Loading...
HomeMy WebLinkAboutTR-42-97 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON � X �ER4K XNXXX REPORT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE File# `—l MONDAY, JUNE 2, 1997 Res. A Date: # " O7 Report#: TR-4 2-9 7 File#: By-Law# Subject: TRADES AND PRODUCTS FROM CLARINGTON VERSUS OUT OF TOWN I I Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report TR-42-97 be received for information. I BACKGROUND AND COMMENT: At a meeting held on January 27, 1997, Council passed the following Resolution #GPA-47-97 : "THAT a report be prepared by Staff for submission to the General Purpose and Administration Committee on information pertaining to local businesses and trades being used on construction sites in Clarington and on what proportion of the products are in the Clarington versus out-of-town areas as well as the use of local workers . " i In July, 1994, Report TR-63-94 , Tendering - Local Preference, was presented to Council and subsequently, Purchasing By-law #94-129 (which repealed By-law #82-96 and #83-16) , included Paragraph 5 . 1, which reads as follows : "If in the determination of the Purchasing Agent, if a competitive market exists and two or more bids are received and are identical in price, provided quality, service and delivery are similar, then priority of acceptance shall be first for a Local Bid, if any, and then for a Regional Bid, if any, otherwise the lowest responsible bid shall be accepted. " A copy of Report TR-63-94, which outlines the problems associated with a local preference policy is attached for reference, marked Schedule "A" . RPaaE� ECYCLt 805 I...PRit11E0 4RELYLIED W. REPORT NO. : TR-42-97 PAGE 2 In addition to the concerns outlined in Report TR-63-94 , the following legislation addresses local preference : 1 . "The Discriminatory Business Practices Act" , Chapter 119, R.S.O. 1980, Section 5 (1) states "No person in Ontario shall engage in a discriminatory business practice" . Under Section (1) "person" includes a partnership, sole proprietorship, unincorporated association and governmental agency. Section 4 of the Act deems certain acts discriminatory business practices and includes under subheading (1) a refusal to engage in business due to geographic location. Therefore, should a Public Agency establish a policy whereby it only contracts with those parties within its jurisdictional boundaries and performs such an act, it may be deemed to be engaged in a discriminatory business practice and be in direct contravention of this Act . " 2 . "The Ontario/Quebec Procurement Agreement" also eliminates all forms of discrimination based on province of origin of goods, services, and construction materials . This includes the requirement that a contractor or a subcontractor use workers, materials or suppliers of materials originating from the province where the work is being carried out . This agreement applies to all construction contracts valued in excess of $100, 000 . 00 as of June 30, 1995, and to all contracts for Goods and Services in excess of $100, 000 . 00, as of May 1, 1997, with full implementation by January 1, 1998 . " As suggested in Report TR-63-94, there are alternative ways to increase local participation in the bidding process . Staff have taken the following measures to try and achieve this : 806 REPORT NO. : TR-42-97 PAGE 3 1 . A "Reverse Trade Show" , hosted by the Oshawa & District Chamber of Commerce" , which was co-sponsored by the Economic Development Departments and Purchasing Divisions of the City of Oshawa and Municipality of Clarington, was held in September, 1995 . This event was an opportunity for local vendors to meet the buyers from all of the public sector agencies within Oshawa and Clarington, and to introduce their products and services . 2 . Over the past couple of years, staff have worked closely with the Durham Construction Association to ensure that every effort is made to meet the concerns of their members . In addition, tender documents for all construction projects are posted at the Durham Construction Association' s office in Oshawa. 3 . Staff work closely with the successful bidder for all construction projects and encourage them to seek out local labour and/or local bids for their subcontractors . This proved to be very successful with the construction of the Ken Hooper Memorial Fire Station, where approximately 400 of the total expenditure was local content within the Region of Durham. Although, the local content for the Courtice Community Complex is not anticipated to be as high as for the Fire Station, the contractor has been very receptive to this approach. Successful Clarington businesses to date include; Newcastle Block, St . Mary' s Cement, and Walter Gibson & Associates . Also, within the Region of Durham, there are several other sub-contractors, who have or will be employed on the contract . 807 REPORT NO. : TR-42-97 PAGE 4 4 . Where the dollar value and associated risk permit, the requirement for a performance bond has been replaced with a letter of credit . This was done to allow small local contractors to bid on a project they might not otherwise qualify for. Again, this proved to be successful with the construction of the Clarke Museum Storage Shed, which was recently awarded to Kraco Carpentry, of Bowmanville . In summary, the Purchasing Division does not support giving preference to local vendors . It is staff' s opinion that all bidders should be treated on a fair and equal basis, and that in an effort to reduce the spending of public funds, competitive bidding must be encouraged. Respectf lly submitted, Reviewed by, M ie Marano, H.BSc . ,AMCT. , W.H. Stockwell, U Treasurer Chief Administrative Officer MM*LB*ld 808 SCHEDULE "A" GENERAL PURPOSE AND ADMINISTRATION COMMITTEE MONDAY, JULY 18, 1994 TR-63-94 TENDERING - LOCAL PREFERENCE It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1 . THAT Report TR-63-94 be received for information. BACKGROUND AND COMMENT: 1 . 0 At a meeting held on September 25, 1989, Council approved the following recommendation (##GPA-676-89) ; "THAT Staff be directed to investigate and reassess the tendering process and prepare a report wherein preference is given to local suppliers" . Due to the Municipality' s involvement in certain legal matters, it was necessary to delay this report until such time as the outstanding issues were resolved. 1 . 1 This issue is one which the Municipality of Clarington Council has had to deal with on numerous occasions, and which is not addressed in our existing Purchasing Policy. However, this issue has been addressed in the revised Purchasing By-law as identified in Report ##TR-64-94 . This report has been prepared outlining the pro' s and con' s of including such a policy, as j well as the alternatives available to the Municipality to encourage local participation in the bidding process . Also included are articles and correspondence from various agencies expressing their opinion on this subject . I i i I 809 REPORT NO. : TR-63-94 PAGE 2 TENDERING - LOCAL PREFERENCE 1 . 