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Home My WebLink AboutCOD-004-15 Clarington Corporate Services Report If this information is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. Report To: General Purpose and Administration Committee Date of Meeting: March 9, 2015 Report Number: COD-004-15 Resolution: File Number: By-law Number: Report Subject: PURCHASING BY-LAW - UPDATE 2015 Recommendations: 1. That Report COD-004-15 be received; 2. That the updated By-law attached to this Report (Attachment 1) be passed; and 3. That any interested parties listed in Report COD-004-15 be advised of Council's decision. Municipality of Clarington Report COD-004-15 Page 2 Report Overview To request authorization from Council to update the Purchasing By-law No. 2010-112. 1 . Background In accordance with the Purchasing By-law the Purchasing Manager is required to undertake a comprehensive review of the Purchasing By-law every five years. The Purchasing By-law 2010-112 (Attachment 2) was last updated and approved by Council in 2010 with the recommended changes designed to meet departmental requirements and operational needs while ensuring effective controls. The proposed updated By-law (Attachment 1) repeals the existing By-law 2010-112. The Purchasing By-law outlines the authority for the procurement of goods including the following: • the authority and duties of the Purchasing Manager • the process for bid solicitation and awarding of contracts • the conditions under which goods and services can be sourced without a competitive process • purchasing limits and delegation of authority • compliance & completeness • pricing/cost. 2. Review process Proposed changes to the current by-law reflect changed circumstances such as the introduction of the Accessibility for Ontarians with Disabilities Act AODA, or streamlining resulting from comments received from those working with the by-law. Many of the changes are administrative and are incorporated to reflect efficiencies, comparative norms, or are just movement of clauses to better reflect the flow of processes. The few substantive changes are outlined below. It should be noted that the changes proposed in the By-law do not change the public sector accepted processes used to ensure a fair, transparent and competitive process. The significant changes being proposed are as follows: 1. The dollar threshold for issuing Purchase Order has been increased from $1,000 to $5,000. Note: This change is in keeping with limits used by other municipalities in Ontario. It will allow Purchasing Staff to focus on higher dollar value purchases and shorten the acquisition process. 2. The dollar threshold for a person authorized to make purchases by Purchase Order on behalf of either the Operation Department or the Emergency and Municipality of Clarington Report COD-004-15 Page 3 Fire Services Department for vehicle parts to maintain the Corporation's vehicles has been increased from $7,500 to $10,000 Note: There has been an increase in price for vehicle parts and a growing demand for the shortest turnaround time for servicing emergency vehicles. 3. The AODA reference to incorporation of accessibility design criteria has been added in compliance with requirements under the Act. 4. Deletion of any reference to In-House bid within the By-law. Note: this clause has not been used, and is not considered reflective of the public tendering process. 5. Election related technology and equipment, and any consulting and support services directly related to such technology and equipment. Note: The Municipal Clerk has a responsibility to take reasonable measures to ensure that the requirements of the Municipal Elections Act, including the principles are successfully fulfilled. This means that greater flexibility is required in procuring technical equipment and systems, heavily relied on to execute the election, as well as any consulting and support services and supplies directly related to the systems and technology. Election technology is industry specific and although the features of the systems are often similar among the vendors, the reliability and affiliated processes pertaining to the systems and equipment, as well as the knowledge, ability and reliability of the vendor representatives can be difficult to quantify as they are tried and tested both in the field and in the courts. 6. Deletion of any reference to AECOM from the By-law. Note: The Engineering Department is recommending that the process for procuring consulting engineering services be realigned to support the Department's growing capability to manage municipal infrastructure projects in-house, to provide a more flexible acquisition process that does not tie the municipality to a single service provider, and to allow the Department to engage consultants that can provide specific expertise on a timely basis, as needed. 7. The Engineering Department is recommending the addition of Engineering Services and Engineering Consulting Services to Schedule "A". Note: Changes to the by-law will minimize expense and limitations of the RFP process that may restrict project schedules and consume the Engineering Department resources. These changes will allow the Department to take full advantage of available consulting resources that are able to provide flexible, priority service based on specific Departmental needs. Where full project management of large infrastructure projects is required, the RFP process will continue to be utilized; however, where task-oriented services are required for projects that are being managed by the Department, the more flexible acquisition process will be utilized to Municipality of Clarington Report COD-004-15 Page 4 engage consultants based on their competence, areas of expertise, reputation and past performance. The Department will continue to provide open and stringent ongoing evaluation of consultant services engaged through this method. 8. The Municipal Clerk's participation in the Tendering process has been removed, with her concurrence. The current process involves the Clerk in the Tender process, but the formal process for Requests for Proposals is entirely handled by the Purchasing Division; streamlining and standardizing both formal processes under the one department adds to efficiency, consistency and reflects common practice. 9. There has been a clarification to the wording of the by-law to reflect practice, where a bidder who defaulted on a contract may be considered ineligible to bid. Where the termination of the awarded contract is the appropriate action, the appropriate awarding authority is provided written notification. 3. Concurrence The Municipal Solicitor, Purchasing Manager, Director of Corporate Services and Director of Finance/Treasurer made up the review team, who incorporated changes requested and required updates to the proposed amended by-law. 4. Conclusion Overall, the general consensus is that the By-law facilitates efficient procurement processes and effectively meets the operating requirements of the Municipality's operating Departments while ensuring appropriate controls and accountability measures. It is respectfully recommended that the By-law attached to this report be passed. 5. Strategic Plan Application The recommendations contained in this report conform to the Strategic Plan. Submitted by: � � Reviewed by � ._�✓ � .___ � . i arano, H.B.Sc., A.M.C.T. Franklin Wu, Director of Corporate Services Chief Administrative Officer Municipality of Clarington Report COD-004-15 Page 5 Staff Contact: David Ferguson, Purchasing Manager, 905.623.3379 Ext 2209 or dferguson @clarington.net Attachment: Attachment 1 — Proposed updated Purchasing By-law Attachment 2 — Purchasing By-law 2010-112 MM/DF/cb Attachment 1 to Report COD-004-15 PURCHASING BY-LAW 2015nXXX , Table of Contents Part1 — Interpretation...............................................................................................................3 Definitions ...............................................................................................................................3 WordUsage............................................................................................................................5 Severability..............................................................................................................................5 References..............................................................................................................................5 Application...............................................................................................................................5 Part2—Authority......................................................................................................................6 PurchasingManager Authority ................................................................................................6 ApprovalAuthority...................................................................................................................6 SigningAuthority......................................................................................................................6 Part3— Bid Types and Limits..................................................................................................6 Purchasesunder$5,000 .........................................................................................................6 Informal Request for Quotation ($5,000 - $25,000)..................................................................6 Parts and Equipment Orders ($10,000)...................................................................................7 Formal Request for Quotation ($25,000 - $100,000) ...............................................................7 Acquisitionsover $100,000 .....................................................................................................7 RoutinePurchases..................................................................................................................7 Negotiations/Single/Sole Source Purchases........................................................................7 Requestsfor Proposal.............................................................................................................8 Product Demonstrations and Information ................................................................................8 BidPre-Qualification................................................................................................................9 Bondsand Deposits................................................................................................................9 InitialBid Procedures ............................................................................................................10 Listof Registered Bidders .....................................................................................................10 Changesto Bids under Call...................................................................................................10 FormalBid Submissions........................................................................................................11 Withdrawalof Bids.........................................................................................:.......................11 BidOpening ..........................................................................................................................12 Verificationof Bids.................................................................................................................12 Rejectionof Bids ...................................................................................................................13 i BidCancellation ....................................................................................................................14 AbsoluteRight.......................................................................................................................14 i I 1 I Purchasing By-Law No. 2015-XXX Page 2 LocalPreference...................................................................................................................14 