CORPORATE SERVICES CITY SOLICITOR’S OFFICE

PURCHASING AND RISK MANAGEMENT SECTION

PURCHASING BY-LAW

NUMBER 400-2004

ADOPTED BY WINDSOR CITY COUNCIL: CR ----/2004

INDEX

PAGE PART I – SHORT TITLE AND DEFINITIONS Section 1 SHORT TITLE ..........................................................................................................5 Section 2 DEFINITIONS ...........................................................................................................5 PART II – PURPOSES, GOALS AND OBJECTIVES Section 3 PURPOSES, GOALS AND OBJECTIVES...........................................................11 PART III – PURCHASING PRINCIPLES Section 4 APPLICATION........................................................................................................11 Section 5 RESPONSIBILITIES AND AUTHORITIES .......................................................11 Section 6 APPROVAL AUTHORITY....................................................................................13 Section 7 PRESCRIBED COUNCIL APPROVAL...............................................................13 Section 8 MAINTAINING INTEGRITY AND PROTECTING INTERESTS IN PURCHASING .........................................................................................................14 Section 9 ETHICAL CONSIDERATIONS............................................................................14 Section 10 PURCHASING PERFORMANCE MEASURES .................................................15 PART IV –PURCHASING PROCEDURES Section 11 LOW DOLLAR VALUE PURCHASES................................................................15 Section 12 PURCHASING CARD AND PROCEDURES ......................................................15 Section 13 INFORMAL QUOTATIONS .................................................................................16 Section 14 FORMAL QUOTATIONS......................................................................................17 Section 15 REQUEST FOR TENDERS ...................................................................................17 Section 16 REQUEST FOR PROPOSALS ..............................................................................19 Section 17 TWO ENVELOPE SYSTEM .................................................................................20 Section 18 NEGOTIATION ......................................................................................................21 Section 19 LEASE AND FINANCING REQUIREMENTS ...................................................22 Section 20 BLANKET PURCHASES.......................................................................................22 Section 21 EMERGENCY PURCHASES ................................................................................23 Section 22 CONSULTING AND PROFESSIONAL SERVICES ..........................................24 PART V – BID AND CONTRACT GUIDELINES Section 23 CONSTRUCTION CONTRACTS.........................................................................25 Section 24 SUBMISSION OF BIDS..........................................................................................25 Section 25 CANCELLATION OF A BID SOLICITATION..................................................26 Section 26 NO ACCEPTABLE BIDS RECEIVED.................................................................26 Section 27 ONLY ONE BID RECEIVED ................................................................................27 Section 28 EQUAL BIDS RECEIVED .....................................................................................27 Section 29 BID IRREGULARITIES .......................................................................................28 Section 30 BID ANALYSIS .......................................................................................................28 Section 31 IN-HOUSE BIDS......................................................................................................28

Section 32 SOLE SOURCE PURCHASE ...............................................................................29 Section 33 SPECIFICATIONS..................................................................................................29 Section 34 TOTAL PROJECT COST ......................................................................................30 Section 35 INSURANCE AND RISK MANAGEMENT REQUIREMENTS ......................30 Section 36 OCCUPATIONAL HEALTH AND SAFETY REQUIREMENTS.....................32 Section 37 BID DEPOSITS AND GUARANTEES OF CONTRACT EXECUTION..........32 Section 38 CONTRACTUAL AGREEMENT .........................................................................34 Section 39 EXERCISE OF CONTRACT RENEWAL OPTIONS ........................................35 Section 40 CONTRACT AMENDMENTS AND REVISIONS..............................................35 Section 41 CONTRACT WITHOUT BUDGETARY APPROVAL ......................................36

PART VI – MATERIAL AND VENDOR MANAGEMENT Section 42 INVENTORY CONTROL ......................................................................................36 Section 43 RECEIPT AND INSPECTION OF GOODS ........................................................36 Section 44 SURPLUS AND OBSOLETE MATERIAL AND EQUIPMENT.......................37 Section 45 PERFORMANCE EVALUATION ........................................................................38 Section 46 EXCLUSION OF BIDDERS IN LITIGATION....................................................38 Section 47 EXCLUSION OF BIDDERS DUE TO POOR PERFORMANCE .....................38 Section 48 PRE-QUALIFICATION OF ACCEPTABLE BIDDERS....................................38 PART VII – GENERAL ADMINISTRATIVE PROCEDURES Section 49 REPORTING TO COUNCIL.................................................................................39 Section 50 RESOLUTION OF QUESTION OF POLICY .....................................................39 Section 51 COMPLIANCE AND PROHIBITIONS................................................................40 Section 52 ENVIRONMENTAL CONSIDERATION ............................................................41 Section 53 CONCERNED EMPLOYEE (“WHISTLEBLOWER”) POLICY .....................41 Section 54 CONFLICT OF INTEREST POLICY ..................................................................41 Section 55 LOCAL PREFERENCE .........................................................................................41 Section 56 TERM OF COUNCIL .............................................................................................41 Section 57 ACCESS TO INFORMATION ..............................................................................41 Section 58 CO-OPERATIVE PURCHASING POLICY ........................................................42 Section 59 ADVERTISING .......................................................................................................42 Section 60 BY-LAW REVIEW POLICY .................................................................................42 Section 61 DOCUMENTATION RETENTION......................................................................43 Section 62 DISCLOSURE OF FAIR BUSINESS PRACTICES ............................................43 Section 63 GENERAL ADMINISTRATION...........................................................................43 Section 64 REPEALS .................................................................................................................44 Section 65 EFFECTIVE DATE OF PASSING........................................................................45 SCHEDULES SCHEDULE A PURCHASING PROCESS, DOLLAR RANGE, PROCEDURE & AUTHORITY…………………………………………………………...……46 SCHEDULE B EXEMPTIONS FROM THE PURCHASING BY-LAW…………………47 SCHEDULE C IRREGULARITIES CONTAINED IN BIDS……………………………..48

(amended B/L 154-2005, June 20/05)

B Y - L A W N U M B E R 400-2004

A BY-LAW OF THE CITY OF WINDSOR GOVERNING PURCHASING POLICIES AND PROCEDURES

WHEREAS Section 271 of the Municipal Act, 2001 imposes upon municipalities the obligation to adopt policies regarding the purchasing of goods and/or services; AND WHEREAS this By-law establishes the authority and sets out the methods by which the City of Windsor shall purchase and dispose goods and/or services AND WHEREAS the Council of the City of Windsor has undertaken an extensive review of current procurement practices, engaged stakeholders through a consultation process, examined the previous procurement practices of the Corporation and made appropriate recommendations to address deficiencies. NOW THEREFORE the Council of the City of Windsor enacts as follows:

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PART I – SHORT TITLE AND DEFINITIONS SHORT TITLE 1. This By-law may be cited as the “Purchasing By-law”. DEFINITIONS 2. To establish the definition of any other purchasing term not herein included, reference shall be made to the latest edition of the National Institute of Governmental Purchasing Guide. “Acceptance” means the City of Windsor shall be under no obligation to accept the lowest or any Tender, Proposal or Expression of Interest. The City of Windsor shall have the right to accept any submission that it may consider to be in its best interest, or reject any or all submissions. The grounds for rejecting a submission include but are not limited to, past performance with the City of Windsor or with other clients. “Advertising” means the publication of projects (Tenders, Proposals and expressions of interest) in appropriate newspapers, journals or electronic bulletin boards. “Agreement” means a formal written legal Agreement or Contract for the supply of goods and/or services. “Award” means authorization to proceed with the purchase of goods and/or services. “Best Value” means the optimal balance of performance and cost determined in accordance with a pre-defined evaluation plan. Best Value may include a time horizon that reflects the overall life cycle of a given asset. “Bid” means an offer or submission from a supplier in response to a Bid Solicitation. “Bid Bond” means the form of security provided by a bonding agency licensed in the province of Ontario required by the terms and conditions of Bid Solicitation documentation to guarantee that the Successful Bidder enters into a Contract with the City of Windsor. “Bid Irregularity” means a deviation between the requirements (terms, conditions, Specifications, special instructions) of a Bid request and the information provided in a Bid response. For the purpose of this policy, Bid irregularities are further classified as “major irregularities” or “minor irregularities”:

(a) Major Irregularity: a deviation from the Bid request which affects the price, quality, quantity or delivery and is material to the Award. If the deviation is permitted, the bidder could gain an unfair advantage over competitors. The Manager of Purchasing and Risk Management must reject any Bid which contains a major irregularity.

(b) Minor Irregularity: a deviation from the Bid request which affects form, rather than substance. The effect on the price, quality, quantity or delivery is not material to the Award. If the deviation is permitted or corrected, the bidder would not gain an unfair advantage over competitors. The Manager of Purchasing and Risk Management may permit the bidder to correct a minor irregularity.

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“Bid Solicitation” means a formal request for bids that may be in the form of a Request for Quotation, Request for Pre-Qualifications, Request for Tender, Request for Proposal, or Request for Information. “Bid Deposit” means currencies, certified cheques, bank draft, bond surety issued by a surety company or other form of negotiable instrument to ensure the successful bidder will enter into an Agreement. “Blanket Purchase Order” is a document used to formalize a purchasing transaction requiring the vendor to hold firm the quoted prices for a designated period of time and is one that has been issued to a supplier for specific item(s) for small purchases over a specified period of time. “Board” is an entity independent of the City of Windsor, but recognized by Council as an agency which may take advantage of the City of Windsor’s purchasing power, in accordance with the terms and conditions of this by-law. Without limiting the generality of the foregoing, for the purposes of this By-law, the Windsor Police Services Board will be considered a “Board”. “CAO” means the Chief Administrative Officer of the Corporation of the City of Windsor.

“Certificate of Clearance” from the Workplace Safety and Insurance Board means a certificate issued by an authorized official of the Workplace Safety and Insurance Board certifying that the Board waives its rights under subsection 9(3) of the Workers’ Compensation Act, R.S.O. 1990, Chapter W.11.

“City of Windsor ” means the Corporation of the City of Windsor. “Conflict of Interest” means a situation in which private interests or personal consideration may affect a Councillor, officer or employee’s judgment in acting in the best interest of the City of Windsor. Refers to a situation where a personal or business interest of a Councillor, officer or employee of the City of Windsor is in conflict with the best interests of the City of Windsor

“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, soil investigation, the supply of products and materials and the supply of equipment and machinery if they are included in and incidental to the construction, and the installation and repair of fixtures of a building, structure or other civil engineering design or architectural work, but does not include professional services related to the construction Contract unless they are included in the Specifications.

“Consulting and Professional Services” means those services requiring the skills of a professional for a defined service and may include but not limited to architects, engineers, designers, surveyors, planners, accountants, auditors, management professionals, marketing professionals, software and information technology experts, financial consultants, insurance consultants, lawyers, law firms, real estate agents and brokers, planners, environmental planners and engineers, hydrogeologists, transportation planners and engineers, communications consultants and any other professional services which may be required by the City of Windsor. “Contract” means any formal or deliberate written Agreement for the purchase of goods and/or services.

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“Contract Order” means a document used to formalize a purchasing transaction which is a binding Agreement for a vendor to supply goods and/or services to the City of Windsor. “Council” means the municipal Council of The Corporation of the City of Windsor and known as “Council” throughout the document. “Councillor” means an individual elected to City Council. “Declaration Respecting Workers' Compensation” means a declaration that the bidder has paid all assessments or compensation payable and has otherwise complied with all requirements of the Workers' Safety Insurance Board. “Department” means any department within the City of Windsor. “Department Head” means the individual responsible for direction and operational control of a Department and a member of the Senior Management Team or authorized designate and shall include, but not be limited to, the Administrator of Huron Lodge, the Fire Chief and Chief of Police including an individual that has direct reporting to a General Manager. “Designate” means the authorized designate or such official as may be appointed to act on behalf of the authorized authority. “Designated Official” means the Chief of Police as appointed by the Windsor Police Services Board pursuant to the Police Services Act. “Disposal” means the transfer of ownership from the City of Windsor by sale, trade-in, alternative use or destruction. “Evaluation Criteria” to be applied in awarding the Contract and the role of an evaluation committee are stated clearly in the solicitation document. Criteria used to identify the Proposal that best meets the City of Windsor’s needs may include but are not limited to cost, quality, service, compatibility, product reliability, operating efficiency and expansion potential, proponent qualification and experience. “Evaluation Criteria on Proposal Calls” means Evaluation Criteria to be applied in awarding the Contract and the role of an evaluation committee are stated clearly in the solicitation document. Criteria used to identify the Proposal that best meets the City of Windsor’s needs may include but are not limited to cost, quality, service, compatibility, product reliability, operating efficiency and expansion potential, proponent qualification and experience. “Evaluation Committee” shall be composed of a minimum of one representative from the department and may include a representative from the Purchasing and Risk Management Division. The committee shall review all proposals against established criteria and reach consensus on the final rating results. “Executed Agreement” means a form of Agreement, either incorporated in the bid documents or prepared by the City of Windsor or its agents, which has been executed by the successful bidder and the City of Windsor.

