Policy No. 36 — Procurement Policy

Barrington, Nova Scotia

This is the exact embedded text of the captured official document. Snapshot e1ebc039c12e · verified 2026-06-05 · original document · archived snapshot · unofficial consolidation, the official version is held by the municipal clerk.

1 Policy No. 36 "Procurement Policy " POLICY NO. 36 PROCUREMENT POLICY ___________________________________________________________________________ Purpose 1. To provide guidelines for the procurement of all goods and services for the District of Barrington based on sound management and public procurement practices. Procurement methods shall be open, fair, transparent and consistent, while being both efficient and effective; procurement methods should reflect the need to make timely decisions and make best use of staff time to reach defendable procurement decisions. 2. To establish a more efficient and cost effective method of procuring and paying for low dollar value, high volume goods and services, as well as, travel expenses, registrations and other corporate affiliated expenses, while maintaining acceptable levels of control and accountability. Application 3. This policy applies to all procurement activity of the District of Barrington. 4. The Chief Administrative Officer (CAO) of the District of Barrington is responsible for ensuring compliance with this policy. 5. All District of Barrington 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. Spending Authority Roles and Responsibilities 6. Chief Purchasing Officer Responsibilities a) The CAO shall be the Chief Purchasing Officer for the District and shall oversee the purchasing practices of all departments to ensure compliance with the District's 2 Policy No. 36 "Procurement Policy " purchasing policy. b) The CAO or designate shall issue purchase orders for operational supplies for the general government services department, Emergency Management Office (EMO) and other protective services, public health and welfare services for all departments in accordance with purchasing policy procedures. The CAO shall issue operational purchase orders for the other departments in the absence of the respective director. c) Low value thresholds - The CAO shall be responsible for approving low value operational purchases of $10,001 or more for all departments in accordance with Procurement Policy procedures. d) High value thresholds - The CAO shall prepare and call tenders for all high value purchases of the District and shall guide the tender opening process through the appropriate procedure, as detailed in this policy. 7. Director Responsibilities a) Directors shall issue all purchase orders for their departments only. All purchase of goods and services shall require a purchase order to be issued. b) No director shall charge a purchase to another department without the prior knowledge and approval of the director affected. c) Low Value Thresholds Directors of departments shall be responsible for approving low value operational purchases up to and including $10,000 for their own department in accordance with Procurement Policy procedures. d) High Value Thresholds - For purchase requirements above high value thresholds set in the Procurement Policy, the director shall submit a set of specifications for inclusion in the public tender call process to the CAO. Operational Purchasing 8. Purchase Order Procedures a) The District uses a purchase order (PO) system for each purchase. The CAO and directors are the only individuals with the authority to use POs. b) POs must be signed and dated. One copy is given to the accounts payable (A/P) clerk while the director maintains one copy until the goods/service has been received. Once received, the director's copy is sent to the A/P clerk and matched with the first copy. c) Once received, the invoice is matched with the PO to ensure a valid purchase. d) The A/P clerk enters all invoices for payment and initials the invoice once posted. A report is prepared for the Director of Finance to compare to posted invoices. e) The A/P clerk runs cheques for invoices posted. The A/P clerk matches invoices to cheques and puts the cheque number and date on the invoice and PO. f) The cheques and invoices are given to individuals with signing authority. They compare the invoices to the cheque and sign when satisfied. They also initial the invoice to indicate they have reviewed and signed the cheque. g) Bank reconciliations are performed each month by the Director of Finance. Reconciliations are initialed and dated by the Director of Finance once completed. Reconciliations are reviewed and approved by the CAO. h) All purchases must be covered with a purchase order. i) Prior to budget approval, directors shall not purchase items considered unnecessary to the continuance of the existing operation. j) It is not permissible to issue a PO that will put the account over budget without first 3 Policy No. 36 "Procurement Policy " having approval from the CAO for the over-budget amount. Reallocation between expenditure accounts and equipment priority changes in the same expenditure must also have prior approval. Procurement Process Objectives 9. The District of Barrington is committed to: a) Providing for the procurement