Policy Statement

1   This Policy will ensure that all Goods and Services will be Acquired in an open, fair and transparent manner that

(a) is efficient, accountable and maximizes Best Value,

(b) advances the City's commitment to economic, environmental, and social responsibility by supporting the Acquisition of sustainable products and services and striving to have a positive impact on the economic and social well-being of its community, and

(c) meets the requirements of the Community Charter, the Local Government Act, the Applicable Trade Agreements, and British Columbia and Canadian laws governing public sector Procurement, contracts, and other laws of general application..

Purpose of this policy

2   This Policy outlines authorization and competitive procurement process requirements for procuring Goods and Services for the City. The primary goal in the Procurement process is to attain Best Value using processes that are competitive where appropriate, open, and transparent.

Application

3   This Policy applies to all Acquisitions and Purchases made by employees. Specific exclusions are set out in Section 6.

Interpretation

4   (1) The Interpretation Bylaw applies to this policy.

(2) This policy will be read and applied in conjunction with the Designation of Authority Bylaw.

(3) The Schedule contains Procurement Method Procedures.

Definitions

5   In this policy

"Acquire" or "Acquisition" means to obtain by any method, accept, receive, Purchase, be vested with, lease, take possession, control or occupation of, and agree to do any of those things, but excludes expropriation, except by agreement under Section 3 of the Expropriation Act.

"Annual Budget" means the amounts in the applicable five-year financial plan adopted by Council for Purchases and Expenditures during the first year of the financial plan for the purposes of the .

"Applicable Trade Agreements" include the New West Partnership Trade Agreement (NWPTA), the Canadian Free Trade Agreement (CFTA), the Canadian European Union: Comprehensive Economic and Trade Agreement (CETA), and any other trade agreement applicable to the City that exists on or after the adoption of this Policy.

"Authorized Staff" means the person responsible and authorized to Acquire and Purchase Goods and Services within the authorized purchasing limits as set out in the Delegation of Authority Bylaw.

"Best Value" means the optimal combination of Total Cost, experience, qualifications, approach and methodology.

"Bid" includes a written formal proposal submitted in response to a Competitive Process inviting the supply of Goods and Services or Construction.

"Bonds" means Bid Bonds, Labour & Material Payment Bonds and Performance Bonds, as set out in the Schedule.

"Change Order" means any change to a Term, condition or other Contract provision.

"Competitive Procurement Process" means a fair and open procurement process that is competitive and based on functional and generic specifications.

"Construction" means a construction, reconstruction, demolition, repair or renovation of a building, structure or other civil engineering or architectural work and includes site preparation, excavation, drilling, seismic investigation, the supply of products and materials, the supply of equipment and machinery if they are included in an incidental to the construction, and the installation and repair of fixtures of a building, structure or other civil engineering or architectural work, but does not include Professional Consulting Services related to the construction Contract unless they are included in the Procurement.

"Contract" means a written agreement authorized or ratified by the appropriate authority and executed by the appropriate authority.

"Contractor" or "Service Provider" means the organization or individual that is hired under an Agreement to provide services.

"Dispose" means to transfer by any method including assign, give, sell, grant, charge, convey, lease, divest, dedicate, release, exchange, alienate or agree to do any of those things.

"Expenditure" means all amounts authorized to be paid in this Bylaw and the Annual Budget and includes the Purchase of Goods and Services within the monetary limits prescribed by this Bylaw.

"Formal Competitive Process" means a public Procurement process that is open, fair, transparent, and compliant with the requirements of the Applicable Trade Agreements.

"Goods and Services" includes supplies, equipment, furniture, fixtures, machinery, vehicles, insurance, employee benefits, Construction, labour and materials, legal or damage claims, maintenance, Employment Contracts, service Contracts, and Professional and Consulting Services, but does not include Real Property.

"Limited Tendering Exception" means provisions in the applicable trade agreements whereby the City may use limited tendering.

"Limited Tending" means a non-competitive procurement process, where only one supplier exists or is engaged by the City (e.g., single sourcing, sole sourcing).

"Local Supplier" means a local business of any legal structure that operates with a City of Abbotsford business license.

"Manager" has the same meaning as in the Delegation of Authority Bylaw.

"Procurement" means the Acquisition by any means, including by Purchase, rental, lease or conditional sale, of Goods and Services or Construction.

"Procurement Services" means the City's Procurement Division.

"Professional Consulting Services" means an agreement to provide professional or management consulting services.

"Purchase" means the Acquisition of Goods and Services or any interest therein by purchase, Contract, lease, rental or otherwise.

"Purchase Order" means a written acceptance of an offer to Purchase Goods and Services made on the City's numbered form.

