3423-2019 Procurement Policy
BEING A BY-LAW TO ESTABLISH A PROCUREMENT POLICY FOR THE TOWNSHIP OF AUGUSTA
Passed by Council June 24, 2019
THE CORPORATION OF THE TOWNSHIP OF AUGUSTA
BY-LAW NUMBER 3423-2019
BEING A BY-LAW TO ESTABLISH A PROCUREMENT POLICY
FOR THE TOWNSHIP OF AUGUSTA
WHEREAS Section 270(1) of the Municipal Act 2001 S.O. 2001 Chapter 25 states that
before January 1, 2005, a municipality and a local board shall adopt policies with respect
to its procurement of goods and services
AND WHEREAS the Township of Augusta wishes to ensure appropriate financial and
operational management controls are applied to the decision process in spending public
money and to the accountability of the authority process
AND WHEREAS the Procurement Policy is designed to streamline the Township of
Augusta’s purchasing and payable process to better support the operating needs without
eroding good business practices or circumventing internal controls
NOW THEREFORE the Council of the Corporation of the Township of Augusta does
hereby enact as follows that:
1. The attached Schedule “A” shall be known as the Procurement Policy for the
Township of Augusta
2. The attached schedule may be amended from time to time by By-Law and any
amendment shall make up part of this Procurement Policy
3. This by-law shall come into force and take effect upon final reading.
4. By-law 3101-2014 and any other by-laws or parts of by-laws that are contrary to or
inconsistent with this by-law are hereby repealed.
READ a first time this 24 day of June 2019
READ a second time this 24 day of June 2019
READ a third time and passed this 24 day of June 2019
Signed by Mayor Doug Malanka and Clerk Annette Simonian
Schedule A to
By-law 3423-2019
Schedule A
Procurement Policy
PURPOSE
This policy is intended to provide guidelines and procedures with respect to the
Procurement of Goods and Services for the Corporation of the Township of Augusta.
GOALS AND OBJECTIVES
The goals and objectives of this By-Law are to:
a) Ensure openness, accountability, and transparency while protecting the financial
best interests of the Township.
b) Encourage competition among suppliers.
c) Maximize savings for taxpayers.
d) Ensure service and product delivery, quality, efficiency, and effectiveness
e) Ensure fairness among bidders.
f) To outline the roles and accountabilities of Council, Senior Staff and their
delegates.
g) An attempt to reduce the amount of solid waste requiring disposal through the
purchase of environmentally responsible goods and services.
SCOPE
This By-law applies to all departments of the Township of Augusta.
GENERAL
a) This policy should be reviewed and renewed by Council every 4 years, within the
period of each Council.
b) The Department Head or Manager (or designate) shall be satisfied that the goods
and/or services to be purchased are authorized in the approved current budget.
c) The Department Head or Manager may delegate their purchasing authority as
assigned to a subordinate, however, all responsibility remains with the
Department Head or Manager.
d) Prior to the approval of the current budget, a Department Head or Manager (or
designate) may incur normal operating expenditures.
e) Purchases of non-budgeted goods or services must be approved by Council
resolution.
f) Contracts for the purchase of goods or services for ten thousand dollars
($10,000.00) or more and the amount of which is included in the approved current
budget and due to the nature of the goods or services to be provided would not be
subject to the provisions of the normal tendering/RFP procedures shall require
Council approval.
g) Council and Employees requesting reimbursement for travel shall submit a travel
expense claim form request for reimbursement along with the corresponding
receipt(s). The request for reimbursement is attached to this policy as Appendix
“D”.
h) There are exemptions from this procurement policy and those are listed as
Appendix “A” to this policy.
i) Bid Irregularities shall be listed on Appendix “C” attached hereto.
j) From time to time staff may make a purchase for the Township for general
supplies. Those purchases are authorized and, a request for reimbursement will
be submitted along with the corresponding receipt. The Request for
Reimbursement is attached to this policy as Appendix “E”.
k) Notwithstanding the provisions in this By-law, where a Department Head or
Manager or Council 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-effective or beneficial, Council may pass a resolution to approve
the procurement of the goods or services from that particular source, without
using any of the procurement processes.
l) The Township shall incorporate accessibility criteria and features when procuring
or acquiring goods and services, except where it is not practicable to do so.
