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TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO: 3700-01
APPROVAL DATE: March 23, 2026
1) Policy Statement
The purpose of this policy is to establish transparent procurement guidelines to ensure the
most effective and efficient methods are used to provide best value for the procurement of
goods, services and construction for the Town of Amherst (hereinafter referred to as the
"Town").
The Town will conduct procurement practices in compliance with all Provincial legislation,
International, National and Regional Trade Agreements, including the Atlantic Trade and
Procurement Partnership (ATPP) and the Canadian Free Trade Act (CFTA)
2) Definitions
a) Alternative Procurement (AL TP) - the procurement of goods, services and construction
without a competitive process due to certain conditions/situations.
b) Best Value - the bid that is determined as a result of a procurement process to
be in its best interests, not necessarily the lowest price bid, which is
determined by evaluation of bids based on criteria or factors that may include
purchase price, life cycle cost considerations, environmental and social
considerations, delivery, servicing, past experience and performance, and any
other criteria or factors stated in the requesting documents.
c) Bid - a supplier's response to a Request for Quotation (RFQ), Request for
Construction (RFC),Tender, Request for Proposal (RFP), Request for
Expression of Interest (REI) or a Two Phase Bid to provide goods, services or
construction.
d) Invitational Competition - is a competitive process in which an invitation to
submit bids is issued to three suppliers, provided three suppliers can be
identified.
e) Local Preference Area - all suppliers located within the County of Cumberland
and the Town of Tantramar, New Brunswick.
f) Procurement Web Portal - means the public website owned by the Province of
Nova Scotia where all public tender notices are posted.
g) Public Request for Submission - refers to inviting responses to tenders,
request for proposals, two phase bids, request for construction, request for
expression of interest and request for standing orders.
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO: 3700-01
h) Purchase Card - a corporate credit card for the Town with various restrictions and limits
based on the cardholder.
i)
Purchaser-a Town employee with the authority to purchase goods.
j) 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.
k) Request for Expression of Interest (REI) - process in which suppliers are invited to
propose a solution to a problem and then those chosen are asked to respond to a
subsequent Request for Proposal.
I)
Request for Quotations (RFQ) - informally obtaining price quotations from a number of
different suppliers.
m) Request for Proposal (RFP) - a formal invitation to suppliers to describe how
their services, methods, equipment or products can address and/or meet the
needs of the Town.
n) Purchase Requisition/Purchase Order-an electronically generated document
for the supply of goods or services from an approved vendor.
o) Single Source -A single source procurement is an alternative procurement
practice in which two or more suppliers can supply the goods and/or perform
the services required by the Town of Amherst, but where the Town of Amherst
selects one supplier over the others for reasons such as expertise, previous
municipal or their related experience and not through a competitive process.
p) Sole Source Procurement - is an alternative procurement practice in which it is
evident that only one supplier can supply the goods and/or perform the
services required and an award is made to that supplier.
q) Standing Offer- 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.
r) Sustainable Procurement- involves taking a holistic approach to obtain best
value by integrating the following considerations in the procurement process:
-
Environmental considerations: e.g. Green House Gas Reduction, Waste
Reduction, Toxic Use Reduction;
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO: 3700-01
-
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.
s) Tender- a formal request to solicit for goods, services or construction obtained
through posting on the Town and the Provincial websites.
3) Guiding Principles
The following principles will guide the procurement practices of the Town:
a) Procurement methods are to encourage competition, innovative ideas and
solutions, wherever possible, while respecting all legislative and trade
agreement obligations for the supply of goods services and construction.
b) Procurement policy provides for the use of suppliers, who can be expected to provide
satisfactory performance, based on, but not limited to:
(i)
past performance and/or previous contacts
(ii)
financial and other resources to complete the contract bid;
(iii)
references
c) Promoting the use of Sustainable Procurement when evaluating bids by
striving to obtain best value, taking into consideration environmental,
economic and social considerations.
d) This policy does not apply to payments for reoccurring items such as utilities,
leases, rentals and similar reoccurring operating charges, while recognizing
that in some circumstances, the initial commitment that leads to these
ongoing payments is subject to the provisions of this policy.
4) General
a) This policy applies to all departments, agencies, boards and commissions of the Town
over which the Town has jurisdiction.