"Purchase Requisition" means the initial request for a Purchase Order.

"Quotation" or "Quotes" means a written submission from a supplier in response to a request for quotations or applications to supply Goods and Services.

"Real Property" includes lands, buildings, tenements and any interest, estate, right or easement in lands.

"Signing Authority" means the approved levels of authority, as set out in the Delegation of Authority Bylaw, to Purchase of Goods and Services on behalf of the City in a form approved by the a general manager.

"Single Source" means where several suppliers may possess the ability to meet the requirements however only a single supplier is selected for specific reasons.

"Social Procurement" means sustainable procurement that strives to have a positive impact on the economic, cultural, social and environmental well-being of the City’s community.

"Sole Source" means only one supplier possesses the ability to meet requirements.

"Supplier" means a company which supplies Goods or Services to the City.

"Term" means:

(a) in the case of a Contract for the Purchase of Goods and Services, a lease or a rental agreement entered into by the City, the initial term of the Contract, lease or rental agreement not including any optional renewal terms; and

(b) in the case of a renewal of a Contract for the Purchase of Goods and Services, a lease or a rental agreement by the City, the renewal term of the Contract, lease or rental agreement not including the initial term.

"Total Cost" means the sum of all costs attributable to products, Construction, and services associated with performing the intended function over the entire Term of use and includes factors such as Acquisition cost, installation cost, disposal value, disposal cost, operational cost, maintenance cost, quality of performance and environmental impact.

Authority for procurement transactions

6   (1) Procurement transactions must be within the approved Annual Budget and must only be performed by Authorized Staff.

(2) For reference purposes only, and subject to the exceptions stated in the Delegation of Authority Bylaw, the generally applicable approval authority limits are summarized in the following table:

B/L 3257-2022

Procurement method

7   (1) All agreements, Contract, leases or other documents relating to agreements involving the commitment of the City must be signed in accordance with the Delegation of Authority Bylaw. Authorized Signatories and Execution of Documents.

(2) The method of the City's Procurement is based on the dollar value, Trade Agreement Requirements,risk level, and the nature of the specific Procurement transaction, ensuring that the cost and time associated with using a Formal Competitive Process is proportionate to the benefit received.

(3) Procurement methods must be selected in accordance with the following table and the procedures set out in the Schedule.

Note: Multi-year agreements, including options to renew, are dollar value accumulative for the Term of the agreement and shall be subject to the thresholds listed above.

(4) Corporate Purchasing Cards should be used for straightforward, low value (less than $10,000) Purchases of goods, as directed by Procurement Services.

(5) Written Contracts are to be used when the Goods and Services are complex, despite the dollar value, or when Terms and conditions are required that are not in the City's standard Purchase Order, including, but not limited to: Contract security, performance monitoring, project schedules, long Term agreements, and any Purchase issued through a Formal Competitive Process.

Procurements

8   No Purchase, Expenditure or commitment may be made by any Employee, unless it falls within the current budget approved by Council or approval is obtained through a budget amendment process.

Unsolicited proposals

9   Unsolicited proposals received by the City will be reviewed by Authorized Employees in the applicable division. Any Procurement activity resulting from the receipt of an unsolicited proposal must comply with the provisions of this Policy. A Contract resulting from an unsolicited proposal will only be awarded on a non-competitive basis when the Procurement requirements comply with the non-competitive Procurement procedures described in the Schedule.

Limited tendering

10   A procurement method where the City contacts a supplier or suppliers of its choice And where, if used for a purchase greater than the Applicable Trade Agreement threshold(s) the appropriate Trade Agreement exception is relied upon for support of the exception and a description of the circumstances justifying its use is provided.

Identical bids

11   (1) If identical lowest Bids are received (where prices was the main or only evaluation criteria), each of which are less than the approved budget and all other criteria are equal (delivery, service, performance, security of supply and price), the successful Bid will be determined by way of coin toss.

(2) Approval of an award under this section must comply with this policy.

Increase to an Existing Contract or Purchase Order

12   Increases to the value of an existing Contract or Purchase Order must only be approved by the Authorized Staff person that approved the award and only if the total amount of the Contract or Purchase Order, including the increase, is within that Authorized Staff's Signing Authority limit and within the project budget as set out in the approved financial plan.

Purchase standardization

13   All City departments will co-operate in the Purchase of supplies by simplifying and standardizing like requirements, wherever possible. Every effort should be made to reduce the types and kinds of products used to the smallest number (i.e., considering equivalents or any alternatives suggested) in order to minimize investment and maximize value to the City.

Co-operative purchasing

14   (1) Savings likely to be achieved through purchasing Goods and Services jointly with other government bodies should be pursued.

