Contract Management Policy
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1 Contract Management Policy December 2010 (modified June, 2011)
2 Table of contents SECTION 1: Objectives, Definitions and Field of Application Objectives Ethics Scope Targeted contracts Application Definitions...4 SECTION 2: Lobbying Lobbying...6 SECTION 3: Provisions Common to All Contracts Responsibilities Contract splitting Development of call for tenders documents Identification of the individual responsible for the call for tenders Site visits and information meetings Bidders identity Administrative compliance of bids Notice of awarding of contracts Contract modifications Act of God...11 SECTION 4: Regulations Specific to Invitations to tender Bidders obligations...13 SECTION 5: Regulations Specific to Public Calls for Tenders Estimated contract price Bidders obligations...14 SECTION 6: Regulations Specific to Calls for Tenders Using a Bid Weighting and Evaluating System Selection committee Access to documents Disclosure of information Estimated contract price Bidders obligations...15 SECTION 7: Coming Into Force Coming into force
3 SECTION 1: Objectives, Definitions and Field of Application 1.1 Objectives The primary objective of this policy is to ensure citizens that monies allocated to the acquisition of goods and services is spent in keeping with sound administrative principles. In order to foster transparency in the management of municipal contracts, as required by article of the Cities and Towns Act (R.S.Q., c. C-19), the Town is implementing this policy whose measures seek to: Ensure that no bidders or bidders representatives have communicated or attempted to communicate with a member of the selection committee, in an effort to influence them on calls for tenders on which they have submitted a bid. Foster respect for applicable laws intended to fight bid rigging. Ensure compliance with the Lobbying Transparency and Ethics Act (R.S.Q., c. T ) and the Code of Conduct of Lobbyists adopted under the banner of this law. Prevent intimidation, influence peddling or corruption. Avoid conflicts of interest. Prevent any other situation likely to compromise the impartiality and objectivity of the call for tenders process and the management of the ensuing contract. Provide a framework for any decision authorizing the modification of a contract. 1.2 Ethics All stakeholders involved in the contractual process are responsible for helping to uphold the Town s positive image, develop and maintain good relations between the Town and its suppliers, and remember that each of them represents the Town in its relations with the latter. To this end, they must: Treat every supplier fairly Ensure transparency in the processing of contract files Avoid conflicts of interest or situations that could provide personal benefits Apply this policy in the best interests of the Town. 3
4 1.3 Scope This policy applies to all Town employees and members of the Municipal Council as well as all prospective and successful bidders, suppliers and other third parties. 1.4 Targeted contracts This policy applies to any contract concluded by the Town, regardless of the cost involved. 1.5 Application Under the responsibility of the Council, the General Manager is responsible for the application of this policy. 1.6 Definitions Successful bidder The bidder to whom the contract has been awarded. Call for tenders Acquisition, public sale or written invitation process soliciting written price proposals for goods and services from suppliers or buyers, in keeping with conditions established in the call for tenders documents. Council The Municipal Council of the Town of Rosemère. Cost overrun Any cost exceeding the initial cost of the contract submitted by a successful bidder or supplier. Call for tenders documents Set of documents consisting of administrative and technical specifications, the proposal form, addenda, if required, as well as any other corroborating document. Supplier Any person or firm in a position to offer goods and services. 4
5 SEAO Electronic call for tenders system. Bidder Any person or firm submitting a proposal within the framework of a call for tenders process. Town The Town of Rosemère. 5
6 SECTION 2: Lobbying 2.1 Lobbying Lobbying activities Unless entered in the registry of lobbyists as required by the Lobbying Transparency and Ethics Act, L.R.Q., c. T , a bidder or supplier is prohibited from any having oral or written communication with a public office holder in an attempt to influence, or that may reasonably be considered by the initiator of the communication as capable of influencing a decision concerning: the development, introduction, amendment or defeat of any legislative or regulatory proposal, resolution, or directive the implementation of a call for tenders procedure, its development or cancellation the awarding of a contract. The arranging by a lobbyist of a meeting between a public office holder and any other person is considered to be a lobbying activity. Not constituting lobbying activities are those listed in articles 5 and 6 of the Lobbying Transparency and Ethics Act L.R.Q., c. T Definition of Public Office Holder With respect to the application of the Lobbying Transparency and Ethics Act, and this article, a public office holder refers to the Council members as well as the Town employees Requirement to reveal registration Any person who could potentially do business with the Town under the terms of a contract, and who conducts lobbying activities, is required to reveal to the Town Clerk his entry in the registry targeted by the Act. Moreover, his status as a duly registered lobbyist does not release him from the obligation to comply with the provisions of this policy and respect the principles of discretion, integrity and confidentiality of the process surrounding the awarding of a contract. 6