of goods, services, construction and facilities in a fair, open, consistent, and transparent manner resulting in best value. b) Encouraging competition, innovative ideas and solutions, while respecting all Legislative and Trade Agreement obligations. c) 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. d) Ensuring that qualified suppliers have equal opportunity to bid on the District of Barrington's procurement activity. e) Being accountable for procurement decisions. Thresholds 10. Low Value Procurement1 a) Goods up to and including $25,000 b) Services up to and including $50,000 c) Facilities up to and including $50,000 d) Construction up to and including $50,000 11. For all low value procurement activity with a procurement value as outlined above (excluding taxes), District of Barrington personnel are expected to, as far as practicable, attempt to obtain at least three quotes and award to the supplier offering best value. The only exception to this would be when the District of Barrington personnel are using Alternative Procurement Practices as outlined in this Policy, or are accessing a publicly tendered standing offer. 12. When selecting the list of suppliers to be provided the opportunity to quote, District of Barrington personnel will make every effort to ensure a fair and open process is followed. While District of Barrington 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. Where increased competition is appropriate, District of 1 Purchases under $1,000 do not require a quote. If one exists, they must be purchased under a standing offer provided it would provide best value. Director's must approve such purchases and appropriate documentation (e.g. receipts, invoices) must be kept. 4 Policy No. 36 "Procurement Policy " Barrington personnel may choose to publicly tender for goods, services, construction or facilities that fall within the above thresholds. 13. High Value Procurement a) Goods over $ 25,000 b) Services over $ 50,000 c) Facilities over $ 50,000 d) Construction over $50,000 14. All procurement activity with a procurement value over the thresholds (excluding taxes) outlined above must be obtained through a public tender. See Appendix 3 of this Policy for an outline of tools available for public tender. The only exception to this would be when District of Barrington personnel are using an Alternative Procurement Practice, or are accessing a publicly tendered standing offer. All public tender opportunities must be posted on the Province of Nova Scotia Procurement Web Portal. District of Barrington personnel may wish where appropriate to also advertise in local, provincial, or national media; however, there is no 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. 15. Alternative Procurement Practices 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 District of Barrington personnel stating the rationale permitting the Alternative Procurement Circumstance, and signed by the CAO. All documents must be filed and maintained for audit purposes. See Appendix 2 for a list of the Alternative Procurement circumstances, as well as further requirements on documentation. 16. Bid Opening, Evaluation, and Award a) 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. b) 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. Evaluation criteria is specific to the bid, but could include environmental, social and economic considerations, purchase price, delivery, servicing, experience, etc. c) Award 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: 5 Policy No. 36 "Procurement Policy " d) Bidders list i. Name of winning bidder ii. Award price excluding taxes of the winning bidder iii. Access to tender documents or other proprietary information is subject to the provisions of the Freedom of Information and Protection of Privacy Act. e) Supplier Debriefing At the request of a supplier who submitted a bid, District of Barrington 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. Bids are not compared to others, nor will information on other bids be provided. f) 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. Other Considerations 17. Cooperative Procurement District of Barrington 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. 18. Standing Offers District of Barrington 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 District of Barrington personnel wish to make use of the savings opportunities. Obligations under the Public Procurement Act 19. In addition to the areas already covered by this Policy, the following are additional obligations of the Public Procurement Act that the District of Barrington personnel are required to adhere to with their procurement practices. a) 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. b) Posting Tender Notices and Awards 6 Policy No. 36 "Procurement Policy " All opportunities subject to a public tender must be advertised on the Province of Nova Scotia Procurement Web Portal. District of Barrington personnel must also post on the Procurement Web Portal the name of the successful bidder for the public tender and the contract amount awarded. c) Code of Ethics District of Barrington personnel and council 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. d) Other i. Policy Posting District of Barrington personnel will ensure this policy is posted on the Barrington's web site. ii. Supplier Development Activities District of Barrington personnel will make every attempt where appropriate to participate in vendor outreach activities as requested by the Procurement Governance Secretariat. iii. Regulations District of Barrington personnel will make sure that procurement practices remain consistent with any regulations that are adopted under the Public Procurement Act. 7 Policy No. 36 "Procurement Policy " Appendix 1 - Definitions 1. 