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO:
3700-01
b) The procuring of goods, services and construction will be facilitated by the Director of
the requesting department according to this policy. The Director shall approve all
purchases in excess of $25,000 prior to any employee acting within this policy.
c) The Town will be under no obligation to accept any bid received which is considered to
be not in its best interest, in response to a verbal or written request.
d) The Town may work with other levels of government, other municipal units, other
agencies, boards and commissions, and associations such as the FCM (Federation of
Canadian Municipalities) and NSFM (Nova Scotia Federation of Municipalities) to
encourage standardization of items and/or reduce overall costs to the Town for joint
purchasing.
e) The dollar values indicated within this policy are exclusive of HST and are in Canadian
Dollars.
5) Purchasing Guidelines
The Town of Amherst must procure goods, services, and construction which are over the High
Value Threshold using Public Competition. Where Public Competition is not possible, a department
may, with the explicit written approval of the CAO, engage in Alternative Procurement Practices.
When the maximum value of the procurement will be below the High Value Threshold,
procurement must be completed in a manner consistent with, and in accordance with direction
from the CAO. Staff must consider using competitive methods whenever practical to do so. When
not practical or where there is urgency, technical or quality constraint, supplier scarcity, or other
reasonable, in the opinion of the CAO, constraint which prevents competition staff may use Select
Invitational methods (inviting two or more suppliers to bid) or non-competitive methods (direct
award), subject to due diligence. Public Competition may be used at any threshold and is
encouraged.
Breaking up procurement activity to reduce or keep the procurement value below certain
thresholds is not permitted.
Canada Free Trade Agreement ("CFTA") thresholds are subject to adjustment and the actual
threshold as of the date of the procurement will apply.
The High Value Threshold for goods and services is $133,800 (plus HST) and $334,400 (plus
HST) for construction.
This Policy will be updated as soon as practical if those thresholds should change. The value of
the Procurement relative to the Threshold does not relieve Staff from the obligation to manage risk
when Identify the Need/Plan Over High Value Threshold, Alternative Procurement Practices,
Public Competition Under High Value Threshold, Request Quotations/Select Invitational, Due
Diligence/Direct Award Public Competition
TITLE:
Procurement Poli.cy
SECTION:
Financial Management
POLICY NO: 3700-01
6) Methods of Procurement
All procurement activity must be obtained through one of the following methods:
a) Tender- A formal invitation to solicit competitive bids. It is used when detailed
specifications are available that permit the evaluation of tenders against clearly stated
criteria and specifications. A Request for Tenders (RFT) is a formal, competitive,
sealed bidding process. Bid deposits and performance security may be required. The
award is normally to the lowest bid received from a qualified bidder meeting the
requirements of the tender and providing best value. Tender purchases shall be made
by purchase order. Tenders must be opened in the presence of at least one elected
official and the CAO or his/her designate at a time and location that is open to the
public.
b) Request for Proposal - A Request for Proposal (RFP) is a formal invitation to suppliers
to describe how their services, methods, equipment or products can address and/or
meet specific needs of the Town. It is used when a supplier is invited to propose a
solution to a problem, requirement, or objective. Request for Proposals are evaluated
against stated criteria to the terms of the RFP to determine if any should be accepted.
Negotiations with suppliers may be required to finalize any aspect of the proposal
provided such discussion and negotiations are conducted to:
(1) Award equitable treatment to each qualified bidder with respect to an opportunity for
discussion and the revision of the proposal.
(2) Prevent the disclosure of the proposal content of one proponent to another.
Proposals submitted in response to a request for proposal need not be opened in
public. A list of the proponents may be made available upon request. An award of a
contract based upon a request for proposals will be made to the supplier whose
proposal has the highest score based upon the criteria for evaluation set out in the
request for proposals and equitably applied to all proposals. RFP purchases shall be
made by purchase order.
c) Request for Quotation -_A request for quotation is an informal request for prices for
goods and services that the purchaser will attempt to solicit from at least three (3)
different suppliers This process is normally used where bid deposit and performance
bonds are not required and where the cost of the work does not warrant the time and
level of effort and expense required for a normal tender process. Quotations should be
in written form and attached to the Request for Quotation form which must be
completed and given to the Deputy CAO for filing once it has been awarded.
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO: 3700-01
If a quote is obtained verbally, the person obtaining it must document the quotation,
including time, date, supplier, price and description of the goods and services, the
person from whom the quotation was obtained and the name of the municipal staff
obtaining the quotation. The RFQ form should be used for documentation purposes.