2 "Purchasing today is broadly designed as that business activity directed to the procurement of the materials, supplies, tools, equipment, facilities and services required for the maintenance, operation and productive endeavour of the organizational unit. It is the prime function of purchasing to secure such requirements at the lowest ultimate cost consistent with prevailing economic conditions and the appropriate standards of quality and continuity of service j while establishing and maintaining a reputation for fairness and integrity" (1 - The Purchasing Job: Dimensions and Trends, S.D. , Zemansky, American Management Association, Bulletin Number 11, 1961) . 1 . 3 "The very essence of governmental purchasing is to obtain competitive bidding, on either a formal or informal basis, in a market force free of artificial restraints" (2 - Repeal of "In-State Preference" , Laws on Public Procurement, U. S . Department of Justice, 1971) . The purpose of advertising requirements in the newspaper is to encourage participation by all qualified vendors . 1 . 4 Often times, it is difficult to get vendors to bid on Municipal projects . They are fearful that (a) payments will be slow and (b) paperwork requirements or excessive specifications will outweigh any potential benefits . Because of these problems governmental agencies often pay much higher i prices for supplies, services and equipment than private industry. 2 . 0 ADVANTAGE OF LOCAL PREFERENCE 2 . 1 Promotes good-will between Municipality and the local businesses . 2 . 2 May help to keep certain tax dollars within the Municipality thereby, possibly creating opportunity for increased local employment . 810 REPORT NO. : TR-63-94 PAGE 3 TENDERING - LOCAL PREFERENCE 3 . 0 DISADVANTAGES OF LOCAL PREFERENCE 3 . 1 Local preference would directly cause a substantial increase in the expenditure of public funds by discouraging competition from outside sources . 3 . 2 Taxpayers would be required to pay more taxes for the benefit of local businesses. 3 . 3 Higher property taxes would discourage new businesses from locating to the Municipality of Clarington. 3 . 4 Other governmental agencies may take reciprocal actions, hereby creating a competitive disadvantage for Municipality of Clarington firms . If a contractor' s market is confined to its own locality because everyone else has preferential policies, it will soon become inefficient and perhaps bankrupt . 3 . 5 The probability of collusion increases greatly. A local vendor may quote a higher price than he otherwise would. 3 . 6 May result in lower subsidy grants from the Ministry of Transportation and Communications as the subsidy is restricted to that which would have been paid had the low tender been accepted. 3 . 7 Unless an exception is granted, would eliminate participation by the Municipality of Clarington in Co-operative purchases with other public purchasing groups . 4 . 0 PROBLEMS IN IMPLEMENTATION OF LOCAL PREFERENCE POLICY 4 . 1 Establish a definition of a "Local Vendor" ie . : The Municipality of Clarington or the Regional Municipality of Durham. 4 . 2 Must the "Local Vendor" own or rent property in the i Municipality of Clarington. 4 . 3 Minimum requirements for length of time a "Local Vendor" has been located in the defined area. 4 . 4 Do branch offices qualify as "Local Vendors"? 4 . 5 Does a post office box qualify a company as a "Local Vendor"? I 811 REPORT NO. : TR-63-94 PAGE 4 TENDERING - LOCAL PREFERENCE 4 . 6 Should the ownership of a business be local to qualify it as a "Local Vendor"? 4 . 7 Are businesses operated from the Municipality of Clarington residences considered "Local Vendors"? Does the home of a sales representative qualify as a "Local Vendor" if the correspondence goes there? 4 . 8 Should the vendor be able to provide the warehouse function as well as the sales function locally to be certified as a "Local Vendor"? 4 . 9 A percentage differential must be established and adhered to, ie . : If percentage differential is set at five percent (5%) , what if the difference is five point one percent (5 . 1%) ? 5 . 0 CONCERNS FROM OUTSIDE AGENCIES 5 . 1 As indicated under the disadvantages, Item #3 . 6, the Ministry of Transportation and Communications restricts their subsidy to that which would have been paid, had the low tender been accepted. See Schedule "A" which outlines their position on the awarding of tenders. 5 . 2 In 1987, the National Institute of Governmental Purchasing Inc . , passed a resolution that opposes all types of preference policies . See copy of resolution attached, marked Schedule "B.. 5 . 3 The Canadian Construction Association is adamant in their position against preference policies and is in fact stepping up their attack on Provinces and Municipalities that discriminate against bids from outside contractors . A list of such groups will be circulated to all Canadian Construction Association members and will be also given to the media. See the attached articles from the Daily Commercial News, marked Schedule "C" and "D" . 5 .4 The attached article from Governmental Purchasing, marked Schedule "E" , entitled "Preference Is Not Preferred" offers the opinion of various groups and agencies . 812 REPORT NO. : TR-63-94 PAGE 5 TENDERING - LOCAL PREFERENCE 5 . 5 The British Columbia Court of Appeal recently upheld a lower court ruling rejecting the practice by Municipalities and other tender callers of not awarding contracts to the lowest qualified bidder unless specifically stated in the tender call . See attached Bulletin from the Purchasing Management Association of Canada, marked Schedule "F" . 5 . 6 The Ontario Sewer and Watermain Contractors have approached the Province for assistance in eliminating local preference in the awarding of contracts . See attached Bulletin from Ontario Sewer and Watermain Contractors dated January 18, 1990 and article from Daily Commercial News dated February 19, 1993 , marked Schedules "G" and "H" respectively. 5 . 7 The Federal and Provincial Governments have agreed in principal to remove most Provincial trade barriers . A Local Preference Policy is in effect a Municipal trade barrier. 6 . 0 ALTERNATIVE 6 . 1 As an alternative to a Local Preference policy, the Municipality of Clarington is able to increase participation in the bidding process by local businesses . Suggested means are as follows : 6 . 2 Search out local firms who offer products and/or services which the Municipality may purchase. 