CITY OF GRANDE PRAIRIE PROCEDURE PROCEDURE NO: 310-2 PAGE: 1 OF 6 TITLE: Request for Quotation POLICY: 310 Purchasing Policy SECTION: APPROVAL DATE: APPROVED BY: City Manager REVISION DATE: DEPARTMENT: Purchasing Department PURPOSE To increase the efficiency and productivity of city acquisitions through the delegation of small purchases up to $10,000 to designated departmental operations personnel. The use of the Request for Quotation (RFQ) form for pricing standard, non-complex requirements adds validity to the pricing process, integrity to purchasing practices, and provides a reference document for awarding a Purchase Order. SCOPE The Purchasing Administrator delegates to designated departmental operations personnel the authority to identify and solicit vendors for the purchase of goods and services up to $10,000. The Purchasing Department (Purchasing) retains sole authority to prepare and issue purchase orders and to solicit for the purchase of goods and services in excess of $10,000. The Purchasing Administrator reserves the right to revoke or suspend delegated purchasing authority granted through this policy. PROHIBITIONS: 1. User departments shall not exhibit any favouritism to any vendor in the application of these procurement procedures. 2. Price quotes received from vendors shall not be given to other vendors who have not yet submitted their quotes. 3. Departments shall not allow any changes to a bid/quote once received from the vendor. 4. In soliciting quotes from vendors, departments shall establish a final date and time for receiving quotes from bidders and advise prospective bidders of same. 5. Ethics states Contracting for goods, services, sales and leases is to be deemed a public trust performed on behalf of the citizens of the City. Any attempt by city employees to realize personal gain by conduct inconsistent with proper discharge of contracting duties is a breach of public trust 6. User Departments shall not artificially divide or split purchasing requirements so as to avoid the competitive bidding requirement of the Purchasing Policy or to remain within the authorized $10,000 limit for small purchases. 7. Under no circumstances shall a product or service be ordered by the User Department without the issuance of a Purchase Order. 8. Where a change order increases the total amount of the Purchase Order to an amount in Page 1
excess of $10,000, regardless of the amount of the increase, such change order shall be approved by the Purchasing Department. 9. An unauthorized purchase may become the financial responsibility of the City employee who made the purchase. RESPONSIBILITIES (OPERATING DEPARTMENTS): 1. Department Directors shall submit to the Purchasing Administrator for review, employees recommended to have RFQ authorization within their respective department. All authorized departmental employees will successfully complete the required training for small purchases up to $10,000. No employee may act as a department designate unless trained and approved by the Purchasing Administrator. 2. Designated Personnel shall perform under the general supervision of and subject to the policies, procedures, and regulations of the Purchasing Department. 3. The department designate shall utilize the Request for Quotation Tabulation Form (Tabulation Form) to record the items to be purchased, the vendors solicited and their respective quotes. 4. No Bid responses received from vendors shall not be accepted as quotes. 5. Departments may solicit more than three (3) vendors if desired. 6. The departmental designate shall sign the Tabulation Form indicating he/she has adhered to the established purchasing procedures and the accuracy of the bid/vendor information. 7. Department Administrator or authorized designee s signature approves recommendation of award (Tabulation Form) and verifies that the department adhered to the purchasing process and to the procedures contained herein. 8. The department designate shall maintain a record of all documents i.e. Tabulation Form described herein. Such records shall be subject to audit by the Purchasing and the external auditors and shall be open to public inspection. 9. All goods and services will be obtained through Purchase Orders prepared and issued by the Department only after the procurement process has been completed properly and a requisition has been entered by the user department. 10. The original completed Tabulation Form shall be maintained separately by the department and submitted to Purchasing upon request. 11. Departments shall be responsible for obtaining the lowest price for goods and equipment needed and the most advantageous price for services required by their respective department up to the $10,000 limit. 12. Departments shall be solely responsible and shall be held singularly accountable for their department s proper adherence of this policy and procedures. 13. The Purchasing Department shall verify the accuracy, completeness and proper application of appropriate procurement procedures. 14. Bidder responses i.e. Tabulation Forms are open to the public for inspection. 15. Any recommendation to award to a vendor other than the apparent lowest bidder shall be justified in writing and noted on the Tabulation form for auditing purposes. 