Approval Limits and Reporting (Excluding Consulting and Professional Services)....................15 Council Recess Procedures..................................................................................................15 Consulting and Professional Services ...................................................................................15 Co-Operative Purchasing......................................................................................................16 Pre-Budget Approval..............................................................................................................16 EmergencyPurchases ..........................................................................................................16 Part 4—General Purchasing Policies....................................................................................16 DefaultBy Successful Bidder................................................................................................16 FairWage Policy...................................................................................................................17 Conflictof Interest.................................................................................................................17 Accessand Disclosure..........................................................................................................17 Records Retention and Destruction.......................................................................................17 Complaintsand Inquiries.......................................................................................................18 Insurance..............................................................................................................................18 PurchasingCards..................................................................................................................18 Disposalof Goods.................................................................................................................18 OverExpenditures.................................................................................................................18 Sustainability.........................................................................................................................18 Accessibility for Ontarians with Disabilities Act, 2005............................................................19 Part5— General Provisions ...................................................................................................19 By-Law Review .....................................................................................................................19 Repeal...................................................................................................................................19 EffectiveDate........................................................................................................................19 Schedule «A"...........................................................................................................................20 i Purchasing By-Law No. 2015-XXX Page 3 If this by-law is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. I THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 2015-XXX being a by-law to provide policies and procedures for the procurement of goods and services. WHEREAS pursuant to section 270 of the Municipal Act, 2001, the Corporation is required to establish and maintain policies with respect to its procurement of goods and services; and WHEREAS the Corporation wishes to procure goods and services in the most efficient and cost effective manner possible; and WHEREAS the Corporation is committed to ensuring that its procurement policies and procedures are fair, open and transparent. NOW THEREFORE the Corporation of the Municipality of Clarington hereby enacts as follows: Part 1 — Interpretation Definitions 1. In this by-law, "Acquisition" means the purchase of a Good and/or Service for use on a permanent or temporary basis; "Bid" means a Proposal, Quotation or Tender; "Bidder" is a Person who responds to a Bid Solicitation; "Bid Solicitation" means a request by the Corporation for Bids for the provision of Goods and/or Services through an RFP, RFQ or RFT; "CAO" means the Chief Administrative Officer of the Corporation or a designate; "Clerk" means the Municipal Clerk of the Corporation or a designate; "Committee" means the General Purpose and Administration Committee of Council; "Consulting and Professional Services" means services provided by architects, engineers, designers, environmental consultants, surveyors, management and financial consultants, i Purchasing By-Law No. 2015-XXX Page 4 bankers, auditors, brokers, soil consultants, real estate appraisers, Ontario land surveyors, web designers or any other consultant or professional, but does not include any consulting and professional services referred to in Schedule"A"; "Corporation" means The Corporation of the Municipality of Clarington; "Cost" means the actual cost of an Acquisition excluding taxes; "Contract" means an agreement between two or more Persons one of whom is the Corporation; "Council' means the Council of the Corporation; "Department" means a Department of the Corporation identified on the annual organization charts and reflected in the prevailing budget; "Department Head" means the Director of one of the Departments or a designate; "Disqualified Bidder" means a Bidder that has provided unsatisfactory Goods and/or Services to the Corporation and consequently had a Contract terminated or been notified by the Purchasing Manager that they are not eligible to submit a Bid; "Expression of Interest" or"EOI" means general market research used prior to a Bid Solicitation to determine if there is an interest in a proposed Acquisition; "Goods and/or Services" means any goods and/or services required by the Corporation other than (a) Consulting and Professional Services and (b) goods and/or services listed in Schedule "A"; "Local Board" means a local board (as that term is defined in the Municipal Act, 2001) of the Corporation; "Person" includes an individual, association, firm, partnership, corporation, union, trust, organization, trustee or agent, and their heirs, executors, administrators, successors and assigns; "Proposal" means an offer from a Bidder made in response to an RFP; "Purchase Order" means a Contract or a written acceptance of a Proposal, issued on forms prescribed by the Purchasing Manager; "Purchasing Manager" means the Purchasing Manager of the Corporation or a designate; "Quotation" means an offer from a Bidder made in response to an RFQ; "Request for Proposal" or"RFP" is a form of Bid Solicitation in which the Corporation invites one or more potential suppliers to submit proposals with respect to the supply of particular Goods and/or Services, which the Purchasing Manager in consultation with the Department Head, determines may be dependent upon non-price factors and may require negotiations between a Bidder and the Corporation before a Contract is made between them; i i Purchasing By-Law No. 2015-XXX Page 5 i i "Request for Quotation" or"RFQ" is a form of Bid Solicitation in which the Corporation requests either informal quotations or formal quotations; "Request for Tender" or"RFT" is a form of Bid Solicitation in which the Corporation publishes the specifications, terms, conditions and details concerning a proposed Contract, and invites or advertises prospective Bidders to submit Tenders; "Responsive and Responsible Bidder" is a Person responding to a Bid Solicitation who complies with its provisions and who can reasonably be expected to provide satisfactory performance of a proposed Contract based on reputation, references, performance on previous contracts, and proof of sufficient financial and other resources; "Tender" means an offer received from a Bidder in response to an RFT; "Treasurer" means the Director of Finance/Treasurer of the Corporation or a designate; and "Weighted Evaluation Criteria" means criteria that are taken into account when evaluating Proposals including qualitative, technical and pricing considerations. Word Usage 2. This by-law shall be read with all changes in gender or number as the context may require. 3. A grammatical variation of a defined word or expression has a corresponding meaning. Severability 4. Should any section or part of this by-law be held by a Court of competent jurisdiction to be invalid, the remainder of this by-law shall not be affected. References 5. In this by-law, reference to any Act, By-law or Policy is reference to that Act, By-law or Policy as it is amended or re-enacted from time to time. 6. Schedule "A" (Exempt Good and/or Services) is attached to and forms part of this by-law. 7. All references to dollar figures are Canadian dollars. 8. Unless otherwise specified, reference in this by-law to a clause, section or Schedule is to a clause, section or Schedule in this by-law. Application 9. This by-law shall not apply to the acquisition of any interests in real property. Such matters shall be governed by By-Law 2011-011. 10. This by-law shall not apply to the Acquisition of any Goods and/or Services listed in Schedule "A". i I i Purchasing By-Law No. 2015-XXX Page 6 Part 2 —Authority I Purchasing Manager Authority 11. The Purchasing Manager shall have the authority to act as agent of the Corporation for the purpose of acquiring all Goods and/or Services required by the Corporation. 12. The Purchasing Manager shall determine the method of Acquisition 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. Approval Authority 13. No employee of the Corporation shall have the authority to make or approve an Acquisition or award a Contract for any Good and/or Service unless funds for such Acquisition have been allocated in a budget approved by Council. If a recommended Bid is in excess of an approved budget limit but within the approval limits of this by-law, the Treasurer, after consultation with the Department Head, must approve the source of additional funding. 14. Contracts shall not be split so as to circumvent the established method of purchase or the approval limits imposed by this by-law unless, in the opinion of the Purchasing Manager, after consultation with the Department Head, if it is deemed advantageous to acquire components of a major project through separate Contracts. Signing Authority 15. Authority to make or approve an Acquisition or award a Contract for any Good and/or Service includes the power to sign all documents necessary to effect the Acquisition. Where a Department Head or the CAO has the authority to sign a Contract, the Purchasing Manager may sign on their behalf. Part 3 — Bid Types and Limits Purchases under$5,000 16. Goods and/or Services not exceeding a Cost of$5,000 (excluding computers, software, computer accessories and cell phones) do not require the submission of a Purchase Order (unless one is required by the vendor) and may be purchased by individual Departments as required. However, if a term order or another form of Contract is established, then the Department must purchase from the Contract vendor. Computers, software, computer accessories and cell phones must be ordered in coordination with the IT Division using a Purchase Order. Informal Request for Quotation ($5,000 -$25,000) 17. Subject to section 18, the Purchasing Manager shall have the authority to make Acquisitions for which the Cost is between $5,000 and $25,000 at the lowest available Cost, provided a minimum of three Quotations have been received where they are reasonably required and possible to obtain. I Purchasing By-Law No. 2015-XXX Page 7 Parts and Equipment Orders ($10,000) I 18. Under the direction of the Purchasing Manager, a person authorized to make purchases by Purchase Order or by purchasing card on behalf of either the Operations Department or the Emergency and Fire Services Department may Acquire vehicle parts necessary to maintain the Corporation's vehicles provided the Cost of each separate Acquisition does not exceed $10,000. Formal Request for Quotation ($25,000 -$100,000) 19. The Purchasing Manager shall have the authority to make Acquisitions for which the Cost is between $25,000 and $100,000 at the lowest available Cost, provided where they are reasonably required and possible to obtain, at least three formal Quotations have been received and the lowest Responsive and Responsible Bid received is acceptable. Acquisitions over$100,000 20. Subject to sections 21, 22 and 24, Acquisitions that are anticipated to have a Cost in excess of$100,000 shall be made through an RFT. Routine Purchases 21. Where, in the opinion of the Purchasing Manager in consultation with the Department Head, a proposed Acquisition is of a routine and repetitive nature, and the Cost is anticipated to be more than an aggregate of$100,000 annually including multi-year contracts at $100,000 each year, the Purchasing Manager may obtain written Bids from suppliers and a Contract may be awarded. Where market conditions are such that price protection cannot be obtained for Goods and/or Services having an annual total value in .excess of$100,000, the Purchasing Manager may obtain competitive prices and Contracts may be awarded for short term commitments until such time as reasonable price protection and fair market pricing are restored. Negotiations/ Single/Sole Source Purchases 22. In place of a Bid Solicitation, Goods and/or Services may be purchased through negotiation, single or sole source purchases where, in the opinion of the Purchasing Manager in consultation with Department Head, (a) the sources of supply are restricted to the extent that there is no effective price competition; (b) the purchase involves Goods and/or Services, (i) that are in short supply due to market conditions; (ii) for which there is no reasonable substitute or competitive product; or (iii) ' for which compatibility with an existing product is the overriding consideration; (c) the purchase involves specialized preassembled goods; (d) the Bid from the lowest Responsive and Responsible Bidder substantially exceeds the estimated Cost; Purchasing By-Law No. 2015-XXX Page 8 (e) no Bid from a Responsive and Responsible Bidder is received and it is impractical to issue another Bid Solicitation; (f) the extension or reinstatement of an existing Contract would prove most cost- effective or beneficial to the Corporation; (g) the terms and conditions of a Proposal provide for negotiation with the selected Bidder; or (h) Council has specifically authorized an Acquisition through negotiation. 23. In the case of a Contract for a construction project, negotiations shall be conducted in accordance with the Canadian Construction Documents Committee (C.C.D.C.) Document 23 published by the Canadian Construction Association where expressly required by the provisions of an RIFT. Requests for Proposal 24. Irrespective of the anticipated Cost, where the Purchasing Manager in consultation with the Department Head determines that a proposed Acquisition involves unique or complicated circumstances, the Acquisition may be made through the use of an RFP provided that, wherever reasonably required and possible to obtain, three Proposals have been received. 25. (1) In this section, "Two Envelope Method" means a procurement process in which, (a) a Bid is submitted in two separate envelopes, the first of which contains technical and qualitative information and the second of which contains price information; and (b) Weighted Evaluation Criteria are applied and the second envelope is opened only if the first envelope shows the Bidder to be qualified. (2) The Purchasing Manager, in consultation with the Department Head, may use an RFP process that utilizes a Two Envelope Method. 26. RFPs may be called by public advertisement or invitation to specific Bidders. 27. All RFPs shall be submitted in the prescribed form and delivered to the Purchasing Manager. 28. It is the Corporation's general policy to select the Proposal that best meets the requirements of the RFP based on Weighted Evaluation Criteria. Product Demonstrations and Information I 29. No requests for prices or demonstrations for approved projects or programs above $5,000 shall be made without prior consultation with the Purchasing Manager. 30. Requests on behalf of the Corporation may be made by Department Heads for informal non-binding product and technical information, catalogues and price lists. Each Department Head shall provide the Purchasing Manager with such data, specification details and information relating to a proposed Acquisition, including the Corporation's I I Purchasing By-Law No. 2015-XXX Page 9 approved budget prices. The Purchasing Manager shall obtain all binding or estimated prices provided by potential Bidders. Bid Pre-Qualification 31. (1) In this section, "Pre-qualification" means a procedure whereby a prospective Bidder satisfies the Corporation that it is capable of supplying a particular Good and/or Service as a condition of being allowed to submit a Bid. (2) If, in the opinion of the Purchasing Manager, Pre-qualification is required, the Contract, if awarded at all, must be awarded to the lowest Responsive and Responsible Bidder who has been pre-qualified. Bonds and Deposits 32. All Bid deposits required as part of any Bid Solicitation shall be provided by certified cheque, bank draft or money order made payable to "The Corporation of the Municipality of Clarington" or cash and shall be enclosed in the same envelope as the Bid. Bid bonds shall be issued by a licensed surety company authorized to carry on business in Ontario, and shall be in an amount and in a form satisfactory to the Corporation. Bid deposits shall be submitted in accordance with the following schedule, unless otherwise specified in the Bid Solicitation: 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 33. When the deposit of a performance bond and/or labour and material payment bond is a requirement of a Bid Solicitation, such bonds shall be, (a) in the amounts specified in the Bid documents; (b) issued by a licensed surety company authorized to carry on business in Ontario; (c) in a form approved by the Corporation; and (d) delivered by the Bidder to the Purchasing Manager prior to execution of the Contract. 34. Following the award of a Contract, all deposits that are in the form of certified cheques or cash, with the exception of the deposits supplied by the successful and next to successful Bidders in the case of a Contract award, shall be returned to the unsuccessful Bidders. Retained Bid deposits shall be held until the Contract is executed by the Corporation, unless otherwise determined by the Purchasing Manager. Purchasing By-Law No. 2015-XXX Page 10 I 35. Following the cancellation of a Bid Solicitation, all deposits shall be returned to the Bidders. 36. If a successful Bidder fails to enter into a Contract, the Bid deposit shall be'forfeited to the Corporation. If a Bid bond is deposited, it may be called by the Treasurer and the amount of money thereby obtained shall be forfeited to the Corporation. Initial Bid Procedures 37. If required, Bid Solicitations shall be advertised in the method deemed most appropriate by the Purchasing Manager which may include periodicals, newspapers and/or websites. 38. All closing times shall be established by the Purchasing Manager. 39. The Purchasing Manager shall supply to all prospective Bidders, (a) one copy of the official Bid form; (b) one standard Bid envelope or label appropriately imprinted; and (c) all plans, specifications, profiles and other relevant information. 40. Where a fee is required for Bid documents, such fee shall be paid to the Corporation by cash, money order, bank draft or certified cheque unless otherwise specified in the Bid Solicitation. List of Registered Bidders 41. 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 39 shall be recorded in order to facilitate distribution of addenda when necessary to change or cancel a Bid under call. Changes to Bids under Call 42. Interpretations of, or qualifications or changes to, a Bid Solicitation shall be made in the form of a written addendum. Addenda shall be necessary to revise, delete, substitute or add to a Bid under call. The Purchasing Manager shall approve the issuance of any addendum or the cancellation of a Bid Solicitation. 43. A copy of each addendum or a notice of posting of each addendum shall be forwarded to registered Bidders by facsimile or electronic mail and posted on the Corporation's website. 44. Where an addendum is released after the receipt of one or more Bids which, in the opinion I of the Purchasing Manager, may affect a Bid, all Bids received and deposited prior to the Bid opening may be withdrawn and the Bidders shall be given a new set of Bid documents to be resubmitted in accordance with a further addendum. 45. The Purchasing Manager in consultation with the Department Head may cancel a Bid Solicitation either before or after Bids are opened. The procedure for the notification to Bidders set out in section 43 shall apply to a notice of cancellation. If a Bid is cancelled i i I i Purchasing By-Law No. 2015-XXX Page 11 i I prior to opening, all Bids received after cancellation shall be returned unopened to the Bidders with notification of the cancellation. Formal Bid Submissions 46. The Purchasing Manager shall, (a) time and date stamp all Bids received; (b) refuse to accept any Bid that is not delivered prior to the closing time established for that Bid; (c) refuse to accept any Bid from a Disqualified Bidder; (d) record all accepted Bids in a Bid Register; (e) deposit all accepted Bids unopened in a suitable locked box; and (f) return unaccepted Bids unopened to the Bidder accompanied by a letter which states the reason(s)why the Bid was not accepted. 47. Where no return address is visible on the outside of a Bid that is delivered after the close of Bids, it shall be opened 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 clause 46(f). Withdrawal of Bids 48. A Bid can only be withdrawn prior to the close of Bids. Requests to withdraw received following the close of Bids shall not be accepted. i 49. Any Bidder wishing to withdraw a Bid must do so in writing and deliver the same to the Office of the Purchasing Manager. 50. All Tenders withdrawn prior to being deposited in the Tender box kept by the Purchasing Manager shall be returned and the withdrawal of the Tender acknowledged in writing by the Bidder. Withdrawal notices received after the Tender has been deposited into the Tender box shall, together with the confirmation of withdrawal, be placed in the Tender box. The Tender box shall not be opened to withdraw a Tender already deposited in it. These Tenders shall be dealt with at the Tender opening by announcing that the Tender was withdrawn. The Tender amount of the withdrawn Tender shall not be read out. 51. All withdrawn Tenders deposited in the Tender box shall be returned unopened following the Tender opening. 52. During a Tender opening at the conclusion of the reading out of Tenders for a particular RFT, the low Bidder may withdraw any of its remaining Tenders on other RFTs that are still unopened. Tenders withdrawn under this procedure cannot be reinstated. A written notice of withdrawal must be signed by the prospective Bidder. Such notice must specify the Contract which the Bidder desires to withdraw and must be handed to the Purchasing Manager before the reading out of the first Tender on the RFT to which it I i i i Purchasing By-Law No. 2015-XXX Page 12 applies. The Purchasing Manager shall attach the withdrawal to the applicable Tender. The Bidder's name shall be read out and it shall be announced that the Tender has been withdrawn. The Tender Bid amount shall not be read out. i Bid Opening 53. All Bids shall be opened by the Purchasing Manager. 54. Any interested person may attend a Tender opening. 55. Where two or more Tender openings are called for at the same time, the Tenders shall be opened in numerical order, with the lowest numbered Tender being opened first. 