THE CORPORATION OF THE TOWNSHIP OF NIPISSING

BY- LAW #1134

BEING A BY-LAW TO GOVERNPROCUREMENT POLICIES AND PROCEDURES

__________________________ TABLE OF CONTENTS ______________________ Page

PART I – SHORT TITLE ………………………………………………………………………………… 3

PART II – PURPOSES, GOALS AND OBJECTIVES ……………………………………… 3

PART III – DEFINITIONS …………………………………………………………………………….. 3

PART IV – GENERAL PROCUREMENT POLICY ……………………………………….. 5

Section 1: Application …………………………………………………………………….. 5

Section 2: Responsibilities and Authorities ……………………………………….. 5

Section 3: Requirement for Approved Funds …………………………………….. 6

Section 4: Restrictions on contract splitting/conflict of interest, etc………… 6
Section 5: Total Project Cost …………………………………………………………… 6

Section 6: Prescribed Council Approval and Emergency Authority ………. 6

Section 7: Cancellation of Bid Solicitation …………………………………………. 7

PART V – PROCUREMENT PROCEDURES …………………………………………………. 7

Section 1: General and exclusions from t his Part…………………………………….. 7

Section 2: Purchases of $ 150.00 or Less ……………………………………………. 7

Section 3: Purchases of $ 10,000.00 or Less – Request for Quotation ………. 8

Section 4: Purchases of Greater than $ 10,000.00 – Request for Proposal …. 8

Section 5: Purchases of Greater than $ 10,000.00 – Request for Tender ……. 8

Section 6: Purchases from Pre-Qualified Suppliers………………………………….. 9

Section 7: In House Procurement Policy………………………………………………… 9
Section 8: Joint Tenders………………………………………………………………………. 9

PART VI – BID AND CONTRACT ADMINISTRATION ………………………………. 9

Section 1: Submission of Bids …………………………………………………………. 9

Section 2: No Acceptable Bid or Equal Bids Received ……………………….. 10

Section 3: Guarantees of Contract Execution and Performance ……………. 10

Section 4: Irregularities Contained in Bids ………………………………………. 11

Section 5: Required Form of Contractual Agreement………………………………. 11

Section 6: Contract Amendments and Revisions ………………………………. 11

Section 7: Execution and Custody of Documents ……………………………… 11

Section 8: Term of Council ……………………………………………………………. 11

PART VII – OTHER …………………………………………………………………………………….. 11

Section 1: Access to Information …………………………………………………….. 11

Section 2: By-law Review ……………………………………………………………… 11

Section 3: Effective Date ………………………………………………………………. 12

SCHEDULE “A” IRREGULARITIES ……………………………………………………………… 13

SCHEDULE “B” PRE-QUALIFIED SUPPLIERS ……………………………………………. 15

THE CORPORATION OF THE TOWNSHIP OF NIPISSING

BY- LAW #1134

BEING A BY-LAW TO GOVERN
PROCUREMENT POLICIES AND PROCEDURES

WHEREAS Section 271 of the Municipal Act, 2001 imposes upon municipalities the obligation to adopt policies with respect to the procurement of Goods and Services;

NOW THEREFORE the Council of the Corporation of the Township of Nipissing enacts as follows:

PART I – SHORT TITLE

1. This By-law will be referred to as the “Procurement By-law”.

PART II – PURPOSES, GOALS AND OBJECTIVES

1. The purposes, goals and objectives of this By-law and of each of the methods of procurement authorized are;
a) To obtain best value;
b) To maximize savings for taxpayers;
c) To ensure service and product delivery, quality, efficiency and effectiveness;
d) To ensure fairness among bidders;
e) To ensure openness, accountability and transparency while protecting the financial best interests of the Municipality;
f) To have regard to the accessibility for persons with disabilities to the Goods, Services and Construction purchased by the Municipality;
g) To attempt to reduce the amount of solid waste requiring disposal through the purchase of environmentally responsible Goods and Services.

