Administrative Procedure

Transcription

1 Administrative Procedure 1-9\ REGIONAL MUNICIPALITY '--"' 0 ' WOOD BUFFALO Policy Name: Supply Chain Management Administrative Procedure Effective Date: May 2013 STATEMENT: The Regional Municipality of Wood Buffalo (Municipality) will procure all goods, services and construction efficiently, fairly and in a cost effective manner, in a publicly accountable, open and transparent process. Procurement activities will be conducted in accordance with established policies and procedures. The Supply Chain Management Administrative Procedure is in accordance with the Council Policy Procurement Policy PUR-100 effective date April 14, This Administrative Procedure FIN-190 supersedes any and all other Procurement or Supply Chain Management Administrative Procedures. PURPOSE AND OBJECTIVE: The objectives of this procedure are to: establish the roles and responsibilities of operating departments as related to Supply Chain Management activities within the Municipality; establish responsibilities of Supply Chain Management - a department of the Finance Services Division/Office of the Chief Financial Officer; apply approval limits per Delegation Order - Delegation of Financial Signing Authority and Designated Officer Duties; ensure procurement, Contract Management, Accounts Payable and Materials Management practices and activities consistently manage business integrity, purchase value and risk; establish Supply Chain Management procedures and related documents in support of procurement, Contract Management, Accounts Payable and warehousing activities; ensure objectivity and fairness of procurement practices for all operating departments involved directly or indirectly in the procurement function based on the requirements of the New West Partnership Trade Agreement (NWPTA) Agreement on Internal Trade (AJT), the Municipal Government Act and any other related legislation; and establish Best Practice for the procurement of goods, services and construction. Regional Municipality of Wood Buffalo Page 1of 25

2 PROCEDURE: 1 Definitions NOTE: Defined terms are italicized throughout this document Accounts Payable - A branch of the Supply Chain Management department Agreement on Internal Trade (AJT) - An agreement entered into by the federal, provincial and territorial governments for the purpose of reducing trade barriers within Canada. The goal is to have people, goods, services and investments moving freely across the country Approval Signature - Signature by a person with Requisition Authority that signifies that a specific purchase requisition is approved and those funds are allocated within the approved budget for that purchase Certificate of Recognition - Issued by Alberta Construction Safety Association and recognized by the Alberta Human Resources and Employment, Workplace Health & Safety to employers who meet a pre-detennined safety program Standard. A Certificate of Recognition is valid for three years Cheque Requisition - A fonn used to request payment for costs that are not covered by a Purchase Order, such as grants, honorariums and property tax refunds Change Notice - A fonn used to request and authorize extensions, additions or deletions to Purchase Order and Contracts that could not reasonably have been anticipated, defined, budgeted or otherwise Contracted for originally Commercial Analysis - The analysis of the bids received, including the determination of whether the bidders meet all commercial requirements of the bid submission documents and whether the bid is a valid bid Competitive Process - The process by which competitive bids are considered for a contemplated procurement from various Suppliers through processes where the bids are requested, received, evaluated and a Contract is awarded through a public process that promotes fairness and transparency Confidential Information - means any information respecting the Municipality, whether or not originated by a Municipal Employee, whether in written, oral, electronic, mechanical or any other form, whether disclosed before or after the effective date of employment of an employee, whether or not specifically described as "confidential" and whether provided by the Municipality or by anyone on behalf of the Municipality. Confidential Information includes, but it is not limited to, business, client, equipment, technical, accounting, financial, marketing and economic information, information from Regional Municipality of Wood Buffalo Page 2 of 25

3 or concerning Suppliers (including infonnation on contacts, employees, pricing and supply), infonnation concerning Requests for Quotes, Emergency Purchases, Request for Tenders, Contracts, Requests for Proposals, Request for Information and Purchase Orders, processes, data, drawings, designs, quality manuals, forms, procedures, methods of operation, computer records and software. Confidential Information includes all notes, analyses or other documents prepared by or on behalf of the Municipality and information considered confidential under the Freedom of Information and Protection of Privacy Act. Information available to the public is not considered confidential Conflict of Interest - A Conflict of Interest exists when the independence or impartiality of a Municipal Employee's decisions or actions are impaired or may reasonably be expected to be impaired because of outside employment, political, business or family interests. For full details reference the Code of Conduct Administrative Directive and the "Conflict of Interest in Procurements " Administrative Procedure Contract - A written financial obligation arising from an agreement between the Municipality and at least one (1) other party for the supply of goods, services or construction which would be in the fonn of a Purchase Order or an agreement specific to the requirement Contract Administration - A branch of the Supply Chain Management department Contract Authority-The Supply Chain Management Director and the Executive Director for the contract area, who is authorized by the Chief Administrative Officer (CAO) (as per Chief Administrative Officer Delegation Order - Delegation of Financial Signing Authority and Designated Officer Duties) to enter into Contracts on behalf of the Municipality. The Contract Authority is the sole authority to create, change, close and tenninate all Contracts covered by this policy Contract Management - The process and activities through which the Municipality ensures that all parties to an agreement adhere to the terms and conditions of the Contract and provide the required services and products that meet the expectations of the Municipality. Contract Management begins once a Contract need has been identified and ends when the Contract has been performed and expired or has been terminated and all associated Contract paperwork and files have been closed and archived Digital Equipment - Equipment used for the purposes of collecting, using disseminating, and transferring electronic infonnation. (Examples include: GPS devices, digital cameras, printers, copiers, scanners, telephones, personal digital assistants, desktop and laptop computers, peripheral equipment, etc.) 1.16 Dispute Resolution - A process used by the Municipality to resolve Contractual disputes, which will include bringing together various stakeholders and pertinent information relating to purchase agreement to develop and implement steps to resolve the dispute and complete the Contract. The dispute resolution process may involve consultation from parties outside the Municipality. Regional Municipality of Wood Buffalo Page 3 of 25

