Purchasing Policy - Town of Innisfil

TOWN OF INNISFILCORPORATE POLICYPOLICY:Corporate Purchasing PolicyPOLICY NO.:CP.19-07-05COUNCIL APPROVALDATE: December 19, 2007RES. NO.: CR-551.07REVISED DATE: October 19, 2011RES. NO.: CR-232-08.11PURPOSETo establish a policy regarding the purchase of goods, services, construction and professionalservices as required under Section 270 of the Municipal Act, 2001, S.O. 2001, as amended fromtime to time.To extend authority to the CAO and Directors for the approval of detailed Purchasing Processesand Procedures that represent best in class purchasing practices that are consistent with the intentof the Purchasing Policy. The procedures will be supplemented and amended as required for theeffective administration of this policy and to meet the current and future needs of the Town.This Policy has been developed to meet the specific needs of the Corporation of the Town of Innisfil(“Town”) and to maintain compliance with the mandatory requirements of Ontario’s Broader PublicSector (BPS) organization Broader Public Sector Procurement Directive effective April 1, 2011, ofwhich the Town is a member, and which sets out leading purchasing practices, standards andmetrics.This Corporate Purchasing Policy will work in conjunction with the Purchasing Processes andProcedure Document which is administratively held and managed.APPLICATIONThis policy applies to all Elected Officials and staff of the Town of Innisfil.If Town Elected Officials provide assistance to any Committee or any subsidiary of the Town topurchase goods and services, such assistance shall only be provided if such committee orsubsidiary acquires the goods and services in accordance with the requirements set out in thisPolicy.THE CORPORATION OF THE TOWN OF INNISFIL Page 1 of 28POLICY CP.19-07-05

TABLE OF CONTENTSPART I ............................................................................................................................................. 31. INTRODUCTION ................................................................................................................... 3PART II ............................................................................................................................................ 52. PURCHASING PRINCIPLES & GOALS ............................................................................... 5PART III ........................................................................................................................................... 63. DEFINITIONS........................................................................................................................ 6PART IV ......................................................................................................................................... 114. GENERAL CONDITIONS .................................................................................................... 115. REQUIREMENT FOR APPROVED FUNDS ........................................................................ 146. RESPONSIBILITIES AND AUTHORITIES .......................................................................... 15PART V .......................................................................................................................................... 187. METHODS OF PROCUREMENT ........................................................................................ 18PART VI ......................................................................................................................................... 218. ALTERNATIVE METHODS OF PROCUREMENT ............................................................... 21PART VII ........................................................................................................................................ 229. OTHER................................................................................................................................ 22SCHEDULE A ................................................................................................................................ 25GOODS & SERVICES “EXEMPT” FROM PROVISIONS OF THE PROCUREMENT POLICY ....... 25SCHEDULE B ................................................................................................................................ 27SUMMARY OF THRESHOLDS FOR PURCHASING..................................................................... 27THE CORPORATION OF THE TOWN OF INNISFIL Page 2 of 28POLICY CP.19-07-05

PART I1. INTRODUCTION1.1 Title and Scope of PolicyThis Policy establishes the criteria to enable the clear, transparent, fair and openpurchase of goods, services and construction for the Town and as such, shall becomplied with by all elected Town officials and staff and will also be known as “ThePurchasing Policy”.1.2 Validity and SeverabilityShould any section, subsection, clause, paragraph or provision of the Policy bedeclared by a court of competent jurisdiction to be invalid or unenforceable, thedecision shall not affect the validity or enforceability of any other provision of thisPolicy as a whole.1.3 InterpretationThe word "may" is permissive.The word "shall" is imperative.Words used in the present terms include the future.Words in the singular number include the plural number, and words in the pluralinclude the singular number.Where an official of the Town is authorized to do any act pursuant to this Policy,such act may be done by such official's authorized delegate.Where in this Policy the context so requires, the masculine gender shall include thefeminine and neutral genders and the singular shall include the plural and viceversa.1.4 Supply Chain Code of EthicsGoal: To ensure an ethical, professional and accountable Supply Chain.I. Personal Integrity and Professionalism:Individuals involved with Supply Chain Activities must act, and be seen to act, withintegrity and professionalism. Honesty, care and due diligence must be integral toall Supply Chain Activities within and between BPS organizations, suppliers andother stakeholders. Respect must be demonstrated for each other and for theenvironment. Confidential information must be safeguarded. Participants must notengage in any activity that may create, or appear to create, a conflict of interest,such as gifts, providing preferential treatment, or publicly endorse suppliers orproducts except in accordance with the Corporate Code of Conduct and Conflict ofInterest Policy.II. Accountability and Transparency:Supply Chain Activities must be open and accountable; in particular, contractingand purchasing activities must be fair, transparent and conducted with a view toobtaining the best value for public money. All participants must ensure that publicsector resources are used in a responsible, efficient and effective manner.THE CORPORATION OF THE TOWN OF INNISFIL Page 3 of 28POLICY CP.19-07-05