Where it is not practicable to incorporate accessibility criteria when procuring
goods and services, upon request, an explanation shall be provided.
m) The Township shall require a declaration (Appendix F) from all persons who
provide goods and services on behalf of the Township stating that they are
compliant with the Accessibility for Ontarians with Disabilities Act and its
Regulations.
n) Where the municipality will benefit from a purchase that cannot be accommodated
under this policy, the manager must obtain written approval from the CAO who will
bear responsibility for the expenditure.
o) Local suppliers will be given the opportunity to provide quotes on goods and
services. In the event a bid is received for the provision of goods or services from
a local supplier equal to a bid received from a non-local supplier and both of which
bids meet the desired specifications of Council, preference may be given to the
local supplier.
p) The Township may participate in Co-operative Purchasing with other government
agencies or public authorities where it is in the Best Interest of the Township to do
so. If the Township decides to participate in a Co-operative Purchase or
Piggyback Contract, the terms and conditions of the government agencies or
public authorities calling the Bid on behalf of the participants are to be the
accepted policies and procedures, even if they conflict with provisions of this
policy.
PURCHASING POLICES & PROCEDURES
Subject to any alternate direction that may be given from time to time by Council, the
following processes shall be employed for the purchases of goods and services.
Manager may approve expenditures with a value of less than or equal to $5,000.00,
however they will attempt to obtain three (3) quotes and document reasons for any
inability to do so.
Advertisement for procurement of goods may be placed using paper media, online
applications, or other electronic media OR MAY be requested by invitations only.
If a contract has been issued and the successful proponent fails to sign the contract or
fulfil the necessary requirements within a specified time, the CAO may grant
additional time to fulfil the necessary requirements or may recommend to Council,
one of the following:
a) that the contract be awarded to the next low proponent
b) that the contract be cancelled.
Department Heads or Managers shall develop a detailed privilege clause for individual
bid requests to ensure additional rights are reserved for the township.
Request for Tender
Formal tendering practices shall apply for the purchase of all goods and services
where the estimated value is or will exceed the amount of ten thousand dollars
($10,000.00) where proper specifications can be determined.
Tenders shall be supplied:
• With a tender number
• On an official tender form
• Tender receipt cover page
Tenders received must be:
• in a sealed envelope
• on the official tender form
• date stamped with the time received
• have the tender number visible
• placed unopened in a secure location (tenders received after the deadline
shall be dated, including the time and returned to the bidder unopened with
a cover letter advising tender received after the deadline)
If the tender was one where the expertise lies with a select few suppliers OR when
it is impractical to call for tender then, request tender by invitation only may be
tendered and, a list of those invited shall be kept by the appropriate Department
Head or Manager for a period specified in the Retention By-law notwithstanding
any other Provincial legislation or Municipal By-Law.
All tenders, whether by advertisement or invitation shall be opened at a
predetermined time and place, using the Tender Opening Form (Appendix B) in
the presence of the Clerk (or delegate) and appropriate Departmental manager
responsible for the tender (or designate) and one member of Council. Tender
openings shall be open to the public.
Council is under no obligation to accept the lowest or any tender. Council may, at
its discretion, reject all tenders.
A written report to Council from the appropriate Department Head or Manager
shall be presented at the next regular meeting of Council outlining the following:
• Tenders received
• Amount that was budgeted for the purchase
• Full explanation if the tender is not recommended to be awarded to the firm
that tendered the lowest amount, or if the tender is not awarded.
• The comparison to the previous year, if appropriate
If applicable, bid security, bid bond or performance bond requirements shall be
specified in the tender document. Deposit cheques shall be returned to the
bidders on the tender form as soon as is practical and such bidders shall provide
written acknowledgement of receipt.
Addendums
Queries and addendums shall be supplied to all bidders.
When it becomes necessary to revise, delete substitute or add to tender documents a
copy of each addendum shall be forwarded to each bidder who obtained a tender
package and that have returned a copy of the cover page from the tender package with
their contact information. If cover sheet is not returned the township is not responsible
for missed addendum(s).
Establishment of File
A file shall be created for all tenders that shall be maintained and include the following:
I. Record of Tender Opening Form. (information recorded and signed)
II. a copy of the “Tenders Received” form
Ill. a photocopy of the bid security deposit
IV. a copy of the liability insurance documentation and WSIB status
V. a copy of the tender documents including any plans and Specifications
VI. attendance, an analysis of the bids opened and a prepared motion for the
Consideration of Council/Committee
VII a copy of the letter notifying all bidders of the award and any other correspondence to
the bidders.