16. Department Director or authorized designee shall fax a Sole Source Justification form to the Purchasing Administrator to justify any recommendation of award to a sole source provider prior to issuance of Purchase Order. 17. Change orders shall be processed in the same manner as currently followed. 18. The confidentiality of the offeror or bidder proprietary product data, the competitive position of offerors and bidders, pricing information, technical evaluation information, and other information which may potentially enhance the advantage of one offerer or bidder over another must be maintained throughout the entire purchasing process until award is made. This practice is key to maintaining the integrity of the City s purchasing processes and procedures. Improper release of any of this information may compromise the ability of the City to procure commodities or Page 2
services in a competitive and equitable market as well as impair future purchases. RESPONSIBILITIES (PURCHASING): 1. The Purchasing Administrator retains sole authority to delegate authority to departmental personnel assigned to obtain quotes from vendors for the purchase of goods and services up to $10,000. 2. The Purchasing Administrator or designee shall train all approved department personnel as to the proper procurement procedures and practices to be followed in soliciting for goods and services described in this section and to issue Certificates of Completion upon successful completion of training. 3. The Purchasing Department shall serve as a resource for departments in identifying prospective bidders. 4. The Purchasing Administrator or authorized designee shall review for approval of all recommendations for purchases of goods or services on a sole source basis prior to issuance of Purchase Order. 5. Sole source purchases exceeding $1,000, shall require written justification by the user and written approval by the Purchasing Administrator prior to issuance of the Purchase Order. 6. The Purchasing Administrator reserves the right to rescind the authority delegated to any departmental personnel whenever it is deemed necessary. 7. The Purchasing Department shall conduct or request periodic audits to ensure departments adhere to this policy and the procedures described herein. 8. When a Purchase Order has been submitted with fewer than the required number of quotations, the Purchasing Administrator will ensure that the reasons for doing so are fully documented and will confirm in writing that the quotations received are acceptable. If the Purchasing Administrator is not satisfied that the department has made sufficient effort to find alternative quotations, the requisition may be returned to the department or the Purchasing Department may seek alternative quotations. RFQ PROCEDURE: 1. For the purchase of goods and services below $1,000, the following procedures shall apply: a) The departmental designate shall, whenever possible, considering available time, value and availability, solicit by telephone 3 quotations from qualified vendors for the desired good or service. b) Local vendors shall be given the maximum practicable opportunity to provide goods and services up to $1,000. c) The departmental designate shall record on the Request for Quotations tabulation (RFQ) Form (see attached form) a detailed description of item(s) and all required vendor and bid information received from the single vendor for the desired good or service, including but not limited to: vendor contacted (name, address, telephone number), sales representative, the item description, quantity, unit and extended price quoted, ship/freight charge, if any and delivery and payment terms. Completion of Tabulation Form may be legibly handwritten or typed. All prices quoted shall be F.O.B. Destination unless otherwise specified. d) If price quoted is determined to be reasonable and delivery terms are deemed acceptable, the Department Administrator or authorized designee shall sign off on the Tabulation Form. e) The Self-Pay shall be entered into the Navision System and shall include the name and address of the selected vendor, a detailed description of the desired commodity or service, quantity of goods or services needed, delivery date, the unit of measure and the unit and extended price quoted. Upon completion of data entry, the Department must approve the requisition electronically to release requisition to the Purchasing System. Page 3
f) Copies of the Self-Pay shall be available on the Navision System. 