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“Expression of Interest” means a situation where vendor(s) approach the City of Windsor or are solicited by the City of Windsor to advise the City of Windsor of their ability or desire to undertake, City of Windsor requirements and/or provide certain goods or services. “Final Costs” means all related expenses and taxes, and inclusive of any rebates or shared costs by a third party. “Fair Market Value” means the price that would be agreed to in an open and unrestricted market between knowledgeable and willing parties dealing at arm’s length that are fully informed and not under any compulsion to transact. “General Manager” means the person appointed by Council to be responsible for the operations and strategic direction of City of Windsor Departments. “Goods” includes supplies, materials and equipment of every kind required to be used to carry on the operation of the City of Windsor. “Holdback” means an amount withheld under the terms of the Contract to be used as security and to ensure the complete performance of the Contract and to avoid overpayment in relation to progress of work. “In House Bid” means a Bid made by a department and authorized by the Council in advance, submitted in response to a Bid Solicitation, where the provision for the goods and/or service would be provided entirely by the employees of the City of Windsor. “Insurance Documents” means certified documents issued by an insurance company licensed to operate by the Government of Canada or the Province of Ontario certifying that the bidder is insured in accordance with the City of Windsor’s insurance requirements as contained in the Bid documents.

“Irregularities Contained in Bids” is defined in Schedule “C” and includes the appropriate response to those irregularities. “Irrevocable Letter of Credit” means an irrevocable letter on the financial institution or the City of Windsor’s standard form containing a request that the party to whom it is addressed pay the bearer or a person named therein money as a result of failure to perform or fulfill all the covenants, undertakings, terms, conditions and Agreements contained in a Contract. “Labour and Materials Payment Bond” means a bond issued by a surety company licensed in the province of Ontario to ensure that the Contractor has paid his or her suppliers and thereby protects the City of Windsor against liens, which might be granted to suppliers should the Contractor not make proper payments.

“Letter of Agreement to Bond” means a letter or other form issued by a bonding agency licensed to operate by the Government of Canada or the Province of Ontario advising that, if the bidder is successful the bonding agency will issue the required bonds. “Lowest Compliant Bid” means the Bid that would provide the City of Windsor with the desired goods and/or services at the lowest per unit or overall cost, meets all the Specifications and contains no major irregularity or qualifications.

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“Mandatory Pre-Bid or Pre-Proposal Meeting” means the bidder or proponent must attend the meeting to obtain information relating to the solicitation of a nature which cannot practically be obtained by written means and which is needed in order to submit a responsive Bid or Proposal. Failure to attend this mandatory meeting will result in Bid disqualification. “No Bid Response” means a supplier was solicited to provide a quotation but did not provide a quote. “Officer” means any elected or appointed official or a member of a Board or a Commission of the City of Windsor “Performance Bond” means a bond issued by a surety company executed in connection with a Contract and which secures the performance and fulfillment of the undertakings, covenants, terms, conditions and Agreements contained in the Contract. “Preauthorized Expenditure Limit” means the preauthorized expenditure limit referred to in Section 4(3). “Progress Payment” means a payment made under the terms of a Contract during its term and before its completion. “Proposal” means a competitive offer, binding on the proponent and submitted in response to a Request for Proposal where proposal evaluation and Contract Award is based on criteria such as but not limited to proponent qualifications and experience, product features and characteristics, service quality and efficiency and conformance with the Specifications and requirements contained in the Request for Proposal. Price may be an Evaluation Criteria for proposals but will not necessarily be the predominant basis for Contract Award. Proposals will not have public openings.

“Purchase Order” means a written offer to a supplier formally stating all terms and conditions for the purchase of goods and/or services or a written Acceptance of an offer received in accordance with this by-law. “Purchasing Card” means a card issued in accordance with the City of Windsor’s Purchasing Card Policies and Procedures, for the purchase of goods and/or services. “Purchasing and Risk Management Division” means the area responsible for purchasing goods and/or services and insurance and risk administration for the City of Windsor.

“Qualified Bid” means a limited or conditional offer that modifies or does not meet some important terms condition or Specification of the Bid invitation, which limitation or condition may constitute grounds to disqualify the Bid.

“Quotation” means a Bid received as a result of a written or verbal request by the City of Windsor for the supply of goods and/or services.

“Request for Information” means a request made by the City of Windsor to the market place for various purposes including but not limited to estimating project cost and/or for the purposes of compiling a list of persons or corporations who may be interested in providing and services to the City of Windsor from time to time. Acceptance of a Request for Information by the City of Windsor does not create any Contractual obligation between the party submitting the Request for

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Information and the City of Windsor, but may be a precondition to Pre-qualification or further Contracts with the City of Windsor. “Request for Pre-Qualification” means a request for the detailed submission of the experience, financial strength, education, background and personnel of persons, firms or corporations who may, from time to time, qualify to supply goods and/or services to the City of Windsor. “Request for Proposal” means a process where a need is identified, but the method by which it will be achieved is unknown or flexible at the outset. This process allows vendors to propose solutions or methods to arrive at the desired result. The solicitation of written, competitive proposals, or offers, to be used as a basis for entering into a Contract when Specification and price will not necessarily be the predominant Award criteria. “Request for Quotation” means a Bid Solicitation where written quotes are obtained from suppliers without formal Advertising or receipt of Sealed Bids. “Requisition” means a written or electronically produced request in an approved format and duly authorized to obtain goods and/or services. “Sealed Bid” means a formal sealed response received as a part of a quotation, Tender or Proposal. “Service” means all professional, consulting, construction or maintenance services including the delivery, installation, repair, restoration, demolition or removal of personal property and real property. “Small Purchase Order” means a document, which is used for the expenditure of funds up to the value of $2,500.00 excluding taxes, valid in Ontario only. (amended B/L 154-2005, June 20/05) “Sole Source” means the purchase of a good and/or service where there is only one available supplier of that good and/or service that meets the needs or requirements of the City of Windsor. “Specification” means any description of the physical or functional characteristics, or of the nature of a supply, service, equipment or construction item. It may include a description of any requirement for inspecting, testing, or preparing a supply, service, equipment or construction item for delivery. It may also include drawings or samples. “Tender” means an offer received from a supplier of goods and/or services in response to an advertisement requesting sealed tenders.

“Total Acquisition Cost” means an evaluation of quality and service in the assessment of a Bid and the sum of all costs including but not limited to purchase price, all taxes, warranties, local service costs, life cycle costs, time of completion or delivery, inventory carrying costs, operating and Disposal costs for determining the Lowest Compliant Bid. (2) Schedules “A”, “B”, and “C” attached hereto form part of this by-law. Schedule A – Purchasing Process, Dollar Range, Procurement & Authority Schedule B – Exemptions from the Purchasing By-law Schedule C – Irregularities Contained in Bids

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PART II – PURPOSES, GOALS AND OBJECTIVES 3. The goals and objectives of the Purchasing By-law and each of the methods of purchasing authorized herein are: (1) To provide the basic minimum requirements to ensure that Quotations are obtained, competitive purchasing is adhered to, and to continue to ensure that the City of Windsor obtains the Best Value of goods and/or services at the most economical cost. (2) To the extent possible, ensure efficiency, openness, accountability and transparency in the administration of the purchasing function while protecting the financial interests of the municipality and respecting the competitive interests of those participating in the purchasing process. (3) To ensure an uninterrupted flow of goods and/or services by obtaining the right product, at the Best Value, with delivery at the right time. (4) To attempt to reduce the amount of solid waste requiring Disposal arising from the procurement of environmentally responsible goods and/or services. (5) To ensure proper policies and procedures are in place to support the achievement of Council/Corporate goals and objectives. PART III – PURCHASING PRINCIPLES APPLICATION 4. (1) The policies and procedures prescribed in this by-law, Part II hereof, shall be followed for the purchasing of all goods and/or services by the City of Windsor or any of its officers, servants and employees. (2) This by-law shall apply to the Windsor Police Service and in applying this by-law to the Windsor Police Service, any reference to “Council”, shall mean “Windsor Police Services Board.”

(3)The City of Windsor purchasing principles shall comply with the “FAIRNESS IS A TWO WAY STREET ACT (Construction, Labour/Mobility)” which was adopted by the Ontario Legislature (June 7th, 1999) as amended. The Act prohibits the Ontario government, prescribed agencies, boards, commissions, Crown corporations and broader public sector entities (including municipalities) from awarding construction Contracts to Contractors from a designated jurisdiction. Quebec is the jurisdiction designated by regulation under the Act. (4) For the purpose of establishing the price of a contract in accordance with the Preauthorized Expenditure Limit, all taxes and duties shall be excluded. All contracts in excess of $150,000 shall require Council approval. (5) Those purchasing processes outlined in Schedule “B” appended to this by-law shall be exempt from the procedures outlined herein. RESPONSIBILITIES AND AUTHORITIES 5. (1) General Managers and Department Heads:

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(a) General Managers and Department Heads have the responsibility for the oversight of all

purchasing activities within their department(s) and are accountable for achieving Best Value while following the purchasing principles of this by-law.

(b) Department Heads shall as part of the budget submission, identify single and multi-functional projects as it relates to the $150,000 Council approval threshold in order for the Purchasing and Risk Management Division to monitor expenditures.

(c) General Managers may requisition up to the maximum Preauthorized Expenditure Limit, provided that funds have been included in the current operating or capital budget.

(d) Department Heads may requisition up to $100,000, provided that funds have been included in the current operating or capital budget.

(2) Manager of Purchasing and Risk Management has the responsibility and authority to:

(a) Act as the legal purchasing agent for the City of Windsor and shall be under the direction and supervision of the City Solicitor,

(b) Provide professional purchasing advice and services to departments, (c) Monitor adherence to the provisions of this by-law, (d) Notify Department Heads, in advance if possible, of non-compliance, (e) Inform Council that non-compliance with this by-law has occurred, (f) Provide ongoing training and educational program relating to this by-law, (g) Solicit where available a term discount on all Small Purchase Orders, Purchasing Card

transactions, Purchase Orders, Blanket Purchase Orders or Contracts, (h) Ensure the issuance of Purchase Orders in a timely and efficient manner, (i) Cooperate with Local Boards and Commissions or such other organizations performing

services for or on behalf of the City of Windsor with respect to co-operative or bulk purchasing of goods and with respect to providing general advise, information or assistance pursuant to such requests,

(j) Direct and supervise purchasing staff in the scheduling, forecasting, purchasing, storage distribution and may arrange testing of goods, supplies, equipment and Contracted services,

(k) Continuously monitor and evaluate the efficiency and effectiveness of purchasing procedures and implement opportunities for improvement,

(l) Maintain good vendor relations and interview vendors regarding materials, prices, services, delivery, terms and conditions, adjustments as part of the Purchase Order,

(m) Sell and dispose surplus and/or obsolete material and equipment, and (n) Purchase all goods and services upon authority of a resolution of Council and/or a written

and properly authorized requisition, within the limits and conditions set out. (3) The CAO/City Manager or General Manager has the authority to instruct General Managers and Department Heads not to approve requisition Contracts and to submit recommendations to Council for approval and may provide additional restrictions concerning purchasing where such action is considered necessary and in the best interest of the City of Windsor. (4) No provision of this by-law precludes the CAO/City Manager, General Manager, Department Head or the Manager of Purchasing and Risk Management from recommending an Award to Council where:

(a) In the opinion of the CAO/City Manager, General Manager and/or Department Head, it is in the best interest of the City of Windsor to do so, or

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(b) It is a matter of purchasing procedure and in the opinion of the Manager of Purchasing and Risk Management, it is in the best interest of the City of Windsor to do so.

(5) Council approval is required in accordance with Section 7 of this by-law. APPROVAL AUTHORITY 6. (1) The Department Head given acquisition authority under this policy is accountable and responsible to ensure that proper budgets exist and purchases do not violate any City of Windsor, legal or statutory policy. Those responsible for requisitioning and purchasing goods and/or services will be held accountable for their decisions. (2) The Purchasing and Risk Management Division is responsible to ensure that the requirements of this by-law have been met before creating and releasing any Purchase Order. (3) The CAO/City Manager and General Managers are authorized to approve requisitions up to $150,000. Department Heads are authorized to approve requisitions up to $100,000. The CAO/City Manager and General Managers may delegate approval authority to Department Heads at the levels they deem appropriate. Department Heads who have been delegated authority from the CAO/City Manager and General Managers to approve requisitions may not further delegate this authority without written approval from the CAO/City Manager and General Managers. (4) Department Heads, in coordination with the Manager of Purchasing and Risk Management, shall ensure that anyone who has been delegated authority to approve/procure goods and/or services has completed mandatory training with respect to the Purchasing By-law. (5) The Manager of Purchasing and Risk Management shall maintain a list of approved signatories for each department with the corresponding expenditure levels for which they are authorized to sign. (6) Approval authorities of this by-law are to be in accordance with Schedule “A”. Sales taxes, excise taxes, goods and service taxes and duties shall be excluded in determining the price of a contract for the supply of goods or services for the purpose of the relationship of the price to the Preauthorized Expenditure Limit. In the case of multi-year supply and/or service contracts, the Preauthorized Expenditure Limit shall refer to the estimated annual expenditure under the contract. PRESCRIBED COUNCIL APPROVAL 7. (1) City Council must approve funding for all purchases greater than $150,000. A Council report recommending Award of a Tender or Proposal will be required if ANY of the following conditions apply:

(a) The successful Bid is in excess of the approved budget, considering “Total Acquisition Cost” as defined in Section 2 of this by-law, including contingency allowance.