III. Compliance and Continuous Improvement:Individuals involved with purchasing or other Supply Chain Activities must complywith this Code of Ethics and the laws of Canada and Ontario. Individuals shouldcontinuously work to improve supply chain policies and procedures, to improvetheir supply chain knowledge and skill levels, and to share leading practices.1.5 Bid IrregularitiesFor the purpose of this document the Bid Irregularities are not listed; they are listedin the Purchasing Processes and Procedures Document.THE CORPORATION OF THE TOWN OF INNISFIL Page 4 of 28POLICY CP.19-07-05

PART III3. DEFINITIONSIn this Policy,“Acquisition” means the purchase of goods, services and/or construction;“Acquisition Method” means the process by which goods, services and/or construction arepurchased;“Addendum” means a change, or addition, or correction significant enough to be formallymade to Call for Bid request documents (RFP, RFQ, RFT, etc.) within the competitive timeperiod. Addendums are communicated to all registered Proponents by electronic mail orwebsite posting, or by fax or telephone. Addendums issued within the last 48 hours of acompetitive time period may, at the Town’s discretion, extend the competitive time period’s dateand time, or could, if significant enough in the opinion of Purchasing Staff cause the cancellationof a specific procurement process altogether. It is the responsibility of the Proponent to havereceived all Addendum/Addenda that have been issued by the Purchasing Services;“Agreement” means a legal document that binds the Town and other parties, subject to theprovisions of the contract;“Annual Aggregate Value” means the total amount anticipated to be spent annually by alldepartments on a particular type of good or service;“Approval” means authorization to proceed with the purchase or disposal of goods, servicesand/or construction;“Bid Irregularity” means a deviation between the requirements (terms, conditions,specifications, special instructions) of a bid request and the information provided in a bidresponse. For the purposes of this policy, bid irregularities are further classified and defined as“major irregularities” or “minor irregularities”“Bid Request” means a written request for bids or a solicitation, which may be in the form of aRequest for Quotation, Request for Tender or Request for Proposal or other Call for Biddocuments;“Call for Bid” means a formal request for Bid, on the terms and conditions set forth in theTown’s Bid documents, that may be in the form of a Request for Quotation (RFQ), Request forPre-Qualification (RFPQ), Request for Proposal (RFP), Request for Tender (RFT), Request forInformation (RFI) or Request for Expression of Interest (RFEOI);“Chief Administrative Officer” means the Chief Administrative Officer (CAO) for the Town andincludes designate;“Clerk” means the Municipal Clerk for the Town;“Compliant Submission” means a tender, proposal or quotation that meets all the mandatoryrequirements stipulated in the request document and on the form of tender or proposal. Careshould be taken to ensure the mandatory requirements are truly critical to the specificprocurement and that language clarifies how non-compliant submissions will be handled;“Construction” means a construction, reconstruction, demolition, repair or renovation of abuilding, structure or other civil engineering or architectural work and could include sitepreparation, excavation, drilling, seismic investigations, soil investigations, the supply ofproducts and materials and equipment and machinery if they are included in and incidental tothe construction, and the installation and repair of fixtures of a building, structure or other civilengineering design or architectural work, but DOES NOT include the professional services (i.e.THE CORPORATION OF THE TOWN OF INNISFIL Page 6 of 28POLICY CP.19-07-05