PART III – DEFINITIONS

1. In this by-law.

“AWARD”, “AWARDED” and “AWARDING” mean authorization to proceed with the purchase of goods, services and construction from a chosen supplier;

“BEST VALUE” means the optimal balance of performance and cost as determined by the decision maker and in accordance with any pre-determined evaluation plan;

“BID” means an offer or submission from a supplier in response to a bid solicitation;

“BID BOND” means the form of security required by the terms and conditions of Bid Solicitation documentation to guarantee that the successful bidder enters into a Contract with the Township of Nipissing;

“BID SOLICITATION” means a formal request for bids that may be in the form of a
Request for Quotation, Request for Proposal or Request for Tender;

“CONSTRUCTION” means a construction, reconstruction, demolition, repair or renovation of a building, structure or other civil engineering or architectural work and includes site preparation, excavation, drilling, seismic investigation, the supply of products and materials and the supply of equipment and machinery if they are included in and incidental to the construction, and the installation and repair of fixtures of a building, structure or other civil engineering or architectural work, but does not include professional services related to the construction contract unless they are included in the procurement;

“CONTRACT” means a binding agreement by way of a Purchase Order, formal or informal agreement between two or more parties that creates an obligation to do or not to do a particular thing;

“COUNCIL” means the elected Council of the Municipality;

“COUNCIL APPROVED BUDGETS” means Council approved department budgets including authorized revisions, or where applicable, Council approved budgets of local boards to which this By-law applies;

“DEPARTMENT” means an organizational unit of the Municipal staff;

“DEPARTMENT HEAD” means the person appointed by Council to be responsible for the operation of a Department and/or their designate and includes the person appointed to the position of Clerk-Treasurer;

“EMERGENCY” means a situation, or the threat of an impending situation, which may affect the environment, the life, safety, health and/or welfare of the general public, or the property of the residents of the Municipality, or to prevent serious damage, disruption of work, or to restore or to maintain essential services to a minimum level;

“FAIR MARKET VALUE” means the price that would be agreed to in an open and unrestricted market between knowledgeable and willing parties dealing at arms-length where fully informed and not under any compulsion to transact;

“GOODS” means moveable property including,
a) the costs of installing, operating, maintaining or manufacturing such moveable property, and
b) raw materials, products, equipment and other physical objects of every kind and description whether in solid, liquid, gaseous or electronic form, unless they are procured as part of a construction contract;

“HIGHEST TECHNICAL BID” means the bid that would provide the Township with the best product or service as measured by the evaluation criteria;

“HOLD BACK” means an amount withheld under the terms of the contract to ensure the complete performance of the contract and to avoid overpayment in relation to progress of work;

“LOWEST COMPLIANT BID” means the bid that would provide the Township with the desired goods, services and construction at the lowest cost, meets all the specifications and contains no major irregularity or qualifications;

“MAYOR” means the elected Mayor of the Municipality; Deputy Mayor means the person selected by Council to fill that position;

“MUNICIPALITY” means the Corporation of the Township of Nipissing;

“PRE-QUALIFIED SUPPLIER” means a supplier of specific Goods or Services who is listed in Schedule “B” attached to and forming part of this by-law;

“PROFESSIONAL SERVICES” means persons having a specialized knowledge or skill for a defined Service requirement including,
a) Accountants, Architects, Engineers, Designers, Management and Financial Consultants, Lawyers, Planners and Environmental Consultants, and
b) firms or individuals having specialized competence in other disciplines;

“PROGRESS PAYMENT” means a payment made under the terms of a contract after the performance of the part of the contract in respect of which payment is made but before the performance of the whole contract;

“PROPOSAL” means an offer submitted in response to a Request for Proposal, acceptance of which may be subject to further negotiation;

“PURCHASE” means to acquire goods, services or construction by purchase, rental, lease or trade;

“PURCHASE ORDER” means a written offer to a supplier formally stating all terms and conditions for the purchase of goods, services or construction or a written acceptance of an offer received in accordance with this by-law.