4 1.17 Electronic Tendering System - A system capable of transmitting Requests for Quotes, Emergency Purchases, Request for Tenders, Contracts, Requests for Proposals, Request for Information and Purchase Orders, Bid Submissions and Contract A wards through the Internet Emergency Purchase - The procurement of goods, services or construction where an unforeseen situation of urgency exists and the goods, services or construction cannot be obtained in time by means of open procurement procedures Freedom of Information and Protection of Privacy Act (FOIP) - Provincial legislation that regulates the collection, use, distribution and the privacy of information by the Municipality Invoice Approver - Municipal Employee who directly oversees the perfo1mance of the work, delivery of goods or receipt of services from Suppliers for the purposes of payment validation 1.21 MASH Annex Procurement provisions of the Agreement on Internal Trade that are applicable to municipalities, municipal organizations Materials Management - is a process and activities of planning and controlling the flow of materials and associated infonnation into and throughout mw1icipal operations involving material planning, scheduling, packaging, storage, inventory control, cataloging and distribution Municipal Employee - An individual employed by the Municipality Municipal Government Act - Provincial legislation that applies to all governing municipalities and their authority New West Partnership Trade Agreements (NWPTA) - an accord between the Governments of British Colwnbia, Alberta and Saskatchewan that created Canada's largest, barrier-free, interprovincial market. The NWPTA procurement rules apply to the municipal sector where the anticipated procurement value is: $75,000 or greater for goods and services $200,000 or greater for construction 1.26 Non-competitive Process - A process of determining a Supplier for goods or services in which the Competitive Bid Process is not followed Notice-A section in an agreement defining how, where and when parties of the agreement will be notified of a change or action relative to the agreement. All Contracts must include a notice clause. Regional Municipality of Wood Buffalo Page 4 of 25

5 1.28 Procurement Card (PCard) - A credit card used by authorized Municipal Employees for the purchase of goods and services as governed by the Procurement Card Policy and Procedures Procurement Services - A branch of the Supply Chain Management department Procurement Call - The distribution of competitive bid documents (RFT and RFP) in order to solicit bids for the supply of goods, services or construction specified in the procurement documents Progress Payment - A payment made to a Contractor for the work that has been completed on a Contract Project Manager- Municipal Employee, within Engineering or an Operating Department who works with Supply Chain Management to develop the procurement strategy, bidding documents and to directly oversee the perforn1ance of the work and delivery services from Suppliers in accordance with the Purchase Order or Contract Purchase Order - A Contract between a Supplier and the Municipality for the supply of goods, services or construction at an agreed price and delivery date, subject to the terms and conditions of the purchase order or Contract. Purchase Orders are also used to draw on a Standing Offer Agreements Purchasing Designate - Person within Supply Chain Management responsible for ensuring that orders for goods, services or construction are placed and properly authorized Request for Information (RF!) - A process where certain infonnation is requested from Suppliers regarding the feasibility and availability of specific goods and/or services in the market place Request for Proposal (RFP) - The solicitation for a proposal by invitation or public advertisement. This process may be used as an alternative to the Request for Tender process, normally for the provision of services. Specifications are typically general in nature with pre-established criteria and weighting factors. The selection of the successful Supplier is based on the pre-established evaluation criteria and not necessarily based on the lowest price to the Municipality Request for Pre-Qualification (RFPQ) - A process whereby the experience, skills base, manpower, equipment and financial resources of a Supplier are evaluated against pre-set criteria to determine if the Supplier has the ability to meet the requirements to work on a specific project or a category of work for the Municipality Request for Quote (RFQ) - A process to solicit competitive bids when the solution(s), specifications, performance standard(s), and timeframe(s) are defined when the value of Regional Municipality of Wood Buffalo Page 5 of 25

6 the purchase is less than $75,000 for goods or services and less than $200,000 for construction Request.for Tender (RFT) - The solicitation for a tender by invitation or public advertisement. This process is used when the solution(s), specifications, perfonnance standards, and time frames are defined. The Contract is typically awarded, based on the pre-established evaluation criteria, to the bidder with the lowest overall cost solution to the Municipality unless additional evaluation criteria have been stipulated in the tender documents, in which case the award will be to the bidder with the highest evaluated score Requisition - A screen used in SAP to initiate and approve a request for a purchase. This screen contains details of the requested purchase, a financial account code for allocation to the financial records, and an authorized signature signifying approval SAP - The enterprise requirement planning software used by the Municipality for business management Requisition Authority - The maximum dollar amount a Municipal Employee is authorized to approve on a Purchase Requisition for the supply of goods or services Software - Computer programs used in conjunction with Digital Equipment Sole-source Purchases - Purchases that are obtained through one Supplier in accordance with AIT and NWPTA requirements Single-source Purchases - Purchases that are obtained through one Supplier in accordance with AIT and NWPTA requirements. All Single-source purchases over $10,000 and less than $75,000 require the approval of one level above the initiating Requisition Authority and the completion of a Non-competitive Bid form approved by Supply Chain, prior to final commitment. Purchases over $75,000 (goods & services) and $200,000 ( constmction) must be competitively bid in accordance with AIT and NWPTA requirements Standing Offer Agreement (SOA) - A pre-negotiated agreement for purchases of goods or services that can be used by departments to place an order for standardized, repetitive or commodity-type purchases. Standing Offer Agreements are referred to as "Outline Agreements" in SAP Stores-A branch of the Supply Chain Management department Supply Chain Management - A department that includes the Procurement Services, Contract Administration, Accounts Payable, and Stores branches Suppliers (also referred to as Vendors or Contractors) - Those individuals and entities who supply goods, services or construction to the Municipality. Regional Municipality of Wood Buffalo Page 6 of 25