7 SECTION 3: Provisions Common to All Contracts 3.1 Responsibilities General Management The General Management is responsible for the application of this policy as well as the supply process, management and application of these regulations. Its main responsibilities are to: combine needs, taking into account the specific nature of municipal departments help municipal departments evaluate their needs authorize the contractual process and, if need be, confirm the list of suppliers invited to take part in it help municipal departments prepare recommendations to members of the Council regarding the awarding of contracts Legal Department Town Clerk The main responsibilities of the Legal Department Town Clerk are to: draft administrative specifications validate overall specifications before launching the call for tenders process publish the required call for tenders notices ensure the application of laws and regulations pertaining to the awarding of contracts proceed, if required, with the distribution of documents via SEAO, for any expenditure under $100,000 proceed with the distribution of documents via SEAO for any expenditure of $100,000 and over proceed with the opening of bids received further to the call of tenders procedure collaborate with the Finance Department on the publication and updating, on the SEAO website, of the list of contracts awarded involving an expenditure of $25,000 and over; said list must be published for a minimum period of three years. 7
8 3.1.3 Finance Department The main responsibilities of the Finance Department are: managing bid and performance bonds in collaboration with the Legal Department Town Clerk collaborating with the Legal Department Town Clerk on the publication and updating, on the SEAO website, of the list of contracts awarded involving an expenditure of $25,000 and over; said list must be published for a minimum period of three years Municipal Services The main responsibilities of the Municipal Services are: # defining their needs as accurately as possible establishing the call for tenders calendar in planning the project, allowing for the contractual process and inherent time requirements ensuring the availability of required funds and obtaining the authorizations needed in keeping with applicable municipal bylaws drafting technical specifications submitting to the General Manager, if required, the list of suppliers invited to take part in the process avoiding the purchase of goods of specific brands and justifying, if required, the refusal of equivalent goods preparing, if required, the documents needed for recognition of a single supplier obtaining, when required, the General Manager s approval of the contractual process being considered ensuring the availability of call for tenders documents preparing and issuing addenda, if required evaluating the compliance of bids received tracking the execution of the contracts. 8
9 3.2 Contract splitting No contract can be broken down into several similar contracts, except as permitted by article of the Cities and Towns Act, i.e., in cases where this division is justified by sound administrative reasons. 3.3 Development of call for tenders documents As a rule, call for tenders documents, including in the case of a call for tenders with bid weighting and evaluating system, evaluation criteria, are developed in-house by municipal personnel. When justified by the situation, the Town can call on an outside resource to develop or help with the development of a call for tenders document. A consultant or other party entrusted by the Town to draft or assist with the drafting of call for tenders documents within the framework of this type of process, is bound to ensure the confidentiality of his mandate and any information to which he was privy within the framework of his mandate s execution, and is ineligible to submit a bid as a supplier on said call for tenders. In this regard, the consultant or other party is required to sign, at the start of his mandate, a confidentiality agreement as well as a commitment not to submit a bid within the framework of the call for tenders. 3.4 Identification of the individual responsible for the call for tenders For each call for tenders, a Town employee with a good knowledge of the field involved in the call for tenders must be identified in the call for tenders documents as responsible for the project. This individual must provide potential bidders with administrative and technical information on the call for tenders procedure and issue addenda. For any question or comment relating to the call for tenders process or the contract sought, a bidder must contact the person responsible for the project and no one else. The person responsible for the project must provide and give bidders access to the same equal and impartial information, and eliminate any favouritism. 3.5 Site visits and information meetings As prescribed by law, group site visits and information meeting with all bidders are prohibited. However, when the scope, complexity or particular nature of a project requires a site visit or information meeting, the following rules shall apply: Visits or meetings must be authorized by the General Manager. Visits or meetings shall be carried out on an individual basis, by appointment. 9