VIII. a true copy of the motion to award the tender
IX. a copy of any inspection reports
X. Tender files shall be destroyed in accordance with the Retention By-law
Request for Quote (RFQ)
Request for quote may be used for comparison pricing where the estimated value
of goods and services to purchase is more than five thousand dollars ($5,000.00)
but less than ten thousand dollars ($10,000.00). Every effort shall be made to
obtain print documentation for at least three (3) quotations. Where more practical,
verbal quotations properly documented shall be obtained.
Where the written quotations from at least three suppliers cannot be reasonably
obtained, the Department Head or Manager must get the approval of the CAO.
A record shall be kept by the Department Head or Manager (or designate) of all
discussions pertaining to the all quotations as per the retention By-law,
notwithstanding any other Provincial legislation or Municipal By-Law.
A written report to Council with recommendations shall be presented at the next
regular meeting of Council with regards to the Request for Quote outlining the
following:
• The quotes received
• Full explanation where three quotations cannot be obtained
• Full explanation if the RFQ is not recommended to be awarded to the firm
with not the lowest amount.
Council is under no obligation to accept the lowest or any quote. Council may, at
its discretion, reject all quotes.
Request for Proposal (RFP)
Where the estimated value of the goods and services to be purchased is/will be
greater than ten thousand ($10,000.00) but where the expertise for developing
proper specifications lies in the hands of the supplier, or where additional
information is required and it is impractical to call tenders an RFP will be issued.
When this method of purchasing is used, a minimum of three (3) suppliers, where
possible, shall be given a written outline of the objective, purpose and need of the
goods and services required.
A written report to Council from the appropriate Department Head or Manager
shall be presented at the next regular meeting of Council outlining the following:
• RFPs received
• Amount that was budgeted for the purchase
• Full explanation if the RFP is not recommended to be awarded to the firm
that tendered the lowest amount, or if the RFP is not awarded.
• The comparison to the previous year, if appropriate
Written proposals shall be opened at a predetermined time and location, in the
presence of the Clerk (or designate), the appropriate Department Head or
Manager (or designate) requesting the proposal.
It is not the intent of the Township to initiate or form contractual relations by the
submission of a Proposal by any Proponent in response to this type of Request.
Council is under no obligation to accept the lowest or any request for proposal.
Council may, at its discretion, reject all requests for proposal(s).
Negotiated Purchases
Negotiation may be used for the procurement of Good(s) or Services(s) and or for any
Contract when any of the following apply:
Emergency Situations
Goods and/or Service is in short supply
Extension of an existing contract would prove more cost effective or beneficial.
When all bids received substantially exceeds the estimated cost and/or fail to
comply with the specifications or tender terms and conditions and it is impractical
to recall tender or RFP
Where there is only one source of supply for the good or service
Request for Pre-Qualifications
Request for Pre-Qualifications may be conducted for any Goods or Services and/or
Construction for the purpose of establishing a select number of responsible pre-qualified
Bidders that may bid on the subsequent Procurement process by the Township.
The Township is not required to proceed with any further procurement process following
a request for Pre-Qualification.
Tie Bids
In the event of a tie score between two or more compliant bidders, and where multiple
awards are not possible, bidders will be invited to submit new sealed bids in order to
break the tie.
If this effort is unsuccessful, then the Township shall determine the successful bidder by
a coin toss or by drawing of a name.
Emergency Method of Procurement
Notwithstanding the foregoing, the provisions of this policy may be disregarded for
goods and services that may be required in the event of a declared emergency as
defined in the Emergency Management and Civil Protection Act.
Any purchase of goods or services incurred in the event of a declared emergency,
having a value greater than 10,000 shall be approved by the CAO and/or the
Mayor and reported to council at the next regular meeting.
Under certain non-emergency circumstances, it may be necessary to acquire
goods or services prior to a meeting of Council. Notwithstanding the provisions of
this policy, the following shall only apply when an event occurs that is determined
to be:
- a threat to public health
- the maintenance of essential municipal services
- the welfare of persons or of public property or the security of the
municipality’s interests and the occurrence requires the immediate
delivery of goods or services and time does not permit for
competitive bids.
Prior to the purchase, the Chief Administrative Officer, and at least one Council
member shall be notified of the purchase. The Department Head or Manager shall
immediately report to the Chief Administrative Officer I Council outlining the
circumstances leading to the emergency acquisition.
DISPOSAL OF SURPLUS GOODS
The Department Manager shall obtain the approval of Council for the disposal
and/or sale of surplus assets.
Other departments should be offered the chance to reuse surplus assets before
they are offered for sale.
Surplus goods may be offered to other municipalities for fair market value.