7 1.50 Total Cost - means all costs for an item or solution over its useful life including costs for obsolescence, disposal, maintenance, licensing and project termination. When the municipality is using "total cost" as evaluation criteria this will need to be made explicit in all procurement documents so bidders know how their bid will be evaluated Technical Analysis - The analysis of compliant bids to determine a bidder's ability and suitability to complete a scope of work in compliance with the specifications and other technical requirements defined in the Procurement Call Tender/RFP Request Document - A document used by Procurement Services to gather infonnation necessary to begin a formal Competitive Bid Process Vendor Performance Evaluation - A process used to monitor and report on the performance of vendors, while under Contract with the Municipality, with the intent of maintaining or improving an acceptable level of performance for goods and services delivered Procurement Standard Operating Procedures (SOP) - A set of instructions and procedures for procurement activities. 2. Responsibilities 2.01 Chief Financial Officer (CFO)!Executive Director Financial Services a) Approve this and all amendments to this Administrative Procedure Executive Directors: a) support the implementation of this Administrative Procedure and b) support and reco1mnend any amendments to this Administrative Procedure Directors: a) ensure the Municipality's Supply Chain Management procedures are followed and accurately reported; b) promote conduct and communication with Suppliers that is fair, professional and respectful; support procurement practices that promote and manage Supplier development and perfonnance; c) ensure proper financial management and internal controls are implemented; and d) support and recommend amendments to this Administrative Procedure Operating Departments: a) work in conjunction with Supply Chain Management to develop and implement strategies and plans to secure Contracts and Supplier relationships capable of delivering long term support and value to the Municipality; b) ensure that all Supply Chain Management activities are carried out in accordance Regional Municipality of Wood Buffalo Page 7 of 25

8 with the Administrative Procedures herein and SOP's; c) follow Supply Chain Management Administrative Procedure and SOP's that promote efficient, effective, economic and prudent use of public funds; d) identify the specific need for goods, services or construction; e) ensure procurements are recorded under the financial account code set up for that specific purpose; t) ensure that funds are available within the- operating and/or capital budget; Provide required support to Supply Chain Management to develop clear and concise product I project specifications for the goods, services or construction required and develop evaluation criteria and weighting factors for Requests for Tenders or Requests for Proposals; g) maximize competition in procurement activities; and h) ensure the completion of the procurement cycle (order goods, services or construction, receive the goods, services or construction, and ensure the required documentation is complete and accurate); i) shall review all agreements to ensure understanding of the affect to the daily operations of the department and the contractual obligations or the Municipality and the Supplier; Operating Departments are responsible for managing the Contracts following the award Legal Services a) Provide required support to Supply Chain Management to develop and maintain procurement and Contract documents that protect the legal interests of the Municipality. Legal procurement and Contract review are required under the following circumstances: Non-Standard Template documents are used i. Changes to Insurance Clauses 11. High Risk Work 111. Department requests or SCM Management team requests 1v. High Visibility (City Centre, etc.) v. Tenders >$10m or RFP's >$1m b) Provide required support and advice regarding Contract disputes Supply Chain Management - Procurement Services: a) manage all procurement activities for all Operating Departments except Engineering Department; Regional Municipality of Wood Buffalo Page 8 of 25

9 b) co-ordinate all procurement activities within the Engineering Department; c) ensure that all procurement documentation is completed and properly authorized; d) maintain the complete inventory of Supply Chain contract documents from creation to closure; e) work in conjunction with Operating departments to develop procurement plans that will secure Contracts and Suppliers relationships capable of delivering long tenn support and value to the Municipality; f) act as the Purchasing Designate for all goods, services or construction except those for which Subsection 03.01, Subsection and Section 08 apply; g) approve RFI, RFQ, RFPQ, RFT and RFP documents prior to those documents being issued to the public; h) complete the Commercial Analysis for bids received through Procurement Calls; i) approve all procurements and Contracts in accordance with the Delegation Order; j) approve exception increases to Procurement Card limits in excess of Procurement Card procedures; and k) prepare and maintain this and other administrative procedures to ensure adherence to the Council Policy PUR-100, AIT and NWPTA requirements Supply Chain Management - Contract Administration: Operating Departments are responsible for managing the Contracts following the award; however, Contract Administration will support the Operating Departments with interpretation of the Contract terms and conditions. Contract Administration will: a) assist departments to support the management of the flow of information and documentation to ensure full compliance with the terms and conditions of a Contract; b) monitor project progress as it relates to the terms of the Contract; c) assist departments to monitor, evaluate and manage Contract performance, Vender Evaluation Performance (VEP), maintain VEP database and resolve disputes; d) assist departments to document Contract changes and modifications; e) assist departments to monitor Contract payments to ensure commercial terms and conditions comply with Contract terms; f) interpret the commercial tenns and conditions of the Contract; and g) secure appropriate documentation from the Supplier to manage Contract risks including safety and insurance. Regional Municipality of Wood Buffalo Page 9 of 25