56. Where a Contract number or the author of a Bid cannot be identified, the Bid envelope shall be opened and the documents placed with the appropriate group of Bids. 57. Where a conflict exists between the envelope and its contents as to the Contract number, the Contract number on the Bid documents shall prevail. 58. When all Tenders have been sorted, opened and withdrawn Tenders segregated, the Purchasing Manager shall compare the number of Tenders opened to the number of Tenders recorded in the record of Tenders. Where a discrepancy exists, the opening procedures shall be delayed until all Tenders have been accounted for. 59. 'When all Tenders, RFPs and RFQs have been accounted for, the following information shall be publically available: (a) Tender, RFP or RFQ number and description; (b) Bidder's name; and (c) total Tender or RFQ amount. 60. All Bids shall be checked to determine that each Bidder has submitted one Bid only. Should more than one Bid be submitted, and no withdrawal notice has been received, the Bid with the latest time stamp shown on the envelope shall be deemed to have superseded the earlier Bid and the Bidder shall be bound by the contents of the more recent Bid. If surety bonds are required to be submitted with the Bid at the time of closing, and the Bidder has included the required surety bonds in the first envelope, the surety bonds may be deemed applicable to the Bid submitted in the second envelope. 61. Any Bid that does not appear on initial examination by the Purchasing Manager to satisfy the requirements of this by-law shall be marked "Improper Bid", but shall nonetheless be subject to further examination to determine whether it should be rejected pursuant to section 63. Verification of Bids i 62. Every Bid shall be delivered to the Purchasing Manager who shall ensure that, (a) it complies with the Bid Solicitation requirements; I I i Purchasing By-Law No. 2015-XXX Page 13 (b) unit prices have been correctly extended; (c) extensions have been correctly totalled; and (d) applicable taxes have been calculated correctly. 63. Any extension errors, addition errors or incorrect tax calculations identified by the Purchasing Manager may be corrected. No corrections shall be made to unit prices or quantities. Rejection of Bids 64. After Bid opening, the Purchasing Manager shall reject any Bid from a Bidder who did not attend a mandatory pre-Bid meeting. 65. After Bid opening, the Purchasing Manager may accept or waive a minor and inconsequential irregularity, or where reasonable to do so, the Purchasing Manager may, as a condition of Bid acceptance, request a Bidder to correct a minor and inconsequential irregularity with no change in Bid price. The determination of what is, or is not, a minor and inconsequential irregularity, the determination of whether to accept, waive, or require correction of an irregularity, and the final determination of the validity of a Bid, shall be at the Purchasing Manager's sole discretion. Without limiting the generality of the foregoing, the Purchasing Manager may reject a Bid if it, (a) is not submitted on the correct Bid form; (b) is not completed in ink, by typewriter or electronic processor or is illegible; (c) does not provide all entries for all unit prices referred to in the Bid Solicitation (unless otherwise specified in the Bid Solicitation) or is otherwise incomplete in any material respect; (d) includes any restrictive or conditional statement that alters the form or intent of the Bid; (e) is not signed by the Bidder with an original signature; (f) does not contain or acknowledge addenda; (g) is not accompanied by bonding documents or bid deposits where required; (h) contains an error that cannot be corrected in accordance with section 63; (i) was delivered in an envelope that was improperly sealed; 0) contains an improper or insufficient Bid deposit; i (k) is unbalanced, meaning it contains lump sum or unit bid items that do not reflect reasonable actual costs plus a reasonable proportionate share of the Bidder's anticipated profit, overhead costs, and other indirect costs; Purchasing By-Law No. 2015-XXX Page 14 (1) is unclear because of erasures, overwriting, strike-outs and other similar alterations inserted into the Bid; (m) is from a Bidder or a subcontractor of a Bidder that has an outstanding legal action against the Corporation, or the Corporation has an outstanding legal action against the Bidder or a subcontractor of the Bidder including arbitration or any association or union issues; (n) is from a Bidder that owes money to the Corporation including outstanding property taxes; or (o) is from a Bidder that is not in compliance with any of the Corporation's policies or regulatory by-laws including the Property Standards By-law. 66. Following the opening and recording of Bids, the record of Bids (including rejected Bids) shall be closed and the record signed attesting to that fact. Bid Cancellation 67. The Purchasing Manager, in consultation with the Municipal Solicitor and the applicable Department Head, shall have the authority to cancel a Bid Solicitation either before or after the call has closed if, (a) a substantial change in the scope of work or specifications is required; (b) the Goods and/or Services requested no longer meet the Department's requirements; (c) the integrity of the procurement process has been compromised; or (d) the lowest Responsive and Responsible Bid exceeds the approved funding limit. Absolute Right 68. The Corporation shall have absolute discretion in the awarding of Contracts and retains the right to reject any or all Bids. Local Preference 69. (1) In this section, (a) "Local Bid" means a Bid submitted by a Bidder who operates a business within the Municipality of Clarington; and (b) "Regional Bid" means a Bid submitted by a Bidder who operates a business within the Regional Municipality of Durham. (2) If, in the opinion of the Purchasing 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. Purchasing By-Law No. 2015-XXX Page 15 I (3) Ontario's Discriminatory Business Practices Act, R.S.O. 1990, c.D.12 has been established to prevent discrimination in Ontario on the grounds of race, creed, colour, nationality, ancestry, place of origin, sex, or geographical location of persons employed in or engaging in business. Accordingly, other than as noted in subsection (2), preference to a Local Bid or a Regional Bid shall not be given. Approval Limits and Reporting (Excluding Consulting and Professional Services) 70. The Purchasing Manager shall submit to the Department Head an analysis listing all i Quotations and Proposals received with a recommendation for the Department Head's approval if the Cost of the Goods and/or Services does not exceed $100,000. 71. After consulting with the Department Head, the Purchasing Manager shall prepare a report to the CAO for approval if the Cost of the Goods and/or Services does not exceed $250,000, 72. The Purchasing Manager shall prepare a recommendation report to Committee if the Cost of the Goods and/or Services exceeds $250,000. Council Recess Procedures 73. (1) Notwithstanding section 72, where a matter which would have otherwise been submitted to Committee requires approval during any of Council's recesses, including elections, the CAO shall be authorized to award the Contract if the Treasurer is of the opinion that the price is reasonably reflective of the approved budget allocation and/or is part of the normal operating responsibility of the Department. (2) The Purchasing Manager shall report all Contracts awarded under subsection (1)to Committee as soon as possible after the conclusion of the recess. (3) Council shall not vary any action or decision of the Contract awards made in accordance with this section. Consulting and Professional Services (Excluding Schedule "A" Exemptions) 74. Where it is estimated that the Cost of Consulting and Professional Services will be less than $30,000, the Department may obtain the services directly without issuing a Bid Solicitation. 75. Where it is estimated that the Cost of Consulting and Professional Services will be more than $30,000, the Purchasing Manager shall issue an RFP and, in consultation with the Department Head, shall submit a report to Committee providing a recommendation for award. 76. An external consultant who has entered into a Contract for consulting services for a particular phase of a project, may be deemed to have a conflict of interest and be disqualified from submitting a Bid on a later phase of consulting services for the same project. Any issue as to whether there is a conflict of interest shall be determined by the Purchasing Manager in consultation with the Department Head. This section shall not apply where a consultant has been requested to provide a budget estimate or general review and estimate for a potential Acquisition. I I Purchasing By-Law No. 2015-XXX Page 16 77. Any consultant authorized to issue a Bid Solicitation on behalf of the Corporation shall comply with this by-law. Co-Operative Purchasing 78. (1) In this section, "Co-operative Purchasing" means the participation of the Corporation with one or more public agencies, school boards, vendors of record (Provincial), hospitals or other public agencies in a Bid Solicitation. (2) Co-operative Purchasing shall be utilized when advantageous and practical. In the event of any conflict, the purchasing by-law and procurement practices of the municipality, school board, hospital or other public agency issuing the co-operative Bid shall take precedence over the provisions of this by-law. Pre-Budget Approval 79. Staff may proceed with pre-budget approval each January for the purchase of all light duty vehicles required by the Operations Department budgeted in that year, with the final award being subject to the reporting requirements of this by-law. Emergency Purchases 80. (1) In this section, "Emergency" means a situation or the threat of an impending situation which, in the opinion of the CAO or a Department Head, requires an immediate Acquisition to prevent serious delays, damage to a basic service, or to maintain or restore a basic service provided by the Corporation. (2) Emergency Acquisitions shall be made by the Purchasing Manager. In the absence of the Purchasing Manager, Emergency Acquisitions may be made by a Department Head. (3) All Emergency Acquisitions shall be confirmed through a Purchase Order and shall be reported to Committee through a report prepared jointly by the Department Head and the Purchasing Manager if the Cost exceeds $250,000 or an approved budget limit. Part 4— General Purchasing Policies Default By Successful Bidder 81. If a successful Bidder fails to execute the Contract or fails to meet any of the requirements of the Contract within the prescribed time, the Contract may be awarded to the next lowest Bidder or cancelled. 82. If a successful Bidder defaults on an awarded Contract, the Purchasing Manager is authorized to take remedial action including termination of the Contract and all necessary steps to ensure completion of the project or continued service/supply. The Purchasing Manager, after consultation with the Department Head, may declare that any Bidder who has defaulted on a Contract is ineligible to submit a Bid on any future Contract even if the awarded Contract is not terminated. i i i Purchasing By-Law No. 2015-XXX Page 17 83. Should the Purchasing Manager determine that termination of the awarded Contract is the appropriate action in accordance with section 82, whoever awarded the Contract(Council, CAO or Department Head) shall be advised of the termination in writing. Fair Wage Policy 84. The Corporation has implemented a Fair Wage Policy on a trial basis applicable to industrial, commercial and institutional (ICI) Contracts with a value greater than $1,000,000. Bids for such Contracts shall be called in accordance with the policy. If the successful Bidder fails to adhere to the Fair Wage Policy, the remedies specified in the Policy shall be applied. Conflict of Interest 85. The participation of members of Council and employees of the Corporation in the procurement process shall be governed by, in the case of members of Council, the Council Code of Conduct and the Municipal Conflict of Interest Act, R.S.O. 1990, c.M.50 and, in the case of employees, by the Code of Ethics Policy E-1. 