engineering or project management services) related to the construction contract unless theyare included in the specifications for the procurement;“Consulting and Professional Services” means those services requiring the skills of aprofessional for a defined service and includes architects, engineers, designers, surveyors,planners, accountants, auditors, management professionals, marketing professionals, softwareand information technology experts, financial consultants, lawyers, law firms, real estate agentsand brokers, environmental planners and engineers, hydro geologists, transportation plannersand engineers, communications consultants and any other consulting by professional serviceswhich may be required by the Town;“Contract” means a legally binding agreement between two or more parties that creates anobligation to supply goods, Services or Construction in return for money or other consideration;“Contractor” means the successful Proponent to whom the Contract is awarded andundertaking the execution of the work under the terms of the Contract;“Cooperative Purchasing” means the combining of requirements of two or more governmentagencies in order to obtain the benefits of volume purchases and/or reduction in administrativeeffort and costs;“Council” means the Council for the Town;“Department” means a department of the Town;“Designate” means a person authorized by the CAO, Director, Manager or Supervisor to act onhis/her behalf, for the purpose of this policy;“Director” means the person responsible for direction and operational control of aDepartment(s) or authorized designate(s);“Disposal” means the removal of materials owned by the Town by sale, trade-in, auction,alternative use, gift, or destruction, which are deemed by the Town to be surplus;“Emergency Procurement” means an event or circumstance where the purchase ofconstruction, goods and/or services requires immediate action to prevent or alleviate seriousdelay, a threat to staff and/or public health, safety or welfare, the disruption of essential servicesor damage to public property or any other expenditure that is necessary to respond to anyemergency of the Town or as required under the provincial Emergency Management and CivilProtection Act (as amended);“Evaluation Committee” means one or more of the interested parties involved in an RFQ,RFP, RFT or any other Call for Bid process evaluates the bid submission(s) and must include atleast one representative from Purchasing Staff. The Evaluation Committee’s are createdgenerally for complex procurements where there is value in having more than one personevaluate bids and recommend an award;“Formal Quotations” means a document issued by the Town that sets out particularrequirements for goods and/or services;“Goods” means moveable property including the costs of installing, operating, maintaining, ormanufacturing such moveable property, and any necessary raw materials, products, supplies,equipment and other physical objects of every kind and description whether in solid, liquid,gaseous or electronic form, unless they are procured as part of a construction contract;“Informal Quotations” means an informal request for prices on goods and/or services madepursuant to this policy;“Integrity” means the condition of being complete, ethical, logical, fair and sound in thetreatment of vendors and the awarding of supply contracts, in accordance with Town policies,procedures and standards;THE CORPORATION OF THE TOWN OF INNISFIL Page 7 of 28POLICY CP.19-07-05

“Lease” means a time limited grant of either real or personal property from the owner of thatproperty (known as the “lessor”) to another party (known as the “lessee”), under which thelessee is entitled to the use and benefit of the property in question for the period so granted, inexchange for the payment of a stipulated rent to the owner or other consideration. In mostcommercial leasing the rent will take the form of a money payment. There are two types ofleases, financial or capital. All leases shall be forwarded to the CAO and Treasurer for reviewor designates for the appropriate review PRIOR to signing;“Low Cost Purchases” (LCP) means a purchase for goods, service(s) or construction as perthe thresholds indicated in the Purchasing Policy;“Maintenance” means the action and associated costs of keeping a property, vehicle ormaterial in efficient working condition, serviceable condition or to restore it to serviceablecondition or to restore it to serviceability. It includes inspection, testing, servicing, waste andsnow removal and classification as to serviceability, repairs, rebuilding and reclamation;“Material Safety Data Sheets (MSDS)” means Material Safety Data Sheets which must becurrent and submitted by the vendor for all hazardous materials, including an index of chemicalcompounds with details of properties, handling details, precautions and first-aid procedures;“Major bid irregularity” is 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 couldgain an unfair advantage over competitors.“Mayor” means the Mayor of the Town or any member of Council acting in the capacity of theMayor;“Minor bid irregularity” is a deviation from the bid request which affects form, rather thansubstance. The effect on the price, quality, quantity or delivery is not material to the award. If thedeviation is permitted or corrected, the bidder would not gain an unfair advantage overcompetitors.“Negotiation” means the action or process of conferring with one or more vendors with thegoal of coming to an agreement on the acquisition of the required goods, services and/orconstruction made pursuant to this policy;“Policy” means a governing principle or plan as set out by Council which establishes thegeneral parameters for the Town to follow in carrying out its responsibilities;“Pre-approved financing” means the funding has been identified and approved by Council;“Privilege Clause” means the standard clause used in bid documents and advertising thatreads in part “the lowest or any tender not necessarily accepted”;“Procure/Procurement/Purchase” means to acquire by purchase, rental, lease or otherwiseacquiring any goods, service(s) or construction; includes all functions that pertain to theacquisition, including the description of requirements, selection and solicitation of sources,preparation and award of contract and all phases of contract administration; here after referredto as Purchase/Purchasing;“Proponent” means is a respondent to a Call for Bid, which is fully capable and qualified tomeet all the requirements as listed in the call for bid, and shall be duly authorized to enter into asubsequent contract agreement on behalf of the named submitter;“Purchase Card” means a credit card issued to an authorized Town staff member(s) to beused for purchasing goods and services from an authorized vendor within establishedguidelines.“Purchase Order” means the Town’s written document to a successful Proponent formalizingall the terms and conditions of a proposed transaction. The purchase order issued by a dulyTHE CORPORATION OF THE TOWN OF INNISFIL Page 8 of 28POLICY CP.19-07-05

