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Municipality of the County of Richmond "Purchasing and Tendering" Policy
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Title
Purchasing And Tendering Policy
Approved by Council
Date: June 24, 2024
Policy Review Notification
Date: June 14, 2024
Policy Review
Date: June 18, 2024
I certify this to be a true copy of the Purchasing and Tendering Policy as adopted by
the Municipal Council of Richmond County at a Public Meeting held June 24, 2024.
___________________
Shelley David
Municipal Clerk
1.
Policy Statement
1.1 The Municipality of the County of Richmond is committed to acquiring goods
and services on a competitive basis to ensure that the best value is received
and that procurement is done in a transparent, accessible, and equitable
manner.
2.
Short Title
2.1 This Policy is entitled " Purchasing and Tendering Policy".
3.
Definitions
3.1 In this policy:
a) "alternative procurement practice" means the purchase of goods,
services and construction without a public tender or other competitive
process, in the circumstances described at section [13] of this Policy;
b) "Atlantic Standard Terms and Conditions" means standard
instructions that support public tenders issued by the four Atlantic
Provinces for goods and services. Supplements may be added if and
when required.
c) "best value" means 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 tender
documents;
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d) "bid" means a supplier response to a public tender notice to provide
goods, services, construction or facilities;
e) "construction" means 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;
f)
"Construction Contract Guidelines" means standard instructions
developed in consultation with the Construction Association of Nova
Scotia that support construction tenders;
g) "environmental considerations" means factors associated with the
purchase, manufacture, operation or disposal of a product or asset that
affect the environment, such as the degree to which the product or asset
uses recycled materials, is energy efficient, or produces or reduces
greenhouse gas emissions;
h) "goods" means materials, furniture, merchandise, equipment,
stationery, and other supplies required by the Municipality of the County
of Richmond for the transaction of its business and affairs and includes
services that are incidental to the provision of such supplies;
i)
"facilities" means 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;
j)
"life cycle cost" means the total costs associated with a product or
asset over its life span, including the cost of maintenance, repair,
operation and disposal;
k) "local business" means businesses whose main office or operations
are physically located within the boundaries of the Municipality of the
County of Richmond and includes the Town of Port Hawkesbury;
l)
"public tender" means publicly advertising the Municipality of the
County of Richmond's intended procurement of certain goods, services
and construction and inviting responses from interested suppliers. Public
m)
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tenders include traditional tenders, requests for proposals, and two
phase bids, and are described at section [9] of this Policy;
n) "Public Procurement Act (PPA)" means an act outlining the rules
related to the procurement activity of all public sector entities in the
Province of Nova Scotia;
o) "request for proposals" means a formal invitation to suppliers to
describe how their services, methods, equipment or products can
address and/or meet the needs of the Municipality of the County of
Richmond. Requests for proposals are described at section [11] of this
Policy;
p) "request for quotations" means informally obtaining price quotations
from a number of different suppliers. Requests for quotations are
described at section [8] of this Policy;
q) "services" means services required by the Municipality of the County of
Richmond for the transaction of its business and affairs, excluding
services provided by an employee through a personal services contract;
r)
"social considerations" means factors associated with the purchase or
manufacture of a product or asset that relate to the rights or interests of
the workers involved, such as working conditions, fair wages, and
compliance with human rights legislation and conventions;
s) "standing offer" means a source of supply available to the Municipality
of the County of Richmond either through a standing price agreement
with a supplier or as a member of a larger group of purchasers. Standing
offers are described at section [7] of this Policy;
t)
"traditional tender" means a formal invitation to suppliers to submit a
bid to supply specified goods, services and construction. Traditional
tenders are described at section [10] of this Policy;
u) "two phase bid" means a two stage process in which suppliers submit
proposals for evaluation, and separately submit prices. Two phase bids
are described at section [12] of this Policy.
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4.
Application of this Policy
4.1 This Policy applies to the procurement by the Municipality of the County of
Richmond of all goods and services, including construction and facilities, by
purchase or lease, but does not apply to procurements:
a) by the Municipality of the County of Richmond from organizations owned
or controlled by the Municipality of the County of Richmond;
b) where a construction project is managed by a third party on behalf of the
Municipality of the County of Richmond, in which case the procurement
for the project must be in accordance with the contract between the
Municipality of the County of Richmond and the third party, and in
accordance with generally accepted procurement practices.
5.
