HomeMy WebLinkAbout82-96r ,
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THE CORPORATION OF THE TOWN OF NEWCASTLE
BY -LAW NUMBER 82 -96
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 Town of Newcastle.
BE IT ENACTED AND IT IS HEREBY ENACTED as a By -law of the Corporation
of the Town of Newcastle thereof as follows:
1. DEFINITIONS
Bidder(s) - shall man supplier, vendor, contractor, developer,
professionals and /or their heirs, executors, administrators and
assigns.
Clerk shall man the appointed Clerk of the Corporation of the
Town of Newcastle.
Council - shall man the elected Council of the Corporation of
the Town of Newcastle.
Committee - shall mean a "standing or ad -hoc committee" within
the Corporation of the Town of Newcastle.
Corporation - shall man the Corporation of the Town of
Newcastle.
Designated Official - shall man the Department Head or persons
authorized or assigned to administer the approved procedures on
behalf of and for the Corporation of the Town of Newcastle.
Goods - shall mean all goods and services which include all
supplies, materials, equipment, general maintenance and
services, construction and works contracts, leases, rentals and
repairs of equipment. Exclusions of this definition shall
include specifically the borrowing, lending and /or investing of
money and information from a professional consulting entity for
a specific feasibility study required by the Corporation.
Purchasing Agent - shall man the appointed Purchasing & Supply
Agent of the Corporation of the Town of Newcastle.
Treasurer - shall mean the appointed Treasurer of the
Corporation of the Town of Newcastle.
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?SLED BY
BY- LAW #298 3.201 680
AMENDED BY
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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 its requirements 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.
3. All requests by Designated Officials for firm and /or token
prices, product and technical information, catalogues and price
lists for goods on behalf of the Corporation will be directed to
the Purchasing Agent. Each Designated Official will furnish to
the Purchasing Agent, as required, such data, specifications,
details, information etc. relating to the procurement of goods.
4. The disposal of surplus or redundant materials shall be the
responsibility of the Purchasing Agent.
5. 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
request, subject to the general trade practice, market
conditions and the guidelines of this By -law. The
Purchasing Agent, at his 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. Contracts or lease
agreements that extend beyond the term of Council shall be
subject to Ontario Municipal Board approval.
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5.02 All goods purchased valued over One Hundred Dollars ($100)
shall be covered by a Purchase Order, issued by the
Purchasing Agent.
5.03 The Purchasing Agent shall be authorized to make purchases
not exceeding Five Thousand Dollars ($5,000), subject only
to the condition that three separate prices have been
received, whenever possible.
5.04 The Purchasing Agent shall be authorized to make purchases
exceeding Five Thousand Dollars ($5,000) but not exceeding
Fifteen Thousand Dollars ($15,000), provided that:
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, where at least three written
quotations are not received, or where the lowest
responsible quotation is not accepted or where the lowest
responsible quotation exceeds the amount of Ten Thousand
Dollars ($10,000), the Purchasing Agent shall, 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
goods in this situation will be subject to Committee and /or
Council approval.
5.06 All purchases in excess of Fifteen Thousand Dollars
($15,000) shall be by tender, unless otherwise determined
and directed by a Resolution of Council.
5.07 Under the direction of the Purchasing Agent, the person(s)
authorized to make purchases on behalf of the Works Depot
Garage and Fire Department, may order vehicle parts
necessary to maintain the Corporation's vehicles, subject
to the following:
(a) That the value of each separate order shall not exceed
$500.00;
(b) That the 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.
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5.09 Corporation Employees or any elected official, shall not
divulge prices received for any goods except the total bid
amount in the case of public tenders. 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
pursuant to the provisions of the Municipal Act, R.S.O.
1980.
5.10 Notwithstanding the provisions of this By -law, emergency
purchase of goods 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 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, emergency purchases may be made by
a Designated Official and such purchases confirmed by a
purchase order issued by the Purchasing Agent, as soon as
practicable.