10 2.08 Supply Chain Management - Accounts Payable: a) manage all activities to ensure payment requests (invoices, Cheque Requisitions) are matched to a legitimate commitment to pay and to process payment as per the Contract; b) act as the single point of contact to Suppliers for information regarding payment processmg; c) ensure the timely payment of Suppliers ' invoices and other financial commitments; and d) prepare and maintain appropriate administrative procedures to ensure all payments are recorded and documented in accordance with acceptable financial procedures and practices Supply Chain Management - Stores: 3. General a) manage all goods and materials purchased through Procurement Services and stored on Municipal property as inventory including both Corporate Inventories and Business Unit inventories as described in "Stores" below; b) maintain appropriate levels of inventory to support Department requirements while securing good value for the goods purchased; c) maintain accurate records of the goods and materials in inventory; and d) prepare and maintain this and other administrative procedures to ensure adherence to the policies and procedures herein Application of Policy This policy applies to the purchase of all goods, services and construction including but not limited to consulting services, personal services, training and education services, engineering and architectural services and freight and customs services All dollar amounts provided herein are inclusive of any applicable taxes Except for goods, services or construction purchased from a foreign country, purchases of office furniture, and purchases of Digital Equipment and Software, departments may directly purchase goods, services or construction up to a maximum of$ I 0,000 per purchase without the involvement of Supply Chain Management All foreign purchases must be requested through Procurement Services due to Canada Revenue Agency's guidelines in regard to these purchases All office furniture must be requested through the Space Planning Department in order to Regional Municipality of Wood Buffalo Page 10 of 25

11 ensure that the "Work Station and Office Furniture Standard" is being followed and the shipping, receiving and installation of these products are coordinated to obtain best value All Digital Equipment and Software purchases must be requested through the lnfonnation Technology Department due to the specific requirements for standards and compatibility with the current environment. Items having a geographic information systems component will also be coordinated with the Geographic lnfonnation Systems Branch and the Information Teclmology Department Requests for repairs or warranty coverage that involve shipping to a foreign country must be coordinated with Procurement Services in view of rules and regulations in regard to shipping to foreign countries All Municipal Employees shall pursue procurement practices that promote efficient, effective, economic and prudent use of public funds in accordance with this procedure. The Competitive Bid Process, Procurement Calls, Request for Proposals, are required prior to committing the Municipality to any expenditure in order to ensure compliance with Council Policy PUR-100, AIT and NWPTA Equal treatment of Suppliers - Municipal Employees must ensure that their dealings with Suppliers do not result in any advantage or disadvantage to any Supplier Suppliers doing business with the Municipality must hold a valid Municipal business license Municipal Employees involved in procurement activities must observe the following: a) Supply Chain Management must be contacted for set up of any new Suppliers before a Purchase Order can be issued to the Supplier; b) all Suppliers must be made aware of and agree to follow all safety policies and procedures of the Municipality; c) Freedom oflnformation and Protection of Privacy Act (FOIP) requirements and restrictions; d) obligations concerning Conflict of Interest and Confidential Information; and e) refrain from accepting gifts, gratuities, discounts or other favours as per the Code of Conduct Administrative Procedure Supply Chain Management may suspend or debar Suppliers exhibiting an inability or unwillingness to fulfill their Contractual obligations to the Municipality Responsibility and accountability for procurements made by Municipal Employees remains with those delegated the Requisition Authority to approve these transactions All procurement activities are detailed and governed by the Procurement Standard Regional Municipality of Wood Buffalo Page 11 of 25

12 Operating Procedures which are managed by Supply Chain Management Conflict o[interest In conducting procurement activities, where a Conflict of Interest exists or could potentially exist, an employee must abide by the Code of Conduct Policy and more specifically must not put his or her personal interests in conflict with the best interests of the Municipality. In particular, an employee must avoid any situation in which there is, or may appear to be, a potential conflict between the interests of the Municipality and the personal interests of the employee. An employee must disclose to his or her supervisor and Department Director all circumstances that could be considered a Conflict of Interest. Situations which may involve a Conflict of Interest include, but are not limited to the following: a) a family, business or financial relationship with a Supplier; b) an employee or a family member of an employee having an ownership or financial interest in any entity which conducts or seeks to conduct business with the Municipality; and/or c) any other arrangement or circumstances, including family or other personal relationships, which might dissuade the employee from acting in the best interest of the Municipality. The Director of Supply Chain Management must receive a copy of all Conflict of Interest disclosures that relate to procurement activities. Full disclosure of all circumstances that could be construed as a Conflict of Interest includes disclosing the existence of a relationship with a Supplier. Any disclosures of a Conflict of Interest will be dealt with in the manner detailed in the Conflict of Interest in Procurements & the Code of Conduct Policy Confidentiality Employees will be trusted with Confidential In.formation, the disclosure of which would be highly detrimental to the best interests of the Municipality. Employees must maintain the confidentiality of such Confidential Information is a proprietary right which the Municipality is entitled to protect. Employees shall not use any Confidential Information for their own benefit, nor disclose any Confidential Information to any person or entity, during their employment or after their employment ceases Green Procurement The Municipality encourages and prefers goods and services with a reduced impact on the environment. Procurement activities will incorporate sustainability, reduced carbon dependency, and zero waste as integral evaluation criteria in supply selection, wherever possible. All procurement activities will comply with the Municipality's Green Regional Municipality of Wood Buffalo Page 12 of 25

13 Policy No.: FIN-190 Procurement Policy. 4. Purchasing Procedures 4.01 All procurements must be initiated by using a Requisition, except procurements made using a Procurement Card (PCard). Requisitions are used to identify need for goods, services or construction and to authorize procurement action by either Procurement Services or a department Purchasing Designate A PCard is used for immediate purchases (no backorders) of readily available goods, services or construction with a total value of no more than $10,000 per purchase. PCards are not to be used to circumvent the use of Requisitions (e.g. using two PCard transactions to purchase goods in excess of the $10,000 limit). Employees can contact Supply Chain Management to inquire as to whether a Supplier accepts PCards Procurement Cards must be managed per the Procurement Card Policy A Purchase Order is generated from a Purchase Requisition. The Purchase Order must clearly and precisely define the essential elements of the transaction. Instructions on how to enter Purchase Requisitions into SAP are available from Supply Chain Management All Purchase Orders must be entered into SAP prior to making a commitment for the expenditure Once a Purchase Order number has been assigned to a Requisition, that Purchase Order can only be changed or cancelled by Procurement Services Suppliers must clearly identify the relevant Purchase Order number on their invoices. These numbers are used to identify the Municipal commitment and to ensure that proper accounting of the transaction has taken place. Invoices received that do not reference a valid Purchase Order number will be returned to the Supplier In all procurements transactions, without exception, all invoices must be sent directly to Accounts Payable, in order to be processed for payment: Invoices with all required back up should be sent electronically to [email protected]. OR The Regional Municipality of Wood Buffalo Accounts Payable 9909 Franklin A venue Fort McMurray, Alberta T9H 2K4 Regional Municipality of Wood Buffalo Page 13 of 25