RFQ purchases shall be made by purchase order, or purchase card if in US Dollars
d) Invitational Competition - A competitive procurement method in which the Town invites
a minimum of three suppliers to submit bids - provided that three suppliers can be
identified. This method is used when a full public competition is not required (often
because the value is below the high value threshold) but competitive pricing and
fairness are still desired.
e) Standing Offer - A type of contract that results from a tender process to guarantee a
continuous supply of various goods, services or construction at a specific price for a
specific period of time. The term of the standing offer can vary in duration but will be
clearly defined in the tender documents.
Standing Offers of the Government of the Province of Nova Scotia or other public sector
entities may be used under the constraints within this policy where it is in the best
interest of the Town.
f)
Request for Expression of Interest - This process 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 is a key evaluation criteria used in the second stage RFP process.
g)
Request for Construction - 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.
h)
Negotiations - Negotiations with suppliers for the supply of goods and/or services would
take place when any of the following conditions exist:
(a) Due to market conditions, goods and/or services are in short supply;
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO: 3700-01
(b) There is only one source of the goods or services;
(c) All bids received are non-compliant or exceed the amount budgeted for the
purchase;
(d) The extension or reinstatement of existing contract would be more cost effective
or beneficial to the Town. The extension or reinstatement of existing contract is
subject to the approvals listed in section 9 - Award of Contracts.
i)
Alternative Procurement - In certain circumstances, described in this section, the Town
may purchase goods, services and construction without using one of the options set out
above. An alternative procurement purchase may occur.
Alternative Procurement Practices may be used in the following circumstances:
(a) Emergency - If strictly necessary, an urgent, serious, unexpected, and often
dangerous situation requiring immediate action.
(b) Ability to Maintain Security/ Life/ Health - Compliance with the competitive
process requirements would interfere with the Province's ability to maintain
security or order or to protect human, animal, or plant life or health. Non-
urgent emergency.
(c) Absence of competition a. Technical - Due to an absence of competition for
technical reasons. b. Monopoly - For the procurement of goods or services
where the supply is controlled by a supplier that is a monopoly. c. Prototype
- For a prototype or first good or service that is developed in the course of,
and for a particular contract for research, experiment, study or original
development. d. Advantageous Circumstances - Purchases made under
exceptionally advantageous conditions that only arise in short term cases of
unusual disposals. e. Additional Deliveries -Additional Deliveries by the
original supplier of goods or services that were not included in the initial
procurement where a change of supplier for such additional goods or
services cannot be made for economic or technical reasons.
(d) Compatibility - To ensure compatibility with existing products, or to ensure
the protection of patents, copyrights, warranties or other exclusive rights.
(e) Confidentiality - Where goods or services regarding confidential matters are
to be purchased and the disclosure through an open tendering process
could be expected to compromise government confidentiality, cause
economic disruption, or be contrary to public interest.
(f) No Suppliers Satisfied the Conditions - No bids were submitted or no
suppliers requested participation; no bids that conform to requirements of
solicitation were submitted; no suppliers satisfied the conditions for
participation.
(g) Sustainability - To support businesses owned by members of
underrepresented and underserved communities, including: Mi"kmaq and
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO:
3700-01
persons of Indigenous descent, African Nova Scotians and persons of
African descent, persons of colour/racialized persons; newcomers
(immigrants and refugees), 2SLGBTQIA+, persons with disabilities, minority
faithbased groups and persons who are neurodivergent.
(h) Health and Social Services - For vital public services that prioritize public
health and welfare.
(i) Procurement Financed By Donations - For the procurement of goods and
services financed primarily from donations that are subject to conditions that
are inconsistent with this Policy.
**When an alternative procurement purchase occurs, the reason for doing so must be
documented.
7. Local Preference
Nova Scotian Goods and Services Section 14 of the Public Procurement Act
allows for preference to be given to Nova Scotia suppliers when the value of the
procurement is below the High Value Threshold. Therefore, below the High Value
Threshold, Municipal personnel (with the authorization of the CAO) may:
- Choose to apply a Nova Scotia preference, in accordance with the Public
Procurement Act, including when considering evaluative criteria;
- Restrict the receipt of Invitational Competitions to Nova Scotia suppliers; and
- Such preference must be disclosed at the beginning of the procurement process
and must be explicitly stated in the procurement documents.
The Town will apply a maximum 10% local preference to Nova Scotian bidders.
The preference could be split between price and non price factors/scores
Example: with 5% on pricing and 5% on non price factors/scores. If local
preference is to be used, it will be disclosed in the procurement documents at the
time of release.
-
To be considered for local preference you must be a company with it's head office in Nova
Scotia or a branch in Nova Scotia where regular business activities are conducted on a
permanent basis, is clearly identified by name and is accessible during normal business
hours.