6 .3 Meet with the firms' officials and explain the Municipalities interest in doing business with them. 6 .4 Explain the rules of the game in the vigorous competition environment . 6 . 5 Encourage the officials of the firms to compete with their bids . 6 . 6 Educate the firms with respect to bonding and insurance requirements and how to obtain them. 6 . 7 Let them know the fairness and objectivity practiced by the Municipality in making the awards for bids. 813 REPORT NO. : TR-63-94 PAGE 6 ° TENDERING - LOCAL PREFERENCE 7 . 0 OTHER MUNICIPALITIES 7 . 1 Identified on Schedule "C" , attached to Report #TR-63-94 are the policies of the area Municipalities with respect to Local Preference. In summary, no area Municipality has a policy which provides outright local preference. 8 . 0 SUMMARY 8 . 1 The local vendor already has numerous advantages due to their geographical location. Examples : 8 . 2 Local vendors are sometimes better equipped to provide "service after the sale" that may be required for some commodities . 8 . 3 Local vendors are usually first aware of new projects that provide them with the opportunity to assist in the specification development . 8 . 4 Transportation costs of the local bidder are usually less . 8 . 5 Advertisements are always published locally. 8 . 6 Local vendors are more knowledgeable of local business conditions and requirements . 8 . 7 In accordance with the revised Purchasing By-law, in purchases under $10, 000 . 00, three (3) quotations are required wherever possible . In many cases, only local vendors are invited to submit bids . For purchases exceeding $10, 000 . 00 and up to $25, 000 . 00, three written quotations are required wherever possible . Once again, as this is a project which is not advertised, the number of bidders located outside the Municipality may be less, and all known local bidders are invited to submit bids . 8 . 8 In summary, the Purchasing Division does not support giving preference to local vendors . It is staff' s opinion that all bidders should be treated on a fair and equal basis, and that in an effort to reduce the spending of public funds, competitive bidding must be encouraged. 814 REPORT •NO. : TR-63-94 PAGE 7 TENDERING - LOCAL PREFERENCE 8 . 9 "Since competition is the fundamental cornerstone of the purchasing process, competitive bidding needs to be encouraged to the maximum extent possible . Competition goes a long way toward assuring that the final price is fair and reasonable both to the supplier and to the client" (3 - Public Purchasing and Materials Management General, Canadian Institute of Public Purchasing; The National Institute of Governmental Purchasing, Incorporated, December, 1983) . 8 . 10 Staff do however, recommend that as identified in Report #TR- 64-94, the Revised Purchasing By-law, that the following paragraph be added: Paragraph 5 . 1 - Local Preference 5 . 1 Local Preference - If in the determination of the Purchasing Agent, if a competitive market exists and two or more bids are received and are identical in price, provided quality, service and delivery are similar, then priority of acceptance shall be first for a Local Bid, if any, and then for a Regional Bid, if any, otherwise the lowest responsible bid shall be accepted. Respectfully submitted, Reviewed by, Marie Marano, H.BSc . ,AMCT. , W.H. Stockwell, Treasurer Chief Administrative Officer MM*LB*ld Attachments i I i 81 5 Ontario — SCHEDULE "A" ' Ministry of Transportation and District #6 Communications Municipal section 5000 Yonge Street Willowdale, Ontario M2N 6E9 Tel: (416) 224-7456 1987 09 17 Mr. L. Kotseff Town of Newcastle 40 Temperance street BowmAnville, Ontario OCT 11 1969 L1C 3A6 TOWN OF NEWCASTLE Dear Sirs PUkCHASING DEPARTMENT Re: Awarding of Tenders The advertising of a tender and the subsequent award of a ' contract results in a very significant transfer of public-funds to the private sector. The manner in which this transfer takes Place, must not only be done in a formal and open manner, but ' appear to be so to the lic and pub private sector. It is our experience that when a road authority deviates firm well established practices in tendering projects and awarding them, that the contracting industry and ultimately the general taxpayer suffers. It is apparent that the larger the number of bidders on -a". project, the more competitive bid prices are likely to be. ,When =s' an owner acquires a reputation for the unconventional�Yn`awa6iing ` tenders, we have noted a deterioration in the bidding environment and decrease in the number of bidders. The result is rathdk regrettable. i I understand Town Council recently awarded a'major road construction contract to other than the low bidder. 1.can 'synpathize with the reasons Council had for making this decision. In so doing, however, they set a precedent and sent:;•a..cl�ar" k ;: message to the contracting industry that' 'an unpredidtabl(i 1ai>ent j, f has been added to the process of,acquilti ng work i,q".— The Ministry takes the approach that responsibfffiy fc this decision rests with the Town. We do however discourage this action by restricting our subsidy to that which would have been paid, had the low tender been accepted. I feel compelled to bring this matter to your attention and would approciate if your Council members were made aware of the Ministry's concerns, in the hope that the practice of accepting other than the low tender does not became eca> wn practice. Yours truly, PCG/el P.C. Ginn 55 b.c.c. J.K. Robinson District Municipal Engineer' -` R.L. Hanton Q Pilo #ssn?_ln_m V SCHEDULE "B" — NATIONAL 1,NSTITUTE OF GOVERNMENTAL PURCHASING, INC. ` 115 HILLWOOD AVi NLE • F At t S ( HL R( H \ IRI.I',IA 2204() RESOLUTION PREFERENCE WHEREAS, the National Institute of Governmental Purchasing , Inc. advocates the use of the free, open competitive process for public procurement , and WHEREAS, the ,'rational Institute of Governmental Purchasing , Inc . supports all efforts to include everyone to participate on an equal basis in this process, and WHEREAS, the practice o. r :erer.;e la ,.s or regulator_ resui-.s in reduced competition and increased prices; NOW THERET ORE B- IT ?_. :;.. . ..., ui Governmental Purchasing , Inc. is oiJpOSCd to ::;es of preiere,;cc law and practice and views it as an :mpec::r, nt to cost effect: ,e procurement of goods , ser`,'_ces ar,a ::onstruct10': i:, a free e.^.terpric�- sN,st err,. A true copy of a Resolution approved by the ;rational Institute of Governmental Purchasing , Inc.'s Board of Directors a, a Board Meeting in Arlington, Virginia on March 7 , 1987 . L WITS E. A'vG R, CP O Executive Vi P esiden and Secretary I A Non-Profit Educational and Technical Organization of Governmental Purchasing Agencies FOUNDED fN 1944 j 817 PERFORMANCE PLATFORMS LTD. Commercl*al SALES•RENTAL•SERVICE W Dail ev N LU PERSONNEL LIFTS AND CONSTRUCTION REWORD N (416) 479-3737 . . VOL. 62, NO. 199 MONDAY, OCTOBER 16, 1989 s .", (u.