14 4.09 The Municipal Employee requesting the procurement of goods must ensure that the delivered goods are inspected for damage and properly recorded in SAP, if the goods are not delivered to Stores 4.10 Payments cannot be issued for goods, services or construction that is not recorded as received in SAP The Municipality values the expertise, experience and quality of work provided by Suppliers. In order to nurture and maintain lasting relationships and acceptable quality of goods, services or construction, the Municipality will evaluate Supplier performance for Contracts for goods and services exceeding $75,000 and for construction exceeding $200,000. The performance evaluations may be done periodically throughout the life of the Contract. Supply Chain Management is responsible for maintaining Vendor Pe1formance Evaluation records for all Municipal Supplier. 5. Procurement Processes The Municipality is bound by Article 14 "Procurement" in the New West Partnership Trade Agreement (NWPTA) and MASH Annex to the Agreement on Internal Trade, which require fair and open tendering of procurement oppo1tunities. The New West Partnership Trade Agreement applies to purchases equal to or over thresholds of $75,000 for goods and services and $200,000 for construction This Agreement requires non-discrimination and transparency in procurement policies and practices. The following procurement processes apply: 5.01 Procurement Planning Process - Supply Chain Management works cooperatively with departments to define the approach for the purchase and outline the key elements involved in the procurement of goods, services or construction. Procurement planning is a c1itical first step in the procurement process to define the purchase requirements, understand the outside influences and risks of the purchase and to develop strategies to effectively solicit and Contract for the goods, services or construction Competitive Bid Process The Municipality obtains competitive pricing for procurements whenever possible to maximize value for money and to comply with legislation governing public procurement. All procurements exceeding $10,000 must use an open, transparent and nondiscriminatory competitive selection process whereby competitive bids are obtained. The Competitive Bid Process is used to ensure competitive value for funds expended and to provide Suppliers the opportunity to support Municipal operations and projects. The Municipality may use either an informal or fonnal Competitive Bid Process depending on the nature and value of the purchase. a) Informal Competitive Bid Process. Municipal department staff may request quotes for goods and services Regional Municipality of Wood Buffalo Page 14 of 25

15 using the standard Request for Quote form approved by Supply Chain Management. Three quotes must, where reasonable, be requested from Suppliers through an infonnal process (i.e. phone calls, s, faxes or meetings) for the procurement of goods and services where the value of the procurement is between $10,000 and $75,000 and the procurement of construction services where the value of the procurement is between $10,000 and $200,000. Municipal department staff must attach a copy of their RFQ and resulting quotes with their on-line Requisition to Procurement Services. The Supplier whose quote is the lowest Total Cost to the Municipality or highest evaluated scored quote based on the evaluation criteria, as applicable will be chosen as the Supplier for the goods, services or construction. Request for Quote forms are available from Procurement Services. b) Formal Competitive Bid Process Procurement Services will co-ordinate the formal Competitive Bid Process for 1) the purchase of goods and services where the value of the procurement is $75,000 or greater and 2) the procurement of construction services where the value of the procurement is $200,000 or greater. This process typically uses a Request for Tender or Request for Proposal document to solicit responses from Suppliers. The Supplier with the lowest Total Cost bid or highest evaluated scored proposal will be awarded the Contract to provide the goods, services or construction. All Formal Competitive Bidding will comply with federal and provincial requirements for open tendering through an Electronic Tendering System. All bid or proposal submissions in the formal Competitive Bid Process will be in a written form and must be received in Procurement Services. All submissions must be in sealed envelopes, time stamped, signed by the bidder or proponent and received on or before the published closing date and time. All insurance, Workers Compensation Board (WCB) and surety bond documents as prescribed in the bidding documents must accompany the bid submissions or proposals, as applicable. All bid submissions must be received before the Closing Time specified in the Tender/RFP Request Document. Late bids will not be accepted. Municipal Departments may use the services of a consultant to prepare Tender Documents for construction provided they follow the tendering procedures maintained by the Procurement Services and the Tender Document is reviewed and approved by the Procurement Services Supervisor, prior to being issued to the market. The Municipality will not consider bid submissions received from individuals or legal entities engaged in litigation with the Municipality. Regional Municipality of Wood Buffalo Page 15 of 25