8. Award of Contracts
a) The Chief Administrative Officer (CAO) or designate may authorize the award of the
procurement of goods, services and construction:
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO: 3700-01
i) that are $334,400 or less and are included within the approved operating and
capital budgets; Awards over the value of $334,400 (plus HST) will be submitted to
Council for approval.
ii) that exceed the approved budget by 25% or $100,000, whichever is less. This will
be done when it is reasonable to do so and when options to achieve project
completion or item procurement are limited.
iii) that is an emergency situation. In these cases, the CAO is authorized to make
reasonable and informed procurement decisions (operating and capital) which are
determined by him/her to be necessary. Among other things such decisions may
be deemed by the CAO to be necessary to protect the legal interests or satisfy legal
obligations of the Town, or involve a situation where failure to act could reasonably
be expected to compromise Town confidentiality, cause economic disruption, or
would otherwise be contrary to the public interest. Authorizations for such
expenditures are considered to be over and above the other authorities given under
this policy to exceed approved budget amounts.
iv) Where the purchase was the result of a public purchasing process conforming to
the Town's procurement policy and The Atlantic Trade and Procurement
Partnership, and all appropriate Trade Agreements and their subsequent
amendments.
b) 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.
c)
Where award is over the limits established in the Atlantic Trade Procurement
Partnership for the purchase of goods, services and construction, award amount and
company name is to be posted on the Provincial Procurement Web Portal.
d) A quarterly report to Council of awards of contracts under the value of $334,800
approved by the CAO or designate shall be made available to Council and shall show
the name of the contract, the name of the successful bidder, the amount of the award,
any person or company to whom a single or sole source has awarded, and the
budgetary provision.
e) At the discretion of the CAO, any award of goods, services or construction may be
referred to Council for approval.
9)
Vendor Documentation Requirements
The following documents are required in order to work for the Town:
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO: 3700-01
Workers Compensation Board (WCB)- WCB certificates are required any time a service
and/or construction project is being completed on Town of Amherst property. The
proponent MUST provide a valid WCB certificate prior to the commencement of any
work. This certificate will state when the coverage expires. If the WCB certificate
expires before the project is finished, then the replacement certificate MUST be received
in order for the work to continue. Town employees have the right to stop any work in
progress if an up.to-date WCB certificate is not provided. If the approved vendor is
exempt from WCB, proof of the exemption will be supplied before work can commence.
Liability Insurance - Proponents must provide a valid certificate from their insurance
company with the Town named and added under Additional Insured for liability purposes
with at least $2,000,000 liability coverage. This certificate must be provided before the
commencement of any work.
Construction Safety-
A Certificate of Good Standing is required from a registered safety
certified company such as the Nova Scotia Construction Safety Association whenever
any type of construction, reconstruction, demolition, remediation, repair or renovation is
being completed on Town property for any projects that are over $10,000. This
documentation must be provided before the commencement of any work.
10) Code of Ethics
All procurement carried out by the Town must be conducted according to policies,
provincial and federal legislation, trade agreements and ethical business practices. All
employees must in good faith, conduct business with current and prospective suppliers
and be fair in all business dealings. We shall encourage the negotiation of an equitable
and mutually acceptable settlement when a dispute arises and request removal from a
procurement process when a personal conflict of interest is perceived. We shall require
suppliers to provide accurate representations of goods, services and construction and
encourage them to consider sustainability in their products. We shall strive to obtain
best value for each expenditure.
11) Supplier Performance
a)
Suppliers may be subject to disqualifications if there is sufficient evidence of failure
to meet the standards specified by the Town. Suppliers may be evaluated based on
competitive price, quality of a product, contract adherence and performance and after
sales service. Upon reasonable notice in writing to the supplier involved, and after a
reasonable opportunity for response, a supplier can be disqualified for a period not
exceeding three years from participation in solicitation for goods, services and
construction when:
TITLE:
Procurement Policy
SECTION:
Financial Management
POLICY NO: 3700-01
i. Serious breach of contract indicating unwillingness to perform a contract in
accordance with the terms and conditions or specifications or a record of
unsatisfactory performance of one or more contracts in accordance with its
specifications or both.
ii. The offer of any gratuity to an official or employee of the Town by a supplier or
contractor for consideration.
b)
A written decision shall be issued to the person disqualified or suspended setting
out its reasons for disqualification or suspension, to the usual business address of
that person as shown in the records of the purchasing section.
c)
Disqualification will be approved by the CAO.