2. For the purchase of goods and supplies greater the $1,000, but not exceeding $10,000, the following procedures shall apply: a) The department designate shall solicit at least three (3) quotations from qualified vendors that provide the desired goods or supplies. User departments may contact the Purchasing Department for assistance in identifying prospective bidders for desired goods and supplies. b) Local vendors submitting a Bidders Application Form shall be given the maximum practicable opportunity for inclusion among solicited firms for gods and supplies. c) The department shall disseminate to all prospective bidders the same specification and quantity requirements to assure equity and fairness in the procurement process. d) The department designate shall record on the Request for Quotations Tabulation Form (see attached Form) detailed description of item(s) and all required vendor and bid information (vendor name, address, telephone number) received from each solicited vendor for the desired goods or supplies, including but not limited to: vendors contacted, sales representative submitting the quote, the unit and extended price quoted, the delivery and payment terms. Completion of Tabulation Form may be legibly handwritten or typed. All prices quoted shall be F.O.B. Destination unless otherwise specified. e) The department designate shall evaluate bidders responses and make a recommendation of award to the responsible bidder offering the lowest price and meeting the delivery requirements for the desired goods or supplies. A recommendation of award to a vendor other than the apparent low bidder must be substantiated in writing, and noted on the Tabulation Form. f) The department designate shall sign off on Tabulation Form. g) The department shall enter the requisition into Navision and include the name of the vendor recommended for award, a detailed description of the desired commodity, quantity of goods or supplies needed, unit of measure, delivery date and the unit and extended price quoted. Upon completion of data entry, the Department Administrator or authorized designee must approve electronically the requisition to convert the requisition to a Purchase Order. h) If there exists no other vendor to supply the needed commodity, the Department Administrator or authorized designee shall fax to Purchasing a Sole Source Justification Form and note the requisition number on the form. i) In cases of a tie bid, award shall be made based on the following priority: first, the local vendor; second, the quickest delivery. j) Upon receipt of the requisition and approval verification, if required, the Purchasing Department shall prepare and issue the Purchase Order to the successful vendor by no later than the next business day. k) Copies of the Purchase Order will be available electronically on the Purchasing System in Navision. l) The original Tabulation Form with copies of the RFQ and all bids received, shall be filed; and maintained or a minimum period of 3 years at the Department for submission to Purchasing upon request. REQUEST FOR QUOTATION PROCESS: 1. Telephone Quotations or Verbal Quotations Telephone quotations are the least desirable type of quotations and should be used only for items less than $1,000. This type of quotation is used to procure materials which are urgently needed for small quantity orders involving little money. Such quotations need to be performed with full recognition of the following: 1. Specifications listing all requirements in detail should be entered on the Tabulation Form and Page 4
read to each vendor to ensure that the same information is given to all bidders. 2. Quotations are to be entered on the same form. 3. Whenever possible, three or more quotations must be taken. The companies solicited must be known to carry the desired item. 4. A written confirmation is required from successful vendor prior to issuance of the Selfpay purchase order. When taking telephone quotes, be sure to document the following information: 1. Name/address of firm bidding 2. Name of person providing the quote 3. Telephone number 4. Terms of sale (net 30, 2% 10/net 30, etc.) 5. FOB Point (who pays the freight charges) 6. Complete pricing information. Include any discounts offered. The telephone quote shall be recorded on the Tabulation Form and retained for audit purposes. 2. Written or FAX Quotes Written or Fax quotes should include the same information as telephone quotes and be signed by the bidder. Departments should utilize the Request for Quotation Form (Appendix B) in order to ensure each bidder receives the same information on which to base their bid. 1. Departmental quotes should allow bidders a minimum of three (3) days to respond. The time allowed shall be adjusted to allow adequate time for the bidder to prepare and return a quotation considering such factors as complexity, urgency, availability and the number and location of bidders. Responses to quotes may be submitted to the issuing Department by fax. Quotations must be received in the department prior to the opening time and date. The Department will not accept or open any bid responses that are not physically in the Department at the designated time and date listed on the RFQ. 2. Departments shall provide complete specifications or equivalent product descriptions in order to gain the advantage of competitive pricing. 3. Departments should have materials and equipment delivered F.O.B. destination (the Facility) with freight prepaid. The bidder retains title or ownership of the material/equipment until receipt at the City Facility. Any damages during transit will remain the responsibility of the bidder and the bidder pays all freight charges. 4. Please advise all bidders of any changes in specifications, quantities, etc., prior to the RFQ opening time. The Department will formally send changes to the bidders by a written addendum. 3. Tabulations of all Bids/quotations 1. All bids/quotations shall be tabulated on a standard summary sheet (Appendix A-Tabulation Form) which can be easily reviewed. All entries should be made in ink and any changes made on the form shall be noted. 2. Summaries of all bids/quotations shall be maintained in the Department where bidders will have an opportunity to review them 3. All awards shall be made to the low bid meeting specifications. This may be the low bid on an item specified, on an alternate bid, or on an open specification item. A reason shall be given on the summary for all lower prices that have been rejected in favour of a higher priced item. 4. Samples may be called for from the low bidder, if it will assist in making the selection of the bid/quotation. Page 5