10 The person identified in the call for tenders documents as responsible for the project shall be in charge of visits or meetings. The person responsible for the project shall compile questions asked by each of the bidders during the visit or meeting and issue an addendum at the end of the visits or meetings, providing the same answers to all bidders. 3.6 Bidders identity Employees and Council members are prohibited from revealing, prior to the opening of the bids, any information relating to the number or identity of persons submitting a bid, or who have requested a copy of specifications, or been invited to submit a proposal. This obligation also applies to any outside consulting firm whose services were retained within the framework of a call for tenders process. 3.7 Administrative compliance of bids To be deemed compliant, a bid shall: Be presented on the form supplied Be received before the time and date identified as the deadline for submission Be signed and, if need be, accompanied by the signature authorization. Furthermore, if they have been specifically requested, the following documents must be attached: Copy of relevant licenses Bid bond Surety bond Proof of insurance Any other document specifically mentioned in the call for tenders documents. The aforementioned notwithstanding, the Council can disregard any minor irregularity in the tender, provided the latter does not affect the principle of equality among bidders or result in prejudice. Bids submitted by fax or within the framework of a call for tenders will be automatically rejected as non-compliant. 10
11 3.8 Notice of awarding of contracts All bidders on a project shall be notified of the awarding of the contract via transmission of the pertinent resolution or other written document. 3.9 Contract modifications Rules A contract awarded in the wake of a call for tenders may be modified only to the extent that said modification constitutes an accessory to the contract and does not alter the nature of the latter. Except in emergencies or when delaying the authorization of a contract modification could result in major inconveniences on a job site, no additional contract expense can be incurred until an authorization has been issued as prescribed in this section Unit price contracts Any contract awarded on the basis of unit prices further to estimated quantities can be modified subject to the following requirements: The person responsible for the project shall expose, in writing, the nature of the required modification, notably, the increase in quantities resulting in an increase in the cost of the contract, and the reasons justifying it. The General Manager or his representative designed during his absence shall approve contract modifications to the extent of the authority delegated to him by the applicable municipal regulation. The Council shall authorize contract modifications whose cost exceeds the authority delegated to the General Manager under the terms of the applicable municipal regulation Fixed-price contract Any contract awarded on the basis of a fixed price can be modified subject to the following requirements: The person responsible for the project shall expose, in writing, the nature of the required modification involving an increase in the cost of the contract, and the reasons justifying it. The Council shall authorize the contract modifications Act of God Notwithstanding the measures contained in this policy, in the event of an Act of God that could jeopardize the life or health of the public or seriously damage Town equipment, the mayor can, in keeping with article of the Cities and Towns Act, award any contract required, without 11
12 regard for established regulations. In this event, the mayor is required to present an explanatory report to the Council at the very first council public meeting that follows. 12
13 SECTION 4: Regulations Specific to Invitations to tender 4.1 Bidders obligations Any supplier wishing to enter into a contract with the Town or who is under contract to the latter, must refrain from engaging in intimidating measures, influence peddling or corruption or entering in any form of collusion, communication, agreement or arrangement with other suppliers or third parties relating to a contract. To this end, the following rules were established: Declaration of absence of attempts to influence Any call for tenders document shall require the bidder to attach, to his proposal, a sworn declaration stating that neither he nor any of his representatives or third party mandated by him has attempted to contact Town representatives or members of the selection committee, when applicable, for the purpose of influencing their choice, judgment, appreciation, recommendation relating to the contract, or with members of the Council to influence their decision Declaration of absence of collusion Any call for tenders document shall require the bidder to attach, to his proposal, a sworn declaration stating that he has produced his proposal without collusion, communication, agreement or arrangement with a competitor with regards to prices, methods, factors or formulas for setting prices, to the decision to submit or not submit a proposal or to present a proposal that does not comply, directly or indirectly, with specifications contained in the call for tenders Default/Violation Any call for tenders document must stipulate that the bidder s failure to attach the sworn declarations required in articles and shall result in the automatic rejection of his proposal. Any call for tenders document must stipulate that, in the event that a bidder, one of his representatives or third party mandated by him, has been in violation of the statements called for by articles and 4.1.2, the bidder s proposal shall be rejected. Any call for tenders document must also stipulate that the Town can cancel a contract that has been awarded, should it become aware, during the course of the contract, of a situation contravening the sworn statements required by articles and
