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Procurement Policy P-04_Effective 2019-04-11Municipality of the District of Chester • Policy P-04 Amended -Effective Date: April 11, Procurement Policy P-04 (continued) Table of Contents 1.0 Purpose and Objectives.........................................................................................................................................................3 2.0 Definitions...................................................................................................................................................................................3 3.0 Application.................................................................................................................................................................................. 5 4.0 Directives..................................................................................................................................................................................... 5 5.0 Alternative Procurement Practices .................................................................................................................................... 6.0 Bid Opening, Evaluation, and Award................................................................................................................................7 7.0 Fair Treatment for Nova Scotia Suppliers........................................... ............................................................................ 8.0 Other Considerations.............................................................................................................................................................. 8 9.0 Obligations under the Public Procurement Act........................................................................................................... 9 10.0 Amendments.........................................................................................................................................................................10 Appendix1.......................................................................................................................................................................................11 Appendix 2 00 0006 13 Appendix3.......................................................................................................................................................................................15 Notice of Amendment - Committee of the Whole -March 21, 2019 (2019-123) 1St Notice -Council -March 28, 2►la Notice -Council - April 11, Effective Date -April 11, 2019 2019 (2019-134) 2019 (2019-156) 2 Procurement Policy P-04 (continued) 1.o Purpose and objectives The Municipality of the District of Chester (Municipality) is committed to acquiring goods Cl" services on a competitive basis to ensure that best value is received for our taxpayers and that procurement opportunities are handled in a transparent, accessible and equitable manner. The Municipality is committed to: • Providing for the procurement of goods, services, construction and facilities in a fair, open, consistent, and transparent manner resulting in best value; • Encouraging competition, innovative ideas and solutions, while respecting all Legislative and Trade Agreement obligations; • Promoting sustainable procurement in procurement decisions, including identifying and exploring opportunities to work with and support social enterprises and businesses that are owned by and who employ under -represented populations; • Ensuring that qualified suppliers have equal opportunity to bid on the Municipality's procurement activity; • Being accountable for procurement decisions. 2.0 Definitions For the purposes of this policy, the following definitions are provided: Atlantic Standard Terms &Conditions Standard instructions that support public tenders issued by the four Atlantic provinces for goods and services. Supplements may be added if and when required. Best l/alue Evaluating bids not only on purchase price and life cycle cost considerations, but also taking into account items such as environmental and social considerations, delivery, servicing, and the capacity of the supplier to meet other criteria as stated in the tender documents. Bid A supplier response to a public tender notice to provides goods, services, construction or facilities. Construction Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 3 1St Notice -Council -March 28, 2019 (2019-134) 2nd Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 Procurement Policy P-04 (continued) The construction, reconstruction, demolition, repair, or renovation of a building, structure, road or other engineering or architectural work, excluding the professional consulting services related to the construction contract unless they are included in the procurement. Construction Contract Guidelines Standard instructions developed in consultation with the Construction Association Scotia that support construction tenders. of Nova Goods Materials, furniture, merchandise, equipment, stationery, and other supplies required by the Municipality for the transaction of its business and affairs and includes services that are incidental to the provision of such supplies. Facilities (also referred to as Building Leases) All building lease requirements covering the conveyance of the right building property for a specified period of time in return for rent. Procurement Advisory Group The advisory group established by the Public Procurement recommendations to advance the outcomes of the Act. use to tangible Act to provide advice and Procurement Activity The acquisition of all goods, services, construction, or facilities procured by purchase, contract, lease, or long-term rental. Procurement l/alue The value of the total contract excluding taxes but including all options whether exercised or not. For Facilities this value is determined by the monthly lease/rent times the term of the contract. Procurement Web Portal The public website maintained by the Province where all public tender notices are posted. Public A d vertisem en t Advertising a public tender notice on the procurement web portal. Public Procurement Act (PPA) An Act outlining the rules related to the procurement activity of all public sector entities in the Province of Nova Scotia. Public Tender Procurement for goods, services, construction, or facilities obtained through advertisement. Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 1St Notice -Council -March 28, 2019 (2019-134) 2AI Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 public 0 Procurement Policy P-04 (continued) Public Ten der lvo tice Notice of intended procurement for goods, services, construction, or facilities obtained through public advertisement. Services Services required by the Municipality for the transaction of its business and affairs, excluding services provided by an employee through a personal services contract. Standing Offer A standing offer is a contractual arrangement with a supplier to provide certain goods or services on an 'as required' basis, during a particular period of time, at a predetermined price or discount, generally within a predefined dollar limit. Sustainable Procuremen t Sustainable Procurement involves taking a holistic approach to obtain best value. This will be done by integrating the following considerations in the procurement process: • Environmental considerations: e.g. Green House Gas Reduction, Waste Reduction, Toxic Use Reduction • Economic considerations: e.g. Life Cycle Cost, Fiscal Responsibility, Support for the Local Economy • Social considerations: e.g. Employee Health and Safety, Inclusiveness and Fair Wage, Health Promotion, 3.0 Application This policy applies to all procurement activity of the Municipality effective June 1, 2012. The Chief Administrative Officer of the Municipality is responsible for ensuring compliance with tHI) policy. All Municipal personnel who have responsibility for the procurement of goods, services, construction, or facilities must adhere to this policy. Failure to adhere may result in a temporary Or permanent loss of procurement privileges or in more extreme cases result in disciplinary action and/or dismissal. 4.0 Directives 4.7 Low I/alue Procurement • Goods up to and including $ 25,000 • Services up to and including $ 50,000 • Facilities up to and including $ 50,000 Notice of Amendment - Committee of the Whole - March 21, 2019 (2019423) 5 1St Notice - Council - March 28, 2019 (2019434) 2nd Notice - Council - April 11, 2019 (2019456) Effective Date - April 11, 2019 Procurement Policy P-04 (continued) • Construction up to and including $ 100,000 For all IoW value procurement activity with a procurement value as outlined above (excluding taxes), Municipal personnel are expected to, as far as practicable, attempt to obtain at least three quotes and recommend award to the supplier offering best value. The only exception to this would be when the Municipal personnel are using Alternative Procurement Practices as outlined in section 5.0 of this Policy, or are accessing a publicly tendered standing offer. Where increased competition is appropriate, Municipal personnel may choose to publicly tender for goods, services, construction or facilities that fall within the above thresholds. When selecting the list of suppliers to be provided the opportunity to quote, Municipal personnel will make every effort to ensure a fair and open process is followed. While Municipal personnel are expected to invite only qualified suppliers, they are not to consistently invite bids from only one or a select group of suppliers. Invitations and bidding opportunities are to be equitably distributed among all potential bidders in an area, and all interested and qualified suppliers are to be evaluated on a consistent and equitable basis. The evaluation criteria will be determined prior to soliciting quotations, and will include various elements to allow for the determination of best value. For low value procurement activity, the evaluation criteria may also include a preferential component for local suppliers. For all low value procurement, the Chief Administrative Officer is authorized to award to the supplier offering best value for all contracts under the amounts listed above in value, in any one case, provided that the expenditure is included in the approved budget allocation. An information report will be provided to Council for all expenditures that fall between $10,000 and the amounts noted above. Approval of the Council of the Municipality will be required for all purchases of goods, services and construction that exceed the above noted values or which are not included in the approved budget allocation. 4.2 High l/alue Procuremer�t. • Goods over $ 25,000 • Services over $ 50,000 • Facilities over $50,000 • Construction over $ 1001000 All procurement activity with a procurement value over the thresholds (excluding taxes) outlined above must be obtained through a public tender. See appendix 2 of this Policy for an outline of the various tools that can be used for public tender. The only exception to this would be when Municipal personnel are using an Alternative Procurement Practices as outlined in section 5.0 of this policy, or is accessing a publicly tendered standing offer. All public tender opportunities must be posted on the Province of Nova Scotia Procurement Web Portal. Municipal personnel may, where appropriate, also advertise in local, provincial, or national media; however, there is no Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 6 1St Notice -Council -March 28, 2019 (2019-134) 2nd Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11 2019 , Procurement Policy P-04 (continued) obligation to do so. In addition, a notice of tender opportunity may be sent to selected suppliers where required to ensure an adequate degree of competition. 