�.h�e�� ♦lit✓.:x [ �r' w*tnz{ :CCA �asers , uc�ta x;1� aanst � e�ence ol�cies. w p x F*"� 4e, �i. r �"ten t�.-� c - r 614." vxti;; s;«a' r Uti� , �:unw.uitten prrence�ptaetices :; rhAVO!,lo en+ Ys M (:concluded that the origin or source OTTAWA Canadian, Construction will the cIrculat: ` to' i4:`imembers aiid*" �" ', of supply�wittitn Associat'on C " ' _ >, ., . � w" �� ., �g en tfo.,rtGanada,shouldn t be a�factor in` decidm ch` t ,( CA)lstep�rmg np�3ts attack on:prov the mea :k'�'Yr •. ��: . .' g .:. �, ,. �µ.M:� '"F:� w ,y�� �.��rir�optractors or; uppliers:are;selected�ion publicly ;,inces and municxpahhes that ihscriminat against n k If rpeoPle "exe,hat�thgre �s either.an,.o�p„for ; under 'ro eels ' beds:from-OntSide> pat .w7r. j contracforszasa _o�Cs a x hidden preference;,.tie"raze=nog""Din So`tiv eir` Unfi1 < �x Contractoirs' aeri ,_:,«c ..4 ;�,, w.Y_.r, ,U„y 5, $ y astgFFfhuuch regional favoritism,is abolLshed wre ..,,,tlyspendiine andmoney�to� time:bidding said nth: ". .�r l ons•�th assemble a=:bid'oar. ;•.n�, �:q,��� h_,_�....� _.rsr ?. insisf.;on local=.preferencesshouId at leasC�; ago�ernineritb ect y Elimination�of.:,a11 fo -. .. ,.,.;;. . :,.. p�oJ , onT tostnodiscrimmatory��tr",ade clearlyspell outthe policy at�the;hme ofahe:mitiah,- find out;later Atha a Toca1 firms h"as been savored, barriers�is CCA°s coverall goal;?said "Nuth triceliid callthe�CCA sa s CCA president 19;6, t a r , < 4 g,.,:,...t ,�x�n,�, �� ?� � �,. Y w ,Y�� .� ' r�there sno economic justicationwforaheyprac�►�e. v Anoutbreak,,of protechon�staentiriient"seeins, These..,lOCal°�refereACe'' hCle$'v-aTe'�OCn -'lCe t ,x;ir• . �.: p [he regional barr�er5„a a often sot high, he,-said have infected Atl n#c.Canada"this` ear:abut'Nutti :quiet so: governa►enfi agencie Rican Abe: assured of pit's easier to�doktisinessmw he I)sS.rt}ian said iu, a w he was encouraged bys;the efforts 'ofNew plentgof bidders utbsai in�ati mter�iew x, '„” neigtlbq�ring munici alI o rovmce •Brun wickPremierFrankMcKenna °wh' . "The wantthe,i,,;,�and”eat It too:_The '� p �'`'~ t r ry,.X 'B , o has been;; Y' y want �, We have i�eard very.;httle of Ythmg thatyspb meeLng other Atlantic preiriiers to< ,to'. ° > the compebtxon,.andthey,want to quietly hand?the stantlates;the vin of jobt deal.bidder ' „Pcefer`ences',',One{�get5 'the barriers removed. g C 0 8 1 :feelm �O�eII.,eII011 h lat� lerBiS bCeIl st y But Lhe CCA' 1 to strike�`back Tliis fall " g g pohtical (a contractor s).marketplace lace W.confined to<it§ P, )? , wpressure broughf to�bear They're really snot eCo- own locality' because everybody 'keeps buildiiig�>. C _anember,firms.:will,,beWasked�to� denhfy,m". p.li �nomicarguments" �_.>,y ` �:{y1 y fences around their territories;;we'll:"end'u .with:a' ties or..cegions that'flagrantlyand repeatedly:use A CCA task :force that examined the tproblem titinch of small; inefficient firms.'; ,. _ rr JAMAC SALES MERKLET SUPPLY LTD, Distributor For: Dal*ly ® 1009r fiY/ap/,n1'364 k News (sul 72'ECI Dow Firestop Products Ft,'1 ,� Now Two Locations BUILDING SUPPLIES 1F SPECIALTIES 440 Brimley Rd.,#7 265-4677 Compe a range a meso vy p oouets,bdek AND CONSTRUCTION RECORD bE'Fme�10�to dwa e,lumbe,glass 4345 Steeles Ave.W. 665-0018 docks, shingles, wallDOard,, arxt other tonstructlon mateAals VOL.62, NO. 123 MONDAY,JUNE 26, 1989 SALES WITH SERVICE SINCE 1959 $1.75 xC , A. u� i ,t t rct�cal oo twoo �ct aav:ar a�} b:•, 8 KENSTICKNEY y n`k �l/ ;NS l s t w' )HAI.IFAXw(DCN}_Tworcontracts<'awatded.lon the.bas .aawesmde,�robkiit�; Se«the7ptnvinaal'govem=- :that Guildfords shoiild have a chanceat thaxvoc'r+tn�Tten '�.:licmarft , is .�tttehts�tmpp¢rt theta.Tltey iiilQemtino the-compwave'bid ton.•;. - � Sj,t„ii�ptxyx (ay�t,.s �uaon undermine any notion of a truly ' bf local prcference,have.aroused the^tto•bC�Hu Canad3anaty:ding.Eptocess'T�uid°(1?�Y_makeniUaotin•.that�anything.beyond: :',:There was less than.two . a hsintction`:Associabon`(CCA).and,the Constnlcaon'�ssq-c:th2`locat"btfundary is•,vtsa coon !^"`'.`n;,'fi,..•••:�•`v�`+ .•bids1'MacDonald`., 1?e� t'ikp�9ti°g;Ftlx,•r'?rtwb .airw C-Ay the power commission to state 36611 of Nova.Scotia;(CANS .4 " y"r:F�} t. acrd:"Thetr s ra on ha»,iu;3;,�fi`:.2,h.::UU�ki+t::;`,,;rytitte'-ut„ e E�fidmmtssron� .. - „.4 ,,,�'erdo0k ats:gppostuon to Iocal.ptgferzncE policies. _n, one instance,:i SI;7-million contr"act`rfof'"wotk��on a xidm�'' u'u'cd':toc an9addition-to'It'.' '�ledfot'bt -onx :':at Nova Scotia content wlxawe•award;eontrodsrtZwt++t�1WasY__�In thi:,'s`econd case,Now Glasgow awarded the 51.2-mil- Nov ScoaB Power Commission 4 8 poWeitigeneiaav station.. a'IitUe^difficult here because•I oriea was o$ sot t�tt"ta1uT' btaty'.tmovations to:Ttimae'Construct on �+ng tton'contract for li proKcC wasl awatde i;o tut;Trenton IV:S he tetl jer'doeumatts sarQ.the:successful i Nova'Scoti conteit4 However,:Lorleaihad ay wott.th�.{w1_d-of New Glasgow although Lin art.Constidct on. ovaSSeoaaer:bi pctor:ltlthougli:ad pntanb tractor�3ub i %e Iow bid asoy S �mWnils•and-personne[:t4 �, .Condract'.fot the.Pb6 Tupper':No 2 atah6tijto':wti:deoi�ed'61'`'Sydnry submitted a bid$I3 8 Ltd.of lnrtteda lowubid:•In the bttidr a S'ir2-tvillton contridf fitr'�ffn; bmttted-b p >,} ,000 lower. .. Y`,tirbrary renovations m.New,Glasgo*',AS;:�was nwar�ed M +Jea l 1ho sccond;ldw btddar wa GnilEf is Ltd Brame. .that this job hould go to'Gaildfotds": ?� :".,2, :. Imo: rte,'the:town cledc.sa eounc . ,+� .,,.�,,.},.,.,F otdst7,L.td Dirt .:'Michael�Adanson, dtrecwr:.,of indushyctpracaarh,Wr '�, -;around:the'[wo:bids''for three'or font days-New Glasgow'cohtractor<ilth ough n,coriaactorftom:Syd CCA:'wtbtC•the:po�Ve'r:opmmission to rotcsY:the,aw before making put in.a.lowcrbid.,:: r p „i§ ttte coaopcl'to'Gatldfoids- The iecvtrehce'6f thrs kind.of thing at,the"3,ttdnicipal.l6�.' ,hithoit'h'I.a1es had.tldix 6n ,�.it wd'tild:u�c�u ititeit'otiC that no;pefetoilce'fofj la'x of busteasM. ,`,: `_,:Tlx . letter,'po uehitect=Robert.Cassidy of Truro-.said.ilut both g, 8.., �stnntiit was.metlaopod tn',M:Aender documents.i;;•<<. �.5 r: J . .tender=wets valid'and complete,but he said that he wu not "vel'•when we're. n 1o,raluaJntettatioilil!ttade'bamers NdvaScoWt"matett9lstiiid'}(as$nneE:On.the�tojat4 ;, thE-kaer;alsot?card 'ptr.assocuhotttts fU�l and tying.to;mme,to te:atsgwith.free:trade u:rather tilly.+n•'y,v 4?tvfautiee;Maeibnsld ,�C g --says Jack Rowe;CANS:ptesidutt .',Y.y, .;a,•+. . •�.,,' r� ,;,'CO�Pa�e•tela(ions with•: .oppdsedi?4tA ;i?se Dfitegtoiu�;Prefe roocesiltS:�itiy"'Tocni:!:�nd on an and he would have to interview its _�t �9 t.