Obtaining Prices. Purpose. Public Advertising

Transcription

1 Obtaining Prices Purpose The foundation of GNWT contracting is the competitive bidding process. The requirements for this are set out in Government Contract Regulations that contain the legal requirements for contracting. These Regulations state that, subject to specific exceptions, all contracts valued in excess of $5,000 must be issued pursuant to a competitive bidding process. Contracts valued over $5000, require that a formal process (in writing) be initiated either through a Request for Tenders or Request for Proposals process. The Regulations require that competitive bids be obtained. Under either method, the objective is to promote the receipt of competitive bids. Contracts valued up to $5,000, may be entered into directly with vendor without soliciting bids. Depending on the circumstances the contract authority may seek competitive bids which can be received either orally or in writing. A point to note, purchases valued less than $5000 may only be purchased directly from approved northern businesses. Public Advertising In public sector contracting, there is a professional and legal obligation to obtain the best possible price or value. The most visible method to meet this objective is through public advertising of contractual requirements. Depending on the requirement or situation, a number of options exist for public advertising, it is recommended that a method of public advertisement be utilized when the value of the contract will exceed $5000.

2 When publicly advertising, the purchaser should consider these factors: internet web page tender information public notices media advertising Electronic Tender Information Any tender or proposal whose estimated value is expected to exceed $5000, in accordance with the Financial Administration Manual Directive 3401, is to be listed on the GNWT Contract Registry & Reporting System (CRRS) website. Vendors should monitor those postings and request copies of bidding opportunities of interest. The Department of Industry, Tourism and Investments maintains the CRRS web page sites that provides information about competitive bidding opportunities and subsequent contract awards. The use of electronic media enables notification of suppliers of an opportunity to bid. This method is particularly suitable as an expeditious approach to competitive procurement. It is the responsibility of the supplier to monitor the electronic media and draw down or request specific bid packages. Depending on circumstances, this sourcing method may be supplemented by the use of more traditional methods of calling for bids in newspapers as well as supplier lists where necessary to ensure adequate competition. Chapter 3.3, Advertising, describes the GNWT Contract Registry Website. Public Notices In addition, the purchaser should post public notices of advertised tenders, regardless of the value of the contract, in all Regional offices and the Hamlet or Settlement office where the work will be done. Media Advertising Depending upon the value of the contract, and/or other political or market factors, advertisements should be placed in territorial-wide

3 newspapers, local newspapers, or a combination. The advertisement should clearly state the: description of the requirement closing location closing date and time where the tender / bid documents may be obtained contact name and details As a general guideline if the estimated value of the contract is over $5000 and less than $250,000 then posting to the GNWT Contract Registry is sufficient. However, if the estimated value of the contract it is more than $250,000 but less than $500,000 place one advertisement in each selected northern newspapers and post to the GNWT Contracts Registry. Contracts estimated to cost $500,000 or more, advertisement should be placed at least twice in each selected northern newspaper and posted to the CRSS. For additional information, see Chapter 3.3 Advertising. Bid Strategy Invitational & Web In order to ensure adequate competition, some suppliers may be invited to submit bid. This will be done in addition to posting the opportunity on the CRRS website, and documents will be faxed or mailed directly to invited bidders. The competition will still be open to anyone who feels they can submit a valid bid. When inviting tenders (or proposals), the purchaser should ensure that all qualified firms that are in a position to undertake the work are provided with the opportunity to bid. Advertising on the CRRS website fulfils the obligation of public advertising. Tendering is not required for contracts under $5,000. Restricted Invitational In this case, bid documents are sent only to contractors or suppliers

4 specifically selected to submit bids. Bid documents will not be sent nor will bids be accepted from bidders who have not been invited. Other Considerations Restricted invitational bids are commonly used in the Request for Qualification process. The RFQ process is used to pre-qualify vendors who will then compete on the opportunity. For day-to-day tenders or proposals, purchasers should not be using restricted invitational method to obtain pricing as there could be political and business related issues arising from a restricted invitational process, the purchaser should discuss the implication with senior management. Bidding Period In setting any bid closing date, taking into account the level of complexity, sufficient time must be allowed to obtain the bid solicitation and prepare and submit a bid. As a rule tenders/proposals should be made available for bidding on the following basis: Value Range Bid Period $5000 but less than $250,000 5 working days $250,000 but less than $500, working days $500,000 or more 20 working days In the interest of access and competition, high value and complex requirements should be left open for bid preparation for a longer period, to allow bidders an adequate amount of time to prepare their responses. NWT Construction Association It is recommended that for construction projects, a copy of any tender advertisement and one set of tender documents be sent to

5 the NWT Construction Association. Recently, PWS has contracted with the NWT Construction Association to provide Electronic Plans Room services for select construction projects. Interprovincial Trade Considerations The Agreement on Internal Trade (AIT) was executed on July 18, 1994 by the First Ministers of Canada (The Parties). The Agreement came into force on July 1, 1995 and each Party is responsible for compliance with the Agreement. It is the objective of the AIT to reduce and eliminate, to the extent possible, barriers to the free movement of persons, goods, services and investments within Canada and to establish an open, efficient and stable domestic market. This Agreement impacts upon many procurement activities within the Government of the Northwest Territories. It applies to contract requirements for goods valued above $25,000, services above $100,000 and construction above $100,000. The Agreement requires that goods, services and construction be openly tendered through newspaper advertising, full source lists, and/or the Electronic Bulletin Board. A copy of the Agreement on Internal Trade can be obtained at: It is recommended that tender documents be sent to southern bidders only when specifically requested and only when the contract value exceeds this threshold amount $25,000 for goods, $100,000 for services and $100,000 for construction. The Department of Industry, Tourism and Investment is responsible for matters arising from this Agreement.

6