(b) For projects, when the Final Cost of the proposed project exceeds the amount provided in the budget for that project by more than the lesser of 10 percent or $150,000, a confirming report to Council will be required.

(c) The Contract is not being awarded to the lowest Bid that has met the Specification, terms and conditions of the Tender or Proposal.

(d) Where in the opinion of the Manager of Purchasing and Risk Management, the department’s Award decision is not in the best interest of the City of Windsor.

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(e) There is a senior government (ie. Federal, Provincial) requirements for Council approval of a Tender.

(2) Despite any other provision of this by-law, the following Contracts are subject to Council approval:

(a) Any Contract requiring approval from the Ontario Municipal Board, (b) Any Contract prescribed by Council, (c) Where the Total Acquisition Cost proposed for Acceptance is greater than the Council

approved budget, (d) Any Contract having an estimated annual value in excess of $150,000, (e) Any Contract for financing services in accordance with the City of Windsor’s Corporate

Leasing Policy CS.A3.03, (f) Where a major irregularity precludes the Award of a Contract to the supplier submitting

the lowest Bid, and (g) Tender bids or Proposals as may be requested by Council and issued at the discretion of

the CAO/City Manager. MAINTAINING INTEGRITY AND PROTECTING INTERESTS IN PURCHASING 8. The prescribed sections of this by-law maintain the integrity of the Bid Solicitation processes including protecting the interests of the City of Windsor, the public and persons participating in a purchasing process. ETHICAL CONSIDERATIONS 9. The Ontario Public Buyers Association’s (OPBA) “Code of Ethics for public purchasers is based upon the following tenets and members of the OPBA attempt to consistently practise their profession and deal with their day-to-day responsibilities according to these principles. Members are encouraged to display this statement in their departments as well as other locations in their agencies.” (1) “Open and Honest Dealings With Everyone Who is Involved in the Purchasing Process. This includes all businesses with which this agency contracts or from which it purchases goods and/or services, as well as all members of our staff and of the public who utilize the services of the purchasing department.” (2) “Fair and Impartial Award Recommendations for All Contracts and Tenders. This means that we do not extend preferential treatment to any vendor, including local companies. Not only is it against the law, it is not good business practice, since it limits fair and open competition for all vendors and is therefore a detriment to obtaining the best possible value for each tax dollar.” (3) “An Irreproachable Standard of Personal Integrity on the Part of All Those Designated as Purchasing Agents for this Agency. Absolutely no gifts or favours are accepted by the staff associated with the purchasing agents of this agency in return for business or the consideration of business. Also, the purchasing agents of this agency do not publicly endorse one company in order to give that company an advantage over others.” (4) “Cooperation With Other Public Agencies in Order to Obtain the Best Possible Value for Every Tax Dollar. The agency is a member of a cooperative purchasing group. Made up of several public agencies, this group pools its expertise and resources in order to practice good value analysis and to purchase goods and/or services in volume and save tax dollars.”

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PURCHASING PERFORMANCE MEASURES 10. (1) The City of Windsor is committed to the development and implementation of a vendor performance measurement system which will include, but may not be limited to, the following elements:

(a) Effectiveness, (b) Objectivity, (c) Fairness, (d) Openness and Transparency, (e) Accountability; and (f) Efficiency

PART IV – PURCHASING PROCEDURES LOW DOLLAR VALUE PURCHASES POLICY 11. (1) Petty Cash ($0 to $200)

(a) Departments shall have authority to make purchases up to the Petty Cash limit in such an amount to meet the requirements of the operating unit for the acquisition of goods and/or services having a value of $200 in adherence with the City of Windsor’s Petty Cash Procedure Number CS.B8.03.

(b) Expenditures not exceeding $200 including purchases of goods and/or services may be made from Petty Cash. Petty Cash should only be used when it is not feasible to use a Purchasing Card.

(2) Small Purchase Order (Up to $2,500)

(a) Departments shall have authority to make purchases up to the Small Purchase Order limit in such an amount to meet the requirements of the department for the acquisition of goods and/or services having a value up to $2,500

(b) Small Purchase Orders are not to be combined or used consecutively with the same

supplier for the purpose of creating an order that exceeds the single transaction expenditure limit.

PURCHASING CARD POLICY AND PROCEDURES 12. (1) The purpose of the City of Windsor’s Purchasing Card Policy and Procedures is to set out guidelines for acquiring goods and/or services through the use of Purchasing Cards. (2) The Manager of Purchasing and Risk Management is responsible for the Purchasing Card program including ongoing education and training of users on its application. (3) The Purchasing Card Policy and Procedures shall be consistent with the Purchasing By-law. (4) Purchasing Card transactions where appropriate shall comply with Blanket Purchase Order and Contract Purchase Order. (5) The Manager of Purchasing and Risk Management in consultation with the Department Heads shall review the Purchasing Card Policy and Procedure every three (3) years or sooner if necessary and make amendments.

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(6) The City of Windsor’s Purchasing Card Policy and Procedures shall be accessible on the City of Windsor’s Purchasing website and also available in the Purchasing and Risk Management Division. INFORMAL QUOTATIONS 13. (1) Request for Quotation ($2,501 to $10,000)

(a) Departments shall have authority to solicit quotations for goods and/or services from

$2,501 up to $10,000 with limited direct involvement from the Purchasing and Risk Management Division on the following conditions:

i. The solicitation of quotations shall be fair, such that not to allow any

bidder be given an unfair advantage. ii. The competitive purchasing process undertaken shall be based on clear

definition of the product or service and a clear outline of the review and criteria to be undertaken.

iii. A minimum of three written Quotations where available shall be obtained by any method of written communication. The Lowest Compliant Bid is to be awarded the Contract. Although a minimum of three bids is required, an open process with more than three bids will be more competitive, and is encouraged.

iv. A No Bid Response is not to be considered as a valid Bid unless approved by the Purchasing and Risk Management Division.

v. Staff shall use the electronic vendor database available through the City of Windsor’s Purchasing website to access Blanket Purchase Orders or may directly contact the Purchasing and Risk Management Division for assistance.

vi. Written Quotations shall be forwarded to the Purchasing and Risk Management Division with a requisition order and shall be retained in the department files in accordance to Section 61 of this by-law.

vii. Sufficient funds are available to pay for the Contract. viii. The Department Head may delegate his/her authority to a designate

provided the designate follow the requirements of this by-law. The Department Head shall supply to the Manager of Purchasing and Risk Management the names of delegated purchasing authority in their service area.

(2) Upon request, the Purchasing and Risk Management Division shall assist in reviewing requisitions and the quotations obtained by departments. Where appropriate, the Purchasing and Risk Management Division may solicit additional quotes. (3) The purchase of goods and/or services in excess of $2,501 shall be made through the issue of a Purchase Order or by other means as determined by the Purchasing and Risk Management Division. (4) The City of Windsor reserves the right to accept or reject any submission.

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FORMAL QUOTATIONS 14. (1) Request For Quotation ($10,001 to $50,000)

(a) Departments shall notify and provide the Purchasing and Risk Management Division with a description/scope of work for a requisition for goods and/or services up to $50,000 and the Purchasing and Risk Management Division shall:

i. Review the Specifications, terms and conditions relevant to the

acquisition of goods and/or services or provide other information as appropriate,

ii. Give notice of the Request for Quotation by requesting submissions from suppliers who appear best qualified to meet the provisions of the Quotation,

iii. Review the bids to ensure compliance with the related procedures and established terms or conditions, and

iv. Consider any irregularities and act in accordance with Schedule “C” and Section 29 of this by-law.

(2) There may be requirements estimated at $50,000 or less where, at the discretion of the Manager of Purchasing and Risk Management and the respective Department Head, it will be more appropriate to solicit bids using a Request For Tender or a Request for Proposal. (3) The purchase of goods and/or services referred in Subsection 14(1) shall be made through the issuance of a Purchase Order by the Purchasing and Risk Management Division. (4) The City of Windsor reserves the right to accept or reject any submission. REQUEST FOR TENDERS (Purchases Exceeding $50,000) 15. (1) A Request for Tender shall be used for purchases exceeding $50,000 where all of the following criteria apply:

(a) Two or more sources are considered capable of supplying the requirement, (b) The requirement is adequately defined to permit the evaluation of Tenders against clearly

defined criteria, (c) The market conditions are such that Tenders can be submitted on a common pricing basis,

and (d) Best Value for the City can be achieved by an Award selection made on the basis of the

lowest Bid that meets Specification. (2) All such Tenders shall be placed on the City of Windsor’s internet website and advertised in a relevant daily press, opened and awarded in accordance with the provisions of this by-law. The onus is on interested vendors to review the City of Windsor’s website and relevant daily press from time to time for competitions that may be of interest to them. (3) The Department Head or designate shall provide to the Purchasing and Risk Management Division a Tender call form in writing or electronically containing the relevant Specifications, budget, authorization signature(s), approval authority and terms and conditions for the purchase of goods and/or services. (4) The Purchasing and Risk Management Division shall follow the procedure prescribed in Subsection 14(3) for a Request for Tender.

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(5) The Purchasing and Risk Management Division shall forward to the Department Head or designate a summary of the bids and recommend the Award of Contract to the lowest responsive bidder. Work shall be awarded based on the lowest Bid that meets the required terms, conditions and Specifications outlined in the Bid document, unless otherwise approved by Council. (6) For road and sewer construction Contracts, the Department Head shall establish Specifications in accordance with Section 33 of this by-law. (7) Sealed Tenders with a public opening may be required in accordance with Section 37 of this by-law. Performance Bond and Labour and Materials Payment Bond are required for all purchases over $150,000. Purchases of lesser value may include bonding requirements as determined by the Manager of Purchasing and Risk Management if it is deemed in the best interest of the City of Windsor. When Performance Bond and Labour and Materials Payment Bond are required, the amount of the each bond shall be 50 percent of the amount of the Tender Bid. (8) The Manager of Purchasing and Risk Management or designate shall be responsible for arranging for the public opening of Tender bids at the time and date specified by the Tender call. There may be in attendance at that time,

(a) The Manager of Purchasing and Risk Management or designate and (b) The Department Head or designate, (c) The Consultant or Engineer or designate, (d) Bidders, (e) Any member of the general public.

All Tenders will be opened in full view of bidders and any members of the public who wish to attend at a reasonable time following the close of bidding. Total Tendered prices shall be read out at the public meeting and will subsequently be posted for viewing on the City of Windsor’s website. (9) With respect to all reports initiated for Tenders, there shall be a disclosure on the sources of financing, allocation of revenue, and other financial commentary as considered appropriate by the City Treasurer. (10) The Department Head or designate shall follow the provisions of Section 38 of this by-law regarding the Award of Contract using a Purchase Order or Contract. (11) Except as otherwise provided, no work may commence or commitment to purchase goods and/or services shall be entered into, until such time as a Purchase Order has been issued or a Contract signed, and all necessary documents and approvals received. (12) The City of Windsor reserves the right to accept or reject any submission. (13) The Award of any Tender having an estimated annual Contract value in excess of $150,000 requires Council approval. (14) The provisions of Section 15 apply to requests issued by the Manager of Purchasing and Risk Management for Tender bids advertised as "Public Opening".

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(15) The Manager of Purchasing and Risk Management, in consultation with the applicable department, is authorized to obtain Sealed Bids for annual supply items as required taking into consideration changes in the City of Windsor's requirements, market conditions and product availability. REQUEST FOR PROPOSALS 16. (1) A Request for Proposal may be called when the requirements for goods and/or services needed cannot be definitively specified and where such Proposals could result in specific offers by the bidders to fulfil the requirements, services or function at a particular price. A Request for Proposal should be used where one or more of the criteria for issuing a Request for Tender cannot be met, such as:

(a) Owing to the nature of the requirement, suppliers are invited to propose a solution to a problem, requirement or objective and the selection of the supplier is based on the effectiveness of the proposed solution rather than on price alone, or

(b) It is expected that negotiations with one or more bidders may be required with respect to any aspect of the requirement.

(2) The Department Head and the Manager of Purchasing and Risk Management may jointly select a supplier without competition where;

(a) The estimated total cost does not exceed $50,000, and (b) The cost of preparing a detailed Proposal would deter suppliers from submitting

Proposals. (3) If estimated value is greater than $50,000, the Purchasing and Risk Management Division shall issue a Request for Proposal in the same manner as for a Request for Tender, excluding the requirement for a public opening. (4) A Request for Information may be used in advance of a Proposal to assist in the development of a more definitive set of terms and conditions, scope of work/service, budget estimate and the selection of qualified vendors. (5) Where in the opinion of the Department Head in consultation with the Manager of Purchasing and Risk Management the requirement is not straightforward or an excessive workload would be required to evaluate Proposals, either due to their complexity, length, number or any combination thereof, a multi-step procedure may be used that would include a pre-qualification stage to ensure the workload is manageable. (6) The Purchasing and Risk Management Division shall maintain a list of suggested Evaluation Criteria for assistance in formulating an evaluation process using a Request for Proposal. This may include, but is not limited to, factors such as approach, qualifications, experience, equipment, facilities, strategy, methodology, past performance, scheduling and price. (7) The Department Head shall provide the Purchasing and Risk Management Division with a Request for Proposal form in writing containing the budget authorization, approval authority and signatures, terms of reference and Evaluation Criteria to be applied in assessing the Proposals submitted. (8) An Evaluation Committee, composed of a minimum of two representatives from the department and may include a representative from the Purchasing and Risk Management

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Division, shall review all Proposals against the established criteria, reach consensus on the final rating results, and ensure that the final rating results, with supporting documents, are kept in the purchasing file. The Purchasing and Risk Management Division representative may or may not participate in the scoring of the Proposals.