Surplus goods to be sold to the public shall be sold by sealed bid, with a reserve
bid. If the reserve bid is not met, the manager is authorized to sell via other
methods; paper media, online, electronic media (i.e. Kijiji).
CONFLICT OF INTEREST
All consultants (e.g.: architects, engineers, etc.) retained by the municipality shall
disclose to the municipality prior to accepting an assignment, any potential conflict
of interest. If such a conflict of interest does exist, the municipality as directed by
the Department Head or Manager may, at its discretion, withhold the assignment
from the consultant until the matter is resolved.
And furthermore, if during the conduct of a municipal assignment, a consultant is
retained by another client giving rise to a potential conflict of interest, then the
consultant shall so inform the municipality.
PURCHASE OF USED FLEET EQUIPMENT
The Chief Administrative Officer (or designate) is authorized to purchase used fleet
equipment that is sold by other municipalities by private sale or public auction; sold
through a vendor licensed to sell used equipment; by sealed bid; or by negotiation
providing that:
1. Any purchase of used equipment with a price of over $1 0, 000.00 must have
Council’s pre-authorization with a maximum amount that can be spent for such
equipment.
2. The equipment meets or exceeds the departmental equipment requirements.
3. It is documented why it is fiscally responsible to purchase a used piece of
equipment rather than purchase new.
4. A report will be forwarded to Council detailing purchase information and
expenses.
The Chief Administrative Officer/designate is exempt from the formal
quotation/tender/proposal process when purchasing used fleet equipment by any of the
methods detailed in this section.
PAYMENTS
Department Heads or Managers shall approve payment by s1gmng all invoices
representing charges to their respective departments, indicating the account distribution
of the expenditure. Department Heads or Managers, before approving payments, shall
ensure that the following have been checked and found correct:
Quantity and quality of goods received are as invoiced
Pricing is correct
Calculations are correct
PROCUREMENT CARD POLICY
Using Procurement Cards
1. Procurement Cards will be distributed to designated employees who are
responsible for making purchases on behalf of the Township of Augusta
2. The Cards are designed to be used for purchases of goods or services not
covered under some other form of purchasing agreement
3. There is a limit per transaction and monthly credit limit for each cardholder
based on individual requirements
4. Procurement Cards will be used only with companies that are VISA merchants
if their purchase falls within the monetary limits of the cardholder
5. The liability for charges on the Procurement Cards rests with the Department
6. The Township of Augusta is not liable for any unauthorized use of the
Procurement Card which occurs after notification of loss, theft or cancellation
has been received by VISA
7. The Township of Augusta will pay both taxes on all invoices but will continue to
receive the GST rebates or input tax credits in the normal manner.
Application Procedure
1. The applicant requesting the card must submit a completed application in
writing and must complete the “Employee Acknowledgment of Responsibilities”
form which is attached as Schedule “G” to this By-Law
2. The VISA Procurement Card must be signed on the back upon receipt
3. The Procurement Card MUST only be used by the individual whose name is
on the card or designate. For example, staff must and confirm approval and
document purpose for use of general office VISA before using.
Cardholder’s Responsibilities
1. Sign the back of the card as soon as it is obtained
2. Keep the Procurement Card in a secure location with controlled access when
not in use. Make a note of the card number and the telephone number to
report a lost or stolen card. (The Chief Administrative Officer will also have a
list of the card numbers on file for the purpose of accounts payable)
3. Inform the Chief Administrative Officer of any changes in your address or
telephone number
4. Return the Procurement Card under the following circumstances:
a) Upon request
b) Upon termination of employment
c) When the card is no longer required
5. The Card Company is to be notified immediately as soon as a card is noticed
as lost or stolen. The cardholder must also inform the Chief Administrative
Officer
6. The card is not to be used for obtaining cash advances
7. Procurement Cards are not to be left in a vehicle.
8. When travelling, procurement cards are to be carried in a secure location
9. All invoices are to be handed in on the prescribed form on a weekly basis to
avoid interest charges
Accounts Payable Responsibilities
1. All invoices are to be processed in a timely manner to avoid interest charges
2. Maintain an up to date register of all cardholders
3. Monitor Procurement Card activities on an as required basis
4. Provide assistance, if required in the settlement of disputed items.
Chief Administrative Officer Responsibilities
1. The issuance of the Procurement Cards upon the proper authority
2. Obtain and verify reports as requested
3. Communicate internal procedures to all cardholders
4. Inform all cardholders of the policies for the use of Procurement Cards
5. Cancel and/or recall of Procurement Cards
AMENDMENTS
Appendices A, B and C to this policy may be amended from time to time upon the
approval of the CAO in order to add or delete or modify matters listed.