“QUOTE” means a bid submitted in response to a Request for Quotation;

“REQUEST FOR PROPOSAL” means a Bid Solicitation that is used to acquire Goods, Services or Construction, where the Township has a need but cannot be specific about what it requires to meet that need. The suitability of any resulting proposal may be dependant upon non-price factors and which may result in further negotiation between the parties;

“REQUEST FOR QUOTATION” means a Bid Solicitation in which the Township approaches two or more suppliers directly and obtains a written (preferably) or oral fixed price from at least two of them at which each supplier will provide specified Goods, Services or Construction;

“REQUEST FOR TENDER” means a Publicly advertised Bid Solicitation that is used to acquire Goods, Services or Construction, where the Township can specify its exact needs and price or qualifications of the supplier will likely be the paramount factors in determining Best Value. Acceptance of a Tender should result in a firm contract;

“SECURITY DEPOSIT” means a deposit of securities by a supplier that the Township may convert under defined conditions to complete the suppliers contractual obligation;

“SERVICES” includes all professional and consulting services, all services in relation to real property or personal property including, without limiting the foregoing, the delivery, installation, construction, maintenance, repair, restoration, demolition or removal of personal property and real property and all other services of any nature and kind save and except only services to be delivered by an officer or employee of the Township in accordance with terms of employment;

“SOLE SOURCE” means the Supplier of a good or service that is unique to a particular vendor and cannot be obtained from another source;

“TENDER” means a bid resulting from a Request for Tender;

“TOTAL ACQUISITION COST” means an evaluation of quality and service in the assessment of a Bid and the sum of all costs including purchase price, all taxes, warranties, local service costs, life cycle costs, time of completion or delivery, inventory carrying costs, operating and disposal costs for determining the Lowest Compliant Bid;

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PART IV – GENERAL PROCUREMENT POLICY

1. APPLICATION
The procedures prescribed in this by-law shall be followed to make a contract award or to make a recommendation of a contract award to Council.

2. RESPONSIBILITIES AND AUTHORITIES
a) Department Heads have responsibility for procurement activities within their departments and are accountable for achieving the specific objectives of the procurement project.
b) Department Heads have the authority to award contracts in the circumstances specified in this by-law provided that the delegated power is exercised within the limits prescribed in this by-law, and the requirements of this by-law are met.
c) No other forms of procurement shall be permitted, unless prior approval is obtained by Council resolution.

3. REQUIREMENT FOR APPROVED FUNDS
a) The exercise of authority to award a contract is subject to the identification and availability of sufficient funds in appropriate accounts within Council approved budget.
b) Where goods and services are routinely purchased or leased on a multi-year basis, the exercise of authority to award a contract is subject to:
(i) the identification and availability of sufficient funds in appropriate accounts for the current year within Council approved budget,
(ii) the requirement for the goods or services will continue to exist in subsequent years and, in the opinion of the Department Head, the required funding can reasonably be expected to be made available.
c) All purchase requests for contracts for which sufficient funds are not available and identified shall be rejected unless the deficiency is minimal and alternative funding has been identified.

4. RESTRICTIONS
a) No Contract for Goods, Services or Construction may be divided into two or more parts to avoid the application of the provisions of this By-law.
b) No Contract for Services shall be Awarded where the services would result in the establishment of an employee – employer relationship.
c) No employee shall purchase any Goods, Services or Construction, except in accordance with this By-law.
d) Where an employee involved in the Award of any Contract has any pecuniary interest, direct or indirect, the employee shall immediately disclose the interest to the Council and shall not take part in the Award of the Contract or attempt in any way to influence the Award of the Contract.

5. TOTAL PROJECT COST
Where this by-law prescribes financial limits on contracts that may be awarded on the authority of a Department Head, or provides for financial limits on contracts required to be reported to Council, for the purpose of determining whether a contract falls within these prescribed limits, the contract amount shall be the aggregate or sum of:
-all costs to be paid to the supplier under the contract; and
-all taxes, and
-less any rebates, and
-the extra cost, taxes, etc. resulting from any amendment after the
initial contract has been made.