12) Supplier Debriefing
Upon request of a supplier who is an unsuccessful bidder, the Town must conduct a
debriefing with that supplier to provide feedback on the evaluation of the bid. The
debriefing must be conducted as follows:
a)
the CAO or designate and/or Director, along with the person named in the
documents, will attend the meeting;
b)
the debriefing must provide reasons for the disqualification of the supplier, or in the
case where evaluation scoring was used, provide an overview of the supplier's
score in each category and reasons for that score;
c)
the debriefing must also provide information to the supplier on how to improve
future submissions;
d)
the debriefing must not disclose any information regarding other bidders or their
submissions.
13) Contract Documents, Bid and Performance Securities and Specifications
a) The CAO may, from time to time, approve such standard forms including bid and
performance securities if any, for purchase by Invitation to Tender, Request for
Proposals, Request for Quotations, sole source, or emergency purchases as well as
forms of contract for types of purchase including but not limited to construction,
supplies and installation or service as they may deem advisable.
b) Bid bonds, performance bonds, irrevocable letters of credit and other securities
including labour and material bonds may be required for such purposes in such form
and in such amounts as the CAO deems advisable.
14) Special Services
TITLE:
Procurement Policy
SECTION:
Fi.nanclal Management
POLICY NO: 3700-01
a) Legal Services - Legal services will be acquired by staff based upon qualifications,
experience, services offered, past performance, proposed fees and other relevant
considerations. The acquisition of legal services must be approved by the CAO in
consultation with the Director(s) of the user department(s). (These services include
expert witnesses, and subject experts required for legal proceeding, hearing or similar
matter.) Legal services having a value of $133,800 or more shall be approved by
Council. The term for legal services will be at the discretion of the Town.
b) Financial Auditing Services -
These services may be contracted on a one year term to
be renewed on an annual basis on terms satisfactory to the Town. Selection of an
auditor shall be completed by the Audit Committee of Council who will recommend the
selection of an auditor to Council. Annual selection and/or renewal of the contract for
audit services will be made by the Audit Committee.
15) Tie Bids
After the assessment process is complete and it cannot be reasonably determined who has
submitted the lowest compliant bid and a tie exists, the CAO or Deputy CAO may flip a coin
to determine the award.
16) Suppliers indebted to the Town of Amherst
Any supplier/contractor having a customer account with the Town, which is in arrears, will
have such arrears deducted from any payments due to the supplier/contractor. Such
deduction may be waived by the CAO, where the supplier/contractor has entered into a
payment arrangement deemed to be suitable by the Treasurer.
17) Purchases by Town of Amherst Employees
Employees or immediate family members (husband, wife, son, or daughter) of employees
of the Town are not permitted to purchase personal use items through the purchasing
system except where employee purchase plans are being offered.
ROLES AND RESPONSIBILITIES
Staff
The policy owner is responsible for ensuring that the policy is implemented and
being followed. In addition, they are responsible for reviewing the policy regularly 1
for relevancy and compliance with provincial guidelines.
All personnel that fall within the sco e of this policy must follow the policy
TITLE:
SECTION:
POLICY NO:
Procurement Polley
Financial Management
3700-01
-
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Procurement Coordinator I
Facilitate the implementation of the policy, including the Open and Invitational
procurement processes.
Support procurement at all threshold levels.
Develop and provide procurement templates and tools.
Periodically review orocurement oractices within the orovince.
I
For Administrative Use Only:
VERSION LOG
Title/Last Name
Council
Creation of the policy
CAO, MacDonald
Council
April 30, 2007
Amendment to bring the policy
CAO, MacDonald
Council
Sept 28, 2009
into compliance with Atlantic
Procurement
reement
Amendment to bring the policy
CAO, MacDonald
Council
Nov 26, 2012
into compliance with Atlantic
Procurement ~greement
CAO may authorize the
CAO, MacDonald
Council
Nov 27,2017
procurement of goods, services
and construction that are
$250,000 or less and are
included within the approved
OJ!_eratin and ca - ital bud ets.
Increased purchasing limits and
CAO, MacDonald
Council
March 27, 2023
minor housekeeping
amendments
1 Increased purchasing limits and
CAO, MacDonald
Council
June 23, 2025
minor housekeeping
amendment chan i
titles
Increased purchasing limit
CAO, MacDonald
Council
March 23, 2026
thresholds, revised local
preference, removed redundant
clauses
.,
.