authorized employee of the Town, to a supplier/contractor/vendor, is a written or verbalacceptance of an offer received pursuant to this document;“Purchase Requisition” means a request for goods and/or services initiated by the user, forwhich budget approval has been granted and sent to Purchasing Staff for action. Requisitionsare required at a minimum to be numbered uniquely, contain a generic description of the itembeing ordered along with relevant specifications, the quantity, unit of measure, delivery datepreferred, ship to addressee, name of department, contact person, general ledger accountnumber and applicable authorized signatures;“Purchasing Staff” means the purchasing representative, working within the FinanceDepartment, who is responsible for the Town’s centralized purchasing function and is herebyauthorized to act as agent in all such matters pertaining thereto;"Request for Expression of Interest” (RFEOI) means a formal request which will be used todetermine the interest of the market place to provide goods or service(s) which the Town iscontemplating purchasing. RFEOI’s are optional and are not intended to result in the award of acontract. They are not a legally binding process;“Request for Information” (RFI) means a formal non-binding method whereby the Townstates its need for input from interested parties for an upcoming Call for Bid. A procurementpractice used to obtain comments, feedback or reactions from potentialsuppliers/contractors/vendors prior to the issuing of a Call for Bid. Generally price or cost is notrequired. Feedback may include best practices, industry standards, technology issues,etcetera;"Request for Pre-Qualification” (RFPQ) means a formal request issued by the Town’sPurchasing staff either directly to approved or sourced vendors(ex: respondents to an RFEOI),or may be publicly advertised, seeking specific details including vendors’ backgrounds,capabilities, experience, resources, references and their value added services offered related toa good, service or construction need to the Town. RFPQ’s are used to evaluate and pre-qualifythose who meet established criteria and seek to establish one or more qualified vendors.RFPQ’s are optional and are not intended to result in the award of a contract;"Request for Proposal” (RFP) means the formal document used to solicit proposals fromproponents to provide goods, services or construction to the Town, where it is not practicaland/or possible to prepare precise specifications, or where “alternatives” to detailedspecifications will be considered, which may be subject to further negotiation. This processallows vendors to propose solutions to arrive at the end product, and allows for evaluation oncriteria other than price. An RFP may include provision for negotiation and may be a single stepor two step process;“Request for Quotation” (RFQ) means a formal request for quotations for the provision ofgoods, service(s) or construction to the Town based on defined requirements and the documentis used as per the thresholds stated within this policy;“Request for Tender” (RFT) means a formal request for tenders for the provision of goods,service(s) or construction to the Town based on defined requirements and the document is usedas per the thresholds stated within this policy;"Single Source" means the procurement decision whereby purchases for goods, service(s) orconstruction are directed to one source, where other sources may be available;“Sole Source” means there is only one source of supply that meets the requirements of theTown;“Submission Review Committee” means a committee constituted to review Bid irregularitiesas required;“Tender” means a submission received in response to a request for tenders RFT;THE CORPORATION OF THE TOWN OF INNISFIL Page 9 of 28POLICY CP.19-07-05

“Town” means The Corporation of the Town of Innisfil;“Treasurer” means the Treasurer for the Town as appointed by Council and includesdesignate(s);“Two Envelope Process” means a Request for Proposal where the qualitative (technical) andquantitative (price) information are submitted in separate envelopes within the mastersubmission package and designed to permit review and evaluation of the qualitative (technical)content without the prior knowledge or influence of the qualitative content (price).“Unsolicited Proposal” means an offer/proposal submitted by a contractor/supplier/vendor orconsultant in the absence of a Call for Bid from the Town. May be submitted in response to aperceived need but not in response to a Call for Bid;“User Department” means the department or service area that requires the goods, service(s)or construction;“Vendor(s)” means the company, group, business or individual(s) who may or does currentlysupply goods, service(s) or construction to the Town;THE CORPORATION OF THE TOWN OF INNISFIL Page 10 of 28POLICY CP.19-07-05