- ,.. t;?hq;power-coYnmissioh„agY£'ttrCont:act wenC 'L`udf t. :;superytsoc and learn something boiit,t]><com ...'. "CCA.hasfotmed�a:task�foia to 'to�.La]?tLith`.°ttitet,'n� `" ., r�,• oSds;( at ill:levels7of.govemmentpivifhin,Cariadi: �frxyoct�' ti�' }ttf.l>es✓as•goiri .towork with themg. sl ay. *because'Toi3ealvis Yarded i iievious egntraet fotSro on des.pieserif artdiaal,bamers.to.mobiltry �ktbntetito 1Piad*;'in ”iitioei•.wgith'. . Hi said tie'had rcovinCi trade bamers`1�nthe tonsaucatiiC:rJ•ni! •6u `.;*V'•:jy?; NJ tl reoutrl?ec„2aet"ahn,tstl66tKd�,tlie'?cgtn`rtuAOn'felt} ,'tfichnoectssdry:fragitKn 'ai{''.ilreai� p Y`'�'••,$'�is.,-�a^ iu' �T,rimac.for 30,years'snd'that t{iey. . •See-CCA Pat a' Mfg g QP 4 Ea E% r? -g-g�gQ P-> T Fo $RT �•y. F2, r- z f' � 3 St�i So7K'ssw' � �� QoSa�G �E >;� _g w O r.--c ♦x o m•w�8.,� c P $D'^n 3 g M b� ._�• , .° A _ w 4'.F S O S a F 8 r 1 SCHEDULE "E" 1 . h � g Owl i By John Short "J realize it's provably a lost cause because I locally policy has a S.4—nilar appeal to municipal and don't even have the support of the manufactur- county government. Closer examination shows that ers on this,"the author of a bill to give business- such a policy has many disadvantages with adverse man an in-state preference in getting contracts effects both on government and the firms that the policy for state and municipal purchases told the Wis- purports to assist. As the Milwaukee Chapter of NAPM consin Assembly Tourism and Economic De- pointed out at the legislative hearing, the intended goal velopment Committee at a recent hearing on the of increasing business for Wisconsin firms was certain- legislation. ly a laudable goal, but in their opinion the bill would not result in good legislation for the people of W`iscon- The author was the only person to back the bill which sin nor create any more business for Wisconsin firms in would have required that Wisconsin firms be given a the long run. chance to match low bids received on state and muni- "Preferential treatment on bids is entirely contrary cipal purchase contracts from out-of-state bidders. to good purchasing practice, subsidizes in-state firms, Opposition came not only from the Wisconsin Asso- restricts competitive bidding, discourages out-of-state ciation of Manufacturers and Commerce, but also vendors from bidding, invites collusion among in-state from the Printing Industries. of Wisconsin, the major vendors,and results in denying taxpayers the best qual- graphic arts trade association, the Milwaukee Associa- ity at the lowest price," William Mohaupt, President of tion of Purchasing Management and concerned public The Wisconsin Association of Public Purchasers and purchasers from the state and local units of govern- Purchasing Administrator for Milwaukee County told ment. the Assembly Committee. Not all preferential legislation meets with opposition. William J. Beam, Purchasing Agent of the Milwaukee A dozen states have overt in-state preference laws. Area Technical College, advised the Committee that Many municipalities have ordinances requiring them to these shelter type laws would not stand up in the market extend a local preference. Some states and local units place and would die quickly when put to the test in the of government practice preference as a matter of policy business world. He said public purchasers spend a lot rather than law, of valuable time in research of the best product to per- The surface appeal of some type of preferential treat- form the function. They would be very naive to think ment of in-state vendors or in-state manufactured prod- that they had a local corner on the market of the best ducts is quite compelling to state legislatures. A buy- products available and would soon shrivel in isolation. John Short, a native of Wisconsin. is an administrator in the In March 1975 The Council of State Governments Wisconsin State Department of Administration. He served as publishes! State attd Local Goi,ernmetit Purchasing, an Director at the State Bureau of Purchases and Services for ten indepth study of public purchasing with findings that years. and is currently chairman of the National Association of p B y reference is a uab) unconstitutional as a barrier to State Purchasing Officials' Committee on Research. He is co- chairman of NASPO Liaison Committee to the Coordinating interstate commerce;preference is in direct conflict with Committee on a Model Procurement Code. A self-proclaimed the principles of competition and precludes the pur- t� refugeef romt heUniversityatWisconsin'sSchoolofJournalism, haser From obtaining the best competitive price; and Short brings a wealth of Curchasi� c g experience to his discus- K sion of in-state preference procurement policy. potentl.11 sources of supply are rcd.lced. 22 GOVERNMENTAL. PURCHASING / FEBRUARY 1975 820 N SCHEDULE "F" Purchasing Management Association canadienne Association of Canada Ul de gestion des achats LANDMARK DECISION UPHELD A British Columbia Construction firm has emerged as the victor in a court case involving apparent local preference in the awarding of contracts. Roger Tanner, president of Chinook Aggregates Ltd.of Vernon,BC won a major victory in court that will effect the way construction contracts are tendered and awarded across Canada. The BC Court of Appeal upheld a lower court ruling rejecting the practice by municipalities and other tender callers of not awarding contracts to the lowest qualified bidder unless specifically stated in the tender call. The original decision handed down in October 1987 stated that theMunicipal District of Abbotsford was wrong in 1985 when it did not award the contract to Chinook Aggregates,despite the fact it submitted the lowest bid. Instead a local firm received the contract because Abbotsford had an unadvertised policy of favouring local fuYns whose bids were within 10 per cent of the lowest bid. The clause,"The lowest or any tender not necessarily accepted"gave the municipality,in their opinion, the right to award the contract to whomever. The judge ruled that because the original tender call did not mention preference to local firms and because Tanner's company met the qualifications,except local residency, as low bidder, it should have received the contract. George Ouimet, an expert in tendering contracts and on whose testimony the Judge leaned heavily, testified that the phrase"any tender will not necessarily be accepted"was included in a tender call to allow the owner to cancel the project that would prevent him from awarding the contract if neccessary. As he stated,This clause is not used or intended in the industry to allow the owner to arbitrarily award the contract to just any bidder or contractor." Mr. Justice