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HomeMy WebLinkAboutTR-43-00 ~"""" ., .'-"! DN: ~~~O .. -........' ~ THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON REPORT Date: July 3, 2000 TR-43-QO FILE#: File # fl() q Res. ~PJl-- .1'3)-tJO By-law # .Jo()()- //3 Meeting: General Purpose and Administration Committee Report #: Subject: CHANGE TO PURCHASING BY-LAW #94-129 RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report TR-43-00 be received; 2. THAT Purchasing By-law #94-129, be amended as identified in Schedule "A" of the report. BACKGROUND AND COMMENT With the exception of a few minor revisions, the dollar limits identified in the existing Purchasing By-law have not been revised since 1994. For information purposes a complete copy of the existing by-law is attached marked Schedule "C". As the Municipality continues to grow, so too does the need for efficient and effective purchasing procedures. With increasing prices and demand for services, the dollar limits and established award process for tenders has become out dated and is hindering the performance of the various departments within the Municipality of Clarington. The recommended revisions to the by-law are as identified in Schedule "A" attached, and are as follows: 805 .,,. <-.: J. REPORT NO.: TR-43-oG PAGE 2 Proposed Amendment #2 - Proposed Amendment #3 - Proposed Amendment #4,5, 7&8 Proposed Amendment #6 - Disposal of surplus materials: Added "where appropriate" with respect to periodically circulating a list of surplus materials to all Departments and Local Boards - many times, items not suitable for Local Board use. Issuance of Purchase Orders: Changed from $100.00 to $300.00 to provide for increase in inflation since 1994. Provides ability for Departments to respond quickly for minor operating items. Tender/Proposal Dollar Limit: Increases the dollar limit before a tender needs to be issued from $20,000.00 to $30,000.00. Many of the supplies, materials, equipment, general maintenance and services which had been obtained by quotation, now must be obtained by tender, which incurs the accompanying costs in advertising and staff time and delay in placing orders. Emergency Part Orders - Vehicle Repairs: Increases the dollar amount established for emergency part orders from $500,00 to $1,000.00: This change required as for most of our large equipment, very little can be purchased for $500.00, Also, allows those responsible for repair of the vehicle to react quickly to ensure the vehicle is back in operation at the earliest point in time. 806 , . .. REPORT NO.: TR-43-o0 PAGE 3 Proposed Amendment #9 - Award of Tenders: Provides for Purchasing Manager subject to department head approval, to award tenders up to maximum of $50,000,00 provided lowest responsible bid is accepted and is within the budget allocation. Should the lowest responsible bid not be acceptable and 1 or exceed the approved budget allocation, the Purchasing Manager in consultation with the appropriate designated official shall submit a Report to Committee and lor Council. The purchase of goods in this situation shall be subject to Committee and 1 or Council approval. This change will reduce the overall lead time required for issuing and awarding tenders (currently five to six weeks) and will allow staff to complete approved budget projects in a timely manner, . Note, it is recommended that there be no change at the time to the existing $20,000,00 limit established for consultants. A copy of the proposed amendments has been circulated to all Department Heads, For the information of Council attached marked Schedule "B" is a summary of a Purchasing By-law survey for the area municipalities. 807 ~ ~.. .1. REPORT NO.: TR-43.QO PAGE 4 Also, for the information of Council to further increase efficiencies in 1999, a pilot program was implemented in Public Works for the use of the Purchasing Card, This program has been very successful and has since been implemented in the Fire Department. The Purchasing card is a proven method of handling frequent low dollar value purchases, similar to a credit card method, but with many more controls and accounting features incorporated. The net effect is a more streamlined process that reduces paperwork and saves time and money for all departments. It is staff's objective to have the purchasing card implemented throughout all Municipal Departments by the end of this year. Respectfully submitted, Reviewed by, d~rJ12~~ Franklin Wu, M,C.I.P.,R.P,P., Chief Administrative Officer MM*LAB*km DN:WP51 DA TAIREPORTSllr4300 808 , ' Schedule "A" AMENDMENT #1 Page 1, Paragraph 1, Definitions: Purchasing Agent Currently reads: "Purchasing Agent shall mean the Purchasing and Supply Agent of the Corporation appointed by Council", Amended to read: "Purchasing Manager shall mean the Purchasing Manager of the Corporation appointed by Council. All references in this by-law to Purchasing and Supply Agent shall be interpreted to mean Purchasing Manager", AMENDMENT #2 Page 3, Paragraph 4 Currently reads: "The disposal of surplus or