Procurement Policy Principles
5.1 All procurement carried out by the Municipality of the County of Richmond
must be carried out with a view to:
a) ensuring an equitable, open and transparent process for the acquisition
of goods and services by the Municipality of the County of Richmond;
b) avoiding dishonesty, corruption or favouritism in the procurement of
goods and services;
c) encouraging competitive bidding wherever possible and, in any event,
minimizing the Municipality of the County of Richmond's cost of acquiring
goods and services while obtaining best value;
d) utilizing suppliers who can be expected to provide satisfactory
performance;
e) taking into account environmental considerations in all procurement
decisions and selecting environmentally beneficial goods and services
where practical;
f)
complying with applicable regional, national, and international trade
agreements, including the Agreement on Internal Trade and the Atlantic
Procurement Agreement;
g) complying with the Public Procurement Act, S.N.S. 2011, c. 12 and
Regulations made pursuant to the Public Procurement Act.
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5.2 Pursuant to s. 15(1) of the Public Procurement Act, all employees involved in
procurement on behalf of the Municipality of the County of Richmond must:
a) ensure their procurement activities are conducted according to this
Policy, provincial and federal legislation, trade agreements and ethical
business practices;
b) encourage and support collaborative procurement amongst other
municipalities and public sector entities such as hospitals and school
boards;
c) follow leading procurement practices;
d) in good faith, conduct business with current and prospective suppliers
and be fair in all business dealings;
e) strive to obtain the best value for each expenditure;
f)
require suppliers provide accurate representations of goods, services
and construction;
g) encourage suppliers to consider integrating environmental, economic and
social considerations in their product or service offerings;
h) encourage the negotiation of an equitable and mutually acceptable
settlement when a dispute arises;
i)
request removal from a procurement process when a personal conflict of
interest is perceived.
Part 1 - Normal Procurement Practices
6.
Normal Procurement Practices
6.1 In addition to adhering to the principles in sections [4] and [5], normal
purchasing practices must be as described below in subsections [6.2] to
[6.5].
6.2 For goods, services and construction having a value of less than $1,500
excluding taxes:
a) The procurement decision must be made by the applicable Director or by
an employee designated by the Director or CAO; no purchase order shall
be required.
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b) Goods, services and construction must be procured under a standing
offer if one exists for the goods, services or construction required, and if
doing so will provide best value.
c) If the goods, services or construction cannot be procured under
subsection 6.2 (b), they may be purchased from any supplier, unless
municipal staff have reason to believe that:
i.
purchasing the goods, services or construction from that supplier
would not provide best value; or
ii.
acquiring the goods, services or construction from that supplier
would otherwise not conform with the procurement principles in
section [5], including the requirement for competitive bidding;
6.3 For goods, services and construction having a value between $1,500 and
$15,000 excluding taxes:
a) The procurement decision must be made by CAO or by an employee
designated by the CAO.
b) Goods, services and construction must be procured under a standing
offer if one exists for the goods services or construction required, and if
doing so will provide best value.
c) If the goods, services or construction cannot be procured under
subsection 6.3 (b), the goods, services and construction must be
procured by a request for quotations and all quotations must be obtained
in writing. A corresponding purchase order must be approved by the
applicable Director and CAO or their designates.
6.4
For goods having a between $15,000 and $25,000, services having a value
between $ 15,000 and $50,000 and construction having a value between
$15,000 and $100,000 excluding taxes:
a) The procurement decision must be made by the CAO or other position
designated by the CAO.
b) Goods, services and construction must be procured under a standing
offer if one exists for the goods, services or construction required, and if
doing so will provide best value.
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c) If the goods, services or construction cannot be procured under
subsection 6.4 (b), the CAO or other position designated by the CAO
must decide whether the goods, services or construction must be
procured by a request for quotations or by public tender.
d) If the goods, services or construction are procured by a request for
quotations, in addition to any other requirements for the request for
quotations process, the following requirements must be met:
i.
all quotations must be obtained in writing;
ii.
A corresponding purchase order must be approved by the
applicable Director and CAO or their designates.
6.5
For goods having a value of more than $25,000, services having a value of
more than $50,000, and construction have a value of more than $100,000
excluding taxes:
a)
The procurement decision must be made by the CAO;
b)
Goods, services and construction may be procured under a standing
offer if one exists for the goods, services or construction required, and if
doing so will provide best value.
c)
Goods, services and construction must be procured by public tender,
which may be preceded by a request for qualifications or request for
expressions of interest.
d)
A corresponding purchase order must be approved by the applicable
Director and CAO or their designates.