86. No employee or Council member shall benefit directly or indirectly from affiliation with the Municipality or show any favouritism to any Person in the procurement of any Goods and/or Services. 87. No Person shall offer incentives to any employee of the Corporation or member of Council. 88. (1) In this section, "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 that is not required for the purposes of the Corporation or a Local Board. (2) No Personal Purchases shall be made by the Corporation for any Member of Council, member of a Local Board, or employees of the Corporation, unless specifically authorized. Access and Disclosure 89. No Corporation employee or any member of Council shall have access to or disclose any details regarding Bids except as permitted by this by-law and the Municipal Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.M.56. i 90. In the case of a Bid submitted in response to an RFP, only the total Bid amount for the successful responsive and responsible Bid shall be provided and only upon written request of any Person after completion of negotiations and award of the Contract. Records Retention and Destruction 91. Bid documents and related material shall be retained in a manner and for a period in accordance with the Municipality's Retention By-law No. 92-139. Purchasing By-Law No. 2015-XXX Page 18 Complaints and Inquiries 92. All Bidder or potential Bidder complaints or inquiries, whether addressed to an elected official, the CAO, a Department Head or any member of staff shall be referred to Purchasing Services. Insurance 93. The Treasurer and the Municipal Solicitor shall review, as necessary, Contracts that include provisions relating to liability and insurance. Purchasing Cards 94. (1) In this section, "Purchasing Card" means a credit card issued by the Purchasing Manager in accordance with the Purchasing Card Policy. (2) Purchasing Cards may be used for all purchases as defined in the Purchasing Card Policy where the Goods and/or Services do not fall under the requirements of this by-law. Purchasing Cards are issued on an as needed basis upon approval of the Purchasing Manager and at the request of the Department Head. The Purchasing Manager shall be responsible for the program outlined in the Corporation's Purchasing Card Policy. Disposal of Goods 95. The disposal of surplus or redundant goods of the Corporation shall be the responsibility of the Purchasing Manager. At least once each calendar year, Department Heads shall provide the Purchasing Manager with a list of such goods. The Purchasing Manager shall determine the appropriate method of disposal including sale, RFT, RFP, 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 may periodically circulate a list of surplus or redundant goods to all Departments and Local Boards. Over Expenditures 96. Subsequent to a Contract award, the approval of any over expenditure for, (a) capital projects shall be in accordance with the Corporation's Capital Project Over Expenditure Policy H17; and (b) operating expenses shall be in accordance with the approval limits set out in this by-law and shall require consultation with the Purchasing Manager. Sustainability 97. In order to contribute to waste reduction and to increase the development and j awareness of environmentally sound purchasing, Acquisitions shall ensure that, wherever reasonably possible, specifications shall provide for expanded use of durable j products, reusable products and products (including those used in services) that contain the maximum level of post-consumer waste and/or recyclable content, without significantly affecting the intended use of the product or service. It is recognized that i Purchasing By-Law No. 2015-XXX Page 19 Cost analysis is required in order to ensure that the products are made available at competitive prices. Accessibility for Ontarians with Disabilities Act, 2005 98. When procuring Goods and/or Services, the Corporation shall incorporate accessibility design criteria and features. Where applicable, procurement documents shall specify the desired accessibility criteria to be met and provide guidelines for the evaluation of the proposals respecting those criteria. Part 5 — General Provisions By-Law Review 99. The Purchasing Manager in consultation with appropriate staff shall conduct a detailed review of this by-law no less frequently than every five years. Repeal 100. By-Law#2010-112 is hereby repealed. Effective Date 101. This By-law shall take effect on the date that it is passed by Council. By-law read a first, second and third time and finally passed this_day of March, 2015. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON PER: Adrian Foster, Mayor PER: Anne Greentree, Municipal Clerk Purchasing By-Law No. 2015-XXX Page 20 Schedule "A" EXEMPT GOOD AND SERVICES 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 I. Trainers (includes workshop &seminars) 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, Software, Communications, etc.) d. Debenture Payments e. Insurance f. Grants and Agencies g. Damage Claims h. Petty Cash Replenishment i. Land & Building Lease Payments made by Municipality j. Tax Remittances k. Sinking Fund Payments I. Newspaper Advertising and Public Notices M. Day Camp or other similar Admission Fees n. Software or equipment maintenance agreements 5. Certain Professional and other Services a. Committee Fees b. Counselling Services C. Laboratory Services d. Nursing Services e. Physician Fees f. Temporary Help i Purchasing By-Law No. 2015-XXX Page 21 g. Banking Services h. Legal Services i. Engineering Services and Engineering Consulting Services j. Newspaper, radio, TV advertising k. Policing I. Red Cross Supplies M. Web Design Usage Fee & penalties n. Payroll fees o. Employee Assistance programs 6. Utilities (including hedging agreements in accordance with the Hedging Policy as may be amended from time to time) a. Postage b. Water C. Hydro d. Gas (including hedging agreements) e. Telephones—excluding cellular f. Telecommunications infrastructure 7. Canadian National and Canadian Pacific Railways 8. Provincial and/or Federal Government Agencies or Crown Corporations 9. Regional Municipality of Durham or other municipalities located within the Regional Municipality of Durham Goods and/or Services 10. Election related technology and equipment, and any consulting and support services directly related to such technology and equipment. I i I I I Attachment 2 to Report COD-004-15 OFFICE CONSOLIDATION BY-LAW 2010-112 being a By-law to provide policies and procedures for the procurement of goods and services for the Municipality of Clarington and to repeal By-law 2010-100 and its amendments Passed by Council on: September 20, 2010 Amendment [AMENDINGBY-LAW DATE AMENDMENT DETAILS 2012-080 Oct. 22, 2012 Adding the following Sections: 69.1 and 69.2 Disclaimer: The following consolidated by-law is an electronic reproduction made available for information only. It is not an official version of the By-law. The format may be different, and plans,pictures, other graphics or text may be missing or altered. The Municipality of Clarington does not warrant the accuracy of this electronic version. Official versions of all By-laws may be obtained from the Clerk's department. I I i i I I Purchasing By-Law No. 2010-112 Page 1 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 2010-112 being a by-law to provide policies and procedures for the procurement of goods and services. WHEREAS pursuant to section 270 of the Municipal Act, 2001, the Corporation is required to establish and maintain policies with respect to its procurement of goods and services; and WHEREAS the Corporation wishes to procure goods and services in the most efficient and cost effective manner possible; and WHEREAS the Corporation is committed to ensuring that its procurement policies and procedures are fair, open and transparent. NOW THEREFORE the Corporation of the Municipality of Clarington hereby enacts as follows: PART I - INTERPRETATION Definitions 1. In this by-law, "Acquisition" means the purchase of a Good and/or Service for use on a permanent or temporary basis; "AECOM Agreement" means the agreement between the Corporation and AECOM Canada Limited dated September 1, 2008 and any amendments to it; "Bid" means a Proposal, Quotation or Tender; "Bidder" is a Person who responds to a Bid Solicitation; "Bid Solicitation" means a request by the Corporation for Bids for the provision of Goods and/or Services through an RFP, RFQ or RFT; "CAO" means the Chief Administrative Officer of the Corporation or a designate; "Clerk" means the Municipal Clerk of the Corporation or a designate; "Committee" means the General Purpose and Administration Committee of Council; "Consulting and Professional Services" means services provided by architects, engineers, designers, environmental consultants, surveyors, management and financial consultants, bankers, auditors, brokers, soil consultants, real estate appraisers, Ontario land surveyors, web designers or any other consultant or professional, but does not include any consulting and professional services referred to in Schedule"A"; Purchasing By-Law No. 2010-112 Page 2 "Corporation" means The Corporation of the Municipality of Clarington; "Cost" means the actual cost of an Acquisition, including freight charges and all applicable custom duties, term discounts and taxes (e.g. harmonized sales tax), unless otherwise specified in an RFP, RFQ or RIFT; "Contract" means an agreement between two or more Persons one of whom is the Corporation; "Council" means the Council of the Corporation; "Department" means a Department of the Corporation identified on the annual organization charts and reflected in the prevailing budget; "Department Head" means the Director of one of the Departments or a designate; "Goods and/or Services" means any goods and/or services required by the Corporation other than (a) Consulting and Professional Services and (b)goods and/or services listed in Schedule"A"; "Local Board" means a local board (as that term is defined in the Municipal Act, 2001) of the Corporation; "Person" includes an individual, association, firm, partnership, corporation, union, trust, organization, trustee or agent, and their heirs, executors, administrators, successors and assigns; "Proposal" means an offer from a Bidder made in response to an RFP; "Purchase Order" means a Contract or a written acceptance of a Proposal, issued on forms prescribed by the Purchasing Manager; "Purchasing Manager" means the Purchasing Manager of the Corporation or a designate; "Quotation" means an offer from a Bidder made in response to an RFQ; "Request for Proposal"or"RFP" is a form of Bid Solicitation in which the Corporation invites one or more potential suppliers to submit proposals with respect to the supply of particular Goods and/or Services, which the Purchasing Manager in consultation with the Department Head, determines may be dependent upon non-price factors and may require negotiations between a Bidder and the Corporation before a Contract is made between them; "Request for Quotation" or"RFQ" is a form of Bid Solicitation in which the Corporation requests either informal quotations (section 8) or formal quotations (section 9); "Request for Tender"or"RFT' is a form of Bid Solicitation in which the Corporation publishes the specifications, terms, conditions and details concerning a proposed Contract, and invites prospective Bidders to submit Tenders; "Responsive and Responsible Bidder" is a Person responding to a Bid Solicitation who I I Purchasing By-Law No. 2010-112 Page 3 complies with all of its provisions and who can reasonably be expected to provide satisfactory performance of a proposed Contract based on his reputation, references, performance on previous contracts, and proof of sufficient financial and other resources; "Tender" means an offer received from a Bidder in response to an RFT; and "Treasurer" means the Director of Finance/Treasurer of the Corporation or a designate. I Word Usage 2. This by-law shall be read with all changes in gender or number as the context may require. 