redundant materials shall be the responsibility of the Purchasing Agent. The Purchasing Agent will periodically circulate a list of surplus materials to all Departments and Local Boards.." Amended to read: "The disposal of surplus or redundant materials shall be the responsibility of the Purchasing Agent where appropriate, The Purchasing Agent will periodically circulate a list of surplus materials to all Departments and Local Boards where appropriate" AMENDMENT #3 Page 4, Paragraph 5, item 5,02 Currently reads: "All goods purchased valued over One Hundred Dollars ($100.00) shall be covered by a Purchase Order, issued by the Purchasing Agent." Amended to read: "All goods purchased valued over Three Hundred Dollars ($300.00) shall be covered by a Purchase Order, issued by the Purchasing Agent." buY Schedule "A" - cont'd AMENDMENT #4 Page 4, Paragraph 5, item 5.04 Currently reads: "The Purchasing Agent shall be authorized to make purchases exceeding Ten Thousand Dollars ($10,000,00) but not exceeding Twenty Thousand Dollars ($20,000,00), provided that:" Amended to read: "The Purchasing Agent shall be authorized to make purchases exceeding Ten Thousand Dollars ($10,000.00) but not exceeding Thirty Thousand Dollars ($30,000.00), provided that:" AMENDMENT #5 Page 5, Paragraph 5, item 5,06 Currently reads: "All purchases not otherwise identified in this By-law and in excess of Twenty Thousand Dollars ($20,000.00) shall be by tender, unless otherwise determined and directed by a Resolution of Council." Amended to read: "All purchases not otherwise identified in this By-law and in excess of Thirty Thousand Dollars ($30,000.00) shall be by tender, unless otherwise determined and directed by a Resolution of Council." AMENDMENT #6 Page 5, Paragraph 5, item 5,07 Currently reads: "Under the direction of the Purchasing Agent, the person(s) authorized to make purchases on behalf of the department of Public Works, Fire and Community Services, may order vehicle parts necessary to maintain the Corporation's vehicles, subject to the following: a) that the value of each separate order shall not exceed $500,00; and b) that the emergency purchase order is signed by the Purchasing Agent prior to sending to the supplier." Hl0 Schedule "A" - cont'd Amended to read: "Under the direction of the Purchasing Agent, the person(s) authorized to make purchases on behalf of the department of Public Works, Fire and Community Services, may order vehicle parts necessary to maintain the Corporation's vehicles, subject to the following: c) that the value of each separate order shall not exceed $1,000,00; and d) that the emergency purchase order is signed by the Purchasing Agent prior to sending to the supplier," AMENDMENT #7 Page 7 and 8, Paragraph 5, item 5,12 Currently reads: "Requests for Proposals - Purchasing may be made through the use of proposals in those specific situations where a product or service cannot by adequately specified, This would apply to highly technical products or specialty services. When appropriate, proposals shall be called by public advertisement and lor invitation, Where it has been determined that proposals are to be used, the Purchasing Agent shall be authorized to make purchases using the proposal method for purchases exceeding Twenty Thousand Dollars ($20,000.00), provided that wherever possible three written quotations are received, and that in consultation with the Designated Official, a Report be submitted to Committee and I or Council, providing a list of bid amounts received with recommendations for award. The purchase of Goods in this situation will be subject to Committee and 1 or Council approval." Amended to read: "Requests for Proposals - Purchasing may be made through the use of proposals in those specific situations where a product or service cannot by adequately specified, This would apply to highly technical products or specialty services, When appropriate, proposals shall be called by public advertisement and I or invitation. () 1 1 Schedule "A" - cont'd Where it has been determined that proposals are to be used, the Purchasing Agent shall be authorized to make purchases using the proposal method for purchases exceeding Thirty Thousand Dollars ($30,000.00), provided that wherever possible three written quotations are received, and that in consultation with the Designated Official, a Report be submitted to Committee and 1 or Council, providing a list of bid amounts received with recommendations for award. The purchase of Goods in this situation will be subject to Committee and lor Council approval." AMENDMENT #8 Page 8, Paragraph 6 Currently reads: Tendering Procedures "The following procedures shall apply to the purchase by tender of all Goods estimated to be in excess of Twenty Thousand Dollars ($20,000,00)" Amended to read: Tendering Procedures "The following procedures shall apply to the purchase by tender of all Goods estimated to be in excess ofThirty Thousand Dollars ($30,000.00)" AMENDMENT #9 Page 14 and 15, Paragraph 14 Currently reads: Award of Tenders "The