be authorized to make
purchases using the proposal method for purchases
exceeding Thirty Thousand Dollars ($30,000.00) provided
that wherever possible three written quotations are
received, and that in consultation with the Designated
Official, a Report be submitted to Committee and/or
Council providing a list of bid amounts received with
recommendations for award. The purchase of Goods in
this situation will be subject to Committee and/or Council
approval."
Schedule"C
Page 8
5.13 Consulting and Professional Services - Where it is
estimated that Consulting and Professional Services will
cost less than Twenty-Five Thousand Dollars($25,000.00)
and funds are provided as defined in the appropriate
budget,the initiating Department may obtain the services.
Where it is estimated that Consulting and Professional
Services will cost more than Twenty-Five Thousand
Dollars ($25,000.00) and funds are provided as defined in
the appropriate budget, the Purchasing Agent shall
obtain written proposals and in consultation with the
Designated Official, submit a Report to Committee and/or
Council providing a list of bid amounts received with
recommendations for award. The purchase of services in
this situation will be subject to Committee and/or Council
approval.
All contracts for Consulting and Professional Services
worth more than Twenty-Five Thousand Dollars
($25,000.00) will be by a formal agreement signed by the
Mayor and Clerk or a purchase order issued by the
Purchasing Agent.
5.14 Personal Purchases - No personal purchases shall be made
by the Corporation for Members of Council, or any appointed
member of a Board of Commission of the Corporation for
Employees of the Corporation, unless specifically authorized
by Council.
5.15 Conflict of Interest - No employee of the Corporation or
Member of Council shall bid on the sale of Goods except
those disposed of by public auction.
5.16 Identical Bids - If in the determination of the Purchasing
Agent, if a competitive market exists and two or more bids
received are identical in price, provided quality, service and
delivery are similar, then priority of acceptance shall be first
for a Local Bid, if any, and then for a Regional Bid, if any, and
otherwise the tender to be recommended for acceptance will
be decided by means of a draw. The Bidders who have
submitted similar bids shall be notified and their names shall
be placed in a container and the name of Bidder whose
Schedule"C
Page 9
tender shall be recommended for acceptance shall be drawn
by the Clerk in the presence of at least two witnesses. Any
other persons desiring to be present at the draw may attend.
Should any Bidder elect not to be represented at the draw,
the draw will proceed regardless.
6. "TENDERING PROCEDURES
Report The followin g p rocedures shall apply to the purchase by
July 3/00
See tender of all Goods estimated to be in excess of Thirty
In Amendment Thousand Dollars 30,000.00
In Amendment �� )•"
Summary
6.01 Advertising
All tenders shall be called by Public Advertisement, unless
otherwise directed by Council and/or Committee.
6.02 Tender Closing Time
All tender closing times shall be established by the
Corporation.
6.03 Release of Information to Bidders
The Corporation shall supply the following materials to all
prospective Bidders:
a) one copy of the official tender form relating to the
tender called;
b) one standard tender envelope appropriately imprinted;
c) tendering information, i.e. plans, specifications,
profiles,etc.;
d) where a deposit is required for tender documents,
such fee shall be paid to the Corporation by cash,
money order, bank draft or certified cheque. If
applicable, refunds shall only be made when all
required tender documents are returned to the
Corporation in good condition.
6.04 Recording and Control of Tendering Material
A list of prospective, responsible Bidders shall be maintained
by the Purchasing Agent when issuing tendering material. All
names, addresses and facsimile numbers of all prospective
Bidders who have been supplied with or who have requested
the material set out in Section 6.03 shall be recorded
when tenders are released to facilitate distribution of addenda
when necessary or to extend or cancel a tender under call.
i
Schedule"C"
Page 10
The determination of responsibility and prequalification of
contractors and/or Bidders shall be decided by the Purchasing
Agent, in all cases.
7. CHANGES TO TENDERS UNDER CALL
7.01 Preparation of Addendum
Interpretation of qualifications shall be made in the form of a
written addendum. Addenda are necessary to revise, delete,
substitute or add to tendering material under call. The
Purchasing Agent shall approve the issuance of an
addendum or the cancellation of the tender call.
7.02 Notification of Addenda to Bidders
If an addendum notice as aforesaid is prepared too late to
allow notification by registered mail prior to the tender closing
time, in addition to mailing the notice, each prospective Bidder
shall be notified of the revision by telegram or facsimile.
7.03 Addenda Issued after Receipt of Tender
Where an addendum is released in the interim which in the
opinion of the Purchasing Agent may affect a Bidder's tender,
all tenders received and deposited prior to the tender opening
may be withdrawn and the Bidder will be given a new set of
tender documents to be resubmitted following normal
procedure.
7.04 Cancellation of Tender Under Call
The Purchasing Agent reserves the right to cancel tenders
under call as required. The procedure for the notification of
Bidders of a cancellation shall apply, as in Paragraph 7.02.
All tenders received after cancellation will be returned
unopened to the Bidder by registered mail with notification of
the cancellation.