3. A grammatical variation of a defined word or expression has a corresponding meaning. Severability 4. Should any section or part of this by-law be held by a Court of competent jurisdiction to be invalid, the remainder of this by-law shall not be affected. References to Legislation 5. In this by-law, reference to any Act, By-law or Policy is reference to that Act, By-law or Policy as it is amended or re-enacted from time to time. Construction 6. Schedule 1 is attached to and forms part of this by-law. 7. Unless otherwise specified, reference in this by-law to a clause, section or Schedule is to a clause, section or Schedule in this by-law. PART 2—BID POLICIES Informal Request for Quotation ($1,000 -$25,000) 8. The Purchasing Manager shall have the authority to make Acquisitions for which the Cost is between $1,000 and $25,000 at the lowest available Cost, provided he has received a minimum of three Quotations. Formal Request for Quotation ($25,000 -$100,000) 9. The Purchasing Manager shall have the authority to make Acquisitions for which the Cost is between $25,000 and $100,000 at the lowest available Cost, provided at least three formal Quotations have been received and the lowest Responsive and Responsible Bid received is acceptable. i 10. All Quotations for which the Cost is between $25,000 and $100,000 received shall be retained for inspection by the Treasurer for audit purposes. I Purchasing By-Law No. 2010-112 Page 4 i Exceptions i 11. Notwithstanding section 8 or 9, if, in the opinion of the Purchasing Manager, three Quotations cannot be obtained having regard to the urgency of the purchase requisition and/or marketplace availability, then the Purchasing Manager shall be permitted to make an Acquisition having received less than three Quotations. Requests for Tender($100,000 and above) 12. Acquisitions that are anticipated to have a Cost in excess of$100,000 shall be made through an RFT, unless Council otherwise directs. Routine Purchases 13. Notwithstanding section 12,where, in the opinion of the Purchasing Manager in consultation with the Department Head, a proposed Acquisition is of a routine and repetitive nature, and the Cost is anticipated to be more than an aggregate of$100,000 annually including multi-year contracts at$100,000 each year, the Purchasing Manager may obtain written Bids from suppliers and issue a Purchase Order. Where market conditions are such that price protection cannot be obtained for Goods and/or Services having an annual total value in excess of$100,000, the Purchasing Manager may obtain competitive prices for short term commitments until such time as reasonable price protection and fair market pricing are restored. Requests for Proposal 14. Where the Purchasing Manager in consultation with the Department Head determines that a proposed Acquisition involves unique and complicated circumstances for which there is no clear or single solution, the Acquisition may be made through the use of an RFP provided that, wherever possible, three Proposals have been received. 15. RFPs may be called by public advertisement or invitation to specific Bidders. 16. All RFPs shall be submitted in the prescribed form and delivered to the Purchasing Manager. 17. It is the Corporation's general policy to select the Proposal that earns the highest ranked score and meets the requirements of the RFP based on qualitative,technical and pricing considerations. Bid Pre-Qualification 18. (1) In this section, "Pre-qualification" means a procedure whereby a prospective Bidder satisfies the Corporation that he is capable of supplying a particular Good and/or Service as a condition of being allowed to submit a Bid. (2) If, in the opinion of the Purchasing Manager, Pre-qualification is required, the Contract, if awarded at all, must be awarded to the lowest Responsive and Responsible Bidder who has been pre-qualified. i I I i i Purchasing By-Law No. 2010-112 Page 5 i Bonds and Deposits 19. All Bid deposits required as part of any Bid Solicitation shall be provided by certified cheque, bank draft or money order made payable to"The Corporation of the Municipality of Clarington" or cash and shall be enclosed in the same envelope as the Bid. Bid bonds shall be issued by a surety approved by the Treasurer, and shall be in an amount and in a form satisfactory to the Treasurer. Bid deposits shall be submitted in accordance with the following schedule, unless otherwise specified in the Bid Solicitation: 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. When the deposit of a performance bond and/or labour and material payment bond is a requirement of a Bid Solicitation, such bonds shall be, (a) in the amounts specified in the Bid documents; (b) issued by a surety authorized to carry on business in Ontario and approved by the Treasurer; (c) in a form approved by the Treasurer; and (d) delivered by the Bidder to the Purchasing Manager prior to execution of the Contract by the Corporation. 21. Following the award or cancellation of a Bid Solicitation, all deposits, with the exception of the deposits supplied by lowest and the second lowest Bidders in the case of a Contract award, shall be returned to the unsuccessful Bidders by registered mail or courier, or if picked up, receipt acknowledged in writing. Retained Bid deposits shall be held until the Contract is executed by the Corporation, unless otherwise determined by the Purchasing Manager. 22. If a successful Bidder fails to enter into a Contract, the Bid deposit 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 shall be forfeited to and made the property of the Corporation. i i Initial Procedures I 23. If required, Bid Solicitations shall be advertised in the method deemed most appropriate by the Purchasing Manager which may include periodicals, newspapers and/or websites. ICI Purchasing By-Law No. 2010-112 Page 6 24. All closing times shall be established by the Purchasing Manager. 25. The Purchasing Manager shall supply to all prospective Bidders, (a) one copy of the official Bid form; (b) one standard Bid envelope or label appropriately imprinted; and (c) all plans, specifications, profiles and other relevant information. 26. Where a fee is required for Bid documents, such fee shall be paid to the Corporation by cash, money order, bank draft or certified cheque unless otherwise specified in the Bid Solicitation. List of Registered Bidders 27. 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 25 shall be recorded in order to facilitate distribution of addenda when necessary to change or cancel a Bid under call. Changes to Bids under Call 28. Interpretations of, or qualifications to, a Bid Solicitation shall be made in the form of a written addendum. Addenda shall be necessary to revise, delete, substitute or add to a Bid under call. The Purchasing Manager shall approve the issuance of any addendum or the cancellation of a Bid Solicitation. 29. A copy of each addendum or a notice of posting of each addendum shall be forwarded to registered Bidders by registered mail, facsimile, electronic mail, courier or hand delivery. 30. Where an addendum is released after the receipt of one or more Bids which, in the opinion of the Purchasing Manager, may affect a Bid, all Bids received and deposited prior to the Bid opening may be withdrawn and the Bidders shall be given.a new set of Bid documents to be resubmitted in accordance with a further addendum. 31. The Purchasing Manager in consultation with the Department Head may cancel a Bid Solicitation either before or after Bids are opened. The procedure for the notification to Bidders set out in section 29 shall apply to a notice of cancellation. If a Bid is cancelled prior to opening, all Bids received after cancellation shall be returned unopened to the Bidders with notification of the cancellation. Bid Submissions 32. The Purchasing Manager or, in the case of Tenders, the Clerk shall, (a) ensure that all Bids are in the correct envelope or have the correct label as supplied by the Corporation; I Purchasing By-Law No. 2010-112 Page 7 (b) ensure that all Bids are properly sealed and delivered prior to the closing time established for that Bid; i (c) time and date stamp all Bids received; and (d) record all acceptable Bids in a Bid Register. 33. The Clerk shall, (a) not accept any Tender that does not comply with clause 32 (a) or(b) or that was delivered after the closing time; (b) deposit all acceptable Tenders unopened in a suitable locked box under her control; (c) advise the Purchasing Manager of any Tender that is not acceptable; and (d) return unacceptable Tenders unopened to the Bidder, accompanied by a letter which states the reasons(s)why the Tender was not accepted. 34. Where no return address is visible on the outside of a Bid that is delivered after the close of Bids, 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 clause 33(d). Withdrawal of Bids 35. A Bid can only be withdrawn prior to the close of Bids. Requests to withdraw received following the close of Bids shall not be accepted. 36. Any Bidder wishing to withdraw a Bid must do so in writing and deliver the same to the Office of the Clerk. 37. All Tenders 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. Withdrawal notices received after the Tender has been deposited into the Tender box shall, together with the confirmation of withdrawal, be placed in the Tender box. The Tender box shall not be opened to withdraw a Tender already deposited in it. These Tenders shall be dealt with at the Tender opening by announcing that the Tender was withdrawn. The Tender amount of the withdrawn Tender shall not be read out. 38. All withdrawn Tenders deposited in the Tender box shall be returned unopened following the Tender opening. 39. During a Tender opening at the conclusion of the reading out of Tenders for a particular RFT, the low Bidder may withdraw any of its remaining Tenders on other RFTs that are still unopened. Tenders withdrawn under this procedure cannot be reinstated. A written notice of withdrawal must be signed by the prospective Bidder. Such notice must specify the Contract which the Bidder desires to withdraw and must be handed to the Clerk before the reading out of the first Tender on the RFT to which it applies. The Clerk shall attach the withdrawal to the applicable Tender. The Bidder's name shall be read out and I i Purchasing By-Law No. 2010-112 Page 8 it shall be announced that the Tender has been withdrawn. The Tender Bid amount shall not be read out. Bid Opening i 40. All Quotations and Proposals shall be opened by the Purchasing Manager. 41. All Tenders shall be opened by the Clerk and the Purchasing Manager. 42. Any interested person may attend a Tender opening. 43. Where two or more Tender openings are called for at the same time, the Tenders shall be opened in numerical order, with the lowest numbered Tender being opened first. 44. Where a Contract number or the author of a Bid cannot be identified, the Bid envelope shall be opened and the documents placed with the appropriate group of Bids. 45. Where a conflict exists between the envelope and its contents as to the Contract number, the Contract number on the Bid documents shall prevail. 46. When all Tenders have been sorted, opened and withdrawn Tenders segregated, 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 opening procedures shall be delayed until all Tenders have been accounted for. 47. When all Tenders have been accounted for, the following information shall be publically announced: (a) Tender number and description; (b) Bidder's name and location; (c) Tender deposit and bonding letter(if required); and (d) total Tender amount. 48. All Bids shall be checked to determine that each Bidder has submitted one Bid only. Should more than one Bid be submitted, and no withdrawal notice has been received, the Bid with the latest time stamp shown on the envelope shall be deemed to have superseded the earlier Bid and the Bidder shall be bound by the contents of the more recent Bid. If surety bonds are required to be submitted with the Bid at the time of closing, and the Bidder has included the required surety bonds in the first envelope, the surety bonds may be deemed applicable to the Bid submitted in the second envelope. 