(2) Authorized Staff should participate with other government agencies or public authorities in joint purchasing ventures when it is in the best interests of the City.

(3) In such cases, the procedures set out by the agency responsible for the venture will be followed and not the procedures set out in this Policy.

Financial security

15   The Purchaser may require financial security from potential suppliers in the form of Performance Bonds and Labour and Material Bonds if considered to be in the City's best interest. Bonding is not required on every Bid but it is advisable, where there is a large liability or the value of the Goods and Services exceeds $100,000.

Disposal of surplus goods

16   Management in service areas must Dispose of all Goods and Services as directed by Procurement Services.

Conflict of interest

17   Subject to Part 4, Division 6 of the Community Charter, no employee or member of the Council will participate in or attempt to influence in any way a decision, recommendation or other action to be made of taken in respect to the evaluation, selection or approval of any competitive Bid or arrangement for the supply of Goods and Services to the City in which the employee or member of Council has a direct or indirect pecuniary interest.

WorkSafeBC

18   (1) All Contracts for services to be provided on City property require the Contractor to provide proof of registration, where applicable, and remain in good standing with WorkSafeBC throughout the Term of their Contract.

(2) Contractors may be required to provide clearance letters before and after performing work for the City.

(3) In the event the Contractor is not eligible for registration with WorkSafeBC for reasons other than workplace safety performance, the City may assume responsibility as employer for the purposes of the Workers Compensation Act, and pay the applicable WorkSafeBC premiums, at the Contractor’s expense.

Supplier performance

19   Authorized Staff and the department responsible for a Procurement transaction will maintain records of supplier performance. The information will be used to ensure Contract compliance, to supplement a subsequent prequalification process or to justify an award where it can be demonstrated that such records are part of the evaluation process and criteria.

Supplier debriefing

20   When a Procurement transaction is awarded using a Formal Competitive Process, unsuccessful suppliers are entitled to a debriefing upon request to obtain feedback on the strengths and weaknesses of their Bid.

Insurance

21   All Contracts for services to be provided on City property require the Contractor to provide and maintain insurance coverage acceptable to the City, including but not limited to commercial general liability, auto, property/all risk and professional liability. The risk associated with each Contract varies and accordingly the City may require additional factors, such as being named as an additional insured, cross liability clauses, waiver of subrogation, notice of cancellation and proof of coverage.

Freedom of Information and Protection of Privacy Act

22   This Policy is subject to the provisions of the Freedom of Information and Protection of Privacy Act, RSBC 1996, with respect to the disclosure of information.

Bonds

23   Performance and Labour Material Bonds are required for all Construction type projects over $100,000 and/or where project assurances are required.

Exclusions

24   This Policy establishes the policies and practices applying to the Purchase of all types of Goods and Services with the exception of the following:

(a) the borrowing and investing of money;

(b) the rental, lease, Purchase and sale of property, land or accommodation;

(c) memberships in professional and vocational associations and their publications and other professional and training activities;

(d) health services and social services;

(e) legal services;

(f) Procurements from a public body or non-profit organization;

(g) the hiring of Contract employees;

(h) Goods and Services Purchased through provincial and federal corporate supply arrangements;

(i) Goods and Services Purchased from Indigenous Peoples;

(j) emergency Purchases; or

(k) all other exemptions as stated in the Applicable Trade Agreements.

Prohibitions

25   The following activities are prohibited:

(a) Purchase by the City of any Goods and Services for personal use by or on behalf of any member of Council, appointed officers or employees or their immediate families;

(b) the division of a single Purchase into multiple increments to circumvent policies or levels of authority; or

(c) committing the City or entering into a contract without the appropriate authority to do so.

Waiving of requirements

26   Subject to applicable enactments and the City's bylaws, Council may waive this Policy or authorize an exemption on a case-by-case or class basis.

Low value purchases (Less than $10,000)

1   (1) Application

(a) This method will be used for Goods and Services having a total value less than $10,000 and required for a one-time (non-repetitive) Procurement.

(2) Process

(a) Before initiating the transaction employees must be, or ensure they have received approval from, the appropriate Authorized Staff.

(b) Where possible, a reasonable effort must be made to obtain the or Services from a Local Supplier.

(c) No Quotes are required and Purchases in this category can either be paid for by Purchasing Card or the City can be invoiced directly.

Medium value goods and services purchases(between $10,000 and $75,000)

2   (1) Application

(a) This method will be used for Goods and/or Services having a value greater than $10,000 and less than $75,000 for a one-time (non-repetitive) Procurement.

(2) Process

(a) Before initiating the transaction employees must be, or ensure they have received approval from, the Authorized Staff.