8. CONDITIONS OF TENDER SUBMISSION
All tenders shall be submitted to the Office of the Clerk and shall be
subject to the following conditions:
8.01 The correct Tender Form and envelope (with no extra exterior
covering)as supplied by the Corporation must be used.
Schedule"C'
Page 11
8.02 Tenders must be properly sealed and delivered to the Office
of the Clerk prior to the tender closing time established for
that tender.
8.03 Time of delivery of any tender shall be determined by the
Clerk or his/her delegate.
8.04 When received by the Office of the Clerk, the envelope(s)
shall have the date and time of receipt noted on them by the
Clerk or his/her delegate. Each tender received shall be
recorded in a Tender Register maintained by the Office of the
Clerk.
8.05 All tenders received by the Office of the Clerk shall be placed
unopened in a suitable locked receptacle and shall remain
under the control of the Clerk.
8.06 All tenders delivered after the tender closing time or in other
than the tender envelope supplied shall not be accepted by
the Clerk and shall not be deposited in the tender box. The
Purchasing Agent shall be advised of the circumstances and
the tender returned unopened to the Bidder, accompanied by
a letter which states"not accepted".
8.07 Where no return address is visible on the outside of a tender
that is delivered after the close of tenders, it shall be opened
in the presence of the Clerk by the Purchasing Agent, a return
address determined, the facts noted for the record and the
documents returned to the Bidder accompanied by a letter as
in 8.06 above.
9. FORM OF TENDER
9.01 All tenders must be legible,written in ink or typed.
9.02 "All items must be bid" unless otherwise specified in the
tender call documents.
9.03 All entries including unit prices for each item must be clearly
stated.
I
i
Schedule"C"
Page 12
9.04 The tender cannot contain any restrictive statements, nor can
the tender be qualified by separate letter.
I�
9.05 Unless specified in writing by the Purchasing Agent, no
alterations to the tender documents will be permitted.
9.06 All tenders submitted must be signed by an authorized person
and in the case of a Limited Company, have the corporate
seal affixed.
9.07 All erasures, overwriting, strike-outs and other similar
alterations inserted in the Bidder's proposals must be initialled
by the person authorized to execute the documents on behalf
of a Bidder.
10. BONDS AND DEPOSITS
All tenders shall be accompanied by an executed bonding
agreement,when bonding is required.
All tenders requiring bid deposits shall have such deposits
made payable to "The Corporation of the Municipality of
Clarington" and shall be in the form of a certified cheque, bank
draft, money order or cash and shall be enclosed in the same
envelope as the tender. Bid deposits shall be submitted in
accordance with the following schedule, unless otherwise
specified by the Purchasing Agent.
Total Amount of Bid Minimum Deposit Required
$ 20,000.00 or LESS $ 1,000.00
$ 20,000.01 to$ 50,000.00 $ 2,000.00
$ 50,000.01 to$ 100,000.00 $ 5,000.00
$ 100,000.01 to$ 250,000.00 $ 10,000.00
$ 250,000.01 to$ 500,000.00 $25,000.00
$ 500,000.01 to$1,000,000.00 $50,000.00
$1,000,000.01 to$2,000,000.00 $100,000.00
$2,000,000.01 or OVER $200,000.00
When bonding is a condition of the tender call, a Performance Bond
and/or a Labour and Material Payment Bond in the amount specified
in the tender documents must be furnished by the Bidder prior to
execution of the contract.
Both the amount and the form of bond shall meet the requirements
of the Treasurer.
Schedule"T
Page 13
11. WITHDRAWAL OF TENDERS
11.01 Anyone submitting a tender can only withdraw the tender prior
to the close of tenders. Requests received following the close
of tenders will not be accepted.
11.02 Anyone wishing to withdraw a tender may do so in writing and
deliver the same to the Office of the Clerk.
11.03 All tenders withdrawn prior to being deposited in the tender
box shall be returned and the withdrawal of the tender
acknowledged in writing.
11.04 All withdrawals received relating to tenders deposited in the
tender box shall be deposited and all of the related
documentation returned unopened following the tender
opening.
11.05 Withdrawal of Bids During Opening-During a tender opening
at the conclusion of the reading out of bids on a contract, the
low Bidder may withdraw any of his/her remaining tenders on
other contracts. Tenders withdrawn under this procedure
cannot be reinstated. The Bidder must attest in writing to
his/her identity and state the contract(s) on which he/she
desires to withdraw. A Notice of Withdrawal of Tender must
be signed by the prospective Bidder. This Notice must be
handed to the Clerk or his/her delegate before the reading out
of the first tender on the contract(s) to which it applies. The
Clerk or his/her delegate shall attach it to the applicable
tender. The Bidder's name shall be read out and it shall be
announced that the tender has been withdrawn in accordance
with established procedure. The bid amount of the tender
shall not be read out.
12. OPENING TENDERS
12.01 All tenders shall be opened by the Clerk or his/her delegate in
the presence of at least one witness for the Corporation and the
Purchasing Agent or his/her delegate and the bids duly recorded.
12.02 Any interested person may attend a Tender Opening.
i
i
Schedule"C
Page 14
12.03 Where two or more tenders are called for at the same time,
the tenders shall be opened in numerical order,with the
lowest numbered tender being opened first.
