LOCAL GOV    POLICIES - Policy 10 Tendering Procedures
 
 
Rural Municipality of Reynolds
P.O. Box 46
Hadashville, Manitoba
R0E 0X0
Phone: (204) 426-5305
Fax: (204) 426-5552




 
 
THE RURAL MUNICIPALITY OF REYNOLDS P.O. Box 46 Hadashville, Manitoba R0E 0X0 Telephone: 204-426-5305 E-mail: rmreynol@mymts.net Fax: 204-426-5552 Website: www.rmofreynolds.com POLICY NO. 10 MUNICIPAL TENDERING AND PROCUREMENT POLICY 1. PRINCIPLES The following principles will guide the procurement practices of the Municipality and the process for the sale of municipal capital assets. • An open, fair and consistent process for the procurement of all goods, services and construction projects that will ensure the best value for dollar spent. • Procurement processes that encourage competitive bidding for the supply of all goods and services. • An open, fair and consistent process for the sale of surplus capital assets that will ensure the best value for capital assets sold. • Accountability of the Municipality for the procurement of goods and services and the disposal of surplus capital assets. 2. PREAMBLE The purpose of this policy is to establish guidelines for the purchase of goods and services and for construction projects undertaken by the Municipality and guidelines for the sale of municipal capital assets. 3. DEFINITIONS Bid means a competitive bid received from a supplier in response to a verbal or written Request for Quotation, a Request for Proposal or an Invitation to Tender. Bid Opportunity means a publicly advertised invitation for suppliers to submit bids for the provision of goods or services through a Request for Quotation, a Request for Proposal or an Invitation to Tender. Goods mean all types of personal property (machinery, gravel, office supplies, computer hardware, land, etc.). Services mean all types of services, including construction (consulting, engineering and design, accounting and auditing services, legal services, maintenance, operation and repair of buildings, machines or equipment, etc). 4. SCOPE The policy applies to the procurement of goods and services by purchase, lease, rental or other agreement by the Municipality and the disposal of surplus capital assets by the Municipality. 5. PROCUREMENT GUIDELINES The value of the goods and services is the total financial commitment resulting from the procurement, including any premiums, fees, commissions, interest, duty, freight and applicable taxes. The following guidelines will be followed for the purchase of goods and services: • Up to $5,000.00 – For the acquisition of goods and services with a value of up to $5,000.00 at least 3 quotations will be required. These quotations shall be written except in cases of insufficient time, minor purchases or standardized supplies where a verbal quotation will be considered acceptable. Funds are to be clearly identified in the municipality’s financial plan. In the case of public works projects, Council may pass a resolution to hire a contractor from the Contractor Annual Equipment Quotes. Depending on the scope of work, availability, past work performance, the lowest quote may not necessarily be hired. • More than $5,000.00 and less than $10,000.00 – For the acquisition of goods and services with a value of more than $5,000.00 and less than $10,000.00, at least 3 written quotations will be required. These quotations shall be written except during a state of local emergency where due to immediate need and time constraints normal procurement methods cannot be followed. • More than $10,000.00 and less than $20,000.00 – For the acquisition of goods and services with a value of more than $10,000.00 and less than $20,000.00, an invitation will be submitted to a minimum of three (3) local contractors to submit sealed bids will be required. • More than $20,000.00 – For the acquisition of goods and services of more than $20,000.00, the municipality will provide a bid opportunity, using a procurement method identified in Section 6 of this policy. Bid opportunities will be posted on the municipality’s website and advertised in at least one local newspaper. The bid opportunity will also be posted on MERX and/or another system which is low cost, easy to use and readily accessible across Canada, in accordance with the Agreement on Internal Trade MASH Annex 502.4. The municipality is not required to accept a bid if Council decides not to proceed with the purchase, if all bids are too high, or if none meet the needs of the municipality. The municipality retains the right to reject the lowest or any bid. 6. METHODS AND PROCESSES OF PROCUREMENT The Municipality will use the following methods of procurement: • Sole Source Purchases – Sole source purchases will be used in the following circumstances: - when there is only one available supplier of a required product or service that meets the needs of the Municipality. - during a state of local emergency where due to immediate need and time constraints normal procurement methods cannot be followed. • Requests for Quotation – the Municipality may obtain quotations for provision of goods and services for which there are specific requirements in the following manner: - by directly contacting known suppliers. This method will be used for the procurement of minor goods and services such as standard office supplies, repairs, small tools, etc. Where possible, written quotations will be obtained from 3 suppliers. Verbal quotations will be accepted for routine minor purchases. The municipality will contact only local suppliers if it is determined that sufficient competition exists. - through a written Request for Quotations (RFQ) – an RFQ for the procurement of goods and services will be used where the goods and services have specific and