Purchasing Agent shall review the tender with client department and shall then report to the General Purpose and Administration Committee and 1 or Council. Where the tender amount exceeds the budget allocation the report shall contain the requisite information with respect to the source of additional funding. Upon approval of the tender by Council, the Purchasing Agent shall make the award and issue a Purchase Order in accordance with the conditions of the tender." dU Schedule "A" - cont'd Amended to read: Award of Tenders "The Purchasing Agent shall review the tender with client department in accordance with procedure established under paragraph 5.05 for all tenders valued under $50,000.00. For tenders over $50,000.00 the Purchasing Manager shall review the tender with client department and shall then report to the General Purpose Committee and / or Council. Where the tender amount exceeds the budget allocation the report shall contain the requisite information with respect to the source of additional funding, Upon approval of the tender the Purchasing Agent shall make the award and issue a Purchase Order in accordance with the conditions of the tender," dLS Schedule "B" Dollar amount No set requiring a $50,000.00 $25,000.00 $20,000.00 dollar $50,000.00 $100,000.00 tender to be amount issued Dollar amount $50,000,00 No set $250,000,00 Not required if requiring ($25,000.00 if 3 Over $12,000.00 dollar (construction low bidder is Council bids are not $25,000.00 amount only) complaint & ap roval received) within budget Dollar amount $200.00 to No set requiring a $500.00 $25,000,00 Under dollar $500.00 $100,000.00 purchase order $12,000.00 amount ex .p, Region of Durham currently amending their By-law **City of Pickering - figures are unavailable as currently under review DN:TR4300TA .- --,~ -"~w5 ,.'\::.J.:<....... THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 94-129 being a By-law to define the purchasing and tendering policies and procedures applying to the purchase of all types of goods, works and services by The Corporation of The Municipality of Clarington, and to repeal By-law #82-96 and #83-16. BE IT ENACTED AND IT IS HEREBY ENACTED as a By-law of The Corporation of the Municipality of Clarington thereof as follows: 1. DEFINITIONS Bidder(sl shall mean developer, professionals administrators and assigns. supplier, vendor, and/or their heirs, contractor, executors, Clerk - shall mean the Clerk of the Corporation appointed by Council. Council - shall mean the elected Council of the Corporation. Committee - shall mean a "standing or ad-hoc committee" of the Corporation. Corooration - shall mean The Corporation of the Municipality of Clarinqton. Desianated Official - shall mean the head of each department of the Corporation appointed by Councilor the person authorized or assigned by the Designated Official to administer the procedures set out in this by-law on behalf of and for the Corporation in respect of such Designated Official's department. Goods - shall mean all goods and services which include all supplies, materials, equipment, general maintenance and services, construction and works contracts, leases, rentals and repairs of equipment. Specifically excluded fram this definition shall be the borrowing, lending and/or investing of money; conventions: seminars: postage: conferences; courses; memberships ~ legal representation; appointment of external auditors and information from a professional consulting entity for a specific Planning Feasibility Study required by the Corporation. Purchasina Aaent - shall mean the Purchasing & Supply Agent of the Corporation appointed by Council. dl5 Schedule "C" Schedule "C" - 2 - Treasurer shall mean the Treasurer of the Corporation appointed by Council. Consultina and Professional Services - shall mean services provided by architects, engineers, designers, surveyors, management and financial consultants, brokers, soil consultants, real estate appraisers, Ontario land surveyors, and any other consulting and professional services not specifically otherwise noted. Co-ocerative Purchasina - refers to the participation of two or more public agencies in a tender call. Local Bid - shall mean a bid submitted by a Bidder who operates a business within the Municipality of Clarington. Purchase Order - shall mean a written offer to purchase goods and services or a written acceptance of an offer fram another party, by the Corporation. Purchasina Procedures Manual - shall mean the Purchasing Procedures Manual as included in the Treasury Department Procedures Manual outlining all daily procedures related to the procurement of goods and services. Authorized Sianatures - shall mean those persons authorized to sign purchase requisitions and invoices on behalf of the Municipality conforming to the limits of the signing authority for the value of the goods required. The list of authorized signatures shall be maintained by the Treasurer. ResDonsible Ouotation shall mean the quotation most responsive to terms, conditions and time of performance. The