12.04 Having established the order of precedence, the Clerk or
his/her delegate shall remove the tenders from the Tender
Receptacle.
12.05 Where a tender cannot be identified as to the author or
contract number, such an envelope shall be opened and the
documents placed with the appropriate group of tenders.
12.06 Where a conflict exists in respect of the envelope and its
contents as to the contract number, the contract number on
the tender documents shall prevail.
12.07 When all tenders have been sorted,opened and withdrawn
tenders segregated pursuant to paragraph 11.04,the Clerk
shall compare the number of tenders opened to the number
of tenders recorded in the Record of Tenders. Where a
discrepancy exists,the proceedings shall be delayed
until all tenders have been accounted for.
12.08 When all tenders are accounted for,the Clerk or his/her
delegate shall announce each tender publicly in the following
manner:
i) tender number and specifications;
ii) Bidder's name and location;
iii) bid deposit and bonding letter(if required);
iv) total bid amount.
12.09 All tenders shall be checked to determine that each Bidder
has submitted one bid only. Should more than one bid be
submitted,the lowest bid submitted shall be deemed to be the
intended bid, unless one of the bids has been withdrawn in
the manner prescribed in Section 11.
12.10 Following the opening and recording of tenders by the Clerk,
the Record of Tenders shall be closed and the record signed
attesting to that fact.
I
Schedule T"
Page 15
12.11 With the exception of the Clerk and the Purchasing Agent or
their delegates, no dialogue will be permitted with respect to
the proceedings.
13. VERIFICATION OF TENDERS
All tenders will be delivered to the Purchasing Agent who shall
ensure that:
a) all tenders comply with the tender requirements;
b) all unit prices have been correctly extended;
c) all extensions have been correctly totalled;
d) unit prices shall govern the intention of the bid, in the
event of arithmetic errors.
13.01 Improper Bids
Any bids that fail to meet the established criteria shall
be deemed to be "improper bids", and be subject to
further examination by the Purchasing Agent for the
purpose of establishing the degree of defect contained
in the document.
13.02 Unequivocal Reiection of Bids
All bids shall be rejected that are:
a) received after the tender closing time;
b) delivered in other than the prescribed tender
envelopes;
c) that are not completed in ink or by typewriter;
d) incomplete and do not comply with
specifications;
e) restrictive or contain conditional statements
which are intended to alter the form or intent of
the tender called by the Corporation;
f) submitted with improperly executed documents;
g) unaccompanied by bonding documents or bid
deposits where required.
13.03 Exceptions
The Purchasing Agent may at his/her discretion accept
or reject a bid when:
i
Schedule"C
Page 16
a) the "Agreement to Bond" is improperly
executed; (if the bid is accepted he/she may
allow a period of time to have the"Agreement to
Bond"corrected) j
b) the envelope is improperly sealed;
c) the documents are illegible;
d) the envelope contains an improper bid deposit;
e) the arithmetic extensions contain gross errors.
14. AWARD OF TENDERS
Report "The Purchasing Agent shall review the tender with client
�
y3/000 department in accordance with procedure established under
See
Amendment#9 paragraph 5.05 for all tenders valued under $50,000.00. For
In Amendment
Summary
tenders over $50,000.00 the Purchasing Manager shall review
the tender with client department and shall then report to the
General Purpose and Administration Committee and/or Council.
Where the tender amount exceeds the budget allocation the
report shall contain the requisite information with respect to the
source of additional funding.
Upon approval of the tender the Purchasing Agent shall make
the award and issue a Purchase Order in accordance with the
conditions of the tender."
15. DISPOSITION OF BID DEPOSITS
Following the awarding or cancellation of a tender, all deposits, with
the exception of the low and second low Bidders in the case of an
award, shall be returned to the unsuccessful Bidders by registered
mail, or if picked up, receipt acknowledged in writing. The retained
deposits will be held until the contract is executed(see 16).
16. EXECUTION OF CONTRACT
The successful Bidder shall be allowed ten (10) working days from
the date of mailing of the form of contract to execute and return the
same to the Purchasing Agent.
Schedule"C"
Page 17
The Mayor and Clerk shall execute contracts on behalf of the
Corporation when required, and a By-law authorizing the execution
of such contracts shall be approved by Council prior to the signing of
the contract by either of them.
17. DEFAULT BY SUCCESSFUL BIDDER
If the successful Bidder fails to execute the contract or fails to meet
any of the requirements of the contract within the prescribed time,
the tender may be awarded to the next lowest Bidder(s)or cancelled.
In the event a successful Bidder fails to execute, finalize and/or
provide acceptable surety for a contract, the Bidder's deposit(s) will
be forfeited.
18. ABSOLUTE RIGHT
Notwithstanding the provisions of this By-law, the Corporation shall
have absolute discretion in the awarding of contracts and retains the
right to reject any,or all tenders.
BY-LAW read a first time this day of 1994.
BY-LAW read a second time this day of , 1994.
BY-LAW read a third time and finally passed this day of , 1994.
Mayor
Clerk
I