16 5.03 In order to begin the Competitive Bid Process all relevant infonnation will be supplied from the operating department to Procurement Services through an on-line Requisition Competitive Bid Documents Procurement Services works closely with Operating Departments or Project Managers to develop procurement strategies that will identify the most effective means of securing Contracts for goods, services and construction. The following documents are used to solicit information and offers from Suppliers to implement the procurement strategies. a) Request for Information (RF!) A Request for Information can be used to solicit information regarding specific goods, services or construction. Based on the information received, the Municipality may solicit quotations, tenders or proposals consistent with the procedures prescribed in this Administrative Procedure, at which time prices would be requested. b) Request/or Quote (RFQ) The Request for Quote process and form can be used by Municipal Employees to solicit bids when the solution(s), specifications, and timeframe(s) are defined and the value of the Procurement is less than $75,000 for good or service or less than $200,000 for construction. Suppliers are provided with all pertinent information and the award is made to the bidder with the lowest Total Cost product or service. An RFQ is rarely a multiple step process and is typically used for low risk, low cost purchases. c) Request for Pre-Qualification (RFPQ) Prior to issuing Procurement Call, Procurement Services may use a Request for Pre Qualification to establish lists of qualified Suppliers for projects or categories of work. Only the qualified Suppliers will be eligible to bid or submit proposals on the specific project(s) or categories of work in a subsequent Competitive Bid Process. d) Request for Tender (RFT) When the requirements for goods, services or construction are defined a Request for Tender (RFT) can be used for any value. This process typically involves awarding a Contract to the Supplier meeting the specifications and providing the lowest Total Cost offer to the Municipality. Departments, possibly in conjunction with a consultant, must provide Procurement Services detailed specifications for the procurement required and must evaluate the technical aspects of the responses when they are received. Procurement Services will perform the Commercial Analysis of all compliant bids and the requesting department will perform the Technical Analysis of all compliant bids to evaluate the strength of the bids in accordance with the specified evaluation criteria as well as specifications noted in the RFT. An award may be made to the Supplier offering the lowest Total Cost bid and/or highest rating score based on the pre-established evaluation criteria and meeting the requirements of the RFT. Regional Municipality of Wood Buffalo Page 16 of 25

17 Procurement Services will maintain and follow a standard set of procedures in dealing with RFTs, including the instructions for the bidders, closing dates and times, rules regarding late bids, how bids are received, and public opening defined in the Procurement Call and the presentation of the bids. Where Operating Departments use the services of a consultant to develop procurement documents, in order to provide consistency in the Competitive Bid Process and to ensure that all tendering requirements are met (i.e. adherence to the AIT,, NWPTA and Council Policy PUR-100 requirements of Suppliers, etc.), consultants shall be required follow all Competitive Bid procedures maintained by Procurement Services and receive approval from Procurement Services prior to issuing a Procurement Call. e) Request for Proposal (RFP) When the requirement for goods, services or construction cannot be definitively specified (e.g. professional services) a Request for Proposal (RFP) can be used for any procurement value. This process must involve negotiation subsequent to the submission of proposals on any or all of the specifications, Contract terms and prices. In order to begin the Request for Proposal process, all relevant information will be supplied from the operating department to Procurement Services with a Requisition in SAP. Operating Departments, in conjunction with Procurement Services or a consultant, must provide specifications for the goods, services or construction required and develop evaluation criteria and weighting factors for the RFP process, ptior to issuing the Procurement Call. Procurement Services, in conjunction with the Operating Department will analyze all proposals received utilizing the evaluation criteria and weighting factors established in the released Request for Proposal. These criteria cannot be changed once the Procurement Call has been issued. Procurement Services will maintain and follow a standard set of procedures in dealing with RFPs, including the instructions for the proponents, closing dates and times, rules regarding late proposals, how proposals are received, and the presentation of the proposals When to Use an RFP or a RFT The use of RFPs or RFTs are extremely different processes and have a very different impact on the Municipality. To detennine whether it is the best for the Municipality to use an RFP or an RFT, contact Supply Chain Management Non-competitive Process Regional Municipality of Wood Buffalo Page 17 of 25

18 Although the Municipality encourages the use of a Competitive Bid Process for all procurement activities regardless of the amount of the purchase, purchase of goods, services or construction up to $10,000, as noted in the Delegation Order, or as noted in Subsection and Section 08 are not subject to the requirements of a Competitive Bid Process. a) Procurement requests or Requisitions with a value greater than $10,000 but less than $75,000 for goods and services or $200,000 for construction where a sole source is recommended must be supported by a written Non-Competitive Bid fonn justification which must be acceptable to Supply Chain Management. b) When a Non- Competitive procurement for good or services with a value of equal to or greater than $75,000 or with a value of equal to or greater than $200,000 is anticipated, Procurement Services will post a Notice ofintent to on the Alberta Purchasing Connection no less than 5 business days prior to undertaking the procurement. c) Departments requesting a change to an existing Contract must provide a Non Competitive justification fonn if 1) the value of the original Contract will increase more than 10% or 2) work is added to the original Contract that was not in the nature of the original scope. d) Under some limited circumstances it is not practical to conduct a Competitive Bid Process for goods, services or construction costing between $10,000 and $75,000. These circumstances would include: I. Emergency Purchases - See Section 08; 11. Sole-source Purchases as defined in this policy. The determination of whether an item is a Sole-source Purchase will be made by Procurement Services; 111. Procurements based on the terms and conditions of an existing Standing Offer Agreement; and 1v. In the event procurement is conducted using a Competitive Bid Process and an additional procurement is required for the same item within 3 months of the original purchase. e) Under some limited circumstances the Competitive Bid Process is not necessarily required for a purchase regardless of its value. These circumstances are outlined in Part V Exception, Section C. Government Procurement of the New West Partnership Trade Agreement and Appendix "C" Exceptions - Circumstance of Exclusion of the MASH Annex of AIT. The Competitive Bid Process is not required for circumstances such as the following: I. Emergency Need Purchases - See Section 08 Regional Municipality of Wood Buffalo Page 18 of 25