organization and personnel shall show evidence of good organizational and management practices, qualified personnel, proven experience in past performance and sound financial condition. Deoartments - shall mean the Departments of the Municipality of Clarington and shall include: Treasury, Clerk's, Fire, Communi ty Services, Administrator's, Public Works and Planning and Development Departments. nib Schedule "C" - 3 - Local Boards - shall mean any board, commission, committee, body or local authority established or exercising any power or authority under any general or special act with respect to any of the affairs or purposes of a Municipality. Reaional operates Durham. Bid - shall mean a bid submitted by a bidder who a business within ~ the Regional Municipality of Personal Purchase - shall mean a purchase of qoods or services requested by an elected of~icial, an appointed official or by any other employee of the Corporation, the requirement for which is not for the Corporation or any of its purposes but is for the benefit and use of the person requesting the purchase. 2. 2.01 PURCHASE REOUISITIONS Each Designated Official of the Corporation shall submit to the Purchasing Agent a written request in the form of a "purchase requisition" for the requirements of such Designated Official's department for all Goods with the exception of those Goods detailed in the "Purchasing Procedures manual". The assurance of the allocation of funds and accounting charge number shall be the responsibility of the Designated Official for all purchase requisitions submitted. 2.02 All purchase requisitions submitted shall also bear an Authorized Signature conforming to the limits of the signing authority for the value of the Goods required. The list of Authorized Signatures shall be maintained by the Treasurer. 3. Requests on behalf of the Corporation may be made by Designated Officials for product and technical information, catalogues and price lists for Goods. Each Designated Official will furnish the Purchasing Agent, such data, specification details and information relatinq to the procurement of Goods, and the Purchasing Agent shall obtain all firm and/or token prices. 4. The disposal of surplus or redundant materials shall be the responsibility of the Purchasing Agent. The Purchasing Agent will periodically circulate a list of surplus materials to all Departments and Local Boards. oil Schedule "C" - 4 - 5 . PURCIIAS ING PROCEDURES 5.1 Local Preference - If in the determination of the Purchasing Agent, if a competitive market exists and two or more bids are received and are identical in price, provided quality, service and delivery are similar, then priority of acceptance shall be first for a Local Bid, if any, and then for a Regional Bid, if any, otherwise the lowest responsible bid shall be accepted. The following provisions shall apply to the purchase of Goods. 5.01 Subject to any direction that may be given from time to time by Council, the Purchasing Agent shall determine the method by which Goods shall be acquired, having regard to the nature, importance or urgency associated with the purchase requisition, subject to the general trade practice, market conditions and the guidelines of this By-law. The Purchasing Aqent, at his/her discretion, may establish contracts with vendors in the form of: a) blanket orders; b) standing offer agreements; c) contract orders; d) service agreement orders; e) systems contracts; f) lease or rental agreements; provided, however, that for individual transactions, the dollar amount will not exceed the budgetary allocation or the limits established by this By-law. 5.02 All Goods purchased valued over One Hundred Dollars ($100.00) shall be covered by a Purchase Order, issued by the Purchasing Agent. 5.03 The Purchasing Agent shall be authorized to make purchases not exceeding Ten Thousand Dollars ($10,000.00), if (a) a minimum of three separate prices or quotes have been received, or (b) where three separate prices or quotes, in the opinion of the Purchasing Agent cannot be practically obtained having regard to the urgency of the Purchase RequiSition and/or availability of the Goods in the marketplace. Then such lesser number of prices or quotes as in the opinion of the Purchasing Agent can be obtained are obtained. 5.04 The Purchasing Aqent shall be authorized to make purchases exceeding Ten Thousand Dollars ($10,000.00) but not exceeding Twenty Thousand Dollars ($20,000.00) , provided that. dlb Schedule "C" - 5 - a) at least three or more written quotations are received, whenever possible; b) the lowest responsible quotation received is accepted; c) documents for all quotations received are retained for inspection by the Treasurer or appropriate officials for audit purposes. 