6. TENDERING PROCEDURES
The following procedures shall apply to the purchase of all
goods estimated to be in excess of Fifteen Thousand Dollars
($15,000).
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) two copies 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. Refunds shall
only be made when all required tender documents are
returned to the Corporation in good condition.
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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 and addresses shall be recorded when
tenders are released to facilitate distribution of addenda
when necessary, to extend or cancel a tender under call.
The determination of responsibility and prequalification of
contractors and /or bidders shall be decided by the
Purchasing Agent, in al.l cases.
7. CHANGES TO TENDERS UNDER CALL
7.01 Preparation of an Addendum
Interpretations 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 cancel the tender call.
7.02 Notification of Addenda to Bidders
Bidders shall be notified of an addendum initially by
telephone and confirmed by written notice delivered via
registered mail. The bidder may have the option of
receiving the addendum by personally picking up the notice
from the Purchasing Agent with receipt acknowledged by
signature.
7.03 Cancellation of Tender Under Call
The Purchasing Agent reserves the right to cancel tenders
under call as required. Procedure for 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 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 as supplied by the
Corporation must be used.
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.
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8.03 Time shall be determined by the Clerk or his 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 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 late shall not be accepted by the
Office of the Clerk. 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, delivered after the close of tenders ".
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 inlcuding unit prices for each item must be
clearly stated.
9.04 The tender cannot contain any restrictive statements, nor
can the tender be qualified by separate letter.
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.
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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 Town of Newcastle" 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.
Total Amount of Bid
$20,000.00
$20,000.01
$50,000.01
100,000.01
250,000.01
500,000.01
1,0009000.01
2,000,000.01
OR LESS
to $50,000.00
to $100,000.00
to $2509000.00
to $500,000.00
to $1,000,000.00
to $2,000,000.00
OR OVER
Minimum Deposit Required
$1,000.00
$2,000.00
$5,000.00
$10,000.00
$25,000.00
$50,000.00
$1009000.00
$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 bond and the form of bond shall meet the requirements
of the Treasurer.
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.
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12. OPENING TENDERS
12.01 All tenders shall be opened by the Clerk or his delegate
in the presence of at least one witness for the
Corporation and the Purchasing Agent or his delegate and
the bids duly recorded.
12.02 Any interested person may attend a Tender Opening.
12.03 Where two or more tenders are called for 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 delegate shall remove the tenders from the Tender
Receptacle.
12.05 Where a tender cannot be identified as to 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 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
delegate shall announce each tender publicly in the
following manner:
i) tender number and specification;
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 bidders
have not submitted more than one bid. Should this
situation arise, the lowest bid submitted shall be deemed
to be the intended bid, unless one of the bids has been
withdrawn in the prescribed manner in Section 11.
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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.
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) that all unit prices have been correctly extended;
(c) that all extensions have been correctly totalled;
(d) unit prices shall govern the intention of 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 Rejection of Bids
All bids shall be rejected that are:
(a) received late;
(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) that contain restrictive or conditional statements
which are intended to alter the form or intent of
the tender called by the Corporation;
(f) that contain improperly executed documents;
(g) unaccompanied by bonding documents or bid deposits.
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13.03 Exceptions
The Purchasing Agent may at his discretion accept or
reject a bid when:
(a) the "agreement to bond" is improperly executed; (if
the bid is accepted he may allow a period of time to
have the "Agreement to Bond" corrected)
(b) the envelope is improperly sealed;
(c) the documents are illegible;
(d) the envelope contains improper bid deposit;
(e) the arithmetic extensions contain gross errors.
14. AWARD OF TENDERS
The Purchasing Agent shall review the tender with the 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 by Council, 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 acknowledge in
writing.
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.
The Mayor and Clerk shall execute contracts on behalf of the
Corporation of the Town of Newcastle 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.
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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 19 day of July 1982
BY -LAW read a second time this 19 day of July 1982
BY -LAW read a third time and finally passed this lg day of
July 1982.
MAYO
David W. Oakes / /I, ._
CLE