19 11. Purchases from a public body or a non-profit organization; 111. Health or social services purchases; 1v. When the acquisitions is of a confidential or privileged nature; v. Purchases of services from lawyers or notaries; v1. Purchases of goods for resale to the public; and vu. When there is an absence of bids in response to a Procurement Call f) Under some limited circumstances the Competitive Bid process can be waived for a "Sole Source" purchases as outlined in Appendix "D" Exceptions - Circumstances for Sole Supplier Procurement of the MASH Annex of AIT Pre-qualification Process When appropriate, Procurement Services solicits infonnation regarding the qualifications and capabilities of Suppliers, by means of an RFPQ to establish a list of Suppliers qualified to provide goods, services and construction for Municipal projects. The list of qualified Suppliers enables Procurement Services to conduct a subsequent Competitive Bid Process selectively whereby only Suppliers on the qualified Supplier list are invited to participate, rather than the general public Operating Depaitments must submit a Requisition to Procurement Services for the rental or lease of equipment and structures. The AIT and NWPT A do not distinguish between procurement and rental and lease of equipment/structures. Rather, all are included as procurements. All rental, lease or rent to procurement Contracts shall be established per the Competitive Bid Process. The following are examples of items that would use rent to purchase agreements: Construction machinery and equipment (tractors, compressors, backhoes, cranes, etc.). Cars and trucks Other items such as vending machines Departments must submit a Requisition to Procurement Services for equipment trials. Procurement Services will prepare Contracts for equipment trials and work with the Operating Depaitment to ensure the equipment is returned as per the Contracts. 6. Evaluating and Awarding Contracts Procurement Services will co-ordinate the evaluation and award process on behalf of the Municipality. Procurement Services will complete the initial evaluation of the responses to Procurement Calls related to qualification of the responses and the Commercial Evaluation. The Operating Departments will complete the evaluation of the Technical ai1d project responses. Together a recommendation for award will be put forward. Regional Municipality of Wood Buffalo Page 19 of 25

20 Evaluation criteria will vary according to the project and type of Procurement Call; however, the Municipality will focus on the documented evaluation criteria including but not limited to following aspects of an offer from potential Suppliers: a) Corporate capabilities including financial stability, expertise, experience with similar projects and past work experience; b) Safety practices and related certification relative to the project scope; c) Technical offering, project team and project schedule; and d) Total Cost of the offer. All Contracts for goods, service, consulting, personal services, general services and construction are awarded by the appropriate Contract Authority and authorized by the Director, Supply Chain Management as per the Delegation Order - Delegation of Financial Signing Authority and Designated Officer Duties. 7. Contracting Methods 7.07 Contracts All procurements for the Municipality are bound by the guidelines and procedures herein. No one other than a Contract Authority may enter into a procurement Contract that financially obligates the Municipality. Procurement Services will use Contract templates that have been approved by Legal Services and Insurance Services to Contract for various types of procurements. Procurement Services will remain the custodian of the templates. Any changes to the Contract templates must be approved by Legal Services and Insurance Services. All Contract changes must be in writing and signed by the Contract Authority prior to the change taking effect. In no circumstances should an unauthorized employee or agent legally bind the Municipality with apparent authority. Procurement Services will hold and maintain the original copies of all purchase Contracts and amendments for the goods, services and construction Standing Offer Agreements Standing Offer Agreements (SOAs) can be used for the purchase of: a) repetitive, specified services or goods from the same Supplier; b) standard materials or maintenance supplies which require numerous shipments; Regional Municipality of Wood Buffalo Page 20 of 25

21 and c) when more favourable pricing can be realized through volume purchases. Procurement Services will work with departments in preparation of all SOAs. Departments are to contact Procurement Services to discuss the potential to establish an SOA. Once an SOA is in place, draws can be made on these Contracts by means of a Purchase Order, Labour, Equipment and Material (LEM) fonn or credit card with the applicable approvals. Procurement Services maintains a list of all current SOAs and will post this list on the Municipality's network for departments' access Master Service (Consulting) Agreements Master Service (Consulting) Agreements are used for the purchase of consulting services on an as required basis. Consulting firms meeting the qualifications for a service category specified in a Request for Prequalification may be contracted through a Master Services (Consulting) Agreement. Departments are then able to procure services or conduct a selective Competitive Process whereby only firms with MSA' s are eligible to bid on projects. 8. Emergency Need Purchases 8.01 Guidelines The following procedures are to be used only when an Emergency Need exists to procure goods, services or construction where the lack of immediate procurement is likely to adversely affect operations, disrupt services to the public, or involve risk to the safety of personnel and/or property. To facilitate action by the Municipal Employees, exceptions to other procedures outline herein are necessary Emergency Need Purchase Procedures When it is detennined that an Emergency Need Purchase is necessary, procurement processes (Section 06) may not allow for a practical solution. Municipal Employees who face such a situation are able to make the required purchase immediately from a selected Supplier who provides a viable solution. Emergency Need Purchases should be obtained through the use of PCard or an existing SOA whenever possible. When a PCard or an existing SOA cannot be used, the following is required: Regional Municipality of Wood Buffalo Page 21 of 25

22 (a) (b) (c) Infonn the Supplier that this is an Emergency Need Purchase and that you will follow up with any required paperwork on the next business day; Immediately following the purchase, or as soon as practical, the employee making the Emergency Need Purchase is to prepare an on-line Requisition; The Requisition will include the name and full address and telephone number of the Supplier who supplied the materials and/or service, the contact person, the agreed upon price and a written Non-Competitive bid form justification; and ( d) The Requisition will be approved by the Department Director and fo1warded to Procurement Services within three (3) working days following the emergency. At this time a Purchase Order number will be assigned to the Emergency Need Purchase and regular procurement procedures will continue as per this policy. 9. Contract Administration 9.0 I Contract Administration co-ordinates the flow of information and documentation to assure full compliance with the terms and conditions of a Contract Departments or Project Managers are responsible for providing Contract Administration complete documentation with respect to any changed to the Contract in a timely manner, so as to enable the contract changes to be prepared appropriately in advance of any change in work Departments or Project Managers are responsible for obtaining quotes, associated funding and approval for Contract changes, in accordance with Contract requirements, prior to the commencement of additional work Contract Administration will assist departments to monitor, evaluate and manage Contract and Supplier perfo1mance and resolve disputes. The Operating Departments or Project Managers are accountable for managing disputes and Supplier performance with the assistance, as required, of Contract Administration. 10. Accounts Payable Procedures Accounts Payable is responsible for processing all Supplier invoices and Cheque Requisition through to payments for goods, services and construction All invoices from Suppliers must be submitted directly to Accounts Payable in accordance with the Accounts Payable Procedures All payments, other than PCard charges, are processed through Accounts Payable by either cheque or electronic funds transfer. All cheques are created and approved per Standard Operating Procedure 13 - "Run Cheques".. Regional Municipality of Wood Buffalo Page 22 of 25