5.05 Referring to paragraph 5.04, the Purchasing Agent shall submit a Report to the appropriate Designated Official providing a list of written quotations received with recommendations for award. The purchase of Goods in this situation will be subject to the appropriate Designated Official's approval. Where the lowest responsible quotation is not accepted or where the lowest responsible quotation exceeds the budget allocation, the Purchasing Agent shall, in consultation with the appropriate Designated Official, submit a Report to Committee and/or Council providing a list of written quotations received with recommendations for award. The purchase of Goods in this situation shall be subject to Committee and/or Council approval. 5.06 All purchases not otherwise identified in this By-law and in excess of Twenty Thousand Dollars ($20,000.00) shall be by tender, unless otherwise determined and directed by a Resolution of Council. 5.07 Under the direction of the Purchasing Agent, the person(s) authorized to make purchases on behalf of the department of Public Works, Fire, and Community Services, may order vehicle parts necessary to maintain the Corporation's vehicles, subject to the following: a) that the value of each separate order shall not exceed $500,00; and that the emergency purchase order is Purchasing Agent prior to sending to b) signed by the the supplier, 5.08 Purchase orders shall not be split so as to circumvent the established method of purchase and the dollar limits imposed by this By-law. 5.09 Subject to the provisions of The Municinal Freedom of Information and Protection of privacv Act, R.S.O. 1990, Chapter M.56, no Corporation employee nor any member of Council shall divulge prices received for any Goods except: dl'J - 6 - (a) the total bid amount in the case of "public tenders"; and (b) the total bid amount in the case of "sealed bid requests" shall be divulged on request. Notwithstanding this Section 5.09, all prices recorded during the opening of tenders, that are part of the Corporation's permanent - record and maintained in the Clerk's Department, shall be made available to the pUblic, upon request, pursuant to the provisions of the Municipal Act. R.S.O., 1990, Chapter H.45. 5.10 Notwithstanding the provisions of this By-law, the purchase of Goods for emergency purposes may be made by the Purchasing Agent in circumstances which could result in costly departmental downtime, danger to life and/or property damage. In all such cases, a Report shall be filed jointly by the Designated Official and the Purchasing Agent to the Committee and/or Council, should the value of the purchase exceed the guidelines established within this By-law. In the absence of the Purchasing Agent, purchases for emergency purposes may be made by a Designated Official and such purchases confirmed by a purchase order issued by the Purchasing Agent, as soon as possible. 5.11 Co-ooerative Purchasina - The co-operative method of purchasing with regard to tenders with other Municipality's shall be utilized, when advantageous and practical. The purchasing by-law and tendering practices of the Municipality issuing such tender(s) shall take precedence over this By-law with respect to calling, receiving and opening of the tender documents. Subsequent to the opening of the tender documents, all other terms and conditicns of this By-law shall apply. Subject to the Committee and/or Council approval, all subsequent co-operative by-laws and constitutions will hereby form part of this by-law. 5.12 Reauests for ProDOsals - Purchases may be made through the use of proposals in those specific situations where a product or service cannot be adequately specified. This would apply to highly technical products or specialty services. When appropriate, proposals shall be called by public advertisement and/or invitation. d2J Schedule "C" Schedule "C" - 7 - Where it has been determined that proposals are to be used, the Purchasing Agent shall be authorized to make purchases using the proposal method for purchases exceeding Twenty Thousand Dollars ($20,000.00) provided that wherever possible three written quotations are received, and that in consultation with the Designated Official, a Report be -submitted to Committee and/or Council providing a list of bid amounts received with recononendations for award. The purchase of Goods in this situation will be subject to Committee and/or Council approval. 5.13 Consul tina and Professional Services - Where it is estimated that Consulting and Professional SerVices will cost less than Twenty-Five Thousand Dollars ($25,000.00) and funds are provided as defined in the appropriate budget, the initiating Department may obtain the services. Where it is estimated that Consulting and Professional Services will cost more than Twenty-Five Thousand Dollars ($25,000.00) and funds are provided as defined in the appropriate budget, the Purchasing Agent shall obtain written proposals and in consultation with the Designated Official, submit a Report to Committee and/or Council providing a list of bid amounts received with recommendations for award. The purchase of services in this situation will be subject to Committee and/or Council approval. All contracts for Consulting and Professional Services worth more than Twenty-Five Thousand Dollars ($25,000.00) will be by a formal agreement signed by the Mayor and Clerk or a purchase order issued by the Purchasing Agent. 