Value of Goods/Service Quotation Guidelines USE ONE OR MORE COMBINATIONS $1 - $1,000 Selfpay Prefer 3 quotations, a minimum of one, verbal or written Check known in-house information, agreements, corporate contracts, special pricing Use internet to check specifications and price of comparative products $1,001 - $10,000 Purchase Order Minimum three or more written quotes depending on the complexity of the requirement Check known in-house information, agreements, corporate contracts, special pricing Use internet to check price of comparative products Utilize RFQ Form (Appendix B) Summarize quotations received on Tabulation Form (Appendix A) Vendor Relations City personnel whose duties and responsibilities, directly or indirectly, involve dealings with vendors shall observe the following: 1. All suppliers seeking or participating in business with City of Grande Prairie will receive fair and impartial treatment. 2. All supplier contacts will be in strict conformity with ethical business practices that are in the best interests of City of Grande Prairie. 3. To insure the policy of impartiality toward suppliers, City will not enter into purchase or contract negotiations with a supplier or his representative if a city employee has a substantial interest (advantage, profile, responsibility) in the business affairs of the supplier without special approval from management. 4. All City employees having an interest in any firm or company supplying goods or services to the City or which is bidding or proposes to do work for the City must promptly disclose the nature of this interest to the Purchasing Administrator. This policy will not apply where interest consists only of ownership of stock which interest is not controlling or substantial. 5. No binding commitment shall be made on behalf of the City, by the City employees not having contractual authority (excluding petty cash, emergency purchases). Commitments, arrangements, or promises of business made orally or by personnel without contractual authority is prohibited. 6. Except in emergencies, all commitments shall be made in accordance with established policies. Page 6
APPENDIX A TABULATION FORM Date: Requisition/APO #: Department Contact Phone # Awarded Vendor Name: Cost Description of Product/Service being quoted: Supplier 1 Supplier 2 Supplier 3 Name Price Delivery Person Contacted Phone No. Terms of Sale Reason for award if not to the low bidder: Person requesting/evaluating Quotation Date: Page 7
City Hall P.O. Bag 4000 10205 98 Street Grande Prairie, AB T8V 6V3 PH: (780) 538-0344 APPENDIX B REQUEST FOR QUOTATION/PROPOSAL QUOTATION NO: Q- - - DATE: September 7, 2004 PLEASE HAVE YOUR QUOTATION SUBMITTED TO THE NOT AN ORDER SO AS TO BE RECEIVED BY ATTENTION OF: R.D. MacNeill 2:00 P.M. Local Time Friday, September 17, 2004 THE CITY OF GRANDE PRAIRIE MAY NOT CONSIDER QUOTATIONS RECEIVED AFTER THIS DATE AND TIME ITEM NO. QTY UNIT UNIT PRICE EXTENDED PRICE 1 All quotes are to be F.O.B. City of Grande Prairie freight prepaid. Please quote GST as a separate line item For more information on product, contact ***** at 538-**** Goods and Services Tax Payable @ 7% TERMS AND CONDITIONS TOTAL STATE PAYMENT TERMS DELIVERY AFTER RECEIPT OF ORDER FOB POINT FREIGHT INCLUDED [] EXTRA [] QUOTATION ONLY BIDDER'S ACCEPTANCE: IF THIS BID IS ACCEPTED WITHIN 30 DAYS FROM DATE OF OPENING THE UNDERSIGNED OFFERS AND AGREES TO FURNISH ANY AND ALL OF THE ITEMS UPON WHICH PRICES ARE QUOTED AT THE PRICE AND DELIVERY TIME STATED SUBJECT TO ALL TERMS AND CONDITIONS ENDORSED HEREON. BIDDERS MUST QUOTE FIRM PRICE. BIDS MUST BE RECEIVED AT THE ABOVE LOCATION AT THE INDICATED TIME. BIDDERS MUST QUOTE NET PRICE AND EXTEND TOTAL. IN CASE OF ERROR IN EXTENSION, UNIT PRICES WILL GOVERN. TAX: GST MUST BE INDICATED AS A SEPARATE LINE AMOUNT ABOVE. BIDDING: THE RIGHT IS RESERVED TO REJECT ANY AND ALL BIDS, TO WAIVE ANY INFORMALITY IN BIDS, TO AWARD BY ITEM OR CLASS. ACCEPTANCE OF BIDS: BIDDER CANNOT LIMIT THE ACCEPTANCE OF BID TO LESS THAN 30 DAYS. DISCOUNTS: TERM DISCOUNTS WILL BE CONSIDERED IN AWARDING LOW BID. DELIVERIES: BIDDERS MUST STATE DELIVERY DATES AND ORDERS PLACED AS A RESULT OF THIS QUOTATION MAY BE SUBJECT TO CANCELLATION BY THE PURCHASING AGENT ONLY. TIME SHALL BE OF THE ESSENCE IN ALL DELIVERIES OF MATERIALS BY SUCCESSFUL BIDDERS AND NO EXTENSION OF TIME GIVEN ON ANY OCCASION SHALL BE DEEMED TO BE A GENERAL WAIVER OF THIS CONDITION. COMPANY NAME ADDRESS: POSTAL CODE: AUTHORIZED SIGNATURE: PLEASE PRINT: GST REGISTRATION: FACSIMILE NO.: TELEPHONE NO DATE: POSITION IN FIRM: