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2001-118 To Establish Purchasing and Tendering Procedures for the Corporation of the Township of Oro-Medonte , . , , . . .. :f,J THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE BY-LAW NO. 2001- 118 Being a By-law to establish Purchasing And Tendering Procedures for The Corporation ofthe Township of Oro-Medonte WHEREAS it is deemed expedient to establish purchasing and tendering procedures for The Corporation of the Township ofOro-Medonte. NOW THEREFORE the Council for The Corporation of the Township ofOro-Medonte enacts as follows: 1. Definitions and Interpretations For the purpose of this By-law the following terms have the following meanings: a) "Contract" means any formal legal agreement for supplies, goods, services, equipment or construction. b) "Committee" means any Committee appointed by the Council of The Corporation of the Township of Oro-Medonte. c) "Council" means the Municipal Council of The Corporation of the Township ofOro- Medonte. d) "Emergency" means an event which occurs which requires immediate repair or replacement of equipment, services, or facilities in order to maintain a required public service or to prevent danger to life, limb or property. e) "Professional or Consulting Services" includes architects, engineers, surveyors, management consultants, legal representation and any other consulting and professional services provided to The Corporation of the Township of Oro-Medonte. f) "Proposal" means an offer to provide goods or services for which the requirements have not been definitely specified. g) "Quotation" means an offer to provide stipulated goods or services. h) "Tender" means a formal offer to provide specified goods or services, in response to an advertised request therefore. i) "Township" means The Corporation of the Township ofOro-Medonte. j) In this By-law, unless the context requires otherwise, words in the singular shall include the plural and words in the masculine gender, shall include the feminine. 2. Purchasinf Policies a) General Policies 1. No employee, elected official or Committee member of the Township shall purchase goods or services, request quotes, proposals or tenders, or enter into contracts and agreements on behalf of the Township except in accordance with the provisions of this By-law unless authorized to proceed otherwise by Council resolution. . ' e e . .f 11. The inclusion of any item in a Department's operating budget or capital budget shall confer to the Department Head the authority to incur such expenditures. 111. Notwithstanding the inclusion of any item in a Committee's operating budget or capital budget, authorization from the C.A.O. is required prior to the incurrence of such expenditure. IV. No employee, elected official or Committee member of the Township is authorized to purchase any goods or services or award contracts for capital projects not included in the capital budget without prior approval of council. v. Where a Department Head wishes to incur an expenditure not originally included in the capital- budget, a report shall be submitted to Council in order to obtain approval for such expenditure. The report shall contain sufficient information to enable Council to judge the propriety of the proposed expenditure and identify the source of the financing thereof. VI. Prior to Council adopting the operating budget and capital budget, no employee, elected official or Committee member of the Township is authorized to purchase any goods or services other than those goods or services required on a recurring basis for the day to day operations of the Township, without the prior approval of Council. V11. Notwithstanding the provisions of this By-law, where a Department Head deems it necessary or in the best interests of the Township to acquire goods or services from a particular source, where a good or service is available from one source only or the extension of an existing contract would prove more cost-efficient or beneficial, the Department Head may submit a report for approval of Council to acquire the goods or services from that paI1icular source. Vlll. No expenditure shall be authorized or permitted whereby a debt is incurred requiring authorization by By-law until the said By-law is passed by Council and all statutory authorization is received. IX. No contract or purchase shall be divided to avoid the provisions of this By-law. b) Emergency Procedure Notwithstanding the provision of this By-law, the said provisions shall be disregarded for goods or services that may be required in the event of an emergency situation. The Department Head shall obtain the approval of the C.A.O. when occurring expenditures in an emergency situation. Any purchase of goods or services incurred in the event of an emergency shall be reported to Council at its next meeting. c) Expenditures up to $5,000 For expenditures up to $5,000, Department Heads may acquire the goods or services (excluding professional or consulting services) without quotations being requested. Verbal or written quotations may be requested at the discretion of the Department Head. 2 - . , , ' d) Expenditures of$5,000 to $15,000 Verbal quotations