(9) With respect to all reports initiated for Request for Proposal, there shall be a disclosure on the sources of financing, allocation of revenue, and other financial commentary as considered appropriate by the City Treasurer. (10) The Department Head shall follow the provisions of Section 38 of this by-law regarding the Award of Contract using a Purchase Order or Contract. (11) A Department Head shall ensure there are sufficient funds available in appropriate accounts within the Council approved budget including authorized revisions to meet the proposed expenditure and the provisions of this by-law are followed. (12) The City of Windsor reserves the right to accept or reject any submission. (13) The Award of any Request for Proposal having a Contract value in excess of $150,000 requires Council approval. TWO ENVELOPE SYSTEM 17. (1) The two-envelope system may be used when the City of Windsor chooses to evaluate the technical and qualitative information of a given Proposal without being influenced by prior knowledge of the corresponding pricing information. The City of Windsor shall advise all bidders when the two-envelope system is to be used. (2) The chair of the Evaluation Committee as defined in Section 16(8), shall prepare a clear plan/outline for evaluation of submissions in advance of receipt of the proponents’ submissions. The evaluation plan is to include a plan for evaluation of various qualitative factors deemed relevant, as outlined in this by-law, and pricing factors, with a weighting of the relative importance of these factors determined in advance. (3) In a two-envelope system, each proponent must submit qualitative and technical information in a sealed envelope (envelope one) and pricing information in a second sealed envelope (envelope two). The contents of envelope one shall be opened and evaluated by the Evaluation Committee. Only the second envelopes of those Bids meeting the Specifications of the Request for Proposal shall be opened and evaluated. If a Proposal is not eligible to proceed to price evaluation, the proponent shall be disqualified from further consideration and envelope two shall be returned to the proponent unopened. (4) A significantly higher point ranking of the top proponent above the others is not deemed to be sufficient rationale for the decision to open one pricing envelope. The decision to open only one pricing envelope must be made after determination that only ONE proponent is qualified and capable to perform the project or service. (5) Subject to approval authorities provided in Schedule “A”, where only one pricing envelope is opened, the pricing envelopes of the other proponents are to remain sealed and shall be retained by the Manager of Purchasing and Risk Management until such time as Council has reviewed and provided approval for the Award and shall be returned to the proponent unopened.

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(6) The Evaluation Committee will review the qualifications and pricing information and make a recommendation to the approving authority representing, in the judgment of the Evaluation Committee, an Award of the Request for Proposal to the firm whose proposal represents the Best Value for money to the City of Windsor. (7) The City of Windsor reserves the right to accept or reject any submission. (8) Consulting Engineering Projects (a) Fees Greater than $150,000

i. Consulting engineering projects greater than $150,000 shall comply with Sections 17 (1) through (7) of this by-law.

(b) Fees Up to $150,000

i. For consulting engineering projects that relate to routine assignments normally performed by the City of Windsor and follow a standardized schedule of rates for engineering services, Section 22(3) of this by-law applies.

ii. For consulting engineering projects that relate to complex assignments not normally performed by the City of Windsor or are non-routine in nature or at the discretion of the Department Head or General Manager, Sections 17(1) through (7) of this by-law apply.

(c) The selected consulting engineer shall be retained for multi phase projects for a

maximum period of five (5) years. Where projects extend over five (5) years, the Department Head shall prepare a report to Council requesting approval.

NEGOTIATION 18. The following section is for acquiring goods and/or services through the negotiation process. (1) The Manager of Purchasing and Risk Management shall justify the need to use this policy

prior to City of Windsor staff entering into any discussions with any vendor. This process may be adopted when any of the following conditions apply:

(a) Due to abnormal market conditions, the goods and/or services required are in short

supply; (b) Where there is only one source of supply which would be acceptable and cost

effective; (c) When no bids are received in a Tender or Quotation call; (d) When only one Bid is received in a Tender or Quotation call; (e) When two or more identical bids are received; (f) Where the lowest Tender or Quotation meeting Specifications substantially exceeds

the amount budgeted for the purchase and it is impractical to recall the Tender or Quotation;

(g) When all bids received fail to meet the Specifications or Tender terms and conditions and it is impractical to recall the Tender or Quotation;

(h) The goods and/or services are required as a result of an emergency, which would not reasonably permit the use of a method other than direct negotiation; or

(i) Where authorized by Council to do so. (2) All methods of negotiation by the City of Windsor shall employ fair and ethical practices.

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(3) When Manager of Purchasing and Risk Management in conjunction with the Department Head deems negotiations to be necessary, they shall be carried out jointly in co-operation subject to the conditions of this by-law. (4) Any negotiated purchase exceeding $150,000 shall be subject to Council approval. LEASE AND FINANCING REQUIREMENTS 19. The following section shall be followed for leasing and financing services. (1) Department Heads wishing to acquire or use goods or services via an external third party financing lease must receive the approval of the City Treasurer prior to requesting the Manager of Purchasing and Risk Management to undertake any competitive bidding process. (2) Before entering into a lease or financing arrangement, the City Treasurer shall prepare a report to Council with a recommendation, assessing, in the opinion of the City Treasurer, the costs and financial and other risks associated with the proposed lease or financing arrangement, include but not limited to:

(a) A comparison between the fixed and estimated costs and the risks associated with the proposed Financing Lease, and those associated with other methods of financing;

(b) A statement summarizing the effective rate or rates of financing for the Financing Lease, the ability for lease payment amounts to vary, and the methods or calculations, including possible financing rate changes, that may be used to establish that variance under the Financing Lease;

(c) A statement summarizing any contingent payment obligations under the Financing Lease that in the opinion of the City Treasurer would result in a material impact for the Corporation, including lease termination provisions, equipment loss, equipment replacement options, and guarantees and indemnities;

(d) An opinion about whether the costs of the financing for the proposed Financing Lease are lower than other methods of financing available to the City of Windsor, and whether the risks associated with the Financing Lease are reasonable;

(e) A summary of the assumptions applicable to any possible variations in the Financing Lease payment and contingent payment obligations; and

(f) Any other matters the City Treasurer or Council considers advisable. (3) Any material financing leases executed to acquire or use municipal capital assets must be in compliance with Ontario Regulation 46/94 (as amended) made under the Municipal Act, 2001, as amended. (4) All purchasing activity including Request for Proposals for financing are to require that submissions include original equipment cost, length of lease, effective rate of interest, residual value and terms, and date of payment. (5) All leasing and financing arrangement will require Council approval in accordance with the City of Windsor’s Corporate Leasing Policy CS.A3.03. BLANKET PURCHASES 20. (1) A Request for a Blanket Purchase Order may be used where:

(a) One or more departments repetitively order the same goods and/or services and the actual

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demand is not known in advance, or (b) A need is anticipated for a range of goods and/or services for a specific purpose, but the

actual demand is not known at the outset, and delivery is made when a requirement arises.

(2) In a Request for a Blanket Purchase Order, the expected quantity of the specified goods or services to be purchased over the time period of the Agreement shall be as accurate an estimate as practical and be based, to the extent possible, on previous usage adjusted for any known factors that may change usage. (3) Departments having a recurring need for miscellaneous supplies of a minor nature which are not available under existing Contracts may submit a purchasing request to the Purchasing and Risk Management Division specifying the category of material needed and the names of employees who would be authorized to place orders. The Purchasing and Risk Management Division will solicit various sources to obtain the most favourable discounts or net prices, and then issue a Blanket Purchase Order to the supplier(s). More than one supplier may be selected where it is in the best interest of the City of Windsor and the Bid Solicitation allows for more than one. (4) The Purchasing and Risk Management Division shall establish and maintain Blanket Purchase Order lists that defines source and price with selected suppliers. Where purchasing action is initiated by departments for frequently used goods and/or services, it is to be made with the supplier or suppliers listed in the Blanket Purchase Order. (5) Vendors are only authorized to fulfil their commitment by receipt of a Purchase Order, Contract Order, Small Purchase Order, or Blanket Purchase Order. EMERGENCY PURCHASES 21. (1) "Emergency" is defined but not limited to:

(a) An imminent or actual danger to the life, health or safety of an official, the public, or an employee while acting on the City of Windsor's behalf;

(b) An imminent or actual danger of injury to or destruction of real or personal property belonging to the City of Windsor or to property owned by a third party for which the City of Windsor would be liable;

(c) An unexpected interruption or threat of an interruption of an essential public service; (d) An emergency as defined by the Emergency Management Act, and the Emergency

Response Plan formulated thereunder by the City of Windsor, and (e) A spill of a pollutant as contemplated by the Environmental Protection Act.

(2) Where an Emergency exists requiring the immediate purchasing of goods and/or services, a Department Head may purchase the required goods and/or services by the most expedient and economical means, notwithstanding any other provision of the Purchasing By-law. The Department Head shall as soon after the purchase as reasonably possible, notify the Manager of Purchasing & Risk Management with a written report detailing the circumstances of the Emergency. (3) When a Department Head purchases a good and/or service under Section 21(1), the following applies:

(a) Purchasing Under $100,000 – Any purchase acquisition issued under such conditions

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shall be justified and approved by the initiating Department Head. The Department Head shall, as soon after the purchase as reasonably possible, notify the Manager of Purchasing and Risk Management, the CAO/City Manager and General Manager with a written report detailing the circumstances of the Emergency.

(b) Purchasing Between $100,000 - $150,000 – Any purchase acquisition issued under such conditions shall be justified and approved by the initiating General Manager and/or CAO/City Manager.

(c) Purchasing Over $150,000 – The initiating Department Head or General Manager, as the case may be, shall obtain the prior approval from the CAO/City Manager or his/her General Manager, as the case may be. The Department Head or General Manager shall, as soon after the purchase as reasonably possible, issue an information report to the CAO/City Manager and to Council at its next scheduled meeting.

(4) All Emergency purchases made under this section shall be confirmed by the issuance of a Purchase Order or Contract as requisitioned by the initiating Department Head immediately or as soon as practicable following the commitment. CONSULTING AND PROFESSIONAL SERVICES 22. (1) This section applies to the purchase of Consulting and Professional Services unless the purchase has been exempt from this by-law. The acquisition process described in this section is restricted to acquisitions that are predominantly or exclusively for Consulting and Professional Services as determined by the General Manager. Acquisition of Consulting and Professional Services is defined in Section 2 and in accordance with this by-law. Part 1 of Section 22 will apply to all City of Windsor departments save and except the Public Works department and Part 2 of Section 22 will apply to the Public Works department. (2) Part 1 - All City of Windsor Departments Save and Except Public Works

(a) Consulting and Professional Services shall be acquired in accordance with the general acquisition process where informal/formal quotations or Tenders/Proposals (Section 13 through to Section16) are required.

(b) The department shall endeavour to see that individuals and firms providing Consulting and Professional Services have fair access to City of Windsor assignments.

(c) The department shall attempt to provide sufficient detail to outline the objective, type and scope of work to be conducted.

(3) Part 2 – Public Works Department

(a) For Consulting and Professional Services with a total purchase price less than $150,000 the Manager of Purchasing and Risk Management in consultation with the Department Head shall Award such assignment by direct appointment through a roster method. All consultants not chosen to form part of the roster are eligible to bid on Proposals as they become available. This method allows the City of Windsor to employ a number of different consultants while matching the particular talents of a consultant to the project needs.

(b) Contracts shall be awarded to these consultants by matching capabilities and experience with particular needs. This process will attempt to equalize revenues earned amongst the consultants on the roster.

(c) For each project, the assigned consultant shall be required to prepare a study design, which describes the work program and the associated fees and the Department Head or designate will proceed to finalize an Agreement.

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(d) Architectural and engineering projects should generally follow the guidelines published by the Ontario Association of Architects and the Association of Professional Engineers. Standard Agreements provided by the Ontario Association of Architects (O.A.A) or Professional Engineers of Ontario (P.E.O) are to be completed.

(e) A consultant performance review shall be carried out at the completion of every assignment and will be used as part of the evaluation criteria for future projects. Documented poor performance shall comply with Section 47 of this by-law.

(f) The Manager of Purchasing and Risk Management or designate will be responsible to prepare a semi-annual report to the Council stating all Consulting and Professional Services Contracts awards including consultants used and total cost.

(4) For Consulting and Professional Services with a total purchase price greater than $150,000, the Department Head or designate shall follow the procedures for Request for Proposal outlined in Section 16 of this by-law. The consultant shall be selected and recommended for approval based on the outcome of the evaluation process. PART V – BID AND CONTRACT REQUIREMENTS CONSTRUCTION CONTRACTS 23. (1) Construction contracts shall comply with the requirements of this by-law with the proviso that contracts with a value of $150,000 or greater shall be endorsed in either a Purchase Order and/or a formal contract in a form satisfactory to the City Solicitor or designate. (2) The successful bidder for a municipal construction project shall submit the following documentation in a form satisfactory to the City Solicitor within seven (7) working days after being notified in writing to do so by the City of Windsor:

(a) Executed Performance Bonds and Labour and Materials Payment Bond(s), (b) Executed Agreement, (c) Insurance Documents in compliance with the Tender documents, (d) Declarations respecting the Workers' Safety Insurance Act, (e) Certificate of Clearance from the Workers' Safety Insurance Board and (f) Executed Performance Bond.