6.6
Municipal staff may approve exceptions to the normal purchasing practices
outlined in subsections [6.1] to [6.5] of this Policy:
a) when a more competitive process normally used for goods, services,
and construction of higher value, is used;
OR
b) when, in accordance with the criteria described in the "alternative
procurement practices" provisions at section [13] of this Policy, it is
c)
Municipality of the County of Richmond "Purchasing and Tendering" Policy
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necessary or appropriate that the goods, services and construction be
purchased in accordance with that section.
Part II Guidelines For Procurement Procedures
7.
Standing offers:
7.1 A standing offer is a source of supply available to the Municipality of the
County of Richmond either through a standing price agreement with a
supplier or as a member of a larger group of purchasers, and includes:
a)
a standing agreement between the Municipality of the County of
Richmond and a supplier in which the supplier commits to providing
specified goods, services or construction at a specific price for a specific
period of time. Such standing agreements should themselves be the
subject of a competitive tender process;
b)
equipment leasing programs through the Government of Nova Scotia;
c)
Nova Scotia Provincial "standing offers" administered by the Nova Scotia
Government;
d)
supplies and services available from the Nova Scotia Government;
e)
a procurement program administered by the Union of Nova Scotia
Municipalities or the Association of Municipal Administrators;
f)
any other program available to several municipal units and other public
sector entities such as hospitals and school boards, provided that
municipal staff is satisfied that such program has been developed and
conforms with the principles set out in section [5].
8.
Request for quotations:
8.1 A request for quotations process involves informally obtaining price
quotations from a number of different suppliers.
8.2 Requests for quotations are generally used when the cost of the goods,
services or construction does not warrant the time, effort and expense
required for a formal public tender process.
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8.3 Quotations must normally be sought from at least three suppliers but fewer
suppliers may be used when three suppliers are not available within a
reasonable distance, having regard to the value of the goods, services and
construction, the shipping or travel cost and the amount of time available
before the goods, services and construction are required to be available. If it
is decided to obtain fewer than three quotations, the person responsible for
that decision must document their reasons for doing so.
8.4 Quotations must normally be obtained in writing, but when time does not
permit the obtaining of written quotations, the quotations may be obtained
verbally, except when this Policy stipulates otherwise. If a quotation is
obtained verbally, the person obtaining it must document the quotation,
including the time, date, supplier, price and description of the goods, services
and construction, the person from whom the quotation was obtained and the
name of the municipal staff obtaining the quotation.
9.
Public tender:
9.1 Public tender means publicly advertising the Municipality of the County of
Richmond's intended procurement of certain goods, services or construction
and inviting responses from interested suppliers.
9.2 Public tenders are used for higher value procurements, when the cost of the
goods, services or construction warrants the time, effort and expense
required for a public tender process.
9.3 Public tenders can be in the form of traditional tenders (see section [10]),
requests for proposals (see subsection [11]), or two phase bids (see section
[12]).
10. Traditional tender:
10.1 A traditional tender is a formal invitation to suppliers to submit a bid to supply
specified goods, services or construction.
10.2 A traditional tender should be used when the procurement requirements of
the Municipality of the County of Richmond can be clearly and completely
specified.
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10.3 Traditional tenders do not have to be opened in public, but if they are not, the
name of each bidder and the amount of their bid must be made available to
each bidder after the tenders are opened.
10.4 The Municipality of the County of Richmond must not negotiate with any
bidders, but must award the procurement contract to the bidder that meets
the tender requirements and provides best value.
11. Request for proposals:
11.1 A request for proposals is a formal invitation to suppliers to describe how
their services, methods, equipment or products can address and/or meet the
needs of the Municipality of the County of Richmond.
11.2 A request for proposals may be used when the Municipality of the County of
Richmond is unable to clearly or completely specify the goods, services or
construction required, and suppliers are therefore asked to provide a solution
to the problem, requirement or objective. Requests for proposals may also be
used for professional and consulting services.
11.3 In order to preserve confidentiality of sensitive commercial information
contained in a proposal, proposals submitted in response to a request for a
proposal need not be opened in public, but must be opened in the presence
of at least two representatives of the Municipality of the County of Richmond,
and after the proposals are opened a list of the proponents must be available
to the public and the proponents upon request.
11.4 Negotiations may be conducted with a proponent after proposals have been
opened, subject to complying with the terms of the request for proposals
which must be drafted to avoid unfair "bid-shopping" by the Municipality of
the County of Richmond (that is, to avoid using the bids submitted as a
negotiating tool to obtain a better price or other benefit).
11.5 The Municipality of the County of Richmond must award the procurement
contract to the supplier whose proposal is determined to provide best value
to the Municipality of the County of Richmond based upon the evaluation
criteria set out in the request for proposals and equitably applied to all
proposals.