detailed requirements, but are not considered to be “minor” and the cost of the good or service does not warrant the time and level of effort required for a formal tender process. Suppliers will be invited to provide quotations for the sale of goods or services through a public advertisement (bid opportunities). The award of a Request for Quotation will typically go to the lowest total cost bid received from a supplier. • Requests for Proposals (RFP) – an RFP will be used to acquire professional services such as auditors, planning consultants, engineering consultants etc. regardless of the amount of the anticipated procurement. Potential suppliers will be asked to describe how their services, methods, equipment of products can address and / or meet the needs of the municipality. An award of a contract will be given to the supplier whose proposal is determined to be the most advantageous to the municipality based on criteria for evaluation set out in the RFP and applied to all proposals. • Formal Tenders – the Municipality will formally tender for competitive bids for the procurement of capital projects. Detailed specifications and requirements will be provided in tender documents. The evaluation of tenders will be against detailed specifications and requirements. A Formal Tender is a formal, competitive sealed bidding process. Typically, the award of a tender goes to the lowest total cost bid received from a supplier meeting the specifications and requirements of the tender. 7. ADVERTISING BID OPPORTUNITIES All bid opportunities solicited through a Request for Quotations, Request for Proposals, or a Formal Tender will be posted on the municipal website and advertised at least once in the Carillon News. All bid opportunities for the procurement of goods and services valued equal to or greater than $100,000 and construction projects valued equal to or greater than $250,000 will be advertised on Manitoba’s electronic tendering system (MERX) (http://www.merx.com/) and/or another system which is low cost, easy to use and readily accessible across Canada. 8. AWARD OF CONTRACTS Quotations, proposals and tenders will be awarded using the evaluation process that is specified in the procurement documents. Generally, the Municipality will award contracts as follows: • to the lowest total cost bid, in the case of quotations received from a supplier for a good or service • to the bidder whose proposal has met established evaluation criteria, in the case of proposals submitted to the municipality in response to a Request for Proposal • to the lowest total cost bid received from a supplier meeting the specifications and requirements of the tender. The Municipality is not required to accept any bid if the Municipality decides not to proceed with the purchase. When all factors are equal, in terms of price, quality, suitability, service and delivery, the municipality may give preference to a “local” supplier. The Municipality may enter into a contract with the successful bidder. The form of the contract will be determined by the Municipality. 9. DELEGATION OF APPROVALS Authority to approve procurements of a good or service is as follows: • Less than $1,000.00 – designated officer, as long as the expenditure is identified in the municipality’s financial plan • Up to $3,000.00 - Chief Administrative Officer, as long as the low bid is accepted and the expenditure is identified in the municipality’s financial plan • Over $3,000.00 or where the low bid is not accepted – Council • All contracts for professional services – Council 10. PROCUREMENT ACCOUNTING AND MANAGEMENT Procurement Tracking System The Chief Administrative Officer (CAO) will prepare accounts payable listings that include the supplier name, the good(s) and/or service(s) provided and the amount payable to each supplier. The accounts payable listing(s), supported by invoices that have been signed by the appropriate department head(s), are to be submitted to Council at the first regular meeting of Council each month for payment approval by resolution of Council. The CAO will issue payment for all accounts payable authorized for payment by resolution of Council and to maintain adequate record of accounts payable listings, the corresponding invoices and cheque registry information. Procurement Reporting System The CAO will provide Council with a monthly report on contracts awarded under this policy. The CAO will provide Council with a monthly progress report for each capital construction project that is underway. A progress report will be provided each month, beginning with the starting month of the project until the completion of the project when all invoices relating to the project have been paid. 11. PROCESS FOR SELLING SURPLUS CAPITAL ASSETS: Surplus capital assets will be disposed of in the following manner: • competitive bid process through a Request for Quotations • public auction Invitations to bid on capital assets offered for sale by the municipality will be: • posted on the municipality’s website for at least 14 days before the closing date of the invitation to bid. • published in at least one edition of the Clipper Weekly. Contracts for the sale of a capital asset to a bidder shall be awarded using the evaluation process that is specified in the invitation to bid. The municipality is not required to accept a bid if Council decide not to proceed with the sale, for example, if all bids are too low. The highest or any bid will not necessarily be accepted. The CAO may, with the approval of council, award surplus capital assets without competition or auction to any municipality in limited circumstances, as determined and approved by Council. Adopted by Council at the December 19th, 2012 meeting by Res. 452/12