shall be requested for goods and services (excluding professional or consulting services) estimated to be in an amount of$5,000 to $15,000. Department Heads shall document and retain on file details of the quotes received including the name of the supplier and the quoted amount. If deemed expedient, the Department Head may request written quotations. If the requirements of the goods or service cannot be definitely specified, proposals should be requested. e) Expenditures of$15,000 to $35,000 Written quotations or tenders shall be requested for goods or services (excluding professional or consulting services) estimated to be in an amount of$15,000 to $35,000., Ministry regulations should be adhered to when determining whether to request written quotations or tenders. If the requirements of the goods or services cannot be definitely specified, proposals should be requested. f) Expenditures Over $35,000 Tenders shall be requested for goods or services (excluding professional or consulting services) estimated to be in an amount in excess of$35,000. If the requirements of the goods or services cannot be definitely specified, proposals should be requested. g) Professional & Consulting Services 1. For professional or consulting services being provided to the Township on a continuing basis, proposals shall be requested from time to time at the discretion of Council. 11. For a specific project for which professional or consulting services are required and are not provided in accordance with a contract or agreement in effect at the time, proposals shall be requested. 3. Procedures for Requestin2 Written Quotations a) Requesting Quotations 1. Written quotations shall be requested from a minimum of three suppliers, whenever possible. 11. The supplier shall be provided with all the information required in order to submit a quotation. 111. The document requesting quotations shall include the following statement, "The lowest or any quotation not necessarily accepted". IV. If as a result of queries from prospective bidders, the document requesting the quotation needs to be revised, each prospective bidder shall be notified of the revisions by telephone and subsequently facsimile or mail. If a quotation has already been submitted, the bidder may in writing request that the quotation be withdrawn. The quotation will then be returned unopened to the bidder by hand or registered mail. b) Quotation Closing Time 1. All requests for quotations shall include a day and time by which the quotations must be submitted to the Department Head. 3 11. All firms requested to submit a quotation shall be allowed at least five working days before the deadline for submitting their quotation. c) . 1. 11. Receipt of Quotations Quotations received must be submitted in a sealed envelope. The following infOlmation shall appear on the outside of the envelope: the name of the applicable Department Head that the envelope contains a "Quotation For" and identify the goods or services to which the quotation relates to. 111. When the quotation is received, the envelope shall be initialed and the date and time detailed thereon. The quotation shall then be forwarded to the appropriate Department Head. IV. Any quotation received after the deadline shall not be accepted or opened, and the time and date shall be detailed thereon and the quotation returned to the bidder with a covering letter stating the reason the quotation could not be accepted. v. Any quotation may be withdrawn prior to the opening thereof upon receipt of a written request from the bidder. The quotation shall then be returned unopened to the bidder. d) Opening of Quotations 1. As soon as possible after the deadline for submitting quotations, all quotations shall be opened. 11. Quotations shall be opened in the presence of the Department Head and the c.A.O. or their designate. 111. The Department Head shall review the quotations and submit a report and recommendation to Council for approval. The report shall outline the reasons in full explanation if the quotation recommended for acceptance is not the lowest quotation submitted. Reference should be made in the report to budget implications. e) Acceptance of Quotations 1. Quotations may be rejected for the following reasons: the quotation doesn't meet specifications the bidder has appended his own tern1S and conditions the quotation is not signed by an officer of the quoting firm. 11. The quotation to be accepted will be at the discretion of Council. 111. Upon Council approval, the successful quoter shall be notified of acceptance of his quotation by telephone and subsequently in writing. . 4 4. Procedures for Requesting Tenders a) 1. . 11. 