5.14 Personal Purchases - No personal purchases shall by the Corporation for Members of Council, appointed member of a Board of Commission Corporation for Employees of the Corporation, specifically authorized by Council. be made or any of the unless 5.15 Conflict of Interest - No employee of the Corporation or Member of Council shall bid on the sale of Goods except those disposed of by public auction. 5.16 Identical Bids If in the determination of the Purchasing Agent, if a competitive market exists and two or more bids received are identical in price, provided t)2i Schedule "C" - 8 - quality, service and delivery are similar, then priority of acceptance shall be first for a Local Bid, if any, and then for a Regional Bid, if any, and otherwise the tender to be recommended for acceptance will be decided by means of a draw. The Bidders who have submitted similar bids shall be notified and their names shall be placed in a container and the name of Bidder whose tender shall be recommended for acceptance shall be drawn by the Clerk in the presence of at least two witnesses. Any other persons desiring to be present at the draw may attend. Should any Bidder elect not to be represented at the draw, the draw will proceed regardless. 6. TENDERING PROCEDURES The followinq procedures shall apply to the purchase by tender of all Goods estimated to be in excess of Twenty Thousand Dollars ($20,000.00). 6.01 Advertisina All tenders shall be called by Public Advertisement, unless otherwise directed by Council and/or Committee. 6.02 Tender Closina Time All tender closing times shall be established by the Corporation. 6.03 Release of Information to Bidders The Corporation shall supply the followinq materials to all prospective Bidders: a) one copy of the official tender for.m relating to the tender called~ b) one standard tender envelope appropriately imprinted; c) tendering information, i.e. plans, specifications, profiles, etc.; d) where a deposit is required for tender documents, such fee shall be paid to the Corporation by cash, money order, bank draft or certified cheque. If applicable, refunds shall only be made when all required tender documents are returned to the Corporation in good condition. 6.04 Recordina and Control of Tenderina Material A list of prospective, responsible Bidders shall be maintained by the Purchasinq Aqent when issuinq tenderinq material. All names, addresses and facsimile numbers of all prospective Bidders who have been supplied with or who have requested the material set out in Section 6.03 o2~ - 9 - shall be recorded when tenders are released to facilitate distribution of addenda when necessary or to extend or cancel a tender under call. The determination of responsibility and prequalification of contractors and/or Bidders shall be decided by the Purchasing Agent, in all cases. 7. CHANGES TO TENDERS UNDER CALL 7.01 PreDdration of Addendum Interpretation of qualifications shall be made in the form of a written addendum. Addenda are necessary to revise, delete, substitute or add to tendering material under call. The Purchasing Agent ahall approve the issuance of an addendum or the cancellation of the tender call. 7.02 Notification of Addenda to Bidders If an addendum notice as aforesaid is prepared too late to allow notification by registered mail prior to the tender closing time, in addition to mailing the notice, each prospective Bidder shall be notified of the revision by telegram or facsimile. 7.03 Addenda Issued after Receipt of Tender Where an addendum is released in the interim which in the opinion of the Purchasing Agent may affect a Bidder's tender, all tenders received and deposited prior to the tender opening may be withdrawn and the Bidder will be given a new set of tender documents to be resubmitted following normal procedure. 7.04 Cancellation of Tender Under Call The Purchasing Agent reserves the right to cancel tenders under call as required. The procedure for the notification of Bidders of a cancellation shall apply I as in Paragraph 7. 02. All tenders received after cancellation will be returned unopened to the Bidder by registered mail with notification of the cancellation. 8. CONDITIONS OF TENOER SUBMISSION All tenders shall be submitted to the Office of the Clerk and shall be subject to the following conditions: 8.01 The correct Tender Form and envelope (with no extra exterior covering) as supplied by the Corporation must be used 4 bL) Schedule "C" - 10 - 8.02 Tenders must be properly sealed and delivered to the Office of the Clerk prior to the tender closing time established for that tender. 8.03 Time of delivery of any tender shall be determined by the Clerk or his/her delegate. 8.04 When received by the Office of the Clerk, the envelope(s) shall have the date and time of receipt noted on them by the Clerk or hiB/her delegate. Each tender received shall be recorded in a Tender Register maintained by the Office of the Clerk. 