6. PRESCRIBED COUNCIL APPROVAL AND EMERGENCY AUTHORITY
Despite any other provisions of this By-law, the following Contracts are subject to Council approval:
a) any Contract requiring approval from the Ontario Municipal Board;
b) any Contract where the Total Acquisition Cost is greater than the Council Approved Budget;
c) in any case where the applicable Procurement Procedures set out in Part V have not been followed; the Department Head considers they cannot reasonably be followed; or a proposed procurement is from a Sole Source;
d) any Contract where a Good, Service or Construction has a total Acquisition Cost which exceeds $1,000.00;
e) in the event of an “EMERGENCY” where Council is unable to meet immediately, the Mayor (or in the Mayor’s absence, the Deputy Mayor) may authorize a total Acquisition Cost to deal with the Emergency, up to a maximum of $10,000.00. Council shall be advised of any Emergency Procurement at its next meeting;
f) any procurement from a Sole Source.
7. CANCELLATION OF BID SOLICITATION
A Department Head, with the concurrence of Council, may cancel a bid solicitation at any time up to contract award, and shall ensure that the confidentiality of any bid submitted is maintained in accordance with the provisions of the Municipal Freedom of Information and Protection of Privacy Act, as amended.

PART V – PROCUREMENT PROCEDURES

1. GENERAL

a) Except as listed in (b) immediately below, no Procurement of any Good, Service or Construction shall be made unless it is made by a method or procedure authorized in this Part.

b) The purchasing methods and procedures described in this Part do not apply to the following Goods and Services and must be within a pre-approved budget estimate:
(i) Employers General Expenses which may include the following, but are not limited to:
Salaries, wages and benefits;
Payroll Deductions Remittances;
Licenses;
Banking Fees;
Debenture Payments;
Grants & Donations;
Petty Cash Replenishment;
Tax Remittances;
Debt and Bank Charges;
Utilities;
Insurance;
On going roads maintenance;
Office supplies and maintenance;
Office equipment;
Postage;
Equipment maintenance
(ii) Training and Education Expenses which may include the following, but are
not limited to:
Memberships;
Registration fees for conferences, conventions, courses and seminars
(iii) Refundable Employee/Councillor Expenses such as:
Meal Allowances and travel.
(iv) Professional Services.
(v) Emergency Procurements authorized under Part IV, Section 6 (e) of this
by-law.
(vi) Any procurement by any other method expressly authorized by Council in a written resolution or by-law.
(vii) Committee Expenses.

2. PETTY CASH—PURCHASES OF $ 150.00 OR LESS
a) The Clerk-Treasurer shall have authority to establish a Petty Cash fund in such an amount to meet the requirements of the municipality for the acquisition of goods, services or construction having a value of $ 150.00 or less.
b) Purchases shall be made from the competitive marketplace wherever possible.
c) All petty cash disbursements shall be evidenced by vouchers or receipts detailing the item(s) procured and the Total Acquisition Cost.

3. REQUEST FOR QUOTATION—PURCHASES OF $ 10,000.00 OR LESS
a) Procurements with an estimated Total Acquisition cost of $ 10,000.00 or less, may be handled by the Request for Quotation procedure, however there may be requirements estimated at $ 10,000.00 or less where it will be more appropriate to solicit bids using a Request for Proposal or a Request for Tender.
b) The request for Quotation is a bid solicitation where written quotes are obtained from not less than two suppliers without formal advertising or receipt of sealed bids.
c) Quotes may be requested from those suppliers who appear best qualified to meet the provisions of the quotation.
d) The Department Head will obtain a minimum of two quotes, review the quotes to ensure compliance with the related procedures and established terms or conditions, and report to Council setting out the Lowest Compliant Bidder.
e) Final acceptance of Quotations must be by resolution of Council unless the Total Cost of Acquisition is less than $1,000 and the procurement is within a line item of a budget estimate already approved by Council in which case the Department Head may approve the procurement.

4. REQUEST FOR PROPOSAL
a) A Request for Proposal shall be used for procurements exceeding $ 10,000.00 where one or more of the criteria for issuing a Request for Tender cannot be met, such as;
(i) owing to the nature of the requirement, suppliers are invited to propose a solution to a problem, requirement or objective and the selection of the supplier is based on the effectiveness of the proposed solution rather than on price alone, or
(ii) it is expected that negotiation with one or more bidders may be required with respect to any aspect of the requirement.
b) A Request for Proposal shall be issued by;
(i) advertising in a publication with large commercial circulation and/or
(ii) an advertisement, at least once, in the local newspaper.
c) The Department Head with/without a Committee of Council will review all proposals against the established criteria and reach consensus on the final rating results.
d) A report will be presented to Council recommending award of contract to the supplier meeting all mandatory requirements and providing best value as stipulated in the Request for Proposal.
e) Final acceptance of Proposals must be by resolution of Council.