SUBMISSION OF BIDS 24. The following conditions apply to all Bid submissions whether they are formal or informal: (1) Bid documents shall be submitted and received in the manner as specified in the Bid document. (2) Unless otherwise stated, the closing time for receiving Bid documents shall be 11:30 A.M. on any designated date or the time(s) designated by the Manager of Purchasing and Risk Management. (3) Unless otherwise stated, the opening of the bids shall commence at 11:45 A.M., on the designated date, until the last Bid is opened. (4) The minimum response time on formal Bids shall be fifteen (15) calendar days unless otherwise specified by the Manager of Purchasing and Risk Management. (5) Fax submissions will not be accepted.

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(6) Bid documents received by the Purchasing and Risk Management Division later than the specified closing time shall be returned unopened to the bidder. (7) A bidder who has already submitted a Bid document may submit a further Bid document at any time up to the official closing time. The last Bid document received shall supersede and invalidate all Bids previously submitted by that bidder. (8) A bidder may withdraw his or her Bid document at any time up to official closing time, provided that the withdrawal is made in writing, is on company letterhead, and is signed by an authorized signatory of the Bidder. All Bid documents submitted are irrevocable after the official closing time. (9) All bidders may be requested to supply a list of all subcontractors to be employed on a project. The Department Head or designate responsible for the project thereto must approve any deletions or additions made to the list of subcontractors after the opening of the Bid in question. (10) The bid documents shall clearly specify what action shall be taken with respect to informal or unbalanced bids and what penalties shall be imposed if the bidder fails to submit the appropriate documents in the manner specified, and the Department Head under whose jurisdiction the bid will be administered shall report such failures in consultation with the Manager of Purchasing and Risk Management to Council with appropriate recommendations. (11) The City of Windsor reserves the right to accept or reject any Bid document. CANCELLATION OF A BID SOLICITATION 25. (1) A Department Head or designate, with the concurrence of the Purchasing and Risk Management Division, may request the Purchasing and Risk Management Division to cancel a Bid Solicitation at any time up to Contract Award. (2) The Department Head or designate and the Purchasing and Risk Management Division shall ensure that the confidentiality of any Bid submitted is maintained in accordance with the provisions of the Municipal Freedom of Information and Protection of Privacy Act, as amended. NO ACCEPTABLE BID RECEIVED 26. (1) Where bids are received in response to a Bid Solicitation but, in the opinion of the Department Head under whose jurisdiction the bid will be administered acting together with the Manager of Purchasing and Risk Management, exceed budget, are not responsive to the requirement or do not represent Fair Market Value, a revised solicitation shall be issued in an effort to obtain an acceptable Bid unless Subsection 26(2) applies. (2) The Department Head or designate and the Manager of Purchasing and Risk Management jointly may waive the need for a revised Bid Solicitation and enter negotiations with the lowest responsive bidder or the highest responsive bidder for a revenue-driven Bid selection emanating from a Bid Solicitation under the following circumstances and shall be done in accordance with Section 18 of this by-law:

(a) The total cost of the lowest responsive Bid is in excess of the funds appropriated by Council for the project or the highest responsive Bid revenue is less than that made in appropriate accounts in Council approved budget, and

(b) The Department Head or designate and the Manager of Purchasing and Risk Management

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agree that the changes required to achieve an acceptable Bid will not change the general nature of the requirement described in the Bid Solicitation.

(3) In the case of building construction Contracts, where the total cost of the lowest responsive Bid is in excess of the budget approved by Council, negotiations shall be made in accordance with the Section 18. (4) The City of Windsor has the right to cease negotiations and reject any offer. ONLY ONE BID RECEIVED 27. (1) In the event only one Bid is received in response to a Request for Tender/Proposal, the Manager of Purchasing and Risk Management may return the unopened Bid to the bidder when, in the opinion of the Department Head or designate and the Manager of Purchasing and Risk Management, additional bids could be secured. In returning the unopened Bid the Manager of Purchasing and Risk Management shall inform the bidder that the City of Windsor may be recalling the Tender/Proposal at a later date. (2) In the event that only one Bid is received in response to a Request for Tenders, the Bid may be opened and evaluated in accordance with the City of Windsor's usual procedures when, in the opinion of the Department Head or designate and the Manager of Purchasing and Risk Management, the Bid should be considered by the municipality. If, after evaluation by the Department Head or designate and the Manager of Purchasing and Risk Management, the Bid is found not to be acceptable, the procedures set out in Section 26 shall be followed. EQUAL BIDS RECEIVED 28. (1) If two equal Bids are received, the Manager of Purchasing and Risk Management will offer an opportunity for bidders to re-bid. (2) Should a tie persist, the Department Head under whose jurisdiction the Bid will be administered acting together with the Manager of Purchasing and Risk Management, shall evaluate the two tied Bids giving consideration to several factors, including but not limited to the following:

(a) Whether a Prompt payment discount is being made available to the City of Windsor and in what amount;

(b) When delivery is an important factor, which bidder can offer the best delivery date; (c) The sales service record of both bidders and which bidder is, in the opinion of the City of

Windsor, in a better position to offer the best sales service; and (d) The overall performance record of both bidders relative to their past business dealings, if

any, with the City of Windsor;

(3) If, after a consideration of the factors set out above the respective Department Head acting together with the Manager of Purchasing and Risk Management cannot make a determination that will break the tie, then the names of the tied bidders shall be written on paper and placed into a container and one piece of paper shall be drawn randomly from the container by the Manager of Purchasing and Risk Management and the Tender shall be awarded to the bidder whose name appears on the piece of paper drawn. (4) The Manager of Purchasing and Risk Management shall set the time and location of the draw and the bidders shall be advised in order that they may be present. The following shall be present at the draw: the Manager of Purchasing & Risk Management and the Department Head in charge

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of the Bid Solicitation or their designate(s), any of the bidders, or their authorized representatives. Should any bidder elect not to be represented at the draw, the draw will proceed regardless. BID IRREGULARITIES 29. (1) The process for administering and responding to Bid Irregularities contained in any and all Contracts shall be set out in Schedule “C”. (2) The City reserves the right to waive minor irregularities at its sole discretion. BID ANALYSIS 30. Analysing of Bid responses shall be as follows:

(1) Request for Tenders, Request for Proposal and Bid responses shall be tabulated and analyzed by the Purchasing and Risk Management Division and/or initiating department staff with a recommendation forwarded to the Manager of Purchasing and Risk Management for review;

(2) All other bids responses shall be tabulated and analyzed by the Manager of Purchasing and Risk Management or designate in consultation with the initiating department staff.

IN-HOUSE BIDS 31. City of Windsor departments shall follow this section when responding to a City of Windsor Bid Solicitation. (1) In House Bids may be used for the purchasing of goods and/or services in the following circumstances:

(a) Where an external supplier has historically provided a good and/or service and Council determines that it is in the best interest of the City of Windsor to allow its staff to compete for the provision of the good and/or service;

(b) Where staff has historically provided a good and/or service and Council determines that it is in the best interests of the City of Windsor to allow its staff to compete for the provision of the good and/or service; and

(c) In any other circumstances that Council determines may be appropriate; (2) In House Bids shall only be utilized where external suppliers have also been requested to submit bids; (3) If any Bid Solicitation permits In House Bids, all bidders shall be made aware of this fact in the Bid Solicitation documentation; (4) Council shall authorize all In House Bids, in advance. In determining whether an In House Bid is in the best interests of the City of Windsor, Council shall take the following criteria into consideration:

(a) Whether the In House Bid will result in a significant increase or decrease in capital equipment and infrastructure expenditures by the City of Windsor;

(b) The extent to which the In House Bid will affect the future ability of the City of Windsor to deliver essential health, emergency or other vital services to the public, in a cost effective and efficient manner;

(c) The extent to which the In House Bid will affect staffing and personnel complement of the City of Windsor;

(d) The extent to which the In House Bid will affect the financial position of the City of

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Windsor; and (e) The extent to which the In House Bid will affect service levels provided to the public.

(5) If an In House Bid is selected as the successful Bid, then compliance with Section 37 and Section 38 shall be adhered to. SOLE SOURCE PURCHASE 32. (1) A Sole Source purchase may be used for the purchasing of goods and/or services for Contracts of any Contract value, in the following circumstances:

(a) Where, in the opinion of the respective Department Head acting together with the Manager of Purchasing and Risk Management, the compatibility of a purchase with existing equipment, facilities or service is a paramount consideration and the purchase must be made from a sole source;

(b) Where a good is purchased for testing or trial use; (c) Where goods and/or services are in short supply due to market conditions; (d) Where the City of Windsor purchases supplies for resale; (e) Where the City of Windsor has a rental Contract with a purchase option and such

purchase option could be beneficial to the City of Windsor; (f) Notwithstanding anything in this policy, where a purchase is determined by Council to be

fair and reasonable and is made from a non-profit corporation supported by the City of Windsor, the City of Windsor may make such a purchase as a Sole Source purchase;

(g) Where goods are offered for sale by Tender, auction or negotiation such purchase will be deemed to be a Sole Source purchase and the CAO/City Manager may authorize the submission of a Bid or the conduct of negotiations where the CAO/City Manager determines the purchase to be clearly in the best interest of the City of Windsor;

(h) For matters where it is deemed by the Manager of Purchasing and Risk Management that security, police matters, or confidential issues are involved, a purchase may be made in a manner that protects the confidentiality of the Contractor or the City of Windsor. Such purchases may be made as a Sole Source purchase;

(i) Where a public/private partnership exists. (2) The Award of any Sole Source purchase Contract having a Contract value in excess of $150,000 shall require Council approval. (3) The Award of any Sole Source purchase Contract shall comply with Section 37 of this by-law. SPECIFICATIONS 33. (1) Departments whose budget provides for the acquisition of goods and/or services shall be responsible for the preparation of Specifications for a quote, Tender or Proposal call. (2) The Purchasing and Risk Management Division shall have the authority to review and recommend improvements to the Specifications when deemed necessary by the Manager of Purchasing and Risk Management and resulting changes to Specifications shall be made with the cooperation of the Department Head or designate concerned. (3) Specifications shall be approved by a Department Head or designate and shall be forwarded directly to the Purchasing and Risk Management Division with said approval attached.

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(4) Specifications should be detailed but not brand specific to leave room for potential vendors to provide alternatives in the event an equal or better-proven product or method is available and shall not deter a competitive process. (5) In cases where the Specification will result in a Sole Source purchase, it shall be at the discretion of the Manager of Purchasing and Risk Management to require the department bring forward a report for Council approval. (6) Vendors or potential vendors shall not be requested to expend time, money or effort on design or in developing Specifications or to otherwise help define a requirement beyond the normal level of service expected from vendors. When such services are required:

(a) The Manager of Purchasing and Risk Management shall be advised, (b) The Contracted vendor will be considered as a consultant and unable to make an

offer for the supply of the goods and/or services, (c) A fee shall be paid to the Contracted vendor; and (d) The detailed Specification shall become the property of the City of Windsor for use

in obtaining competitive bids. (7) Where, in the opinion of the respective Department Head acting together with the Manager of Purchasing and Risk Management, it is not possible to prepare precise Specifications in order to issue a Request for Tender for the provision of goods and/or services, a Request for Proposals shall be issued. The Purchasing and Risk Management Division, in cooperation with the user department, shall prepare Evaluation Criteria and weightings for the criteria. The document shall clearly distinguish those requirements that are deemed mandatory or non-mandatory and shall clearly outline how these items will be evaluated. (8) At the discretion of the Manager of Purchasing and Risk Management, a refundable or non-refundable fee may be charged for Tenders, Proposals, Expression of Interest and Specification packages. TOTAL PROJECT COST 34. The Contract amount shall be the sum of all costs to be paid to the vendor/supplier under the Contract plus all taxes and less any rebate. INSURANCE AND RISK MANAGEMENT REQUIREMENTS 35. (1) The initiating department is responsible to ensure that those vendors providing services to the City of Windsor meet the necessary insurance and Workplace Safety and Insurance Board requirements as set out in Section 35 and Section 36 of this by-law. The insurance policy shall be in a form satisfactory to the Manager of Purchasing and Risk Management or designate prior to the commencement of any work being performed, for no less than the minimum amounts stated in Subsection 35(2) and in force for the entire Contract period and subsequent maintenance period. (2) The minimums insurance requirements required by the City of Windsor, in Canadian dollars, shall be: (a) Encroachments

- $2 million General Liability (b) Subdivision

- $5 million General Liability

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- $5 million Environmental Pollution Liability - $2 million Auto Liability

(c) Consultants - $2 million General Liability - $2 million Professional Errors and Omissions Liability

(d) Oversize or Overweight Loads - $2 million General Liability

- $2 million Auto Liability (e) Contracts

- $2 million General Liability (f) Tenants

- $2 million General Liability - $300,000 Tenant Legal Liability

(g) Builder’s Risk - The amount of the project cost

(h) Events involving Alcohol or Fireworks - $5 million General Liability

(i) Other Types of Contracts At the direction of Council acting on the recommendation of the Manager of Purchasing and Risk Management or designate.

(j) The Manager of Purchasing and Risk Management or designate may determine any other risk requiring coverage.