111. Advertising All tenders may be publicly advertised in local newspapers having general circulation in the municipality in accordance with Township advertising policy. At the Department Head's discretion, tenders may also be advertised in trade or special newspapers. Sufficient time between advertising and the tender closing time shall be allowed to permit a bidder to examine the specifications, obtain tender documents and complete and submit his tender. IV. The advertisement shall contain the following information: the name of the municipality the type of service, equipment or project the official designated to receive the tender the tender closing date and local time therof the location where plans and specifications and tender forms may be obtained the charge, if any, for contract documents the official to whom queries may be directed a statement that the Township reserves the right to accept any tender or reject any or all tenders and that the lowest or any tender is not necessarily accepted the date, local time and place of the opening of the tenders the type of security that must accompany the tender the bonding requirements, if any. b) Provision OfInformation to Tenderers 1. Upon the request of a prospective tenderer, the Department Head shall supply the following materials for each contract: two copies of the official tender form tender materials such as specifications, plans, etc. a summary of the tender requirements detailed below a statement that failure to satisfy all of the tender requirements will result in the tender being rejected. 11. When a fee for tendering material is being charged, the fee shall be payable to The Corporation of the Township of Oro-Medonte. 111. A list of prospective bidders shall be maintained by the applicable Department Head. It is essential that names, addresses, telephone and fax numbers of prospective bidders are recorded when tender documents are released to facilitate distribution of addenda and when necessary to extend or cancel a competition. c) Return Of Tender Documents By Hand When, pursuant to the provisions of this By-law, tender documents and/or deposit cheques are returned to the contractor/supplier by hand, a letter acknowledging receipt must by signed by the bidder. . 5 d) L IL llL . IV. V. VL Tender Requirements The COlTect tender fonn, as supplied by the Township, must be used. Tenders must be received on or before the closing time and date. All tenders shall either be mailed or delivered to The Corporation of the Township of Oro-Medonte. Tenders shall be submitted in a sealed envelope. Tenders shall be addressed to the appropriate Depmiment Head. The outside envelope must be marked "Tender For" and identify the project to which the tender relates. Vll. The tender must be legible, written in ink or be typewritten and all items must be bid unless the tender specifically permits otherwise, with the unit price for every item, applicable taxes and other entries clearly shown. V1l1. An authorized signing officer of the bidder shall sign the tender fOlm in the space provided. The Corporate Seal of a corporate bidder should be affixed to the tender documents, or the signing officer must state in writing on the tender documents "I have the authority to bind the Corporation". IX. Erasures, overwriting or strike outs must be initialed by the authorized signing officer. x. The tender deposit, if required, may be a certified cheque, bank draft, money order, bid bond ( 1 0% of the total tendered amount) or any combination thereof made payable to The Corporation of the Township ofOro-Medonte, and must be submitted with the tender and must be enclosed in the same envelope as the tender. XL The tender shall be accompanied by an Agreement to Bond Fonn, when bonding is a requirement. XlI. Alternate proposals to the tender specifications will not be considered unless requested by the Township. X1l1. The tender must not be qualified by a statement added to the tender form, by a covering letter or by alterations to the tender fonn, unless requested by the Township. XIV. If any of the above tender requirements have not been met, the tender may be considered an "Improper Bid", at the discretion of the Township. e) Bonding Requirements L The Department Head shall detennine bonding requirements, if any, taking into consideration Ministry stipulations. IL When stipulated within the specifications of a tender, the specified amount issued by a Bonding Company satisfactory to the Township, must be furnished by the contractor before the contract is signed. . 6 , . f) Changes To Contract Under Call 1. Interpretation should be made in reply to queries from bidders only in the form of a written addendum. When it is necessary to revise, delete, substitute or add to the tendering material for a contract under call, the C.A.O. shall approve the issuance of an addendum, an extension of the closing date, or cancellation of the competition. . 11. When an addendum is to be issued, a copy of each addendum shall be forwarded by facsimile, if possible, and subsequently by registered mail to each contractor/supplier who obtained tender fonns for the contract at his last known place of business, The contractor/supplier shall be advised that a tender already submitted will be retumed upon written request. A copy of the addendum shall also be stapled to each tender fonn not yet distributed. 