5. REQUEST FOR TENDER
a) A Request for Tender shall be used for procurements exceeding $ 10,000.00 where all of the following criteria apply:
(i) two or more sources are considered capable of supplying the requirement;
(ii) the requirement is adequately defined to permit the evaluation of tenders against clearly stated criteria;
(iii) the market conditions are such that tenders can be submitted on a common pricing basis;
(iv) it is intended to accept the lowest priced responsive tender without negotiations;
(v) sufficient funds are available and identified in appropriate accounts within Council Approved budgets; except in an emergency situation;
(vi) the provisions of this By-law are complied with.
b) A Request for Tender shall be issued by:
(i) advertisement in a publication with large commercial circulation and/or
(ii) an advertisement, at least once, in the local newspaper.
c) The Department Head with/without a Committee of Council will review all tenders against the established criteria and reach consensus on the final rating results.
d) A written report may be prepared and presented to Council recommending award of contract to the supplier meeting all mandatory requirements and providing best value as stipulated in the Request for Tender and is the lowest price.
e) Final acceptance of Tenders must be by resolution of Council.

6. PURCHASES FROM PRE-QUALIFIED SUPPLIERS
a) Where Council considers that either
-standardization, continuity, or familiarity of a Supplier with the existing policies, equipment or systems of the Municipality; or
-close proximity for quick pick-up or delivery
are significant factors in obtaining Best Value, it may establish a list of Pre-Qualified Suppliers of specific types of Goods, Services and Construction.
b) The names of any such Pre-Qualified Suppliers; the type(s) of procurement they are pre-qualified to supply; and the maximum Total Acquisition Cost of each procurement which can be made under the Pre-Qualified Procurement procedure set out in this clause shall be set out in Schedule “B” forming part of this by-law.
c) Changes to Schedule “B” shall be by means of a by-law amending Schedule “B” to this by-law. Council shall review Schedule “B” annually to determine if each Pre-Qualified Supplier continues to provide Best Value and whether or not changes should be made to the Suppliers, items or maximum amounts; and may review it at any time on its own initiative or at the request of a Department Head.
d) Inclusion in Schedule “B” as a Pre-Qualified Supplier does not create any contract or entitlement to participate in any procurement. A Supplier may be removed from Schedule “B” at any time and no reason is required for such removal.
e) Unless Council directs otherwise, when considering the addition of a new Supplier or type of procurement to Schedule “B”, the Department Head most likely to use such procurement shall solicit competitive bids or proposals for a “basket” of likely procurements from more than one Source, including any Source of similar procurements already listed in Schedule “B”; and shall report the results of such competition, the Department Head’s recommendation and the reasons for such recommendation to Council.
f) The Provisions of Sections 2, 3, 4 and 5 of this Part do not apply to a procurement from a Pre-Qualified Supplier PROVIDED THAT the type of procurement is that specified for that Supplier in Schedule “B” and the Total Acquisition Cost is less than the maximum set out in Schedule “B” for such procurement.
g) Nothing in this Section requires a Department Head to make any procurement from a Supplier listed in Schedule “B”. Department Heads are encouraged to test the market from time to time; to use an appropriate competitive procedure for procurements when they believe it will yield Best Value; and to recommend changes to Schedule “B” whenever they believe the goal of Best Value will be served by changes.

7. IN HOUSE PROCUREMENTS
Prior to initiating and before completing a procurement, a Department Head shall consider whether or not it is possible to obtain the required Good, Service or Construction “in house” using its own employees; and whether or not such in house procurement would provide Best Value to the Municipality.

8. JOINT TENDERS
Council may authorize a Department Head to participate in a joint tendering process along with other municipalities. The procurement procedures should be consistent with municipal policy. Final acceptance of Proposals must be by resolution of Council.

PART VI – BID AND CONTRACT ADMINISTRATION

1. SUBMISSION OF BIDS
Sealed bids, clearly marked as to contents, shall be accepted. Bids by facsimile or in electronic form will not be accepted.