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12. Two phase bids:
12.1 A two phase bid process invites suppliers to submit bids as follows:
a) Phase One: one or more steps in which bidders submit proposals for
evaluation, either with or without prices in a separate submission;
b) Phase Two: Only those bidders whose bids were determined to be
acceptable will be entitled to submit priced bids for consideration or,
where prices are submitted separately in Phase One, the prices are
opened.
12.2 A two phase bid process may be used when detailed specifications are not
available or it is impractical to prepare a specification based on price. This
type of procurement has the advantages of a request for proposals in Phase
One and a traditional tender in Phase Two.
12.3 The Phase One submissions need not be opened in public, but must be
opened in the presence of at least two representatives of the Municipality of
the County of Richmond and a list of the proponents will be available to the
public and the proponents upon request. Phase Two bids must be opened in
public.
12.4 The Municipality of the County of Richmond must not negotiate with any
bidders, and must award the procurement contract to the supplier whose
proposal is determined to provide best value to the Municipality of the County
of Richmond based upon the evaluation criteria set out in the Phase One
request for submissions equitably applied to all proposals, and the prices in
Phase Two.
13. Alternative procurement practices:
13.1 In certain circumstances, described in this section, the Municipality of the
County of Richmond may purchase goods, services or construction without
using one of the options set out above. An alternative procurement purchase
may occur only:
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;
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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 the Municipality of the County of Richmond'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;
f)
Where there is an absence of competition for technical reasons and the
goods, services and construction can be supplied only by a particular
supplier and no alternative or substitute exists;
g) For the procurement of goods, services and construction 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;
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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 procurement from philanthropic institutions, prison labour, persons
with disabilities, sheltered workshop programs or through employment
equity programs;
r)
For procurement from a public body or a non-profit organization; or
s) For the procurement of services of expert witnesses, specifically in
anticipation of litigation or for the purpose of conducting litigation.
13.2
When an alternative procurement purchase occurs, the reason for doing so
must be documented.
Part III - Requirements For All Public Tenders
14. Requirements For All Public Tenders
14.1 The following requirements apply to all public tenders, whether traditional
tenders, requests for proposals, or two phase bids:
a)
The Municipality of the County of Richmond must provide reasonable
notice and opportunity to respond to public tenders, and must post or
place notices of public tenders as follows:
i.
on the public website maintained and operated by the
government of Nova Scotia for procurements exceeding the
limits in subsection [6.5]
ii.
on the Municipality of the County of Richmond's website;
iii.
in The Reporter;
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iv.
in the Halifax Chronicle-Herald, upon the direction of the CAO,
when the CAO determines that the cost and nature of the
procurement warrants the expense of doing so;
v.
in other media, as directed by the CAO, when the CAO
determines that the cost and nature of the procurement
warrants the expense of doing so.
14.2
Every public tender must include or have attached the terms and conditions
that govern the tender.
14.3 The terms and conditions of every notice of public tender must be consistent
with:
a)
the standard instructions that support public tenders issued by the four
Atlantic provinces for goods, services and construction, known as the
Atlantic Standard Terms and Conditions (a copy of which is attached
as Schedule "A" to this Policy), for the procurement of goods, services
and construction;
b)
the standard instructions that support construction tenders issued by
the government of Nova Scotia, known as the Construction Contract
Guidelines (a copy of which is attached as Schedule "B" to this Policy),
for the procurement of construction.
14.4 Public tenders should normally include specifications or terms as follows:
a) expressly or by implication outlining the issues or criteria that will be used
for selection of a successful bidder or proponent;
b) a privilege clause stating that the lowest or any bid or proposal will not
necessarily be accepted;
c) the location for delivery of bids or proposals;
d) the means of delivery of bids or proposals, e.g., whether faxes or e-mails
are acceptable in addition to "hard copy" submissions;
e) the time and date of closing;
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f)
a warning that tender documents and bids will be open to the public,
except to the extent otherwise stated in a call for tenders or a request for
proposals, in which event there must be included a warning that
proposals or bids are subject to the Freedom of Information and
Protection of Privacy provisions of the Municipal Government Act;
g) for design or architectural services, a statement that the Municipality of
the County of Richmond will own the copyright in the design, plans and
other intellectual property produced for the Municipality of the County of
Richmond.
14.5 Public tenders should also include a form of contract that the successful
bidder will be required to enter into with the Municipality of the County of
Richmond, or should direct that bidders or proponents must provide the form
of contract with their bid or proposal.