111. When a competition is cancelled, each conh'actor/supplier who received tender documents shall be notified by facsimile and subsequently by registered mail of the cancellation of the competition. All tenders received shall be retumed unopened to the contractor/supplier by hand or registered mail with a covering letter. IV. When it becomes necessary to extend the closing date for receiving tenders for the competition, each contractor/supplier who received tender documents shall be notified by facsimile, if possible, and subsequently by registered mail. When tenders have already been received, the contractor/supplier shall be advised that the tender will be retumed upon written request. An advertisement setting out the new closing date shall be inserted in the publication( s) originally used, when practical. g) Receipt Of Tenders 1. When a tender is received, the envelope will be initialed and the date and time detailed thereon. The tender shall be kept in the custody of the Department Head until the stated time of opening. The Department Head will maintain a listing of tenders received in the Form appended as Schedule "A" to this By-law. 11. Adjustments by telephone, facsimile or letter to a tender already submitted, will not be considered. A bidder desiring to make adjustments to a tender must withdraw the tender and submit a revised tender. The bidder shall be advised of the withdrawal procedures. 111. When a tender envelope is received after the closing time of the competition, the time and date of receipt shall be recorded on the tender envelope. Late tenders shall be retumed, unopened, to the bidder. A covering letter stating the reason why the tender could not be accepted shall accompany the retum. A late tender without a retum address on the envelope shall be opened, the address obtained and then retumed. The covering letter should state why the envelope could not be retumed unopened. h) Withdrawal of Tenders 1. A prQspective bidder who has submitted a tender may make a written request that his tender be withdrawn. The withdrawal shall be allowed if the request is made before the closing time for the competition to which it applies. Withdrawal requests must be directed to the Township by hand delivery, facsimile or mail and signed by an authorized signing officer of the bidder. Telephone requests shan not be acted upon. . 7 . . ' . . 11. The withdrawal of a tender does not disqualify a bidder from submitting another tender on the same competition. 111. Tenders which have been withdrawn will be dealt with at the opening by announcing that the tenders are withdrawn and are to be returned unopened by registered mail or by hand to the bidder. The tender shall subsequently be returned unopened by registered mail or by hand to the bidder. IV. Withdrawal requests received after the competition closing time will not be accepted. The bidder concerned shall be informed that the withdrawal request arrived too late for consideration. v, If more than one tender is read out under the same name for the same competition and no withdrawal notice has been received, the tender contained in the envelope bearing the time closest to the competition closing time shall be considered the intended bid. The other tender(s) received for that bidder shall be considered withdrawn and returned to him in the usual manner. VI. In some instances, several tenders are opened at the same tender opening. At such an opening, at the conclusion of the reading out of the bids on a competition, the low bidder on that competition may withdraw any of his remaining tenders on other competitions. The contractor/supplier shall attest in writing to his identity and state the contract( s) on which he desires to withdraw. The Notice of Withdrawal of Tender must be signed by the contractor/supplier and handed to the C.A.O, before the reading out of the first tender. on the contract( s) to which it applies, The C.A.O., presented with the withdrawal notice, shall read out the bidder's name and announce that the tender has been withdrawn in accordance with established procedures. The bid amount of the withdrawn tender shaH not be disclosed. Tenders withdrawn under this procedure cannot be reinstated. A contractor/supplier who withdraws a bid on the sh'ength of being read out as low bidder on a previous contract does not have the right to reinstate a withdrawn tender if subsequent checking proves that his tender on the previous contract was not in fact low or was not accepted. i) Opening Of Tenders 1. Any persons desiring to be present at the opening may attend. 11. Tenders shall be opened in the presence of the c.A.O. & Department Head or their designate. 111. When tenders have been sorted, a check of the Listing of Tenders received shall be made to ensure that all tenders received are accounted for. If a discrepancy occurs, the tender opening proceedings shall be delayed until all tenders have been accounted for. lV. When all tenders have been accounted for, and withdrawal forms have been dealt with, the remaining tenders shall be opened. v. For each contract, the Department Head shall announce the number of bids received and for each tender, the name of the bidder, the total bid amount, and the amount of the deposit. 