Legg stated in his Reasons for Judgement: "I agree with counsel for the respondent that it is inherent in the tendering process that the owner is inviting bidders to put in their lowest bid and that the bidders will respond accordingly. If the owner attaches an undisclosed term that is inconsistent with that tendering process, a term that the lowest qualified bid will be accepted should be implied in order to give effect to that process." It is anticipated that this decision will have a significant impact on the construction industry across Canada. Michael Atkinson,directorof the Canadian Construction Association in Ottawa,believes it will put an end to the practice by government, at all levels, of awarding contracts based on local preference without it being clearly stated, and virtually ends the practice of bid shopping. Mr.Tanner's lawyer,Bob Moffat said,"The court has given a clearer meaning to this clause and defined it to in effect mean that there have to be good business reasons or pre-stated conditions for the tenderer not to award a contract to the lowest bidder." Tanner believes this decision is the fast of many. He is currently aware of 15 to 20 cases nationwide that will now proceed as a result of this ruling. I gal -x-On .lI IUl ate Ot 0 i 16.N4(14.11 u1 -h"4 the COftC6i ct Nrt:tt:rCil�ral uC � dl- has been concerned with the issue of in-state preference ment for local vendors." since the beginning of the Association in the late 1940's. N'AS110 has adopted resolutions expressing its opposi- tion to in[-state preference on a half_dozen occasions. others which follow the practice administratively. NASPO has also closely monitored the status of in- The thoughtful public purchasers recognize a dual state preference legislation. In 1970 the NIASPO.Com- concern in administering their purchasing programs. mittee on Competition in Governmental Purchasing They are charged with the purchase of materials, sup- conducted an indepth survey of in-state preference plies, equipment and cbntractual services at the lowest policy and practice. A summary of that survey, with possible cost consistent with utility. At the same time an update from data collected for preparation of Pur- they have an obligation to enlarge the competitive cli- chasing By the States, Fifth Edition, June 1977, follows: mate and to see to it that there is nothing which would 1970 1977` Yes No Yes No 1. Overt In-state Preference 12 31 - 121 32 . 2. Percentage Advantage to In-state Bidders 3% 2 3 S% 6 4 10% 2 3 3. "Tie-Breaker" In-state Preference in case of tie bids only 38 10 39 S 4. Reciprocity 7 9 '1977 Data from Purchasing By the States, Fifth Edition, June 1977 Draft (1) Idaho reports preference in Printing only. -There has been no change in the number of overt in- be an impediment to local or in-state firms from flour- state preference laws. In fact, most of these laws date ishing in that competitive environment. Public pur- back 40 to SO years. The states do report a growing chasers also recognize that these two concerns may at number of efforts at the introduction of in-state pre- times seem to be in conflict; they need not.be. ference laws. The Wisconsin State Bureau of Purchases and Ser- The majority of states have the provision, usually vices suggests a resolution of this conflict in a "white statutorily imposed, that in case of tie bids preference paper" on the subject of in-state preference prepared will be given to an in-state bidder. While this is clearly over ten yearn ago to have a document ready to re- "in-state preference" such "tie-breaker" awards impact spond to the issue at any time. The paper has been up- neither the cost to the state nor freedom of competition. dated a number of times and was the basis for informa- As one state purchasing official puts it, "It beats flipping tion provided the Assembly Committee at the recent /a coin". hearing. Just who is an "in-state"bidder is a definition trouble- The paper points out that public purchasers know the some to many states. 'Mere is no question with manu- essence of private enterprise is free competition and facturers, processers, wholesalers, distributors or re- only through full and free competition can free mar- tailers ow:ied and operated solely within the given state, kets, free entry into business, and opportunities for the but most states indicate that they also accept any busi- expression and growth of personal initiative and indi- riess with a branch office or warehouse in-state and a vidual judgment be assured. Such competition and re- substantial number accept any vendor with a bona sulting economic well-being cannot be realized unless fide mailing address in-state. the actual and potential capacity of local and in-state In the early 1960's only two states,.had reciprocity business is encouraged and developed. The paper sug- laws, i.e. applying sanctions only against vendors from gests the emphasis should be on appropriate measures states which had in-state preference acts. The 1970 sur- taken before going to bid rather than imposing an arti- vey identified 7 such states and by 1977 there are 9 ficial restraint on competition at time of award. which have statute law of reciprocity and a number of The public purchaser wants to treat all prospective bidders equally. There are operational patterns which can be followed to give a little more equality to in- "Preferential treatment on bids is state and local bidders. entirely contrary to good purchasing Generic specifications are preferable, but it is impos- .. sible with the myriad requirements of governmental pfdCtlCeS... (continued on page 34) GOVERNMENTAL PURCHASING / FEBRUARY 197t3 23 822 Preference Is Not Preferred lusion among in-state vendors..." (continued from page 23; purchasing to avoid the judicious rise of the 'brand name or edual" specification for many purchases. Pro- in the decision process. Finally, in-state or local ven- ducts of in-state or local manufacturers should be dors should be reminded that they enjoy a natural geo- specified whenever possible and first if more than one graphic advantage in sales engineering. brand name is used. Valid support of in-state and local vendors is better When generic specifications are used, they are dr- accomplished in the construction of technical and pro- rived in part from specification meetings with manufac- cedural specifications rather than in an arbitrary award turers. Local and in-state manufacturers in the field of bids. should always be parties to spec meetings. While generic'� In-state and local preference is inequitable because it specifications cannot be restrictive, they should be ; results in part of the tax dollar being spent In subsidy framed with an awareness