23 10.04 In order to provide for the efficient and timely processing of payments made by cheque, Accounts Payable requires all Municipal Employees to provide the complete payment documentation in a timely manner to Accounts Payable to enable payment to be made in accordance with the terms and conditions of the related Contract. Exceptions will be considered under emergency situations only Accounts Payable also issues some payments by electronic funds transfer as approved by the Director of Finance. This service is used only when the specific Supplier offers this option and this payment method creates efficiencies in issuing payments Accounts Payable will match Supplier invoices for services to the valid Purchase Orders. Operating Departments or Project Managers are responsible for confirming that the charges are conect and per the Contract Procurement Cards (PCard) (a) (b) Procurement Cards are managed as per the Procurement Card Policy. Procurement Cards are available to employees approved through an application to Supply Chain Management. ( c) Municipal Employees who are in possession of a Procurement Card must ensure that complete supporting documents (including detailed receipts that include GST registration number and an itemized list of purchased goods and/or services - not just credit card slips) are attached to the PCard statement when submitting to Accounts Payable for payment. PCard purchases must also include a description that indicates what was purchased and a brief explanation of the expenditure (e.g. a notation on the back of the receipt). (d) Procurement Cards can only be used for Municipal procurements and must not be used to procure items for personal use or any item on the restricted list. 11. Stores Stores are responsible for management of all goods and materials purchased through Procurement Services and stored on Municipal property as inventory. Stores manages the following types of inventory. (a) (b) Corporate Inventories- Materials that are commonly used by all departments and stored and issued from the Stores warehouse. These inventories are normally budgeted as part of the Stores annual budget and cost recovered when issued to the department. Business Unit Inventories- Materials that are purchased for the specific needs of operating department (ex. Public Works) that can be stored and issued from the Stores warehouse or at a third party location approved by Stores. These Regional Municipality of Wood Buffalo Page 23 of 25

24 inventories are normally budgeted as part of a department's annual operating budget. Municipal departments must ensure that Stores is aware of all material inventories with an aggregated value over $5, Stores is a receiving point for ordered purchases where goods are checked for damage, recorded as received in SAP, and rerouted to the approp1iate department. 12. Non-Compliance Each Municipal Employee who undertakes procurement for good, services or construction is responsible to adhere to this procedure and to Council Policy PUR-100 Executive Directors, Directors, managers and supervisors are responsible to ensure that their reports conduct procurement in compliance with this procedure and Council Policy PUR Non-compliance with this procedure may result in liability, additional costs, duplication of effort, liabilities, and delays in the procurement and may damage the credibility of the Municipality and its employees Any Municipal Employee making or authorizing a purchase that is in contravention of the Council Policy and the procedures herein will receive written communications from the Executive Director responsible for the area giving the reason the policy was contravened and the corrective action necessary Subject to Subsection 13.05, any Municipal Employee who continues to be in contravention of the Council Policy and procedures herein is liable to disciplinary action consistent with the Human Resources Disciplinary Action Policy In accordance with the Human Resources Disciplinary Action Policy, employees who do not comply with this policy and administrative procedure will be held personally accountable for their actions, if they are working outside of their authorities. These actions could result in a reprimand, suspension or termination of employment. 13. References Agreement on Internal Trade (AIT) Chief Administrative Officer Delegation Order - Delegation of Financial Signing Authority and Code of Conduct Administrative Directive Standard Operating Procedures (SOP) in Supply Chain Management Accounts Payable SOP 1 through SOP 14 Procurement Standard Operation Procedures o SOP 2 Master Agreements o SOP 3 Vendor Qualification o SOP 5 Purchasing Plan o SOP 6 Competitive Bid o SOP 7 Bidder Selection Regional Municipality of Wood Buffalo Page 24 of 25

25 o SOP 8 Non-competitive Selection o SOP 9 Contract Award o SOP 10 Create Fonnal Contract o SOP 11 Request Goods and Services o SOP 12 Issue Purchase Orders o SOP 13 PO Change o SOP 14 Receiving o SOP 15 Vendor Performance Evaluation o SOP 16 Contract Close-out o SOP 17 Progress Billing and Invoices o SOP 18 Manage Vendor Master Record o SOP 20 Market Request Cancellation Procurement Conflict Policy Human Resources Disciplinary Action Policy Municipal Government Act New West Partnership Trade Agreement (NWPTA) Procurement Card Policy and Procedures Regional Municipality of Wood Buffalo Green Procurement Policy (under development) Travel and Subsistence Policy APPROVAL, MANAGEMENT AND REFERENCES: This Administration Procedure shall be reviewed within two year(s) from its effective date to determine its effectiveness and appropriateness. This Administration Procedure may be reviewed before that time as necessary to reflect organizational change. Approving Authority: Approval Date: Chief Financial Officer (CFO)/Executive Director Financial Services f}ut 2 r; UJ 13 Revision Approval Dates: Review Due: Policy Manager: Department Contact: Director, Supply Chain Management Director, Supply Chain Management Director, Supply Chain Management Date Regional Municipality of Wood Buffalo Page 25 of 25