8.05 All tenders received by the Office of the Clerk shall be placed unopened in a suitable locked receptacle and shall remain under the control of the Clerk. 8.06 All tenders delivered after the tender closing time or in other than the tender envelope supplied shall not be accepted by the Clerk and shall not be deposited in the tender box. The Purchasing Agent shall be advised of the circumstances and the tender returned unopened to the Bidder, accompanied by a letter which states "not accepted" . 8.07 Where no return address is visible on the outside of a tender that is delivered after the close of tenders, it shall be opened in the presence of the Clerk by the Purchasing Agent, a return address determined, the facts noted for the record and the documents returned to the Bidder accompanied by a letter as in 8.06 above. 9 . FORM OF TENDER 9.01 All tenders must be legible, written in ink or typed. 9.02 "All items must be bid" unless otherwise specified in the tender call documents. 9.03 All entries including unit prices for each item must be clearly stated. 9.04 The tender cannot contain any restrictive statements,nor can the tender be qualified by separate letter. 9.05 Unless specified in writing by the Purchasing Agent, no alterations to the tender documents will be permitted. d~4 Schedule "C" - 11 - 9.06 All tenders submitted must be signed by an authorized person and in the case of a L~ited Company, have the corporate seal affixed. 9.07 All erasures, overwriting, strike-outs and other similar alterations inserted in the Bidder's proposals must be initialled by the person authorized to execute the documents on behalf of a Bidder. 10. BONDS AND DEPOSITS All tenders shall be accompanied by an executed bonding agreement, when bonding is required. All tenders requiring bid deposits shall have such deposits made payable to "The Corporation of the Municipality of Clarington" and shall be in the form of a certified cheque, bank draft, money order or cash and shall be enclosed in the same envelope as the tender. Bid deposits shall be submitted in accordance with the following schedule, unless otherwise specified by the Purchasing Agent, Total Amount of Bid Minimum DeDOsit Reauired $ 1,000.00 $ 2,000.00 $ 5,000.00 $ 10,000.00 $ 25,000.00 S 50,000.00 $100,000.00 $200,000.00 $ 20,000.00 or LESS $ 20,000.01 to $ 50,000.00 $ 50,000.01 to $ 100,000.00 $ 100,000.01 to $ 250,000.00 $ 250,000.01 to $ 500,000.00 $ 500,000.01 to $1,000,000.00 $1,000,000,01 to $2,000,000.00 $2,000,000.01 or OVER When bonding is a condition of the tender call, a Performance Bond and/or a Labour and Material Payment BOnd in the amount specified in the tender documents must be furnished by the Bidder prior to execution of the contract. Both the amount and the form of bond shall meet the requirements of the Treasurer. 11. WITHORAWAL OF TENDERS 11.01 Anyone submitting a tender can only withdraw the tender prior to the close of tenders. Requests received following the close of tenders will not be accepted. 11. 02 Anyone wishing to withdraw a tender may do so in writing and deliver the same to the Office of the Clerk. di'j Schedule "C" 11.03 11. 04 11.05 12. OPENING 12.01 12.02 12.03 12.04 - 12 - All tenders withdrawn prior to being deposited in the tender box shall be returned and the withdrawal of the tender acknowledged in writing. All withdrawals received relating to tenders deposited in the tender box shall be deposited and all of the related~documentation returned unopened following the tender opening. Withdrawal of Bids Durina ODenina - During a tender opening at the conclusion of the reading out of bids on a contract, the low Bidder may withdraw any of his Iher remaining tenders on other contracts. Tenders withdrawn under this procedure .cannot be reinstated. The Bidder must attest in writing to his/her identity and state the contract(s) on which he/she desires to withdraw. A Notice of Withdrawal of Tender must be signed by the prospective Bidder. This Notice must be handed to the Clerk or his/her delegate before the reading out of the first tender on the contract(s) to which it applies. The Clerk or his/her delegate shall attach it to the applicable tender. The Bidder's name shall be read out and it shall be announced that the tender has been withdrawn in accordance with established procedure. The bid amount of the tender shall not be read out. TENDERS All tenders shall be opened by the Clerk or his/her delegate in the presence of at least one witness for the Corporation and the Purchasing Agent or his/her delegate and the bids duly recorded. Any interested person may attend a Tender Opening. Where two or more tenders are called for at the same time, the tenders shall be opened in numerical order, with the lowest numbered tender being opened first. Having established the order of precedence, the Clerk or his/her delegate shall remove the tenders from the Tender Receptacle. bLO Schedule "C" 12.05 12.06 12.07 12.08 12.09 12.10 12.11 - 13 - Where a tender cannot be identified as to the author or contract number, such an envelope shall be opened and the