49. Following the opening and recording of Bids, the record of Bids shall be closed and the record signed attesting to that fact. 50. With the exception of the Clerk and the Purchasing Manager, no dialogue shall be permitted during the opening of Bids. i Purchasing By-Law No. 2010-112 Page 9 51. Any Bid that does not appear on initial examination by the Purchasing Manager to satisfy the requirements of this by-law shall be marked "Improper Bid", but shall nonetheless be subject to further examination to determine whether it should be rejected pursuant to section 54, 55 or 56. Verification of Bids 52. Every Bid shall be delivered to the Purchasing Manager who shall ensure that, (a) it complies with the Bid Solicitation requirements; (b) unit prices have been correctly extended; (c) extensions have been correctly totalled; and (d) applicable taxes have been calculated correctly. 53. Any extension errors, addition errors or incorrect tax calculations identified by the Purchasing Manager may be corrected. No corrections shall be made to unit prices or quantities. Rejection of Non-Compliant Bids 54. A Bid shall be rejected if it, (a) is received after the Bid closing time; (b) is not submitted on the correct Bid form; (c) is not completed in ink, by typewriter or electronic processor; (d) does not provide all entries for all unit prices referred to in the Bid Solicitation (unless otherwise specified in the Bid Solicitation) or is otherwise incomplete in any material respect; (e) includes any restrictive or conditional statement that alters the form or intent of the Bid; (f) is not signed by the Bidder with an original signature; I (g) does not contain or acknowledge substantive addenda that have an effect on price or specifications; (h) is not accompanied by bonding documents or bid deposits where required; or (i) contains an error that cannot be corrected in accordance with section 53. I i i Purchasing By-Law No. 2010-112 Page 10 55. A Bid shall be rejected if it does not comply with the specifications set out in the Bid Solicitation unless, in the opinion of the Purchasing Manager in consultation with the Department Head, the non-compliance does not materially impact the proposed Acquisition. 56. The Purchasing Manager may, in his sole discretion, accept or reject a Bid if, (a) the agreement to bond required by a Bid Solicitation 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 Bid documents are illegible; (d) the envelope contains an improper or insufficient Bid deposit; (e) it is unbalanced, meaning it contains lump sum or unit bid items that do not reflect reasonable actual costs plus a reasonable proportionate share of the Bidder's anticipated profit, overhead costs, and other indirect costs; (f) non-substantive addenda have not been not submitted or acknowledged; (g) all erasures, overwriting, strike-outs and other similar alterations inserted in the Bid have not been initialled; (h) the Bidder or a subcontractor of a Bidder has an outstanding legal action against the Corporation, or the Corporation has an outstanding legal action against a Bidder or a subcontractor of the Bidder including arbitration or any association or union issues; (a) the Bidder owes money to the Corporation including outstanding property taxes; (b) the Bidder is not in compliance with any of the Corporation's policies or regulatory by-laws including the Property Standards By-law; or (c) the Bidder has provided unsatisfactory goods and/or services to the Corporation and consequently had an agreement or service contract terminated. 57. Bids rejected in accordance this by-law shall be noted in reports as"Rejected"with an explanation but without the Bid price. Absolute Right 58. Except as may be otherwise expressly stated in a Bid Solicitation, the Corporation shall have absolute discretion in the awarding of Contracts and retains the right to reject any or all Bids. I I I Purchasing By-Law No. 2010-112 Page 11 Local Preference 59. (1) In this section, (a) "Local Bid" means a Bid submitted by a Bidder who operates a business within the Municipality of Clarington; and (b) "Regional Bid" means a Bid submitted by a Bidder who operates a business within the Regional Municipality of Durham. (2) If, in the opinion of the Purchasing 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. (3) Ontario's Discriminatory Business Practices Act has been established to prevent discrimination in Ontario on the grounds of race, creed, colour, nationality, ancestry, place of origin, sex, or geographical location of persons employed in or engaging in business. Accordingly, other than as noted in subsection (2), preference to a Local Bid or a Regional Bid shall not be given. Negotiations 60. In place of a Bid Solicitation, Goods and/or Services may be purchased through negotiation where, in the opinion of the Purchasing Manager in consultation with Department Head, (a) the sources of supply are restricted to the extent that there is no effective price competition; (b) the purchase involves Goods and/or Services, (i) that are in short supply due to market conditions; (ii) for which there is no reasonable substitute or competitive product; (iii) for which compatibility with an existing product is the overriding consideration; or (iv) that must comply with standards adopted by Council; (c) the Bid from the lowest Responsive and Responsible Bidder substantially exceeds the estimated Cost; (d) no Bid from a Responsive and Responsible Bidder is received and it is impractical to issue another Bid Solicitation; (e) the extension or reinstatement of an existing Contract would prove most cost- effective or beneficial to the Corporation; i Purchasing By-Law No. 2010-112 Page 12 I (f) the terms and conditions of a Proposal provide for negotiation with the selected Bidder; (g) Consulting and Professional Services are being purchased; or (h) Council has specifically authorized an Acquisition through negotiation. 61. In the case of an RFT for a construction project, negotiations shall be conducted in accordance with the Canadian Construction Documents Committee (C.C.D.C.) Document 23 published by the Canadian Construction Association where expressly required by the provisions of an RFT. Reporting Requirements 62. The Purchasing Manager shall submit to the Department Head an analysis listing all Quotations or Proposals received with a recommendation for the Department Head's approval if, (a) the value of the proposed Contract does not exceed $100,000.00; (b) the value of the proposed Contract does not exceed an approved budget limit; and (c) either(i)the recommended Quotation is from the lowest Responsive and Responsible Bidder, or(ii)the recommended Proposal earned the highest ranked score and met the requirements of the RFP based on qualitative, technical and pricing considerations. 63. After consulting with the Department Head, the Purchasing Manager shall prepare a report to the CAO for his approval if, (d) the value of the proposed Contract does not exceed $250,000.00; (e) the value of the proposed Contract does not exceed an approved budget limit; and (f) either(i)the recommended Tender or Quotation is from the lowest Responsive and Responsible Bidder or(ii)the recommended Proposal earned the highest ranked score and met the requirements of the RFP based on qualitative, technical and pricing considerations. 64. After consulting with the Department Head, the Purchasing Manager shall prepare a recommendation report to Committee if, I (a) the value of the proposed Contract exceeds $250,000.00; (b) the value of the proposed Contract exceeds an approved budget limit; (c) the recommended Tender or Quotation is not from the lowest Responsive and Responsible Bidder; or i i I I i Purchasing By-Law No. 2010-112 Page 13 (d) the recommended Proposal did not earn the highest ranked score or meet the requirements of the RFP based on qualitative, technical and pricing considerations. 65. If the recommended Bid is in excess of an approved budget limit, the report to Committee shall identify the source of additional funding. 66. Upon approval of a Contract Award, the Purchasing Manager shall make the award and issue a Purchase Order or prepare a Contract in accordance with the conditions of the Bid Solicitation. Council Recess Procedures 67. (1) Notwithstanding section 64, where a matter which would have otherwise been submitted to Committee requires approval during any of Council's recesses, including elections, the CAO shall be authorized to award the Contract if, (a) the recommended Quotation or Tender is from the lowest Responsive and Responsible Bidder; (b) the recommended Proposal earned the highest ranked score or meet the requirements of the RFP based on qualitative, technical and pricing considerations; (c) the Treasurer is of the opinion that the price is reasonably reflective of the approved budget allocation and/or is part of the normal operating responsibility of the Department; and (d) the Department Head concurs with the recommendation. (2) The Purchasing Manager shall report all Contracts awarded under subsection (1)to Committee as soon as possible after the conclusion of the recess. (3) Council shall not vary any action or decision of the Contract awards made in accordance with this section. Execution of Contract 68. A successful Bidder shall be allowed ten working days from the date of mailing of the form of Contract to execute and return the Contract to the Purchasing Manager. Purchasing By-Law No. 2010-112 Page 14 i Default By Successful Bidder 69. 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 Contract may be awarded to the next lowest Bidder or cancelled. (1) If a successful Bidder defaults on an awarded agreement, the Purchasing Manager is authorized to take remedial action including termination of the agreement and all necessary steps to ensure completion of the project or continued service/supply. (2) Should the Purchasing Manager determine that termination of the awarded agreement be the appropriate action in accordance with ss. 69.1, Council shall be advised of the termination in writing. Co-Operative Purchasing 70. (1) In this section, "Co-operative Purchasing" means the participation of the Corporation with one or more public agencies, school boards, hospitals or other public agencies in a Bid Solicitation. (2) Notwithstanding the provisions of this by-law, Co-operative Purchasing shall be utilized when advantageous and practical. In the event of any conflict, the purchasing by- law and procurement practices of the municipality, school board, hospital or other public agency issuing the co-operative Bid shall take precedence over the provisions of this by- law. Prohibitions 71. No requests for prices or demonstrations for approved projects or programs shall be made without prior consultation with the Purchasing Manager. 72. (1) Purchase Orders shall not be split so as to circumvent the established method of purchase or the dollar limits imposed by this by-law. (2) Notwithstanding subsection (1), at the discretion of the Purchasing Manager, in consultation with the Department Head, if it is deemed advantageous due to short supply or time constraints, pre-bids for components of a major project may be obtained in accordance with this by-law. Consulting and Professional Services 73. Where it is estimated that the Cost of Consulting and Professional Services will be less than $30,000 and funds are allocated in the approved budget, the Department may obtain the services, provided that if the requested services are engineering or related services referred to in the AECOM Agreement, the Director of Engineering Services shall be consulted before the services are purchased. 74. Where it is estimated that the Cost of Consulting and Professional Services will be more than $30,000 and funds are allocated in the approved budget, the Purchasing Manager i i i I Purchasing By-Law No. 2010-112 Page 15 shall issue an RFP and, in consultation with the Department Head, shall submit a report to Committee providing a list of Bid amounts received with a recommendation for award. 