(b) Three (3) written Quotes (i.e. email, fax, letter) will be obtained from three (3) different suppliers (if possible).

(c) All suppliers must receive the same Quotation information.

(d) All Quote documentation will be submitted with the Purchase Requisition.

(e) If less than three (3) written quotes are submitted with the Purchase Requisition a Single or Sole Source Justification report must also be provided.

(f) Authorized Staff are responsible for selecting the supplier on the basis of Best Value to the City.

(g) A Purchase Requisition must be created by the department requesting the Goods and Services PRIOR to the work starting or the goods being ordered and appropriate documentation must be collected (insurance, Workspace, etc.). Prior to service being rendered a fully executed agreement must be in place. Once a Purchase Order has been completed the work can begin and the goods can be ordered.

(h) Authorized Staff may determine that it is appropriate to use a Formal Competitive Process instead of the written Quotation process even though the value of the transaction is less than $75,000. In such a case, Authorized Staff will, in accordance with the provisions of this Schedule, contact Procurement Services.

Consulting services (less than $25,000)

3   (1) Application

(a) This method will be used for procuring consulting services valued at less than $25,000 for a one-time (non-repetitive) Procurement. Multiple Quotes are not required for consulting services under this value.

(2) Process

(a) Before initiating the transaction employees must be, or ensure they have received approval from, the Authorized Staff

(b) A scope of work and a pricing proposal must be obtained from the Service Provider.

(c) A Purchase Requisition must be created and include any documentation required such as insurance requirements, business license and Workspace Clearance Letter and the Service Provider's proposal. Once a Purchase Order has been completed the services can begin.

(d) For all consulting services, regardless of contract value, Procurement Services recommends that a written Contract be issued.

Consulting services (between $25,000 and $75,000)

4   (1) This method will be used for procuring consulting services having a value greater than $25,000 and less than $75,000 for a one-time (non-repetitive) Procurement. Multiple Quotes are not required for consulting services between this value.

Process

(2) Before initiating the transaction Employees must be, or ensure they have received approval from, the Authorized Staff.

(3) A scope of work and a pricing proposal must be obtained from the Service Provider.

(4) A Purchase Requisition must be created and include any documentation required such as insurance requirements, business license and WorkSafeBC Clearance Letter and the Service Provider’s proposal. Once a Contract has been executed the services can begin.

(5) Authorized Staff are responsible for selecting the supplier on the basis of Best Value to the City.

(6) Authorized Staff may determine that it is appropriate to use a Formal Competitive Process instead of the written Quotation process even though the value of the transaction is less than $75,000. In such a case, Authorized Staff will, in accordance with the provisions of this Schedule, contact Procurement Services.

Complex/high value purchases (greater than $75,000)

5   (1) Application

(a) This method will be used for procuring complex Goods and/or Services (including consulting services) exceeding $75,000, and $200,000 for Construction.

(2) Process

(a) Before initiating the transaction Employees must be, or ensure they have received approval from, the Authorized Staff.

(b) Contact Procurement Services as early as possible in the planning stage. A Formal Competitive Process will be required.

Limited tendering

6   (1) Application

(a) In the case where only one (1) supplier exists or is engaged by the City to supply a Goods or Service or the decision has been made to award work to one supplier.

(b) Single Source means several suppliers may possess the ability to meet the requirements however only a single supplier is selected for specific reason(s).

(c) Sole Source means only one supplier possesses the ability to meet requirements.

(2) Process

(a) Employees will provide the applicable General Manager or City Manager with the rationale via a completed Single or Sole Source Justification report that warrants a non-competitive selection for approval and will obtain the City Manager or applicable General Manager’s written approval before proceeding.

(b) In the case of purchase in excess of $75,000 for Goods and/or Services and $200,000 for construction, employees will contact Procurement Services as early as possible in the planning stage, before engaging the supplier(s) to ensure the Applicable Trade Agreement exception(s) can be relied upon for support of the exception(s) or to determine if other Applicable Trade Agreement requires need to be met.

(c) Employees must seek City Manager approval for a non-competitive transaction in excess of $1,000,000 but should not do so without first seeking appropriate advice on whether the transaction is compliant with the Applicable Trade Agreements and Procurement law principles.

Bonds

7   (1) Application

(a) The requirement for Performance Bonds and Labour and Material Bonds.

(2) Process

(a) Any Construction projects over $100,000 and/or projects that require assurance will require a Performance Bond and a Labour Material Bond each worth 50% of the total project value.

(b) Employees will provide the general manager of finance and procurement services or City Manager with the rationale to remove the requirement for a Performance Bond and Labour Material Bond should this action be in the best interests of the City.