14.6 For each public tender that is awarded, the Municipality of the County of
Richmond must post the name of the successful supplier and the contract
amount on the public website maintained and operated by the government of
Nova Scotia, [and on the Municipality of the County of Richmond's website].
14.7 The terms and conditions of every public tender must state the criteria that
the Municipality of the County of Richmond will use in evaluating responses.
Those criteria are not limited to purchase price and life cycle cost
considerations, but may also include items such as environmental and social
considerations, delivery, servicing and the capacity of the supplier.
15.
Upon the request of a supplier who is an unsuccessful bidder in a
public tender, the Municipality of the County of Richmond must
conduct a debriefing with that supplier to provide feedback on the
evaluation of the public tender. The debriefing must be conducted as
follows:
a)
the Purchasing Officer or the individuals who evaluated the public
tender must conduct the debriefing;
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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.
Part IV - Local Preference And Sustainability Considerations
16. Local Preference
16.1 Municipal staff must give preference to purchasing goods, services and
construction from local businesses in accordance with the following:
a)
If the goods, services or construction available from a local business
are equal in providing best value to those available from a non-local
business, the goods, services or construction from the local business
must be purchased.
OR
b)
In evaluating which goods, services or construction offer best value
to the Municipality of the County of Richmond, the Municipality of the
County of Richmond must apply a preference of 10% to the price
offered by a local business as compared with non-local businesses,
such that the price offered by the local business is adjusted lower by
10% for the purposes of evaluating which goods, services or
construction offer best value.
16.2 All requests for quotations and notices of public tender must state that local
preference applies to the procurement.
16.3 The local preference described above does not apply to procurements having
a value of $10,000 or greater.
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17. Sustainability Considerations
17.1 Pursuant to the Public Procurement Act, in evaluating which goods, services
or construction offer best value to the Municipality of the County of
Richmond, the Municipality of the County of Richmond may consider
sustainability criteria, meaning environmental considerations, social
considerations and economic considerations.
17.2 All requests for quotations and notices of public tender must list the
sustainability criteria that apply to the procurement.
PART V - GENERAL
18. Unsatisfactory Suppliers
18.1 The Municipality of the County of Richmond may refuse to purchase goods,
services and construction from a supplier, if, in the opinion of Council, the
supplier has not provided satisfactory performance, satisfactory quality goods
or has otherwise not provided best value to the Municipality of the County of
Richmond in dealings within the preceding three years.
19. Conflicts of Interest
19.1 If a staff member otherwise authorized to award a contract has a conflict of
interest (that is, he or she stands to gain or lose financially from a contract
award), the award must be made by the person to whom the conflicted staff
member normally reports and the conflicted staff member must not
participate in the procurement process related to the contract in any manner
(Where Council is awarding a contract, the Municipal Conflict of Interest Act
applies, so any Councillor who has a conflict of interest as defined in the Act
must act accordingly.).
20. Duration of Contracts
20.1 Contracts for goods, services and construction that are required to be
procured by public tender under this Policy, including price agreements, must
be re-tendered at least once every [five] years but may be re-tendered more
frequently at the direction of Council.
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21. Lease Arrangements
21.1 Lease arrangements are subject to the provisions of this Policy, save and
except that Council's authority must be obtained for any leases required by
the Municipal Government Act to be authorized by Council.
22. Approval of Form of Tender
22.1 Public tendering documents are to be reviewed by the CAO or his or her
designate prior to issuance to ensure consistency of tendering documents
and practices.
23. Expenditures
23.1 Expenditures for goods, services and construction made pursuant to this
Policy must be made in compliance with the Municipality of the County of
Richmond's Policies.
24. Estimating the Value of Goods and Services
24.1 In determining the cost of the goods, services or construction for the purpose
of deciding which of subsections 6.2. 6.3, 6.4 or 6.5 apply to a purchase, staff
must reasonably estimate the cost of the goods, services and construction.
25. Posting on the Municipality's Website
25.1
A copy of this Policy must be posted on the Municipality of the County of
Richmond's website.
26. Compliance with Policy
26.1 All staff and Councillors must act in good faith to comply with this Policy, but
failure to comply with this Policy does not invalidate any procurement
decision or act of the Municipality of the County of Richmond, nor is the
Municipality of the County of Richmond liable to any supplier or prospective
supplier for failing to comply with this Policy.
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Policy Review/Amendment Schedule
Date of Review
Formally advertised and amended by Council
Adopted
June 20, 2019
Amended, remove supplier
registry throughout the
document and,add 6.5 (b).
June 24, 2024