8 . . , ' ' VI. If two tenders for the same contract are received in the same tender envelope, the signed copy, or ifboth are properly executed and prices differ, the lower price shall be considered the intended bid, which shall be processed in the normal manner. Vll. After reading out the bid amount, the Department Head shall detail on the Record of Tenders Opened, being Schedule "B" appended to this By-law, the name of each bidder, the amount of the tender and the deposit amount. The bidder's name for each withdrawn bid shall be recorded inm1ediately following the names of the bidders whose tenders will be considered, noting the method and date of withdrawal. When all the information has been recorded, the Record of Tenders Opened shall be closed off by drawing a diagonal line in the unused space under the information listed. Vlll. The signatures of all Township official present must appear on the Record of Tenders Opened. IX. Council will be provided forthwith with a copy of the Record of Tenders opened. j) Review Of Tenders 1. Tenders shall be reviewed as soon as possible after their opening by the Department Head. 11. Tenders may be rejected if the tendering requirements have not been met. 111. When a tender is rejected, the reason therefore must be noted on the Record of Tenders Opened. IV. The bidder shall be advised in writing as to the reason for rejection of his tender. v. The report to Council shall include the rejected bidder(s) and state the reason for the rejection of the tender. k) Acceptance Of Ten del' 1. Following the review of tenders, the Department Head shall submit a report and recommendation to Council for approval. The report shall outline the reasons in full explanation if the tender recommended for acceptance is not the lowest tender submitted. Reference should be made in the report to budget implications. 11. The tender to be accepted will be at the discretion of Council. 111. Council shall determine the acceptance of a tender. The Township reserves the right to accept any tender, or to reject any or all tenders. IV. Upon Council approval, the Department Head shall immediately advise the successful bidder that his tender has been accepted. 1) Disposition Of Withdrawn Tenders Following the tender opening, withdrawn tenders shall be retumed together with the deposit cheques to the bidders by registered mail or by hand. 9 . . . . . m) Disposition Of Deposit Cheques 1. For contracts where a performance bond is required, the deposit cheque for the successful bidder will be retained until such time as the said performance bond has been supplied in a form satisfactory to the Township. 11. For contracts that do not require a performance bond, the deposit cheque of the successful bidder shall be retained by the Township until such time as the goods or services have been received. 11L The deposit cheques of the other bidders will be returned to the bidder as soon as is practical after the acceptance of the tenders and the return of these cheques shall be by registered mail or by hand. n) Action When Successful Bidder Does Not Enter Contract L If the successful bidder fails to enter into a contract or indicates that he will not perform the contract, the Department Head and the C.kO, may recommend one of the following to Council: that the tender shall be awarded to another bidder that the competition be cancelled. In either case, the deposit of the successful bidder shall be forfeited. 11. In the event the tender is awarded to another bidder, the said bidder will be required to provide the required tender deposit or performance bond and all other provisions of this By-law will apply. 5. Procedures For Requesting Proposals a) Requesting Proposals L Requests for proposals should be called when the requirements or services cannot be definitely specified. 11. Requests for proposals shall be by invitation and at the discretion of the Department Head, by public advertising in a local newspaper. 11L At the Department Head's discretion, requests for proposals may also be advertised in trade or special newspapers. IV. If as a result of queries from prospective bidders, the document requesting the proposal needs to be revised, each prospective bidder shall be notified of the revision by telephone and subsequently facsimile or mail. If a proposal has already been submitted, the bidder may in writing request that the proposal be withdrawn. The proposal will then be returned unopened to the bidder by hand or registered maiL b) Closing Time For Proposals L All requests for proposals shall include a day and time by which the proposals must be submitted to the Department Head 11. All firms requested to submit a proposal shall be allowed at least five working days before the deadline for submitting their proposal. 10 . . , " < . . c) Receipt Of Proposals L Proposals received must be submitted in a sealed envelope. 11. The following information shall appear on the outside of the envelope: the name of the applicable Department Head that the envelope contains a "Proposal For" and identify the goods or services to which the proposal relates to. 111. When the proposal is received, the envelope shall be initialed and the date and time detailed thereon. The proposal shall then be forwarded to the appropriate Department Head. IV. Any proposal received after the deadline shall not be accepted or opened, and the time and date shall be detailed thereon and the proposal returned to the bidder with a covering letter stating the reason why the proposal could not be accepted. v. Any proposal may be withdrawn prior to the opening thereof upon receipt of a written request from the bidder. The proposal shall then be returned unopened to the bidder. d) Opening Of Proposals 1. As soon as possible after the deadline for submitting proposals, all proposals shall be opened in the presence of the Department Head and C.A.O, or their designate. 