4.3 Schedule for Routine Procurement Ongoing service -related contracts with the Municipality will be routinely ten with this Policy as outlined in Appendix 3. 5.0 Alternative Procurement Practices dered in accordance In order to balance the need for open, competitive process with the demands of urgent or specialized circumstances, Alternative Procurement Circumstances have been developed. These circumstances must be used only for the purposes intended and not to avoid competition or used to discriminate against specific suppliers. To ensure appropriate use, each circumstance must be documented by Municipal personnel stating the rationale permitting the Alternative Procurement Circumstance, and signed by the Chief Administrative Officer. All documents must be filed and maintained for audit purposes. See Appendix 1 for a list of the Alternative Procurement circumstances, as well as further requirements on documentation. 6.0 Bid Opening, Evaluation, and Award 6. � Bid Opening Bids are accepted in accordance with the closing time, date, and place stipulated in the bid request documents. Members of the public may receive the list of bidders electronically after bid opening. 6.2 Bid Evaluation All bids are subject to evaluation after opening and before award of contract. The bid request documents must clearly identify the requirements of the procurement, the evaluation method, evaluation criteria based on the purpose and objectives of this policy, and the weights assigned to each criterion. 6.3 A ward The winning bidder and contract award amount for all high value procurement activity must be posted on the Province of Nova Scotia's Procurement Web Portal. After contracts have been awarded, routine access to information at the vendors request shall be provided in the following areas: • Bidders list • Name of winning bidder • Award price excluding taxes of the winning bidder Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 7 1St Notice -Council -March 28, 2019 (2019-134) 211d Notice -Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 Procurement Policy P-04 (continued) If the tender is not awarded for any permissible reason, all bidders will be informed of the decision. Should the project be re -tendered at a future date, all bidders will be contacted to re -submit a bid at their discretion. Access to tender documents or other proprietary information is subject to the provisions of the Freedom of Information and Protection of Privacy Act. 6.4 Supplier Debriefing At the request of a supplier who submitted a bid, Municipal personnel will conduct a supplier debriefing session to provide feedback on the evaluation of the public tender. Suppliers can find out how their proposal scored against published criteria, obtain comments on their bid, and gather information on how future bids may be improved. Supplier's bids are not compared to other bids, nor will information on other bids be provided. 6.5 Supplier Complaint Process (SCP) When a supplier is not satisfied with the information provided in a supplier debriefing, the supplier may file a complaint in accordance with the Supplier Complaint Process as defined in the Public Procurement Act. The SCP is not a dispute resolution process, but rather is intended to handle supplier complaints and to improve faulty or misleading procurement processes. The SCP is an integral part of a fair and open procurement policy. 7.0 Fair Treatment for Nova Scotia Suppliers The preference is to give preference to local (our Municipality) unless otherwise directed by council for Low value Procurement. Preference will be given by applying a 5% bonus to bidders located within the Municipality. This preference will be clearly communicated as part of each procurement procedure. 8.0 Other Considerations 8. � Cooperative Procurement Municipal personnel are encouraged to look for opportunities to collaborate with government agencies when the arrangement may result in overall cost savings or other substantial advantages. For example, joint procurement may be appropriate to procure commonly used goods, services, fuel oil, natural gas, telecommunications, etc. 8.2 Standing Offers Municipal personnel may access all Province of Nova Scotia standing offers, as well as any standing offer established through the Procurement Advisory Group for the Province should Municipal personnel wish to make use of the savings opportunities. Standing offers can be used up to $25,000 per project for goods, or $100,000 per project for services. For consulting services, Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 8 1St Notice -Council -March 28, 2019 (2019-134) 2nd Notice - Council - April 11, 2019 (2019-156) il 11 Effective Date 2019 -Apr, Procurement Policy P-04 (continued) Municipal personnel should prepare a Statement of Work and obtain 3 quotes from vendors on the standing offer. 9.0 Obligations under the Public Procurement Act In addition to the areas already covered by this Policy, the following are additional obligations of the Public Procurement Act that the Municipal personnel are required to adhere to with their Procurement practices. 9.7 Terms and Conditions Every public tender notice must include or have attached the terms and conditions that govern the purchase of goods, services, construction, or facilities. The terms and conditions of every public tender notice must be consistent with the Atlantic Standard Terms and Conditions for the procurement of goods,. services, or facilities and the Construction Contract Guidelines developed in collaboration with the Construction Association of Nova Scotia for the procurement of construction. 