documents placed with the appropriate group of tenders. Where a conflict exists in respect of the envelope and its contents as to the contract number, the contract number on the tender documents shall prevail. When all tenders have been sorted, opened and withdrawn tenders segregated pursuant to paragraph 11.04, the Clerk shall compare the number of tenders opened to the number of tenders recorded in the Record of Tenders. Where a discrepancy exists I the proceedings shall be delayed until all tenders have been accounted for. When all tenders are accounted for, the Clerk or his/her delegate shall announce each tender publicly in the following manner: i) tender number and specifications; il) Bidder's name and location; iii) bid deposit and bonding letter (if required); iv) total bid amount. All tenders shall be checked to determine that each Bidder has submitted one bid only. Should more than one bid be submitted, the lowest bid submitted shall be deemed to be the intended bid, unless one of the bids has been withdrawn in the manner prescribed in Section 11. Following the opening and recording of tenders by the Clerk, the Record of Tenders shall be closed and the record signed attesting to that fact. With the exception of the Clerk and the Purchasing Agent or their delegates, no dialogue will be permitted with respect to the proceedings. 13. VERIFICATION OF TENDERS All tenders will be delivered to the Purchasing Agent who shall ensure that: aLl Schedule "e" 13.0l 13.02 l3.03 - 14 - a) b) c) d) all tenders comply with the tender requirements; all unit prices have been correctly extended; all extensions have been correctly totalled; unit prices shall govern the intention of the bid, in the event of arithmetic errorSe Imnrooer Bids Any bids that fail to meet the established criteria shall be deemed to be "improper bids", and be subject to further examination by the Purchasing Agent for the purpose of establishing the degree of defect contained in the document. Uneauivocal Re1ection of Bids All bids shall be rejected that are: a) received after the tender closing time: b) delivered in other than the prescribed tender envelopes; c) that are not completed in ink or by typewriter; d) incomplete and do not comply with specifications; e) restrictive or contain conditional statements which are intended to alter the form or intent of the tender called by the Corporation; f) submitted with improperly executed documents 1 g) unaccompanied by bonding documents or bid deposits where required. ExceDtions The Purchasing Agent may at his/her discretion accept or reject a bid when: a) the "Agreement to Bond" is executed; (if the bid is accepted allow a period of time to have the to Bond" corrected) the envelope is improperly sealed; the documents are illegible; the envelope contains an improper bid deposit; the arithmetic extensions contain gross improperly he/she may "Agreement b) C) d) e) errors. l4. AWARD OF TENDERS The Purchasing Agent shall review the tender with client department and shall then report to the General Purpose and Administration Committee and/or Council. did Schedule "e" .. - l5 - Where the tender amount exceeds the budget allocation the report shall contain the requisite information with respect to the source of additional funding. Upon approval of the tender by Council, the Purchasing Agent shall make the award and issue a Purchase Order in accordance with the conditions of the tender. 15. DISPOSITION OF BID DEPOSITS Following the awarding or cancellation of a tender, all deposits, with the exception of the low and second low Bidders in the case of an award, shall be returned to the unsuccessful Bidders by registered mail, or if picked up, receipt acknowledged in writing. The retained deposits wHl be held until the contract is executed (see l6). 16. EXECUTION OF CONTRACT The successful Bidder shall be allowed ten (10) working days from the date of mailing of the form of contract to execute and return the same to the Purchasing Agent. The Mayor and Clerk shall execute contracts on behalf of the Corporation when required, and a By-law authorizing the execution of such contracts shall be approved by Council prior to the signing of the contract by either of them. l7. DEFAULT BY SUCCESSFUL BIDDER If the successful Bidder fails to execute the contract or fails to meet any of the requirements of the contract within the prescribed time, the tender may be awarded to the next lowest Bidder(s) or cancelled. In the event a successful Bidder fails to execute, finalize and/or provide acceptable surety for a contract, the Bidder's deposit(s) will be forfeited. l8. ABSOLUTE RIGHT Notwithstanding the provisions of this By-law, the Corporation shall have absolute discretion in the awarding of contracts and retains the right to reject any, or all tenders. 0[; Schedule "e" ." BY-LAW BY-LAW BY-LAW July , Schedule "C" - l6 - read a first time this18th day of July read a second time this 18th day of July read a third time and finally passed this 18th , 1994. , 1994. , 1994. day of it:U#f\/.~~L' Mayor tJ5U