of the potentials for local instead of value. Sound governmental "purchasing production. To'service a contract, particularly to meet equates with the concept of best value procurement, the specified delivery, a contractor is usually required i.e. award to the lowest responsible bidder meeting the to maintain an extensive inventory. Geographical con- specifications. The mission of the public purchaser is siderations call for nearby warehousing and in some to conserve public funds and to spend one penny more problem sittwlons this can be spelled out as manila- for whatever reason is not doing that job. tory in the procedural specifications of the solicits. The public purchaser a-qts in agency for his state, tion-for bids. county, municipality or school district and for the Freight is part of the contractor's selling cost :nil local taxpayers. This is a stewardship of critical responsi- vendors have a built-in advantage when bids tali for bility. Implicit in this stewardship is a grant of discre- delivery fro.b. destination. tion and any infringement results in proportionately Frequently the element of service is important, either poorer Purchasing perforrumux. The purchasing agent in kwalladon or in n aWmance, and if service is who has his market place artificially constrained can not identified as a criterion in award at the time the solici- exercise the ingenuity an4 initiativ: which are the hall. tation of bids goes oust, it certainly can weigh heavily narks of the profemional public purchaser. 823 1 SCHEDULE "G" meeting n oS VWA tch', of w re ontario sewer & watermain contractors association 6299 AIRPORT ROAD,SUITE 702,MISSISS4UG4,ONTARIO, L4V 1N3 (416)677.0470 V I-g January 18 , 1990 1 7PURCHA E TMENT a TO: Ms. P. Barrie ' Clerk Town of Newcastle 40 Temperance St. - f Bowmanville, Ontario L1C 3A6 C hh f�or 4, FROM: R.W.A. Cochran Executive Director OSWCA RE : Awarding of Contracts in Ontario The position of the Ontario Sewer & Watermain Contractors Association is that contracts for public work should be awarded to the lowest qualified bidder.. There -has been a tendancy in- the past on the part of some municipalities to favour the lowest local bidder . I refer you to the article "Chinook wins its appeal against Abbotsford" in the December , 1989 issue of CCA National (attached) . This article describes a case heard in the British Columbia courts where a contract was awarded to the lowest local bidder rather than to the lowest qualified bidder . The outcome of this case after appeal , was that the court upheld the lower courts decision to award the contract to the lowest qualified bidder . This may be of interest to you . I 824 Published by Canadian Construction Association December 1989 Chinook wins its appeal against Abbotsford In what may prove to be a landmark— - -did not override!that term since it is pality had breached the implied decision regarding the cbmpetitiva customary.and `;expected that such term and its duty to treat all bidders bidding process in Canada, the"B.C. • preference policies would be brought fairly and not to give any of them an Court of Appeal recently ruled that to the attention of bidders. unfair advantage. where competitive bids are solicited Municipal- appeal. On appeal, Mr. Justice Legg in his written for construction'co n tracts there is Abbotsford maintained the trial decision states as follows: an implied condition the owner will judge had erred in finding the bidding "I agree with counsel for the award the contract to the lowest cbntrad eointainFd an implied term respondent that it is inherent in the qualified bidder. contrary.to the express language of tendering process that the owner The Municipal District of Abbots- the Instructiomto Bidders.The B.C. is inviting bidders to put in their ford, B.C., invited bids in 1985-on- Coda of Appeal, in upholding the lowest hid and that bidders will a gravel crushing contract by public lower court's decision, disagreed. It respond accordingly. If the owner advertisement. Chinook Aggregates ruled the language in the Instructions' attaches an undisclosed-term that Ltd.,of Vernon,B.C.,was the lowest to Bidders did not give the owner the is inconsistent with the tendering bidder.Abbotsford awarded the con- right to apply a local preference process,a term that the lowest qua- tract to the second bidder, a local policy where that policy was not lified bid will be accepted should contractor, solely on the basis of an disclosed in the bid documents. be implied in order to give effect undisclosed preference policy favour- The court also found the munici- to that process." ing local firms whose bids are within 10 per cent of a low bid from out-of- Stronger and better apprenticeship town firms. The existence of this policy was not if task force report has any say disclosed to bidders. The Instructions to Bidders did contain, however, Apprenticeship in Canada will be human resource strategies and the a statement that "the lowest or strengthened and better promoted low participation rate of women in any tender will not necessarily be if the 28 recommendations from apprenticeship programs were all accepted." the report of federal task force covered in the task force report. Court action. Chinook brought an on apprenticeship training are The task force established in-July action for damages against Abbots- implemented. by Barbara McDougall, minister of ford. At trial, a B.C. County Court The report,presented at a sympo- employment and immigration, as one concluded the municipality had sium in Calgary,Dec. 14-15,calls for of six to review various aspects of breached an implied term of a bid- the establishment of a Federal federal labour force strategy, had ding contract that the lowest qualified Apprenticeship Board that would business and labour representatives bidder would be awarded the con- have balanced representation from trying to find workable solutions tract. It based its findings of a bid- business and labour. The board to training problems. ding contract on the 1981 decision' would provide advice on new appren- "This was not an easy forum in of the Supreme Court of Canada in ticeship funding agreements as which to develop recommendations the Ron Engineering case as well as they-are negotiated between federal for meaningful reformi" 'said-John the more recent Federal Court judg- and provincial governments. Halliwell, CCA vice-president and ment in Best Cleaners. Another recommendation asks for business co-chairman of the task The court relied upon expert testi- the identification of apprenticeship as force. "But we did find sufficient mony as to the custom and usage of a separate training program with a common ground to work out what the construction industry to find