75. 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, an RFP is not required and the Contract may be approved 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$30,000, Council approval shall be required. 76. 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 Report PD-165-96, an RFP shall be issued on an as-needed basis and a subsequent roster of consultants as approved by Council shall be issued. Individual contracts for such services may then be approved by the Director of Planning Services. 77. An external consultant who has entered into a Contract for 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 shall be determined by the Purchasing Manager in consultation with the Department Head. This section shall not apply where a consultant has been requested to provide a budget estimate or general review and estimate for a potential Acquisition. 78. Any consultant authorized to issue a Bid Solicitation on behalf of the Corporation shall comply with this by-law. Fair Wage Policy 79. The Corporation has implemented a Fair Wage Policy on a trial basis applicable to industrial, commercial and institutional (ICI) Contracts with a value greater than $1,000,000. Bids for such Contracts shall be called in accordance with the policy. If the successful Bidder fails to adhere to the Fair Wage Policy, the remedies specified in the Policy shall be applied. In House Bids 80. (1) In this section, "In House Bid" means a Bid made by a Department or Local Union or Association authorized by the CAO 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, but does not include any comparison done by management of the Corporation for Cost analysis purposes of internal and external services. (2) In House Bids may be used for the procurement of Goods and/or Services in circumstances where the CAO considers it appropriate to do so. (3) In House Bids may be made by an internal Union or Association and shall be subject to the conditions of this by-law. Purchasing By-Law No. 2010-112 Page 16 Requests for Product Information 81. Requests on behalf of the Corporation may be made by Department Heads for informal non-binding product and technical information, catalogues and price lists. Each Department Head shall provide the Purchasing Manager with such data, specification details and information relating to a proposed Acquisition, including the Corporation's approved budget prices. The Purchasing Manager shall obtain all binding or estimated prices provided by potential Bidders. Conflict of Interest 82. The participation of members of Council and employees of the Corporation in the procurement process shall be governed by, in the case of members of Council, the Municipal Conflict of Interest Act and, in the case of employees, by the Code of Ethics Policy H3. Records Retention and Destruction 83. Bid documents and related material shall be retained in a manner and for a period in accordance with the Municipality's Retention By-law No. 92-139. Complaints and Inquiries 84. All Bidder or potential Bidder complaints or inquiries,whether addressed to an elected official, the CAO, a Department Head or any member of staff shall be referred to Purchasing Services and dealt with in accordance with appropriate purchasing policy. PART 3—GENERAL PURCHASING POLICIES Purchasing Manager Authority 85. The Purchasing Manager shall have the authority to act as agent of the Corporation for the purposes of(a) issuing Bid Solicitation documents and requests for pre-qualifications;(b) soliciting expressions of interest in order to determine what goods and services are available, scope out business requirements, and/or estimate costs; and (c) signing all Purchase Orders and Contracts that are necessary to acquire Goods and/or Services in accordance with this by-law. 86. The Purchasing Manager shall determine the method of Acquisition 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. Insurance 87. The Director of Finance shall review all Contracts that include provisions relating to liability and insurance. Administration II Purchasing By-Law No. 2010-112 Page 17 88. The Purchasing Manager shall establish and maintain administrative procedures, standard practices and forms to implement this by-law, including the Purchasing Procedures Manual included in the Corporate Services Department Procedures Manual outlining all daily procedures related to the procurement of goods and services. Purchase Requisitions 89. Each Department Head shall submit to the Purchasing Manager a written request in the form of an "electronic purchase requisition"for any required Goods and/or Services or Consulting and Professional Services where the Cost exceeds$1,000. Department Heads shall be required to ensure that funds for any such requisition are included in an approved budget and that the appropriate accounting charge number is referenced in the requisition. Purchase Orders for such purchases shall be issued by the Purchasing Manager. 90. All electronic purchase requisitions shall be approved by an employee who is authorized to approve the requisition according to the signing authority limits established by the Treasurer. Emergency Purchases 91. (1) In this section, "Emergency" means a situation or the threat of an impending situation which, in the opinion of the CAO or a Department Head, requires an immediate Acquisition to prevent serious delays, damage to a basic service, or to maintain or restore a basic service provided by the Corporation. (2) Emergency Acquisitions shall be made by the Purchasing Manager. In the absence of the Purchasing Manager, Emergency Acquisitions may be made by a Department Head. (3) All Emergency Acquisitions shall be confirmed through a Purchase Order and shall be reported to Committee through a report prepared jointly by the Department Head and the Purchasing Manager if the Cost exceeds $25,000 or an approved budget limit. Parts and Equipment Orders 92. Under the direction of the Purchasing Manager, a person authorized to make purchases by Purchase Order on behalf of either the Operations Department or the Emergency and Fire Services Department may issue a Purchase Order for vehicle parts necessary to maintain the Corporation's vehicles provided the Cost of each separate order does not exceed $7,500. Pre-Budget Approval I I 93. Staff are authorized to proceed with pre-budget approval each January for the purchase of all light duty vehicles budgeted in that year,with the final award being subject to the reporting requirements of this by-law. I i i Purchasing By-Law No. 2010-112 Page 18 AECOM Agreement 94. None of the provisions of this by-law is intended to or shall be deemed to affect any of the rights, obligations or responsibilities of the parties to the AECOM Agreement including the responsibilities of the official of the Corporation named in the AECOM Agreement. Disclosure 95. No Corporation employee or any member of Council shall disclose any details regarding Bids except as permitted by this by-law and the Municipal Freedom of Information and Protection of Privacy Act. 96. In the case of a Bid submitted in response to an RFP, the total Bid amount shall be provided on written request of any Person only upon completion of negotiations and award of the Contract. Personal Purchases 97. (1) In this section, "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 that is not required for the purposes of the Corporation or a Local Board. (2) No Personal Purchases shall be made by the Corporation for any Member of Council, member of a Local Board, or employees of the Corporation, unless specifically authorized. Purchasing Cards 98. (1) In this section, "Purchasing Card" means a credit card issued by the Purchasing Manager in accordance with the Purchasing Card Policy. (2) Purchasing Cards may be used for all purchases as defined in the Purchasing Card Policy where the Goods and/or Services do not fall under the requirements of this by-law. Purchasing Cards are issued on an as needed basis upon approval of the Purchasing Manager and at the request of the Department Head. The Purchasing Manager shall responsible for the program outlined in the Corporation's Purchasing Card Policy. Disposal of Goods 99. The disposal of surplus or redundant goods of the Corporation shall be the responsibility of the Purchasing Manager. At least once each calendar year, Department Heads shall provide the Purchasing Manager with a list of such goods. The Purchasing Manager shall determine the appropriate method of disposal including sale, RFT, RFP, 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 may periodically circulate a list of surplus or redundant goods to all Departments and Local Boards. Over Expenditures 100. Subsequent to a Contract award, the approval of any over expenditure shall be in accordance with the Corporation's Capital Project Over Expenditure Policy H17. Purchasing By-Law No. 2010-112 Page 19 I Sustainability 101. In order to contribute to waste reduction and to increase the development and awareness of environmentally sound purchasing, Acquisitions shall ensure that, wherever reasonably possible, specifications shall provide for expanded use of durable products, reusable products and products (including those used in services) that contain the maximum level of post-consumer waste and/or recyclable content, without significantly affecting the intended use of the product or service. It is recognized that Cost analysis is required in order to ensure that the products are made available at competitive prices. PART 8—GENERAL PROVISIONS By-Law Review 102. The Purchasing Manager in consultation with appropriate staff shall conduct a detailed review of this by-law no less frequently than every five years. Repeal 103. By-Law#2010-100 is hereby repealed. 104. The"Execution of Contracts" Policy contained in Report TR-73-00 approved by Council on October 16, 2000 is hereby repealed. Effective Date 105. This By-law shall take effect on the date that it is passed by Council. By-law read a first, second and third time and finally passed this 20th day of September, 2010. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON Original signed by PER: Jim Abernethy, Mayor Original signed by PER: Patti Barrie, Municipal Clerk i i I i Purchasing By-Law No. 2010-112 Page 20 i SCHEDULE "A" To By-Law#2010- 112 The items listed in this Schedule do not require a Purchase Order unless specifically requested by the Department Head or the vendor or supplier or by Purchasing for the purposes of records maintenance,and tracking, and for which other purchasing procedures of this by-law may be waived where application is impractical, in the opinion of the Purchasing Manager. 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 I. Trainers(includes workshop&seminars) 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, Software, Communications, etc.) d. Debenture Payments e. Insurance f. Grants and Agencies g. Damage Claims h. Petty Cash Replenishment i. Land &Building Lease Payments made by Municipality j. Tax Remittances k. Sinking Fund Payments I. Newspaper Advertising and Public Notices M. Day Camp or other similar Admission Fees n. Software or equipment maintenance agreements when provided by the software or equipment manufacturer/distributor. 5. Certain Professional and other Services a. Committee Fees b. Counselling Services C. Laboratory Services d. Nursing Services e. Physician Fees Purchasing By-Law No. 2010-112 Page 21 f. Temporary Help g. Banking and Underwriting Services,where covered by Agreements h. Legal Services i. Engineering and Consulting Services provided for in the AECOM Agreement j. Newspaper, radio, TV advertising k. Policing I. Red Cross Supplies M. Web Design Usage Fee& penalties n. Payroll consulting fees o. Employee Assistance programs 6.1 Utilities(including hedging agreements in accordance with the Hedging Policy as may be amended from time to time) a. Postage b. Water C. Hydro d. Gas(including hedging agreements) 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