SEVERABILITY
If a court of competent jurisdiction should declare any section or part of a section of this
By-law to be invalid, such section or part of a section shall not be construed as having
persuaded or influenced Council to pass the remainder of the By-law and is hereby
declared that the remainder of the By-law shall be valid and shall remain in force.
Appendix “A”
GOODS AND SERVICES “EXEMPT” FROM PROVISIONS OF THE
PROCUREMENT POLICIES
1. Petty Cash Items
2. Training and Education
a) Conferences
b) Courses
c) Conventions
d) Memberships
e) Seminars
f) Periodicals
g) Magazines
h) Subscriptions
i) Staff/Council training, Workshops, hosts and facilitators
j) Staff/Council development k)
3. Employee/Council Expenses
a) Advances for travel
b) Meal allowances
c) Travel & Hotel accommodation
4. Employer’s General Expenses
a) Payroll deduction remittances
b) Licenses (vehicle, radios etc.)
c) Debenture payments
d) Grants to agencies
e) Payments of damages
f) Tax remittances
g) Charges to/from other Government or Crown Corporations
h) Employee income
5. Professional and Special Services
a) Committee fees
b) Honoraria
c) Arbitrators
d) Legal settlements
e) Legal Fees
6. Utilities
a) Postage
b) Heat/Hydro
c) Telephone
7. Misc.
a) OPP Costs
b) Levies
c) Vehicle Repairs
d) Bank Charges
e) Newspaper ads and public notices
f) Agreements with area municipalities
Appendix ‘B’
*This page is a copy of the Tender Opening Form.
Appendix ‘C’
BID IRREGULARITIES
A bid irregularity is a deviation between the requirements (terms, conditions,
specifications, special instructions) of a bid request and the information provided in a bid
response.
For the purposes of this policy, bid irregularities are further classified as “major
irregularities” or “minor irregularities”.
A “major irregularity” is a deviation from the bid request that affects the price, quality,
quantity or delivery, and is material to the award. If the deviation is permitted, the bidder
could gain an unfair advantage over competitors. Any bid, which contains a major
irregularity, must be rejected.
A “minor irregularity” is a deviation from the bid request, which affects form, rather than
substance. The effect on the price, quality, quantity or delivery is not material to the
award. If the deviation is permitted or corrected, the bidder would not gain an unfair
advantage over competitors.
The Departmental Manager may permit the bidder to correct a minor irregularity.
MATHEMATICAL ERRORS- RECTIFIED BY STAFF
The Chief Administrative Officer/designate will correct errors in mathematical extensions
and/or taxes, and the unit prices will govern. The responsibility for correcting
mathematical errors may be delegated to the requisitioning department.
ACTION TAKEN:
The Chief Administrative Officer/designate will be responsible for all action taken in
dealing with bid irregularities, and act in accordance with the nature of the irregularity:
- major irregularity (automatic rejection)
- minor irregularity (bidder may rectify)
- mathematical error (additions or extensions) as above
In the event that the vendor withdraws his bid due to the identification of a major
irregularity, the municipality may disqualify such vendor from participating in municipal
quotations/tenders/requests for proposals for a period of up to one year.
Appendix ‘D’
*This page is a copy of the Travel Expense Claim Form
Appendix ‘E’
*This page is a copy of the Request for Payment Form
Appendix ‘F’
AODA Third-Party/Contractors Compliance Statement Form
I/We, certify that we are in full compliance with the Accessible Customer
Service Standard Regulation and the Integrated Accessibility Standards
Regulation (Ontario Regulation 191/11) under the Accessibility for Ontarians
with Disabilities Act, 2005 (AODA) and have provided the necessary training
to all staff (employees, agents, volunteers, or others for whom we are
responsible).
I/We are required to comply with all relevant/applicable and any future
additions or modification to legislation as they become enacted to
accessibility standards and regulations.
The necessary training will be delivered on an ongoing basis to all new staff
(employees, agents, volunteers, or others for whom we are responsible)
prior to providing goods or services to, or on behalf of, the Municipality of
Augusta.
I/We shall ensure that training records are maintained, including dates when
training is provided, the number of personnel who received training and
individual training records.
I/We are to ensure that this information is available to the Municipality of
Augusta, any time during the Term of the Contract.
I/We shall only assign those staff who have successfully completed training
in accordance with Ontario Regulation 191/11, to provide services to, or on
behalf of, the Municipality of Augusta.
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Company Name
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Address
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Name Title
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Signature Date