14 SECTION 5: Regulations Specific to Public Calls for Tenders 5.1 Estimated contract price In the case of any contract with an estimated value, including all renewal or other options and taxes, is $100,000 or more, the person responsible for the project must produce, prior to the opening of the bids, and if need be, at the contract s conclusion, a written realistic and reasonable estimate of the contract s cost. He must date, sign and add this estimate to the file. 5.2 Bidders obligations Any supplier wishing to enter into a contract with the Town or who is under contract to the latter, must refrain from engaging in intimidating measures, influence peddling or corruption or entering in any form of collusion, communication, agreement or arrangement with other suppliers or third parties relating to a contract. To this end, the following rules were established: Declaration of absence of attempts to influence Any call for tenders document shall require the bidder to attach, to his proposal, a sworn declaration stating that neither he nor any of his representatives or third party mandated by him has attempted to contact Town representatives or members of the selection committee, when applicable, for the purpose of influencing their choice, judgment, appreciation, recommendation relating to the contract, or with members of the Council to influence their decision Declaration of absence of collusion Any call for tenders document shall require the bidder to attach, to his proposal, a sworn declaration stating that he has produced his proposal without collusion, communication, agreement or arrangement with a competitor with regards to prices, methods, factors or formulas for establishing prices, to the decision to submit or not submit a proposal or to present a proposal that does not comply, directly or indirectly, with specifications contained in the call for tenders Default/Violation Any call for tenders document must stipulate that the bidder s failure to attach the sworn declarations required in articles and shall result in the automatic rejection of his proposal. Any call for tenders document must stipulate that, in the event that a bidder, one of his representatives or third party mandated by him, has been in violation of the statements called for by articles and 5.2.2, the bidder s proposal shall be rejected. Any call for tenders document must also stipulate that the Town can cancel a contract that has been awarded, should it become aware, during the course of the contract, of a situation contravening the sworn statements required by articles and
15 SECTION 6: Regulations Specific to Calls for Tenders Using a Bid Weighting and Evaluating System 6.1 Selection committee Members of a selection committee are appointed in compliance with regulations established in the Bylaw delegating to some municipal officers the power to authorize expenses, approve a contract, and form selection committees. In order to avoid any form of intimidation, influence peddling or corruption, the identity of members of a selection committee must be kept confidential. 6.2 Access to documents Disclosure of information Bidders whose proposals are evaluated by a selection committee cannot, at any time, have access to the notes of members of the selection committee or other notes, whether they refer to their proposal or that of competitors. Only the following information can be disclosed to bidders: Final score attributed to their proposal Their ranking Interim score attributed to their proposal, should it fail to reach Estimated contract price In the case of any contract with an estimated value, including all renewal or other options and taxes, of $100,000 or more, the person responsible for the project must produce, prior to the opening of the bids, and if need be, at the contract s conclusion, a written realistic and reasonable estimate of the contract s cost. He must date, sign and add this estimate to the file. 6.4 Bidders obligations Any supplier wishing to enter into a contract with the Town or who is under contract to the latter, must refrain from engaging in intimidating measures, influence peddling or corruption or entering in any form of collusion, communication, agreement or arrangement with other suppliers or third parties relating to a contract. To this end, the following rules were established: 15
16 6.4.1 Declaration of absence of attempts to influence Any call for tenders document shall require the bidder to attach, to his proposal, a sworn declaration stating that neither he nor any of his representatives or third party mandated by him has attempted to contact Town representatives or members of the selection committee, when applicable, for the purpose of influencing their choice, judgment, appreciation, recommendation relating to the contract, or with members of the Council to influence their decision Declaration of absence of collusion Any call for tenders document shall require the bidder to attach, to his proposal, a sworn declaration stating that he has produced his proposal without collusion, communication, agreement or arrangement with a competitor with regards to prices, methods, factors or formulas for establishing prices, to the decision to submit or not submit a proposal or to present a proposal that does not comply, directly or indirectly, with specifications contained in the call for tenders Default/Violation Any call for tenders document must stipulate that the bidder s failure to attach the sworn declarations required in articles and shall result in the automatic rejection of his proposal. Any call for tenders document must stipulate that, in the event that a bidder, one of his representatives or third party mandated by him, has been in violation of the statements called for by articles and 6.4.2, the bidder s proposal shall be rejected. Any call for tenders document must also stipulate that the Town can cancel a contract that has been awarded, should it become aware, during the course of the contract, of a situation contravening the sworn statements required by articles and
17 SECTION 7: Coming Into Force 7.1 Coming into force This policy goes into effect upon adoption by the Council. 17
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