the budget apart from the existing skill we believe are important sugges- existence of the implied term and fur- shortages program within Employ- tions for the future of this form ther ruled that the qualifying lan- ment Canada. of training. guage in the Instructions to Bidders National training standards,better "Apprenticeship..is a proper and desirable method to provide ad- vanced education and skill training Cf]I'Istm message' for workers, and it deserves strong The7,.Christmas season is always a special time=of year when we are reunited support from government, business with family.and.friends :if not in persot by_way of phone calls and cards.Hope-. and labour," said Halliwell. `frilly,:for. we Canadians;;this holiday season will-also be a'time to count our The task force operated under the blessing..for. the-gifts we enjoy as`citizens of this great nation. guidance of the Canadian Labour As the year_ends, we move into:a decade_of high hopes for a more peaceful Market and Productivity Centre. Woild:YeL t.wiil be a demanding:decade hi so many other ways, not the least CCA Second Vice-Chairman Jake of which will be to find the ways:to leave our children and future generations Thygesen,an Alberta contractor and an environment-where they too may enjoy health and prosperity. member of the Alberta Apprentice- . *To all our members and all our readers best wishes fora very Happy Christmas ship Board, also represented the -and 1990.from the Officers, Directors and Staff of CCA. association on the task force. 825 local preference outlawed Wants TQ 0 S .. ha y sere. no- �. :WN By JANICE WAI, s;;y If says;the purpose and Mona.".` ' '' - ,'That s„in a DECISIONS'VAR , ( w tent of the act is-to prevent they're� oing ;Tlrey', •Court decisions on the issue TORONTO DCN '= 'Ontano sewer.and wate�u fi�;,. ' nation in Ontario on a you re of local preference vary across JW contractors:want local piefeir �Oi1D� of race, creed,. ip �,�^,we',re not g the country. In B.C.;the Court ence eliminated in the alw"Q Si color” nationality, ancestry, you '.',`.`' %..°.. of Appeal has ruled'a mantel ing of.cOr 4s,•and are ask'°' Place of origin, sex or geo-,' Lori'Roth, a partite pality breached the terms of g P P '� graphical location of persons in the province for help' Construction Law tender call by awarding a`con The Ontario Sewer and Wa-'� employed in or engaging i❑ of Cassels. Brock; `j3 tract to a local company whirl termain Contractors Associa-'; business," said Moua "What .well,..said` the ,"i had not submitted the lowest lion (OSWCA) is preparing'a - R'e're'askitig�(the ministry}.to:, statement" in the�,a,x,,a.' bid. The court decided;--ark do'is:ao`a hold this se A brief to send to the?v",iaistry cf. P .PmPo purpose, among'other:tt ngs owner cannot base tlie.award Consumer and. Commercial`' clause." r is to prevent discnmin tlf ?:ing of a contract on an_undis IN The= rr1tr11S would not ,{*''°'> 't Relations on the matter.It will ", �' the 'grounds'ofgeogrd' :closed preference. outline a specific ..case in' :.give a' general ruling, bir[ location. But the.?adiiaf`� The Court of Appeal of On! which a municipality passed .'asked Mona to submit a writ-" sions in-the-•act.are less ta.^O in cOntrasi, has allowed' over the lowest qualified bid- teq account of a particular . she said .`:i, `:i r:�` .. 7.ti ', local preference in the award= der on a job and awarded the ,cam which local preference The .wa •_." y drscnmmato ing of'a contract because th� contract to"a local company, was.t6e`.basis for awarding a.� besiness7 practice§",A`are ce contract,documents contained contract:`,... .< ., :R " a whose bid was tigher.• scribed in the act appears,t. a clause drat said the .`lowest The association hopes the p��'Elarne4Gugins;registrar'for the`,acl;%said the.minis will I make that concept;,poten�ially or any.tender"would not neck` ministry will decide :that s.',.z<,i •' �' applicable to a preference;fo 4 - sarilyi:be accepted.••Acme review1he,•>information from. ; - .. : choosing a contractor .on:the r. the use of local subacles„bu. 'Building SE Construction Ltd jVlorra; and.:decide whether, basis of local preference%vio- an`r, not necessarily to a preference` the low bidder 'which feels, Y contravention of: lutes the Discriminatory Brisi "c r1:rFr ti,.,., for local general contra`o�rs'x wipnged m that case has apf: c ui of specific case. a Hess Practices Act. i' l ' ">k Roth said �k plied�fairdeave to appeal tha ,. } orra` .'protested to mu-`.'- It simply a matter of pro-- c• ;t�;., "What the act appears to,be decision fo the Supreme Cou , tecting the sanctity' the ten- 1c Pt ft6cils':when they- ., 'Ti ,113►I{31j.; deiing pr aid OSVJCA ` , ,,g awarded:&ntracts on the going.after`when.it'says.d �• `ol`�Canada:� :i ;?, } i 4 ocess,'s _;bast 0 reference': nator}r.liusinessr`prachoestl I ,%biiide will argue" that ark assistant executive:'director +� � ` and tries to define tliem b ex`I 'owIIer�vlio calls=for tende' Tv ie for.x,example;- he' � �'., . ; Sam Mona in an interview. r "� i,;�..•, ampler is not to deal:With a sit- must make clear from the staff spok i "Hamilton-Township ,,.- r Municipalities almost- �al-,-•, �.,�,.. - u coungj near nation where it's!ond:_•on;,one, why it might not accept the ways awardl contracts to.the r: �Q ( Cobourg) OP- but whene"it's one person try' lowest- bid In other words, it lowest qualified bidder, said Port. lowest y• ed' ing to make another persoa ;will argue that:a preference for bi : f oo a$157,000 ct , e i, , , Morra. But during recessions , refuse to do business witli "a local'°com)aaids*,;:must.' be sewer and ad re- ; ... especially, he said, they at . ons 4 coon: But third person.,” ' Iles Pe led upfront •'f'.., times ass over the 'lowest. , p'te P However, Roth aid if OS= de bidder to award contracts to• ad s eft-°rts, c ctde o aR;� the WCA submits its s cific case local companies. ;;..� big r bidder, �ct to to the Ministry of onsumer HAPPENING MORE and Commercial latrons� L":local trip and,. ;I've seen it happen more in !.e and it decides the locv t `ua the last two years than I've 9r°•� v:y This is likely the case'the ified bid should not ha seen in the past. It's because association.will submit t}' the passed over,that ctecisio 'inay of local pressure."- ;ministry for",.review, said help create a"mindset" o9g Mom asked the ministry Moira municipalities and others_ that for a general ruling - about "In this day and age;Twhe r the lowest qualified bid ust whether awarding contracts on we're trying to lower 'trade be accepted the basis of a local preference barriers across;the wvrid, it violate''=;the purpose clause in -seems ludicro us that` we're the Discriminatory Business erecting municipal ones,"said Practices Act. i 826