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. 2. Best Value 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. 3. Bid A supplier response to a public tender notice to provides goods, services, construction or facilities. 4. Construction 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. 5. Construction Contract Guidelines Standard instructions developed in consultation with the Construction Association of Nova Scotia that support construction tenders. 6. Facilities (also referred to as Building Leases) All building lease requirements covering the conveyance of the right to use tangible building property for a specified period of time in return for rent. 7. Goods Materials, furniture, merchandise, equipment, stationery, and other supplies required by the District of Barrington for the transaction of its business and affairs and includes services that are incidental to the provision of such supplies. 8. Procurement Activity The acquisition of all goods, services, construction, or facilities procured by purchase, contract, lease, or long-term rental 9. Procurement Value 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. 10. Procurement Web Portal The public website maintained by the Province of Nova Scotia where all public tender notices are posted. 8 Policy No. 36 "Procurement Policy " 11. Public Advertisement Advertising a public tender notice on the procurement web portal. 12. Public Procurement Act (PPA) An Act outlining the rules related to the procurement activity of all public sector entities (including municipalities) in the Province of Nova Scotia. 13. Public Tender Procurement for goods, services, construction, or facilities obtained through public advertisement. (See Appendix 3 for an outline of the various tools that can be used for public tender.) 14. Public Tender Notice Notice of intended procurement for goods, services, construction, or facilities obtained through public advertisement. 15. Services Services required by the District of Barrington for the transaction of its business and affairs, excluding services provided by an employee through a personal services contract. 16. 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. 17. Sustainable Procurement Sustainable Procurement involves taking a holistic approach to obtain best value. This will be done by integrating the following considerations in the procurement process: a) Environmental considerations: e.g. Green House Gas Reduction, Waste Reduction, Toxic Use Reduction b) Economic considerations: e.g. Life Cycle Cost, Fiscal Responsibility, Support for the Local Economy c) Social considerations: e.g. Employee Health and Safety, Inclusiveness and Fair Wage, Health Promotion. 9 Policy No. 36 "Procurement Policy " Appendix 2 - Alternative Procurement 1. Low Value Purchase The CAO may delegate signing authority for low value Alternative Procurement transactions to the director of a given department. No further approvals will be necessary. The CAO will ensure persons with delegated signing authority will be held accountable for their actions and that all procurement activities by District of Barrington personnel are properly documented and filed for follow up and audit. The CAO shall remain accountable for the proper use of alternative procurement transactions. 2. High Value Purchase District of Barrington personnel wishing to make use of a high value Alternative Procurement practice (with the exception of an emergency) must consult with the CAO to obtain his or her approval and identify the most appropriate means by which to proceed with the satisfaction of the requirement. If in agreement, CAO may direct District of Barrington personnel to proceed with the procurement. The CAO may wish to confer with provincial government procurement officials for discussion, validation, and/or alternative options. The CAO may delegate signing authority for high value alternative procurement transactions to an Acting CAO in their absence. All appropriate documentation will be maintained on file for audit purposes. The CAO will ensure persons with delegated signing authority will be held accountable for their actions. The CAO shall remain accountable for the proper use of alternative procurement transactions. Alternative Procurement Circumstances 3. No Threshold Restrictions District of Barrington personnel may use the following Alternative Procurement practices as described below for the procurement of goods, services, construction or facilities, with no threshold restrictions: a) 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. b) 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 to the public interest. c) Where compliance with the open tendering provisions set out in this Policy would interfere with a Party's ability to maintain security or order, or to protect human, animal, or plant life or health. d) In 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. e) 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. 