2. NO ACCEPTABLE BID OR EQUAL BIDS RECEIVED
a) Where bids are received in response to a bid solicitation but exceed budget, are not responsive to the requirement or do not represent fair market value, a revised solicitation shall be issued in an effort to obtain an acceptable bid unless Subsection (b) applies.
b) The Council may waive the need for a revised bid solicitation and instruct the Clerk to enter negotiations with the lowest compliant bidder or the highest compliant bidder for a revenue-driven bid selection emanating from a bid solicitation under the following circumstances:
(i) the total cost of the lowest compliant bid is in excess of the funds appropriated by Council for the project, and
(ii) the Council and Department Head agree that the changes required to achieve an acceptable bid will not change the general nature of the requirement described in the bid solicitation.
c) The method of negotiation shall be those accepted as ethical practices.
d) If two equal bids are received, a means of breaking the tie consistent with the provisions of the solicitation shall be employed.
e) Factors to be considered in breaking the tie include:
(i) prompt payment discount,
(ii) when delivery is an important factor, the bidder offering the best delivery date may be given preference,
(iii) a bidder in a position to offer better after sales service, with a good record in this regard, may be given preference,
(iv) a bidder with an overall satisfactory performance record may be given preference over a bidder known to have an unsatisfactory performance record.

3. GUARANTEES OF CONTRACT EXECUTION AND PERFORMANCE
a) The Council may require that a bid be accompanied by a Bid Bond or other similar security to guarantee entry into a contract.
b) In addition to the security referred to in Subsection (a) above, the successful supplier may be required to provide:
(i) a Performance Bond to guarantee the faithful performance of the contract, and/or
(ii) a Payment Bond to guarantee the payment for labour and materials to be supplied in connection with the contract.
c) The Council and Department Head shall select the appropriate means to guarantee execution and performance of the contract. Means may include one or more of, but are not limited to, financial bonds or other forms of security deposits, provisions for liquidated damages, progress payments, and holdbacks.
d) Prior to commencement of work and where deemed appropriate, evidence of Liability Insurance Coverage satisfactory to the Department Head must be obtained, ensuring indemnification of the Township of Nipissing from any and all claims, demands, losses, costs or damages resulting from the performance of a supplier’s obligations under the contract.
e) Prior to final payment to a supplier, a Certificate of Clearance from the Workplace Safety and Insurance Board shall be obtained, when appropriate, ensuring all premiums or levies have been paid to the Board to date.
f) The Department Head shall ensure that the guarantee means selected will:
(i) not be excessive but sufficient to cover financial risks to the Township;
(ii) provide flexibility in applying leverage on a supplier so that the penalty is proportional to the deficiencies, and
(iii) comply with provincial statutes and regulations.
g) Financial bonds for contract performance shall only be required where the Township will be exposed to costs if the contractor does not complete the requirements of the contract.
h) If the risk to the Township is not adequately limited by the progress payment provisions of the contract, a minimum payment hold back of 10% shall be mandatory on all contracts exceeding $ 30,000.00.

4. IRREGULARITIES CONTAINED IN BIDS
a) The process for administering irregularities contained in bids pertaining to all contracts shall be as set out in Schedule “A”.
b) For an irregularity listed in the first column of Schedule “A”, the response applicable to it is set out opposite to it in the second column.

5. CONTRACTUAL AGREEMENT
a) Subject to (b) and (c) below, the award of contract may be made by way of a Purchase Order or written agreement.
b) A Purchase Order may be used when the resulting contract is straightforward.
c) A formal agreement is to be used when the resulting contact is complex and will contain terms and conditions.

6. CONTRACT AMENDMENTS AND REVISIONS
a) No amendment or revision to a contract shall be made unless the amendment is in the best interest of the Township.
b) No amendment that increases the Total Acquisition Cost of a contract shall be agreed to without a corresponding change in requirements or scope of work.
c) Amendments and revisions to contacts shall be treated as an entirely new contract for purposes of compliance with
-the identification and availability of sufficient funds in appropriate
accounts within the Council approved budget; and
-whether Council approval is required pursuant to Part IV, Section 6 of
this by-law.