9.2 Posting Tender Notices and A wards All opportunities subject to a public tender must be advertised on the Province of Nova Scotia Procurement Web Portal. The Municipality must also post on the Procurement Web Portal the name of the successful bidder for the public tender and the contract amount awarded. 9.3 Code of Ethics Municipal and board members must ensure their conduct in relation to procurement activity is consistent with the "Duties of public sector entity employees" in the Public Procurement Act. This includes a request for removal from a procurement activity when a personal conflict of interest is perceived. 9.4 Other Policy Posting The Municipal Clerk personnel will ensure this policy is posted on the Municipality web site. Supplier De velopmen t A cti vities Municipal will make every attempt where appropriate to participate in vendor outreach activities as requested by the Procurement Governance Secretariat Regula tions Municipal will make sure that procurement practices remain consistent with any regulations that are adopted under the Public Procurement Act. Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 9 1St Notice -Council -March 28, 2019 (2019-134) 2i1d Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 Procurement Policy P-04 (continued) 11 _ This policy may be an from time to time with the approval of the Municipal Council. Such amendments will be communicated to the public on the Municipal website. Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 1St Notice -Council -March 28, 2019 (2419-134) 2nd Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 10 Procurement Policy P-04 (continued) Alternative Procurement Approval, ConsultatlOn, and Reporting Process Low Va I u e: Municipal personnel wishing to make use of a low value alternative procurement practice with the exception of an emergency) must consult with the Chief Administrative Officer to obtain approval and identify the most appropriate means by which to proceed with the satisfaction of the requirement. If in agreement, the Chief Administrative Officer may direct Municipal personnel to proceed with the procurement. The Chief Administrative Officer may wish to confer with provincial government procurement officials for discussion, validation, and or alternative options. High Value: Municipal personnel wishing to make use of a high value alternative procurement practice with the exception of an emergency) must consult with the Municipal Council to obtain approval and identify the most appropriate means by which to proceed with the satisfaction of the requirement. If in agreement, the Municipal Council may direct Municipal to proceed with the procurement. The Chief Administrative Officer may wish to confer with provincial government procurement officials for discussion, validation, and or alternative options. Alternative Procurement Circumstances A. No Threshold Restrictions Municipal personnel may use the following described below for the procurement of good no threshold restrictions: Alternative Procurement practices as s, services, construction or facilities, with 1. Where an unforeseeable situation of urgency exists and the goods, services, or construction cannot be obtained in time by means of open procurement procedures. Entities must ensure inadequate planning does not lead to inappropriate use of this exemption. 2. Where goods or consulting services regarding matters of a confidential or privileged nature are to be purchased and the disclosure of those matters through an open tendering process could reasonably be expected to compromise government confidentiality, cause economic disruption, or otherwise be contrary tD the public interest. Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 11 1St Notice -Council -March 28, 2019 (2019-134) 2nd Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 Procurement Policy P-04 (continued) 3. Where compliance with the open tendering provisions set out in this Chapter would interfere with a Party's ability to maintain security or order, or to protect human, animal, or plant life or health. the absence of tenders in response to an open or selective tender, or when the tenders submitted have been collusive, or not in conformity with the essential requirements in the tender. 5. To ensure compatibility with existing products, to recognize exclusive rights, such as exclusive licenses, copyright, and patent rights, or to maintain specialized products that must be maintained by the manufacturer or its representative. 6. Where there is an absence of competition for technical reasons and the goods or services can be supplied only by a particular supplier and no alternative or substitute exists. 7. For the procurement of goods or services the supply of which is controlled by a supplier that is a statutory monopoly. 8. For the purchase of goods on a commodity market. 9. For work to be performed on or about a leased building or portions thereof that may be performed only by the lessor. 10. For work to be performed on property by a contractor according to provisions of a warranty or guarantee held in respect of the property or the original work. 11. For the procurement of a prototype or a first good or service to be developed in the course of and for a particular contract for research, experiment, study or original development, but not for any subsequent purchases. 12. For the purchase of goods under exceptionally advantageous circumstances such Cls bankruptcy or receivership, but not for routine purchases. 13. For the procurement of original works of art. 14. For the procurement of subscriptions to periodicals. 15. For the procurement of real property. newspapers , magazines, 16. For the procurement of goods intended for resale to the public. Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 1St Notice -Council -March 28, 2019 (2019-134) 2nd Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 or other 12 Procurement Policy P-04 (continued) 17. For the procurement from philanthropic institutions, prison labour, persons with disabilities, sheltered workshop programs, or through employment equity programs. 18. For the procurement from a public body or a non-profit organization. 19. For the procurement of services of expert witnesses, specifically in anticipation of litigation or for the purpose of conducting litigation Appendix 2 Below is an outline of the tools to be used when issuing a public tender: Request for Proposal (RFS Used when a supplier is invited to propose a solution to a problem, requirement, or objective. Suppliers are requested to submit detailed proposals (bids) in accordance with predefined evaluation criteria. The selection of the successful proposal is based on the effectiveness, value, and price of the proposed solution. Negotiations with suppliers may be required to finalize any aspect of the requirement. Request for Construction (RFC) Used to publicly tender for a construction, reconstruction, demolition, remediation, repair, or renovation of a building, structure, road, bridge, or other engineering or architectural work. When a supplier is invited to bid on a construction project the tender documents usually contain a set of terms and conditions and separate bid form that apply to that specific project. Suppliers are requested to submit a response (bid) in accordance with predefined criteria. The selection of the successful proposal is based on a number of factors as described in the tender documents. A request for construction usually does not include professional consulting services related to the construction contract, unless they are included in the specifications. Request for Quotation (RFQ) A request for quotation on goods or products with a minimum specification. Award is usually made based on the lowest price meeting the specification. An RFQ does not normally but may sometimes include evaluation criteria. Request for Standing Offer (RSO) A public tender to provide commonly used goods or services. The term of the standing offer can vary in duration but will be clearly defined in the tender documents. RSO's may include evaluation criteria depending on the requirement. Request for Expression of Interest (REI) Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 13 1St Notice -Council -March 28, 201.9 (2019-134) 2114 Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 Procurement Policy P-04 (continued) The Request for the Expression of Interest is similar to the Request for Proposal and is sometimes referred to as a Pre -Qualification, where suppliers are invited to propose a solution to a problem. The REI, however, is only the first stage in the procurement process. Bidders responding to the REI will be short listed according to their scoring in the evaluation process. The short-listed firms will then be invited to respond to a subsequent Request for Proposal. A REI does not normally include pricing as price as a key evaluation criteria used in the second stage RFP process. Notice of Amendment -Committee of the Whole -March 2l, 2019 (2019-123) 14 1St Notice -Council -March 28, 2019 (2019-134) 2nd Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 Procurement Policy P-04 (continued) ON a Schedule of Routine ProcurementActivities E� 5 _years Animal Control Sewer Repa i r Sludge Removal and Disposal Services Waste Collection Wood Grinding/Chipping Every 3 _years Derelict Vehicle Collection Engineering Services Flagging HHW Services Printing Services — commencing April 1, 2013 Snow Removal Vehicle Repair Banking Services Surveying Services Every2y Paper Shredding Sa Iti ng Annually Courier Services Heating and Air Conditioning Heavy Equipment Services Trail Work At the Discretion of Council Auditing Services Legal Services Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 1St Notice -Council -March 28, 2019 (2019-134) 2nd Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 15 Procurement Policy P-04 (continued) IFTA IT C - Annotation for Official Policy Book Notice of Intention to Adopt/Amend Committee of the Whole (2019-123) March 21, 2019 Date of First Notice at Council Council March 28, 2019 (2019-134) Date of Second Notice at Council Council April 11, 2019 (2019-156) Effective Date April 11, 2019 I certif that this Policy was amended by Council as indicated above. • h a s .. o o r, C : H, a e �- April 15, 2019 Pamela M. Myra,6 unicipal Clerk Date Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 1St Notice -Council -March 28, 2019 (2019-134) 2nd Notice - Council - April 11, 2019 (2019-156) Effective Date - April 11, 2019 16 Procurement Policy P-04 (continued) ADOPTION /AMENDMENT INFORMATION Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 1St Notice -Council -March 28, gild Notice -Council - April 11, Effective Date -April 11, 2019 2019 (2019-134) 2019 (2019-156) 17 Date Reason for Adoption/Amendment 2014 To include consideration for local preference and low threshold value and Amendment inclusion of 20% value for local (Municipal submissions) 2015 To change the low threshold value from 20% to 5% for local preference. Amendment 2016 Amendments to Appendix 3 — change in length of terms for Engineering Amendment Services, Auditing Services, and Legal Services 2018 Amendment to Appendix 3 — add Sludge Removal and Disposal Services to Amendment be renewed every three (3) years. 2019 Amendment to Appendix 3 to: Amendment Remove "Sludge Removal and Disposal Services" from under heading "Every 3 years" • Add "Sludge Removal and Disposal Services" from under heading "Every 5 years". Notice of Amendment -Committee of the Whole -March 21, 2019 (2019-123) 1St Notice -Council -March 28, gild Notice -Council - April 11, Effective Date -April 11, 2019 2019 (2019-134) 2019 (2019-156) 17