CITY OF SASKATOON COUNCIL POLICY

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1 ORIGIN/AUTHORITY Clause F1, Administrative Report No ; Clause B1, Legislative Report No ; Item 5b), Matters Requiring Public Notice December 3, 2007; Item 4a), Matters Requiring Public Notice June 18, 2012 and Item of the Standing Policy Committee on Finance ADOPTED BY: City Council CITY FILE NO. CK , and PAGE 1 of 7 1. PURPOSE The purpose of this policy is to establish general guidelines for The City of Saskatoon Administration in the purchase of goods, services and work for The City of Saskatoon from outside parties. 2. DEFINITIONS 2.1 Consultant - includes individuals and firms who provide professional services, reports, opinions and recommendations in specialist areas. For the purpose of this policy, consultant will not include those who perform day-to-day functions as an extension of in-house resources or those who are retained for on-going municipal operations (e.g. consultants used for surveys, soil tests, etc.). 2.2 Public Tender - a process requiring documents which contain the specifications and conditions on which The City will enter into a contract with the bidder to be publicly advertised and opened. 2.3 Request for Proposals - a request to vendors to submit proposals that are innovative. Requests for proposals do not tie firms to existing processes or rigid specifications but, rather, encourage new approaches, techniques and methods for meeting the City s requirements. Requests for proposals will not be opened publicly.

2 PAGE 2 of Sole Source Contract - an agreement entered into by the City for the purchase of goods, services and work which has not been publicly advertised or for which written quotations or telephone quotations have not been received from more than one vendor. 3. COMPETITIVE BIDDING POLICY When The City of Saskatoon decides to purchase goods, services or work from outside parties it shall do so through the competitive bidding practices outlined below: a) Public Advertising - Whenever possible, the purchase of goods, services or work shall require public advertising when: the amount of the contract is expected to exceed $75,000.00; or in all other cases, where City Council, the City Manager or the Purchasing Office of The City of Saskatoon deems it to be in the best interest of the City. b) Consultants - In the case of consultants, public advertising is required as per Section 3a) above and The City of Saskatoon may invite selected consultants to submit proposals. c) Written Quotations - The purchase of goods, services, or work shall be done by obtaining written quotations from selected vendors when: the amount of the contract is expected to be between $10,001 and $75,000.00; or the contract is expected to be less than $10, but City Council, the City Manager or the Purchasing Office of The City of Saskatoon deems it to be in the best interest of the City. d) Telephone/Facsimile Quotations - The purchase of goods, services or work expected to be less than $10, shall be completed by obtaining telephone/facsimile quotations from selected vendors.

3 PAGE 3 of 7 4. FORM OF CONTRACT 4.1 When the amount of the contract is expected to exceed $75,000.00, the form of the contract shall be, whenever possible, a public tender or a request for proposals. However, the City retains the right to use a sole source contract where, in the opinion of the City, it is appropriate. 4.2 Whether a public tender or a request for proposals is used will be up to City Council, the City Manager, the General Manager of the relevant department or the Purchasing Office of The City of Saskatoon. 4.3 Sole Source Contract Sole source procurement is permitted in the following circumstances: a) When the selection of a single vendor is necessary due to the vendor s proprietary rights; b) When supply is available from only one vendor due to the compatibility with existing equipment or services that have been established as a standard with the City; c) For the extension of work with the contractors/supplies on an existing project site where it is considered to be more economical, efficient and expedient than soliciting competitive tenders; d) In an emergency that has created an immediate and serious need, which could risk the health or safety of any person or threaten public or private property and environment or adversely affect the operation of the City; e) For the supply of goods or equipment for trial use and for used or demonstration goods or equipment; f) Subject to the approval of the City Manager, for supply of goods, equipment or services where there is a fluctuating price or shortage of availability and a delay in securing pricing or supply could adversely affect the interest of the City; and

4 PAGE 4 of 7 g) Any other circumstance where, in the opinion of the City Council, it is appropriate for the City to sole source the purchase. 5. TENDER/BID/PROPOSAL ACCEPTANCE CRITERIA 5.1 In all cases the City reserves the right to refuse any or all tenders, bids or proposals where the City deems it to be in the best interest of the City to do so. 5.2 In the case of public tenders, the City shall accept the lowest qualified tender or bid meeting the City s specifications, unless the tender documents set out additional and/or other acceptance criteria. 5.3 For greater certainty, qualified means that, in the opinion of the City, the contractor has the expertise and ability, physically and financially, to supply or perform the goods, services or work tendered, bid or proposed, and whose past performance or references are satisfactory to the City. 5.4 In the case of requests for proposals, the City shall accept the proposal which, in the opinion of the City, best meets the requirements of the City, unless the proposal documents set out additional and/or other acceptance criteria. 6. AWARDING OF CONTRACTS 6.1 The City Manager pursuant to The City Administration Bylaw has the authority to: a) call for tenders and other contracts for the supply to the City of goods, services or work as authorized by the budget; b) in the case of public tenders, award contracts where: the contract has been provided for in the approved project budget;

5 PAGE 5 of 7 (iii) (iv) the amount of the contract does not exceed the approved project budget; the contract is being awarded to the lowest qualified bidder meeting specifications notwithstanding the amount of the contract exceeds $75,000.00; and the award of the contract is not of a controversial nature. c) in the case of sole source contracts, requests for proposals and all other contracts, award contracts where: (iii) (iv) the contract has been provided for in the approved project budget; the amount of the contract does not exceed the approved project budget; the amount of the contract does not exceed $75,000.00; and the award of the contract is not of a controversial nature. 6.2 All contracts, with the exception of public tenders, that are between $50, and $75, must be reported three times per year to the Standing Policy Committee on Finance for the information of Committee. Consulting contracts that are issued by departments shall be included in the information reports to City Council. Applicable information regarding consulting contracts shall be forwarded to the Purchasing Services Section for inclusion in the reports. 6.3 City Council shall award contracts where: a) the contract has not been provided for in the approved project budget; b) the amount of the contract exceeds the approved project budget;

6 PAGE 6 of 7 c) in the case of public tenders, the contract is not being awarded to the lowest qualified bidder meeting specifications; d) in the case of all other contracts, the amount of the contract exceeds $75,000.00; e) the award of the contract is of a controversial nature; and/or f) the City Manager, for any reason, refers the award of the contract to City Council. 6.4 The City Administration Bylaw allows the City Manager to delegate any authority, function or responsibility given to him or her under the Bylaw. 7. EXCEPTIONS 7.1 This policy does not apply to the purchase of the following goods, services or work from outside parties: a) utility contracts (e.g. telephone, power, etc.); b) contracts or agreements relating to employee compensation, reimbursements, training, education, etc. c) contracts for the sale, purchase, lease or license of land or buildings. 8. DISCLOSURE OF INFORMATION 8.1 The City will provide pricing information, including the total contract amounts and the unit pricing of the successful bidder. Unit pricing of the unsuccessful bidders will only be released if permission of the bidders is obtained in accordance with The Local Authority Freedom of Information and Protection of Privacy Act.

7 PAGE 7 of Purchasing will not divulge the names or numbers of bidders prior to the closing of tenders or bids, except when it is deemed to be in the best interest of the City to do so. 8.3 Requests for Proposals received will not be opened publicly. However, upon opening, the Requests for Proposals will be witnessed and dated. At the time of the contract award, the evaluation results and factors that determined the successful proposal will be disclosed. Details of the Requests for Proposals will only be released if permission of the bidder is obtained in accordance with The Local Authority Freedom of Information and Protection of Privacy Act.