11. Proposals shall be reviewed and analyzed by the Department Head who shall submit a report and recommendation to Council for approval. Reference should be made in the report to budget implications. e) Acceptance Of Proposal 1. The proposal to be accepted will be at the discretion of Council. 11. Upon Council approval, the successful bidder shall be notified of acceptance of his proposal by telephone and subsequently in writing. 6. Disposal Of Township Equipment a) General Policies 1. When equipment is no longer required by a department, the Depmiment Head shall assess its functionality and determine if the equipment has a net realizable value. 11. If the equipment is functional, the equipment shall first be offered to the other Township Departments. 111. If the equipment has a net realizable value, the equipment shall be sold by tender in the manner described in the following subsections. IV. If the equipment has no net realizable value, it shall be disposed of in a manner at the discretion of the Depmiment Head and c.A.O, b) Advertising L All tenders shall be publicly advertised in local newspapers having general circulation in the municipality in accordance with Township advertising policy. ] ] 10 } __ .' I'i . . 11. At the Department Head's discretion, tenders may also be advertised in trade or special newspapers. 111. Sufficient time between advertising and the tender closing time shall be allowed to permit a bidder to examine the equipment. IV. The advertisement shall contain the following information: the name of the municipality a description of the equipment being sold the location where the equipment may be viewed and the name and phone number of the Township official to contact for information the date and local time tenders shall be received to a statement that the tender must be submitted in a sealed envelope and the outside of the envelope must be marked "Tender For" and identify the equipment to which the tender relates that the tenders shall be addressed to the appropriate Department Head a statement that the Township reserves the right to accept or reject any tender a statement that the tender must be accompanied by a tender deposit of 10% of the tendered amount and that the deposit may be by certified cheque, bank draft or money order or any combination thereof c) Receipt Of Tenders 1. When a tender is received, the envelope shall be initialed and the date and time detailed thereon. The tender shall be kept in the custody of the Department Head until the stated time of opening. ll. Adjustments by telephone, facsimile or letter to a tender already submitted, will not be considered. 111. Any tender may be withdrawn prior to the opening thereof upon receipt of a written request from the bidder. The tender shall then be returned unopened to the bidder. IV. When a tender envelope is received after the closing time of the competition, the time and date of receipt shall be recorded on the tender envelope. The tender shall be returned unopened to the bidder with a covering letter stating the reason why the tender could not be accepted. A late tender without a return address on the envelope shall be opened, the address obtained and then returned. The covering letter should state why the envelope could not be returned unopened. d) Opening of Tenders 1. At a time established as soon as possible after the deadline for submitting tenders, all tenders shall be opened. 11. Tenders shall be opened in the presence of the Department Head and C.A.O. 111. The Department Head shall review the tenders and submit a report and recommendation to Council for approval. The report shall outline the reasons in full explanation if the tender recommended for acceptance is not the highest bid submitted. IV, The tender to be accepted will be at the discretion of Council. 12 . . .. .. :- " e) Notification Of Acceptance of Tender 1. Upon Council approval, the successful bidder shall be notified of acceptance of his tender by telephone and subsequently in writing. ii. Information about the accepted tender shall be available to unsuccessful bidders subsequent to the accepted tender being approved by Council. f) Disposition Of Deposit Cheques The deposit cheques of the unsuccessful bidders will be returned as soon as is practical after the opening of the tenders by registered mail or by hanel. When returned to the bidder by hand, a letter acknowledging receipt must be signed by the bidder. That this By-law shall come into force and have effect immediately upon the final passing thereof. BY-LA "V READ a first and second time this 21 st day of November ,2001 BY-LAW READ a third time and finally passed this 21 s t day of November , 2001 THE CORPORATION OF THE TOWNSHIP OF ORO-MEDONTE Mayor, Ian Beard ~~<1fJ- Clerk, Marilyn Pennycook 13