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Policy Requirements under the Municipal Act, 2001

Considerations When Drafting Policies Required by the Municipal Act
Appendix B

Prepared by Southern Ontario Library Service June 2004

Appendix A  / Appendix B /  Part 1 - Procurement /  Part 2 - Hiring of Employees

 

DISCLAIMER

SOLS makes no claim a) that its Purchasing Policy meets the requirements of the Municipal Act 2001, b) that it is attempting to interpret the Act or c) that any materials included in this section of the SOLS website are a substitute for legal advice. If any part of this document is considered for adaptation to an individual library’s requirements, it should also be reviewed by the library’s legal counsel.
 

Checklist on Maintaining Integrity and Protecting Interests
Generally
Is there a policy ensuring that needs are expressed in terms of outcomes and that evaluation criteria are clearly established early in the procurement process?      
Is there a policy on how complaints can be registered?      
Is there a policy of reviewing procurement procedures regularly?      
Are participants in the procurement process asked for input?      
Does the procurement policy refer to a broader ethics and values policy that sets out expectations for the conduct of elected and appointed public officials and setting out consequences where they do not comply? [Note the provisions of the Municipal Conflict of Interest Act, R.S.O. 1990, c.M50].      
Throughout the Procurement Process
Is there a policy of using standard templates/formats for each category of procurement and for each step of the process?      
Do these specify the documentation required at each stage?      
Does the resolution define key and frequently used terms?      
Does the policy integrate procurement processes to the financial system (e.g., monitor/control expenditures and ensure accounts are paid within the prescribed time line and payments are for goods and services received)?      
Bid Evaluation      
Is there a policy for documenting the process of evaluating the bids?      
Is there a policy of no informal contact between local board, staff or appointed officials involved in the procurement process with potential suppliers during the evaluation period?      
Is there a broader policy specifying who, when and how contact may be made during other stages of the process?      

Effectiveness
When Determining the Scope of the Work
Are spending thresholds appropriate to the current environment?      
Do spending thresholds require adjustment in dollar amounts or dot hey need variation depending on the nature of procurement (e.g., procurement vs. goods)?      
Are there clear policies defining if and when work splitting is allowed, including setting out consequences for unwarranted splitting of work?      
Preparing Bid Documents
Are there policies about how bids are to be kept secure, how proprietary information is to be handled and how confidentiality of bids is to be maintained in accordance with the Municipal Freedom of Information and Protection of Privacy Act?      
Evaluating Bids
 
s there a policy on how bids are to be presented in terms of costs?      
Are there clear policies about how net present value is to be calculated?      
Are there clear policies setting out common criteria for evaluation of bids, e.g., price, quality, risk, qualifications and experience, strategy, approach, methodology, scheduling, past performance, facilities and equipment?      
When negotiating and preparing the contract
Is there a policy of having the local board solicitor view significant contracts
to ensure that contract language avoids unintended legal consequences?		      
Is there a policy of requiring suppliers to show evidence of satisfactory insurance coverage to indemnify the municipality/local board from any damage claims that could arise from the contract?      
Is there a policy requiring suppliers to provide a Certificate of Clearance indicating there are no arrears of premiums owed or levied by the Workplace Safety and Insurance Board?      
Is there a policy for termination of contracts?      
When Monitoring Performance and Addressing Poor Performance
Is there a policy of inspecting goods and services on receipt, including a process to follow up on discrepancies?      
Is there a policy to address contract work that is not completed or completed, but the contractor’s suppliers or employees are left unpaid? (E.g., some form of security and contract provisions to protect the board if the contract work is not completed or completed).      
Is there a policy for monitoring supplier performance? (E.g., random sampling of contracts against: set performance evaluation standards, contract variation requirements, performance criteria and milestone achievement, early intervention if performance is unsatisfactory and sufficient experience, training and support for the staff who manage contracts.      
Is there a policy for documenting evidence of unsatisfactory performance to those in a position to decide on the award of future work to the supplier?     Unsatisfactory performance may result from failure to meet contract specifications, terms and conditions or for health and safety violations.
Objectivity
Generally
Is there a policy for persons involved in the procurement process of not accepting gifts?      
When Determining the Scope of the Work
Is there a clear policy about the circumstances under which unsolicited proposals will result in procurement?      
When Evaluating Bids
Does the policy specify standards in bid documents to ensure comparable bids?     Standards that have been certified, evaluated, qualified, registered or verified by independent nationally recognized and industry sponsored organizations (e.g., Standards Council of Canada) can be used.

A weighting system to evaluate dissimilar products can be used (See Appendix "A").
Does the policy ensure that a variety of perspectives are influence the selection decision?     Consider using a selection committee 1) of persons from more than one department for mid-level contracts 2) from more than one department and local board on higher level contracts.

Fairness
Generally
Is there policy restricting persons who have recently left the employ of the municipality/local board from using the information gained from such employment in doing business with the municipality/local board?    

Consider requiring bidders to disclose whether they employ anyone who recently left the employ of the municipality/local board.

 

Ask bidders to disclose the names of any other persons who may have been involved in developing the call for proposals/bids who are engaged by the proponent/bidder.
Is there a policy specifying how many verbal or written quotes will be sought for low value purposes?      
When Monitoring Performance and Addressing Poor Performance of Suppliers
Is there a policy on how disputes over performance are to be resolved?      
When Preparing the Bid
Is there a policy about the required format of bids?      
When Evaluating the Bids
Is there a policy on how to respond to unsuccessful bidders’ requests for information about how they might improve their chances of success next time?      
Is there a policy outlining what to do if the bids received exceed budget, are not responsive to business needs, or do not represent fair market value?      

Openness and Transparency
Generally
Is there a policy on how potential suppliers will be informed of policies and procedures, bid opportunities and how to participate in the procurement process?      
When Preparing Bid Documents
Is there a policy on how potential suppliers will be notified of bid opportunities?     There are special requirements about notice involving procurements affected by inter-provincial trade agreements (See Appendix 4 of A Guide to Developing Procurement Bylaws, Ministry of Municipal Affairs and Housing, July, 2003).
When Determining the Scope of the Work
Does your policy use generic specifications to define work/ business needs?      
When Evaluating Bids
Does your policy cover keeping final rating results and supporting documentation for internal inspection by senior management, board or auditor?     See also records retention policy under Accountability.
Does your policy include ensuring that the original bid solicitation makes clear that a follow-up contract could be necessary?      

Accountability
Generally
Does your policy cover which staff can approve which spending levels?      
Does your policy cover the dollar thresholds below which local board approval will not be required?     Consider having the local board approval in circumstances like the following:

  • if the contract requires Ontario Municipal Board approval ;

  • if the cost for acceptance is higher than the approved budget;

  • if a bidder has raised a substantive objection in a significant value procurement;

  • if a major irregularity precludes awarding the contract to the vendor submitting the lowest bid;

  • if the officials involved in the procurement believe it is in the best interests of the local board (e.g., a small dollar amount for an item of significant public profile);

  • if an exception to the procurement policy is sought based on a business case.
Is there a policy on regular, timely reporting to the local board on procurements that exceed a significant dollar threshold, (but are still within an official’s authority) or that are to the same supplier and cumulatively exceed a certain dollar threshold?     This may be of particular importance to libraries purchasing large quantities of books from the same suppliers.
Is there a policy specifying the dollar threshold for spending authority of each level of management or type of position in the library?      
Is there a policy requiring regular reporting to the local board on significant dollar value procurements that were not subject to a competitive process?     Supporting rationale must be provided.
Throughout the Procurement Process
Is there a policy that states clearly the staff position, program area and local board responsibilities for each step of the procurement process?      
Is there a clear policy on how, where and who is to keep records for each step of the procurement process?      
Is there a policy requiring reports on why a contract renewal is in the best interests of the local board and commentary on the continued need for the good or service, the market situation and trend for the goods or services affected?      
Efficiency
Generally

Is there a policy that distinguishes what rules will apply based on the materiality of the purchase and sensitivity of purchase?

      
When Determining the Scope of the Project      
Is there a policy of using a multi-step procedure including a pre-qualification stage to ensure that the workload is manageable?     Proposals could be too long or complex to evaluate and implementation contracts may be difficult to develop.

   

 
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