(3) The City of Windsor shall be:

(a) Named as an additional insured in the policy of insurance and the policy shall contain a cross-liability/separation clause;

(a) Indemnified from any and all claims, demands, losses, costs or damages resulting from the performance of a bidder’s obligation under Contract.

(4) Vendor insurance policies shall not be altered, cancelled or allowed to lapse without thirty (30) days prior written notice to the City of Windsor. If the insurance policy is cancelled or changed in any manner that would affect the City of Windsor as outlined in coverage specified in the policy for any reason, thirty (30) days prior notice by registered mail shall be given by the insurer to the City of Windsor. The Contractor shall deliver the insurance policy or certificate prior to commencing any work pursuant to any Contracts. (5) The Contractor shall maintain such fire and theft insurance, including dishonesty of any employees or agents hired by the Contractor, as will provide adequate coverage for loss by burglary, fire or theft of any stock or equipment of the Contractor’s upon city premises. (6) Prior to payment to a supplier or Vendor, a Certificate of Clearance from the Workplace Safety and Insurance Board shall be provided by the Vendor to the City of Windsor evidencing the payment of all required premiums or levies to the Workplace Safety and Insurance Board to the date of payment by the City of Windsor to the Vendor. (7) All Bid documents shall clearly indicate insurance requirements to be provided by the successful bidder. (8) Manager of Purchasing and Risk Management or designate shall be contacted for assistance where insurance requirements are unclear and where insurance requirements are waived. The

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Manager of Purchasing and Risk Management or designate in conjunction with the City of Windsor’s insurer shall have the authority to waive any and/or all insurance requirements of this section. OCCUPATIONAL HEALTH AND SAFETY REQUIREMENTS 36. (1) The Manager of Purchasing and Risk Management shall be satisfied that the Contractor who accepts a Purchase Order and/or Contract is fully knowledgeable of all terms and conditions of the Occupational Health and Safety Act, including the regulations applying to an employer, deemed or otherwise, of a sub-Contractor. (2) The Contractor shall strictly comply with all aspects of the Occupational Health and Safety Act and regulations thereunder. (3) The Contractor shall agree to indemnify and hold harmless the City of Windsor and its employees for all matters and claims pertaining or relating to the work to be performed by the Contractor and/or its sub-Contractors. (4) The Contractor shall assume responsibility for any and all breaches of health and safety requirements, including the cost of legal defence on a solicitor and own client basis should the City of Windsor or any of its employees be charged with violating said Act or Regulations. In the event that the City of Windsor and/or any employee thereof are convicted and fined for any such offence as having been a deemed employer or otherwise vicariously or definitively liable, the Contractor shall forthwith pay any such fine on behalf of such defendant. (5) The Contractor shall deliver a Certificate of Clearance from the Workplace Safety and Insurance Board prior to commencing any work pursuant to any Contracts ensuring all premiums or levies have been paid to the Workplace Safety and Insurance Board to the date of payment. BID DEPOSITS AND GUARANTEES OF CONTRACT EXECUTION 37. (1) The Department Head and the Manager of Purchasing and Risk Management may require that a Bid be accompanied by a Bid Bond or other similar security to guarantee entry into a Contract. (2) In addition to the security referred to in Subsection 37(1), the successful bidder may be required to provide,

(a) A Performance Bond to guarantee the faithful performance of the Contract, and (b) A Labour and Materials Payment Bond to guarantee the payment for labour and materials

to be supplied in connection with a Contract. (3) The Department Head, City Treasurer, and the Manager of Purchasing and Risk Management shall select the appropriate means to guarantee execution and performance of the Contract. Means may include one or more of, but are not limited to:

(a) Financial bonds for Contract performance; (b) Certified cheque, bank draft or money order drawn on any bank named in Schedule I or II

to the Bank Act (Canada), any trust or loan company registered under the Loan and Trust Company Act (Ontario), the Province of Ontario Savings Office, or a credit union as defined in the Credit Unions and Caisses Populaires Act (Ontario),

(c) An Irrevocable Letter of Credit naming the City of Windsor as the beneficiary, (d) A Bid Bond issued by an approved guarantee company properly licensed in the province

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of Ontario, on bond forms acceptable to the City of Windsor, (e) Canadian currency, and (f) Other forms of security deposits, provisions for liquidated damages, Progress Payments,

and Holdbacks. (4) A Bid Deposit shall be required to accompany and be included in an envelope containing the Bid documents in the following circumstances:

(a) All bids for municipal construction projects; (b) Special maintenance Contracts, except for those Contracts, whose price in the

opinion of the Manager of Purchasing and Risk Management is disproportionate to the cost to the Contractor of obtaining a Bid Bond;

(c) All demolition Contracts; (d) In circumstances not mentioned in Section 37 (4) (a) through (c), the Manager of

Purchasing and Risk Management in consultation with the City Treasurer and other Department Heads as appropriate shall be authorized to determine whether or not a bid deposit is required prior to calling of Sealed Bids.

(5) When a Bid Bond is required, the Department Head, in conjunction with the Manager of Purchasing and Risk Management, shall determine the amount of the Bid Deposit. (6) When a Performance Bond or Labour and Material Payment Bond is required, the amount of the bond shall be 50 percent of the amount of the Tender Bid, unless the Department Head recommends and Council approves a higher level of bonding. (7) The Department Head and the Manager of Purchasing and Risk Management shall ensure that the guarantee means selected will:

(a) Not be excessive but will be sufficient to cover any financial risk to the City of Windsor, (b) Provide flexibility in applying leverage on a supplier so that the penalty is proportional to

any Contract deficiencies, and (c) Comply with provincial statutes and regulations.

(8) All bidders shall include in the Tender/Sealed Bid envelope the following:

(a) The Tender/Bid form issued by the City of Windsor or its agents, and (b) The satisfactory declaration, if applicable.

(9) If, in the opinion of the Manager of Purchasing and Risk Management, the risk to the City of Windsor is not adequately limited by the Progress Payment provisions of the Contract, an additional minimum payment Holdback of 10 percent may be required. (10) The Manager of Purchasing and Risk Management may release the Holdback funds on construction Contracts upon:

(a) The Contractor submitting a statutory declaration that all accounts have been paid and that all documents have been received for all damage claims,

(b) Receipt of clearance from the Workplace Safety and Insurance Board for any arrears of Workplace Safety and Insurance Board assessment,

(c) All the requirements of the Construction Liens Act being satisfied,

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(d) Receipt of certification from the City Solicitor, where applicable, that liens have not been registered, and

(e) Certification from the Department Head, under whom the work has been performed, that the conditions of the Contract have been satisfied.

(11) The conditions for release of Holdback funds provided in Subsection 37(12) apply to other goods and/or services Contracts with necessary modifications. (12) The Tender Documents shall clearly specify what action shall be taken with respect to informal or unbalanced bids and what penalties shall be imposed if the bidder fails to submit the appropriate documents in the manner specified, and the Department Head under whose jurisdiction the Bid will be administered shall report such failures in consultation with the Manager of Purchasing and Risk Management to Council with appropriate recommendations. (13) In all circumstances with respect to Tenders the Manager of Purchasing and Risk Management in consultation with the City Treasurer and the appropriate Department Head is authorized to determine whether or not a Letter of Agreement to Bond is to be submitted with the bids. When the requirements of a Letter of Agreement to Bond have been determined, the failure of a bidder to provide said Letter of Agreement to Bond shall result in the Bid being rejected. (14) A Tender and/or Proposal requiring an appropriate Bid Deposit shall be void if such security is not received in the manner specified in Section 37(3) or, if the value of the Bid Deposit is less than required. The Manager of Purchasing and Risk Management is authorized to cash and deposit any Bid Bonds and/or cheques in the City of Windsor’s possession that are forfeited as a result of non-compliance with terms, conditions and/or Specifications of a Sealed Bid. (15) The successful bidder for maintenance contracts, demolition contracts, Proposals for the sale and/or removal of City of Windsor owned buildings, or structures, and Tenders shall submit the following documentation in a form satisfactory to the City Solicitor within seven (7) working days after being notified in writing to do so by the City of Windsor.

(a) Executed Performance Bond, (b) Executed Agreement and Labour and Materials Payment Bond(s), (c) Insurance Documents in compliance with Tender documents (d) Certificate of Clearance from the Workers' Safety Insurance Board, and (e) Declarations respecting the Worker's Compensation

CONTRACTUAL AGREEMENT 38. (1) The Award of a Contract may be made by way of:

(a) Purchase Order/Contract Order (b) Formal Agreement or

(2) A Purchase Order or Contract Order is to be used when the resulting Contract is, in the opinion of the Manager of Purchasing and Risk Management, straightforward and will contain the City of Windsor’s standard terms and conditions and is a binding Agreement with the contracted vendor. (3) A Formal Agreement is to be used when the resulting Contract is, in the opinion of the Manager of Purchasing and Risk Management, complex and will contain terms and conditions other than the City of Windsor’s standard terms and conditions.

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(4) It shall be the responsibility of the Department Head initiating the Bid Solicitation, with the Manager of Purchasing and Risk Management and/or City Solicitor, to determine if it is in the best interest of the City of Windsor to establish a formal Agreement with the supplier.

(5) Where it is determined that Subsection 38(4) applies, the Formal Agreement shall be reviewed and approved for execution by the City Solicitor or designate.

(6) Where, in the discretion of the Manager of Purchasing and Risk Management or his/her designate, a Formal Agreement is required as a result of the Award of a Contract by delegated authority, the Chief Administrative Officer and City Clerk shall execute the Agreement in the name of the City of Windsor, satisfactory in form to the City Solicitor, in technical content to the appropriate Senior Manager and in financial content to the City Treasurer. (amended B/L 154-2005, June 20/05)

(7) Where a Formal Agreement is issued, the Manager of Purchasing and Risk Management may issue a Purchase Order incorporating the Formal Agreement.

(8) Where a Formal Agreement is not required, the Manager of Purchasing and Risk Management shall issue a Purchase Order or Contract Order incorporating the terms and conditions relevant to the Award of a Contract. (9) Requisitions or Purchase Orders shall not be arbitrarily structured to alter the relationship of the price to the Preauthorized Expenditure Limit. (10) For an approved form of Agreement for major purchases of goods and/or services, a form of Agreement prepared or approved by the City Solicitor shall be used at the discretion of the City Treasurer, when deemed advisable in the City of Windsor's best interests. EXERCISE OF CONTRACT RENEWAL OPTIONS 39. (1) Where a Contract contains an option for renewal, the Department Head may authorize the Purchasing and Risk Management Division to exercise such option provided that all of the following apply:

(a) The supplier’s performance in supplying the goods and/or services is, in the opinion of the respective Department Head acting together with the Manager of Purchasing and Risk Management, considered to have met the requirements of the Contract,

(b) The Department Head or designate provides the Manager of Purchasing and Risk Management with a written explanation as to why the renewal is in the best interest of the City of Windsor.

(c) The Department Head and the Manager of Purchasing and Risk Management agree that the exercise of the option is in the best interest of the City of Windsor, and

(d) Funds are available in appropriate accounts within the Council approved budget including authorized revisions to meet the proposed expenditure.

(2) All options that exceed the Preauthorized Expenditure Limit of $150,000 require Council approval. CONTRACT AMENDMENTS AND REVISIONS 40. (1) No amendment or revision to a Contract shall be made unless the amendment, in the opinion of the City Solicitor, is in the best interest of the City.

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(2) No amendment that changes the original Award price of a Contract shall be agreed to without a corresponding change in requirement or scope of work, and where applicable, Council approval is required for expenditures that exceed the original Award price of the Contract by more than the lesser of 10 percent or $150,000. (3) Department Heads, General Managers and the CAO/City Manager may recommend amendments to Contracts provided that the total amended value of the Contract is within the approval authority as noted in Schedule “A” and the amendments are approved by the City Solicitor. (4) Where expenditures for the proposed amendment combined with the price of the original Contract exceeds Council approval budget for the project, a report prepared by the Department Head shall be submitted to Council recommending the amendment, and proposing the source of financing. CONTRACT WITHOUT BUDGETARY APPROVAL 41. (1) Where a requirement exists to initiate a project for which goods and/or services are required and funds are not contained within the Council approved budget to meet the proposed expenditure, the Department Head shall, prior to commencement of the purchasing process, submit a report to Council containing:

(a) Information surrounding the requirement to Contract, (b) Information on the availability of the funds within existing budgets, which were

originally approved by Council for other purposes, or on the requirement of additional funds.

PART VII – MATERIAL AND VENDOR MANAGEMENT INVENTORY CONTROL 42. (1) The Manager of Purchasing and Risk Management or designate shall be responsible for monitoring the prices of the goods required in inventory and establishing the necessary Purchase Orders or Blanket Purchase Order so that inventory staff can requisition their requirements in order to replenish the stock as needed. (2) Upon receipt of an authorized Requisition, the Manager of Purchasing and Risk Management or designate shall proceed to contact suppliers in order to fulfill the inventory requirement. (3) The Manager of Purchasing and Risk Management or designate may from time to time alter the source or method of supply when it is, in his/her opinion, beneficial to do so. (4) Department Heads or designate shall ensure a physical inventory of stock items be taken on a periodic basis and an adequate allowance of inventory obsolescence be maintained. RECEIPT AND INSPECTION OF GOODS 43. (1) The Department Head or designate shall,

(a) Arrange for the prompt inspection of goods on receipt to confirm conformance with the terms of the Purchase or Blanket Purchase Order, and

(b) Inform the Purchasing and Risk Management Division of discrepancies immediately.

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(2) The Purchasing and Risk Management Division shall coordinate an appropriate course of action with the Department Head or designate for any non-performance or discrepancies. SURPLUS AND OBSOLETE MATERIAL AND EQUIPMENT 44. Disposal of surplus and obsolete material and equipment shall be done in accordance with this section. (1) Each Department Head or designate shall submit an annual report to the Manager of Purchasing and Risk Management identifying all furniture, vehicles, equipment, and surplus stock, which are no longer used or which have become obsolete, worn out, or incapable of being used. (2) The Manager of Purchasing and Risk Management with the assistance of departments shall have the authority to sell, exchange, or otherwise dispose of material declared surplus or obsolete to the needs of the City of Windsor, and where it is cost effective and in the best interest of the City of Windsor to do so. (3) The Manager of Purchasing and Risk Management shall be responsible for ascertaining if the items can be of use to other departments rather than disposed of. (4) The Manager of Purchasing and Risk Management shall have the authority to sell or dispose of the material by the following methods:

(a) Offered for sale to other departments; (b) Offered for sale to public agencies; (c) Sold by external advertisement, including Tender, Quotation, public auction, or on-line

auction; (d) Sold or traded to the original supplier or others in that line of business where it is

determined that a higher net return will be obtained than following other procedures; (e) Donated to a charitable organization; (f) Recycled; (g) Other methods as deemed appropriate;

(5) In the event that all other efforts to dispose of material by sale are unsuccessful, these items may be scrapped.

(6) Where it is deemed appropriate, the Manager of Purchasing and Risk Management and/or the initiating department, may set a reserve price for an article that is to be sold and

(a) In case of Disposal by Tender, the reserve price shall published and disclosed; or (b) In case of public auction, on-line auction or Quotation the reserve price shall be used as

an internal estimate and not disclosed.

(7) The revenue generated from the sale of surplus and obsolete material shall be credited to the appropriate departmental account.

(8) Departments are responsible for the Disposal of hazardous material. Where Disposal prices must be obtained, the Manager of Purchasing and Risk Management shall be notified of the necessary information regarding the hazardous material. (9) No employee, elected official, or immediate member of his or her families, as defined by the

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City of Windsor conflict of interest policy, shall be permitted to receive surplus and obsolete material except by purchase at a public auction or on-line auction. (10) The Manager of Purchasing and Risk Management shall submit an annual report to Council summarizing the Disposal of all surplus and obsolete material pursuant to this policy. (11) Disposal of surplus and obsolete material and equipment greater than $150,000 require Council approval. PERFORMANCE EVALUATION 45. (1) The Manager of Purchasing and Risk Management shall institute a vendor performance management program for the City of Windsor. (2) A performance evaluation shall rate the performance of the vendor on criteria determined by the Manager of Purchasing and Risk Management in conjunction with the Department Heads to be appropriate in determining if the City of Windsor has obtained a satisfactory level of performance by the vendor. (3) Documented poor performance or non-performance may be used to determine the eligibility of a bidder to participate on future City of Windsor Contracts in accordance with Section 47. EXCLUSION OF BIDDERS IN LITIGATION 46. (1) The City of Windsor may, in its absolute discretion, reject a Tender or Proposal submitted by the bidder if the bidder, or any officer or director of the bidder is or has been engaged, either directly or indirectly through another corporation, in a legal action against the City of Windsor, its elected or appointed officers and employees in relation to:

(a) Any other Contract or service; or (b) Any matter arising from the City of Windsor’s exercise of its powers, duties, or

functions. (2) In determining whether or not to reject a Quotation, Tender or Proposal under this clause, the City of Windsor will consider whether the litigation is likely to affect the bidder’s ability to work with the City of Windsor, its consultants and representatives, and whether the City of Windsor’s experience with the bidder indicates that the City of Windsor is likely to incur increased staff and legal costs in the administration of the Contract if it is awarded to the bidder. EXCLUSION OF BIDDERS DUE TO POOR PERFORMANCE 47. (1) The Department Head or designate shall document evidence and advise the Purchasing and Risk Management Division in writing where the performance of a supplier has been unsatisfactory in terms of failure to meet Specifications, terms and conditions or for health and safety violations. A supplier shall be provided an opportunity to respond to allegations of poor performance. (2) The City Treasurer may, in consultation with the City Solicitor, prohibit an unsatisfactory supplier from bidding on future Contracts for a period of three years or longer as deemed appropriate. (3) Any supplier being excluded from a bidding process due to poor performance will be reported to the CAO/City Manager.

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PRE-QUALIFICATION OF ACCEPTABLE BIDDERS 48. (1) This section shall be followed in situations where it is deemed by the Manager of Purchasing and Risk Management to be necessary to pre-qualify bidders prior to the commencement of the competitive Sealed Bid process. The purpose of the pre-qualification is to ensure that each bidder can demonstrate they have the ability to provide the necessary expertise and resources to satisfactorily complete the work required. Pre-qualification shall only be considered in the following circumstances:

(a) The work involves complex, multi-disciplinary activities; specialized expertise, equipment, materials, or financial requirements,

(b) The work is such that Contract administration costs (work inspection, follow-up, extra fee negotiations) could result in a substantial cost to the City of Windsor if the work is not satisfactory performed the first time,

(c) The goods or equipment to be purchased must meet national safety standards, or if no standard has been established, has require a demonstrated acceptable level of performance, or

(d) The work is considered “high risk” with respect to regulations governed under the Occupational Health and Safety.

(2) This is a two-step process, where either a competitive Sealed Bid or a Proposal call will follow. Pre-qualification is the first step and would set out criteria requiring bidders to provide information such as, but not limited to:

(a) Experience on similar work, (b) References provided from other customers for similar work, (c) Verification of applicable licenses and certificates, (d) Health and safety policies and staff training, and (e) Financial capability.

(3) Appropriate staff, at the direction of the Manager of Purchasing and Risk Management, will evaluate and rank the submissions and then recommend a short list of acceptable bidders who will be invited to participate in the subsequent Request for Tender call. (4) Alternatively, the City of Windsor may issue a Request for Information. A Request for Information can be used to build supplier interest and to see if there are enough suppliers to justify a full Request for Proposal competition. The Request for Information may request detailed information such as, but not limited to, company background, who the interested parties are, what they can offer and what they can do for the City of Windsor. Any resulting Bid document will be advertised and will be open to vendors who wish to participate. PART VII – GENERAL ADMINISTRATIVE PROCEDURES REPORTING TO COUNCIL 49. (1) Where a supplier has invoiced the City of Windsor a cumulative total value of $150,000 or more in a calendar year, all payments relative to the supplier shall be included in an annual information report to the CAO/City Manager to be prepared by the Manager of Purchasing and Risk Management. RESOLUTION OF QUESTION OF POLICY 50. The procedures in this section shall be used to resolve any question involving the meaning or application of this by-law. The City of Windsor encourages the most open, competitive bidding

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process for the purchase of goods and/or services and the equitable treatment of all vendors. In the event that disputes arise during the administration of a Contract that cannot be easily resolved, the vendor shall: (1) Request a meeting with the Manager of Purchasing and Risk Management. This request shall be in writing and shall provide a detailed statement of the legal and factual grounds of the protest, including copies of relevant documents, and shall identify the form of relief requested.

(2) If, after the meeting, the vendor is satisfied that his or her concerns have been addressed and that the process has been fair and equitable, no further action shall be required. (3) If, after the meeting, the Manager of Purchasing and Risk Management is convinced that there was an error or oversight on the part of the purchasing process, a report shall be issued by the Manager of Purchasing and Risk Management to the City Solicitor for approval which report shall set out the course of action recommended by the Manager of Purchasing and Risk Management. (4) If, after the meeting, no resolution satisfactory to both parties has been achieved and the Manager of Purchasing and Risk Management is confident the process was fair and equitable, the vendor may, at their option, make a formal written request for a meeting with the City Solicitor to resolve the conflict. (5) If, after meeting with the City Solicitor, no resolution satisfactory to both parties has been achieved and the City Solicitor is confident the process was fair and equitable, the vendor may, at their option, make a formal written submission to Council who will provide a final resolution to the conflict, subject to any litigation proceedings which may be commenced. COMPLIANCE AND PROHIBITIONS 51. (1) The public and the business community must have confidence in the integrity of the City of Windsor’s elected officials, officers, and employees. Any officer, or employee who intentionally and knowingly fails to act in accordance with this by-law shall be subject to appropriate disciplinary action up to and including termination of employment. (2) Any bidder and existing suppliers who intentionally and knowingly fail to act in accordance with the Purchasing By-law may be prohibited from bidding on future Contracts for a period of three years in accordance with Section 47. (3) No acquisition of goods and/or services or Disposal of surplus goods, or equipment shall be made where the quantity or delivery is divided or in any manner arranged so that the price or value of the goods and/or services to be acquired or disposed of is artificially reduced to circumvent the prescribed purchasing process. (4) No elected official, officer, or employee or any relative of that elected official, officer, or employee shall be permitted to purchase any surplus goods to be disposed of except by successfully bidding on the same at a public auction or by Sealed Bid but in no case if the duties of that elected official, officer, or employee include making decisions regarding the Disposal of such goods or activities relating to the conduct of the Disposal process. (5) Elected officials, officers, and employees shall not knowingly cause or permit anything to be done or communicated to anyone which is likely to cause any potential vendor to have an unfair advantage or disadvantage in obtaining a Contract for the supply of goods and/or services to the

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City of Windsor, or any other municipality, local board or public body involved in the purchase of goods and/or services either jointly or in cooperation with the City of Windsor. ENVIRONMENTAL CONSIDERATION 52. (1) In order to contribute to waste reduction and to increase the development and awareness of environmentally sound purchasing, acquisitions of goods and/or services will ensure that, wherever possible, Specifications are amended to provide for expanded use of durable products, reusable products and products (including those used in services) that contain the maximum level of post-consumer waste and/or recyclable content, without significant affecting the intended use of the product or service. (2) It is recognized that cost analysis is required in order to ensure that the products are made available at competitive prices. CONCERNED EMPLOYEE (“WHISTLEBLOWER”) POLICY 53. All elected officials, officers and employees of the City of Windsor shall comply with the Concerned Employee (“Whistleblower”) Policy as approved by Council. CONFLICT OF INTEREST POLICY 54. (1) All elected officials, officers and employees of the City of Windsor shall not have a pecuniary interest, either directly or indirectly, in any Contract with the City of Windsor or with any person acting for the City of Windsor in any Contract for the supply of goods and/or services for which the City of Windsor pays or is liable, directly or indirectly to pay unless such interest has been pursuant to the City of Windsor’s Conflict of Interest Policy as approved by Council, Section 31 of this policy or other policy currently in force. (2) All staff and others participating in the evaluation of Proposals shall disclose any Conflict of Interest prior to the evaluation process. (3) All consultants awarded a Contract by the City of Windsor shall disclose to the City of Windsor prior to accepting an assignment, any potential Conflict of Interest. If such a Conflict of Interest exists, the City of Windsor as directed by the Department Head may, at its discretion, withhold the assignment from the consultant until the matter is resolved. And furthermore, if during the conduct of a City of Windsor assignment, a consultant is retained by another client giving rise to a potential Conflict of Interest, then the Consultant shall so inform the City of Windsor. LOCAL PREFERENCE 55. The Province of Ontario’s Discriminatory Business Practices Act (R.S.O. 1990) was established to prevent discrimination in Ontario on the grounds of race, creed, colour, nationality, ancestry, place of origin, sex or geographical location of persons employed or engaged in business. As such, granting preference to local suppliers to provide goods and/or services to the City of Windsor cannot be undertaken. TERM OF COUNCIL 56. Where a Contract may extend beyond the term of Council, the Contract shall contain provisions to minimize the financial liability of the City of Windsor should the subsequent Council not approve sufficient funds to complete the Contract and the City of Windsor may terminate the Contract.

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ACCESS TO INFORMATION 57. (1) The disclosure of information received relevant to the issue of Bid Solicitations or the Award of Contracts emanating from Bid Solicitations shall be made by the appropriate officers in accordance with the provisions of the Municipal Freedom of Information and Protection of Privacy Act, as amended. (2) All records and information pertaining to Tenders, Proposals and other Sealed Bids, which reveal a trade secret or scientific, unit prices, technical, commercial, financial or other labour relations information, supplied in confidence implicitly or explicitly, shall remain confidential if the disclosure could reasonably be expected to:

(a) Prejudice significantly the competitive position or interfere significantly with the Contractual or other negotiations of a person, group of persons, or organizations;

(b) Result in similar information no longer being supplied to the City of Windsor where it is in the public interest that similar information continue to be so supplied;

(c) Result in undue loss or gain to any person, group, committee or financial institution or agency; or

(d) Result in information whose disclosure could reasonably be expected to be injurious to the financial and/or security interests of the City of Windsor.

CO-OPERATIVE PURCHASING POLICY 58. The Manager of Purchasing and Risk Management shall be authorized to cooperate with local boards and commissions or such other organizations performing services for or on behalf of the City of Windsor with respect to co-operative or bulk purchasing of goods and with respect to providing general advise, information or assistance pursuant to such requests. ADVERTISING 59. (1) Where, in the opinion of the Manager of Purchasing and Risk Management in cooperation with the respective Department Head, it would be effective, Tenders and Proposals shall be placed on the City of Windsor’s internet website and if the City of Windsor so desires, in the local press. (2) Advertisements, where applicable, must appear with sufficient time between Advertising and Tender closing to permit a Contractor to examine advertisement, obtain the Tender documents, complete and submit his/her Proposal. (3) Tender and Proposals may be advertised on other government operated and/or Purchasing Association internet websites, where practicable, to attract competent bidders. (4) Construction projects in excess of $100,000 shall be advertised in the Daily Commercial News and Construction Record, as well as locally, and plans and Specifications provided to the Windsor Construction Association, at no cost. BY-LAW REVIEW POLICY 60. The purpose of this policy is to determine how effective the Purchasing By-law has been in achieving the objectives set out in Section 3 of the by-law as well as the requirements of the Municipal Act, 2001, as amended. (1) At a minimum, the Purchasing By-law shall be reviewed prior to the end of each Council term and any amendment thereto shall be made prior to the inaugural meeting of the next Council.

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(2) The Manager of Purchasing and Risk Management, all General Managers, City Treasurer and City Solicitor shall undertake the review of the Purchasing By-law. (3) The final result shall be comprised of a report to Council, by the Manager of Purchasing and Risk Management. (4) Other stakeholders shall be consulted as deemed appropriate. (5) The Manager of Purchasing and Risk Management shall bring forward from time to time, amendments to this by-law to update, whether adding new clauses or adjusting those currently in force. DOCUMENTATION RETENTION 61. All background information, information submitted by vendors, analysis, Purchase Orders and other relevant information involved in obtaining prices for goods and/or services shall be retained in compliance with the City of Windsor’s Retention By-law. DISCLOSURE OF FAIR BUSINESS PRACTICES 62. (1) The purpose of this section is to protect the City of Windsor from Contractors, sub-Contractors and suppliers who discriminate against their workers. The intent of this section is to protect the public and to promote ethical and fair business dealings. (2) All bidders shall be required to provide a Statutory Declaration concerning their application of fair wage practices utilized within their product supply chain. Failure to co-operate will be considered non-compliance with the Sweatshop policy and will be reported to Council.

(3) When a Contractor, sub-Contractor or any supplier is found to be in non-compliance with the this section, or in contravention of the statements made in the Statutory Declaration provided to the City of Windsor, the Manager of Purchasing and Risk Management must report and may recommend to Council that the said Contractor, sub-Contractor or supplier be disqualified from conducting business with the City of Windsor for a period of three (3) years inclusive. (4) After the disqualifying period is over, the said Contractor, sub-Contractor or supplier will be placed on probation for the next Contract year. If another non-compliance violation occurs, the Manager of Purchasing and Risk Management shall report and may recommend to Council that the said Contractor, sub-Contractor or supplier be disqualified from conducting business with the City of Windsor for an indefinite period of time. (5) If a Contractor, sub-Contractor or supplier is found to be in non-compliance with this section or to have acted in contravention of the statements made in its Statutory Declaration provided to the City of Windsor, may at its discretion, terminate the Contract with the Contractor, sub-Contractor or supplier. GENERAL ADMINISTRATION 63. (1) In the absence of the Manager of Purchasing and Risk Management, the City Solicitor shall act as the authorized legal purchasing agent for the City of Windsor. (2) Where a Department Head, General Manager, City Treasurer, City Solicitor, Manager of Purchasing and Risk Management and CAO/City Manager is authorized to undertake any act pursuant to this by-law, such act may be undertaken by the Department Head General Manager, City Treasurer, City Solicitor, Manager of Purchasing and Risk Management and CAO/City

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Manager’s designate. (3) Any commitments being made where it is recommended that a Contract be executed by the Mayor and the City Clerk must first be approved by Council. (4) No employee or elected official shall purchase or offer to purchase, on behalf of the City of Windsor, any goods and/or services, except in accordance with this by-law. (5) That Schedules “A”, “B”, and “C” attached hereto may be amended by the City Solicitor without a requirement of a report to Council, provided such amendments have been approved by the CAO/City Manager and amended Schedule(s) has been circulated to the General Managers and Department Heads. (6) The Department Head and/or the Manager of Purchasing and Risk Management may randomly review department’s purchasing related files on an on-going basis to review the effectiveness and integrity of the processes and policy adherence. (7) The Manager of Purchasing and Risk Management shall establish procedures consistent with the Purposes, Goals and Objectives and be used as guidelines and for information on purchasing goods and/or services in compliance with this By-law. (8) The City Treasurer shall initiate and submit the recommendation with respect to the Award for group benefits, banking and professional services to Council with the assistance and consultation of the departments. (9) The City Solicitor shall initiate and submit the recommendation to Council with respect to the sale of City of Windsor owned real property. (10) The City Treasurer shall initiate and submit the recommendation with respect to debenture sales and general insurance to Council. (11) Manager of Purchasing and Risk Management shall review unsolicited Proposals received by the City of Windsor. Any purchasing activity resulting from the receipt of an unsolicited Proposal shall comply with the provisions of this by-law. (12) To ensure standardization of corporate equipment, prior approval shall be required from the Manager of Purchasing & Risk Management and Executive Director of Information Technology for computer equipment for which departments pay a maintenance fee, software, photocopiers and cell phones. (13) Where the authority to enter into a contract for the purchase of goods and/or services is a decision which is solely within the jurisdiction of a Board, the Board may choose to avail itself of the services of the Purchasing and Risk Management Division, Corporate Services Department. In those circumstances, the terms and conditions of this By-law apply with the exception that the Designated Official shall submit reports, as required, to the Board.

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64. That By-law 9-2000 BE REPEALED.

65. This by-law shall come into force and take effect on the day of final passing thereof. EDDIE FRANCIS, MAYOR DEPUTY CLERK First Reading - December 13, 2004 Second Reading - December 13, 2004 Third Reading - December 13, 2004

BY-LAW NO. 400-2004 46 SCHEDULE "A" (TAXES DUTIES NOT INCLUDED)

PROCUREMENT PROCESS, DOLLAR RANGE, PROCEDURE AND APPROVAL AUTHORITY LEVELS

Dollar Range Procurement Process Procurement Procedure Approval Authority Low Dollar Value Purchases (Department Directly Involved) Option #1 • $0 - $200

• Petty Cash • By-law Section 11(1) • Petty Cash Policy

• Any employee authorized by the Department Head or designate

Option #2 • Up to $2,500

• Small Purchase Order • By-law Section 11(2)

• Any employee authorized by the Department Head or designate

Informal Quotation (Department Directly Involved) Option #1 • $2,501 - $10,000

• Request for Quotation

• By-law Section 13 • Departments obtains 3

quotes where available

• Any employee authorized by the Department Head or designate

Formal Quotation (Purchasing Directly Involved)

Option #1 • $10,001 - $50,000

• Amounts within this range can also follow Option #2 or #3 below

• Request for Quotation

• By-law Section 14

• Purchasing to solicit 3 quotes where available

• Any employee authorized by the

Department Head or designate

Option #2 • Criteria and scope of work

is clearly defined • Exceeds $50,000

• Request for Tender

• By-law Section 15 • Tender Procedures

• Any employee authorized by the: Dept. Head up to $100,000 and/or General Manager up to $150,000

• Awards greater than $150,000 require Council approval

Option #3 • Requirements cannot be

definitively specified or defined

• Request for Proposal

• By-law Section 16 • Proposal Procedures

• Any employee authorized by the: Dept. Head up to $100,000 and/or General Manager up to $150,000

• Awards greater than $150,000 require Council approval

Consulting and Professional Services (Department and/or Purchasing Involved) All Departments (Except for Public Works)

• $2,501 - $10,000 • $10,001 - $50,000 • Exceeds $50,000

• Informal/Formal Quotation Process

• Informal Quotation • Formal Quotation • Tender or Proposal

• Any employee authorized by the: Dept. Head up to $100,000 and/or General Manager up to $150,000

• Awards greater than $150,000 require Council approval

Public Works Department

• Up to $150,000 • “Roster” Selection Process

• Pre-Qualification Process • Any employee authorized by the: Dept. Head up to $100,000 and/or General Manager up to $150,000

• Awards greater than $150,000 require Council approval

• Exceeds $150,000

• Request for Proposal

• By-law Section 16 • Proposal Procedures

• Any employee authorized by the: Dept. Head up to $100,000 and/or General Manager up to $150,000

• Awards greater than $150,000 require Council approval

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SCHEDULE “B”

EXEMPTIONS FROM THE PURCHASING BY-LAW

The acquisition methods describe in this by-law do not apply to the following items: 1. Petty Cash Items 1. Compliance with Section 11 of this By-law 2. Purchasing Card Purchases

1. Compliance with Section 12 of this By-law 3. Training and Education

1. Conferences, conventions, courses and seminars 2. Magazines, books and periodicals 3. Memberships and Staff Development

4. Refundable Employees Expenses

1. Advances and meal allowances 2. Travel and entertainment 3. Hotel accommodation and mileage 4. Miscellaneous – Non-Travel

5. General Expenses 1.Payroll deductions remittances, medical, insurance premiums and tax

remittances and other payments for employment 2.Licenses (vehicle, firearms, etc.) 3.Debenture payments, sinking fund payments, grants to agencies and postage 4.Petty Cash Replenishment 5.Insurance claims, legal settlements and arbitration awards 6.Charges to and from other government bodies including Federal, Provincial or Municipal

6. Professional and Special Services

1. Medical, Laboratory, Counselling, Nursing Services 2. Legal fees for expert or professional legal services and insurance matters in accordance with the delegation of authority to the City Solicitor 3. Payments to Social Service and Health Agencies that are subject to purchase of service agreements 4. Medical and dental fees, committee fees, funeral and burial expenses, enforcement payments and honorariums 5. Real estate including land, building, leasehold interests, easements, encroachments and licenses, or the like

7. Utilities (monthly charges and utility relocations)

1. Water, Sewer, Hydro and Natural Gas 2. Telecommunications Services

BY-LAW NO. 400-2004 48

SCHEDULE “C” IRREGULARITIES CONTAINED IN BIDS

IRREGULARITY RESPONSE

1. Late Bids. Automatic rejection, not read publicly and returned unopened to the bidder.

2. Unsealed Envelopes. Automatic rejection.

3. Insufficient Financial Security (No Bid Security or agreement to bond or insufficient Bid bond or agreement to bond).

Automatic rejection.

4. Bids completed and/or signed in erasable medium.

Automatic rejection.

5. All required sections of Bid documents not completed

Automatic rejection unless, in the opinion of the Manager of Purchasing and Risk Management, General Manager in charge of the Bid Solicitation and City Solicitor or designate, the incomplete nature is trivial or insignificant.

6. Qualified Bids (Bids qualified or restricted by an attached statement).

Automatic rejection unless, in the opinion of the Manager of Purchasing and Risk Management, General Manager in charge of the Bid Solicitation and the City Solicitor or designate, the qualification or restriction is trivial or not significant.

7. Bids received on documents other than those provided by the City of Windsor.

Automatic rejection unless, in the opinion of the Manager of Purchasing and Risk Management, General Manager in charge of the Bid Solicitation and the City Solicitor or designate, the matter is trivial or insignificant.

8. Bids containing minor obvious clerical errors.

48 hours to correct and initial errors.

9. Failure to execute Agreement to Bond (Performance Security) or Bonding company corporate seal or signature missing from agreement to bond.

Automatic rejection.

10. Failure to execute Bid Security (Financial Security).

(a) Corporate seal or signature of the bidder, or both, missing.

48 hours to correct.

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IRREGULARITY RESPONSE

(b) Corporate seal or signature of bonding company missing.

Automatic rejection.

11. Document – Execution

Corporate seal and/or signature missing; signatory’s authority to bind the corporation and/or signature missing.

Automatic rejection.

12. Erasures, Overwriting or Strike-Outs which are not Initialed:

(a) Uninitialled changes to the Tender documents, other than unit prices, which are trivial or insignificant.

48 hours to initial. The determination of what constitutes trivial or insignificant unitialled changes shall be made in consensual opinion of the Manager of Purchasing and Risk Management, General Manager in charge of the Bid Solicitation and the City Solicitor or designate.

(b) Unit prices in the schedule of prices have been changed but not initialed and the Contract totals are inconsistent with the price as amended;

48 hours to initial change in unit price. The determination of what constitutes trivial or insignificant uninitialed changes shall be made in consensual opinion of the Manager of Purchasing and Risk Management, General Manager in charge of the Bid Solicitation and the City Solicitor or designate.

(c) Unit prices in the schedule of prices which have been changed but not initialed and the Contract totals are inconsistent with the price as changed.

Automatic rejection.

(d) Mathematical errors which are not consistent with the unit prices.

48 hours to initial corrections as made by the Purchasing division.

13. Documents, in which all necessary Addenda, which have financial implication, have not been acknowledged.

Automatic rejection.

14. Any other irregularity. The Manager of Purchasing and Risk Management, General Manager in charge of the Bid Solicitation and the City Solicitor or designate, acting in consensus shall have authority to waive other irregularities or grant 48 hours to initial such other irregularities, which they jointly consider to be minor.