10 Policy No. 36 "Procurement Policy " f) 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. g) For the procurement of goods or services the supply of which is controlled by a supplier that is a statutory monopoly. h) For the purchase of goods on a commodity market. i) For work to be performed on or about a leased building or portions thereof that may be performed only by the lessor. j) 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. k) 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. l) For the purchase of goods under exceptionally advantageous circumstances such as bankruptcy or receivership, but not for routine purchases. m) For the procurement of original works of art. n) For the procurement of subscriptions to newspapers, magazines, or other periodicals. o) For the procurement of real property. p) For the procurement of goods intended for resale to the public. q) For the procurement from philanthropic institutions, prison labour, persons with disabilities, sheltered workshop programs, or through employment equity programs. r) For the procurement from a public body or a non-profit organization. s) For the procurement of services of expert witnesses, specifically in anticipation of litigation or for the purpose of conducting litigation. 5. Threshold Restrictions District of Barrington personnel may use the following Alternative Procurement practices as described below, up to the high value thresholds of this Policy: a) For the procurement of goods or services for the purpose of evaluating or piloting new or innovative technology with demonstrated environmental, economic, or social benefits when compared to conventional technology, but not for any subsequent purchases. b) For procurement that fosters the development of minority businesses. 11 Policy No. 36 "Procurement Policy " Appendix 3 - Procurement Tools Below is an outline of some of the various tools available for use when issuing a public tender: All public tenders are to contain the Disclaimer contained in Appendix 4. 1. Request for Proposal (RFP) 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. 2. 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. 3. 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. 4. 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. 5. Request for Expression of Interest (REI) 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 is a key evaluation criteria used in the second stage RFP process. 12 Policy No. 36 "Procurement Policy " Appendix 4 - Disclaimer The Municipality does not bind itself to accept any tender but may accept any tender, in whole or in part, or discuss with any tenderer different or additional terms to those described in the tender. The Municipality may: a) cancel the tender at any time; b) reject any or all tenders; c) accept any tender; d) if only tender is received, choose to accept or reject it; e) choose not to accept the lowest bid price; f) reject any tenders that, in its sole discretion, are not in its best interest to accept; and g) alter the schedule, tender process or any other aspect of the tender as it may determine in its sole and absolute discretion. If the Municipality elects to reject all tenders it may, in its sole discretion and in addition to any other recourse it may choose, call for additional tenders or re-tender all or part of the work, all without incurring any liability and no proponent will have any claim against the Municipality as a consequence. The Municipality reserves the right to waive any formality, informality, technicality or non-compliance in any tender. In evaluating tenders the Municipality reserves the right to consider, among other things, the greatest value for money based on quality, service, price, experience and local preference. The Municipality reserves the exclusive right to determine the qualitative aspects of all tenders relative to evaluation criteria and to rely on any evaluation criteria which, it its sole discretion, it considers to be in its best interest. The Municipality is not liable for any costs associated with responding to the tender. The tenderer, in submitting a tender response, has accepted the privileges and reservations of rights set out herein and agrees to be bound by same. 13 Policy No. 36 "Procurement Policy " Appendix 5 - Procurement Decision Tree 14 Policy No. 36 "Procurement Policy " Chief Administrative Officer's Annotation for Official Policy Book Date of Notice to Council members of Intent to Consider November 12, 2019 Date of Passage of current Policy November 25, 2019 I certify that Policy No. 36 "Procurement Policy" was amended by Council as indicated above. ____________________________________ _________________________ Chief Administrative Officer Date VERSION LOG Version Number Amendment Description Amendment/Policy Owner Approved By Approval Date 1 Approved Policy of Council CAO Council June 26, 2017 2 Various Sections Amended CAO Council November 25, 2019