7. EXECUTION AND CUSTODY OF DOCUMENTS
The Clerk is authorized to execute all agreements in the name of the Municipality and shall be responsible for the safeguarding of original purchasing and contract documentation for the contracting of goods, services or construction for which the award is made.

8. TERM OF COUNCIL
Where a contract may extend beyond the term of the Council, the contract shall contain provisions to minimize the financial liability of the Township should the subsequent Council not approve sufficient funds to complete the contract and the contract must be terminated by the Township.

PART VII – OTHER

1. ACCESS TO INFORMATION
The disclosure of information received relevant to the issue of bid solicitations or the award of contracts emanating from bid solicitations shall be made by the appropriate officers in accordance with the provisions of the Municipal Freedom of Information and Protection of Privacy Act, as amended.

2. BY-LAW REVIEW
This By-law shall be reviewed by Council as soon as possible following a municipal election, to evaluate effectiveness of the procurement process and any other prescribed matter.

3. EFFECTIVE DATE
This By-law shall come into force and take effect on the date of passing.

4. BY-LAW REPEALED
That By-Law No. 1098 is hereby repealed.

READ A FIRST, SECOND AND THIRD TIME AND PASSED THIS 25TH DAY OF OCTOBER, 2005.

THE CORPORATION OF THE TOWNSHIP
OF NIPISSING

______________________________________
Mayor

______________________________________
Clerk

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12.

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SCHEDULE “A”

IRREGULARITY

Late Bids

Unsealed Envelopes

Insufficient Financial Security
(No deposit or bid bond or agreement to bond or insufficient deposit or bid bond or agreement to bond)

Bids not completed in non-erasable medium and signed in ink

Incomplete Bids
(Part bids – all items not bid)

Qualified Bids
(Bids qualified or restricted by an attached statement)

Bids received on documents other than those provided by the Township of Nipissing

Bids containing Minor Clerical Errors

Execution of Agreement to Bond (Performance Security). Bonding company corporate seal or signature missing from agreement to bond

Execution of Bid Bonds (Financial Security):

a) Corporate seal or signature of the
bidder, or both, missing

b) Corporate seal or signature of
bonding company missing

Other Bid Security – Uncertified Cheques

Documents – Execution:

a) Corporate seal and/or signature
missing

Erasures, Overwriting or Strike-Outs which are not initialled:

RESPONSE

Automatic rejection and not read publicly

Automatic rejection

Automatic rejection unless, in the opinion of the Council and Department Head, the insufficiency in the financial security is trivial or insignificant

Automatic rejection

Automatic rejection unless, in the opinion of the Council and Department Head, the incomplete nature is trivial or insignificant

Automatic rejection unless, in the opinion of the Council and Department Head, the qualification or restriction is trivial or not significant

Automatic rejection unless, in the opinion of the Council and Department Head, the matter is trivial or insignificant

48 hours to correct and initial errors

Automatic rejection

48 hours to correct

Automatic rejection

Automatic rejection

48 hours to rectify situation

14.

15.

16.

17. a) Uninitialled changes to the
tender documents which are
minor (example: the
tenderer’s address is amended
by over writing but not
initialled)

b) Unit prices in the Schedule of
Prices have been changed but
not initialled and the contract
totals are consistent with the
price as amended

c) Other mathematical errors,
which are not consistent with
the unit prices

Mistakes in Tendering. On the
application of the Tenderer and the demonstration of an error in the tender or the Tenderer’s calculation sheet

Documents, in which all necessary Addenda, which have financial implication, have not been acknowledged

Other Minor Irregularities

Any Irregularity 48 hours to initial

48 hours to initial

48 hours to initial corrections as made by the Township

Following consultation with the bidder and the Council/Department Head, where applicable and requested, the Council may allow the bid to be withdrawn and the bid deposit returned

Automatic rejection

Council and Department Head shall have authority to waive irregularities, which they jointly consider to be minor

Despite the provisions herein contained, Council may waive any irregularity where it considers it to be in the best interest of the Township

SCHEDULE “B”

PRE-QUALIFIED SUPPLERS

Name of Supplier Type of Procurement Maximum Total Acquisition Cost

Sifto Canada Inc. Road Salt $10,000.00 Annually

E.S. Hubbell and Sons Ltd. Culverts $10,000.00 Annually