PART IV4. GENERAL CONDITIONS4.1 No employee or elected official shall purchase or offer to purchase, on behalf of the Town,any goods and services except in accordance with this Policy and following the rules setout in the Purchasing Processes and Procedures Document as amended from time totime.4.2 Any employee who intentionally and knowingly acquires or disposes of any goods and orservices for the Town in contravention of any section of this Policy, as amended from timeto time, may be subject to disciplinary action.4.3 Exceptions to this Purchasing Policy are identified in Schedule A.4.4 All purchases must have appropriate pre-approved financing and must be authorized priorto execution of Call to Bid.4.5 If the Director or Treasurer rely on the privilege clause which reads in part "the lowest orany tender may not necessarily be accepted", he or she shall provide a written statementto the unsuccessful Proponent(s) outlining the reason(s) that a lower submission(s) wasrejected.4.6 A Director shall not award a contract where the Treasurer or designate has determinedthat the provisions of this policy have not been adhered to and has so advised theDirector.4.7 Purchasing Staff shall, in conjunction with the Director, reject all purchase requisitions forservices where the services could result in the establishment of an employee-employerrelationship; unless this may be appropriate at the time.4.8 Where this policy prescribes financial limits on contracts that may be awarded under theauthority of a Director or provides for financial limits on contracts required to be reportedto Council, for the purpose of determining whether a contract falls within these prescribedlimits the contract amount shall be the sum of all costs to be paid to the Proponent underthe contract, excluding H.S.T. No requirement for goods and services may be divided intotwo or more parts to avoid the provisions of this policy.4.9 Material Safety Data Sheets shall be maintained on file by the user Department for allrelevant products whether acquired through tendering, quoting or the proposal process.4.10 That Schedules A and B (attached hereto) may be amended by Purchasing Staff inconjunction with the Treasurer without a requirement of a report to Council or Councilapproval provided such amendments have been approved by the Chief AdministrativeOfficer and amended Schedule(s) has been circulated to affected staff.4.11 Standardization:It shall be the policy of the Town, wherever possible, to standardize the purchase of goodsand services to allow for:a) reduced number of goods and services required;b) increased volume on common cross departmental items or services;c) maximizing volume buying opportunities;d) providing economies of scale;e) reduced handling, training and storage costs;f) minimizing maintenance costs;g) cooperative purchasing activities;h) competitive bid results; andi) reduced overall costsTHE CORPORATION OF THE TOWN OF INNISFIL Page 11 of 28POLICY CP.19-07-05

4.12 No Local Preference/Non-DiscriminationThe Town will endeavour to achieve Best Value in its commercial transactions. As aconsequence the Town will not practice local preference in awarding purchases. This willallow the Town to comply with the Discriminatory Business Practices Act, R.S.O. 1990, c.D-12.4.13 Conflict of InterestNo elected official, appointed officer or employee of the Town involved in thesupply chain-related activities shall have any pecuniary interest either direct orindirect in any competitive bid or contract for the supply of goods or services to theTown, unless such pecuniary interest is disclosed by the contractor, bidder orperson submitting a quotation, as the case may be, or unless such pecuniaryinterest would be exempt under the Municipal Conflict of Interest Act.For the purposes of this section, an elected official, appointed officer or employeeof the Town involved in the supply chain-related activities has an indirect pecuniaryinterest if the person is a partner of a person or is in the employment of a person orbody that has entered into a tender, proposal, quotation or contract with the Town.For the purposes of this section, the pecuniary interest in a tender, proposal,quotation or contract of a parent or spouse or any child of an elected official,appointed officer or employee of the Town shall, if known to the person, bedeemed to be also the pecuniary interest of the elected official, appointed officer oremployee of the Town involved in the supply chain-related activities.All consultants (e.g.: architects, engineers, etc.) retained by Town shall discloseany potential conflict of interest to the Town prior to accepting an assignment.4.14 Lobbying RestrictionsVendors, their staff members, or anyone involved in preparing Bids shall notengage in any form of political or other lobbying whatsoever or seek to influencethe outcome of the purchasing process or subsequent Award. This restrictionextends to all of the Town’s elected officials, appointed officers or employees.The Town may reject any Bid by any vendor that engages in such lobbying, withoutfurther consideration, and may terminate that vendor’s right to continue in thepurchasing process.During a Bid Request process, all communications shall be made throughPurchasing Services. No vendor or person acting on behalf of a vendor or groupof vendors, shall contact any elected official, appointed officer or employee of theTown to attempt to seek information or to influence the Award.4.15 Access to InformationThe disclosure of information received relevant to the issue of bid solicitations orthe award of contracts emanating from bid solicitations shall only be made by theappropriate officers in accordance with the provisions of the Municipal Freedom ofInformation and Protection of Privacy Act, R.S.O. 1990, as amended.All records and information pertaining to tenders, proposals and other sealed bids,which reveal a trade secret or scientific, technical, commercial, financial or otherlabour relations information, supplied in confidence implicitly or explicitly, shallremain confidential if the disclosure could reasonably be expected to:a) prejudice significantly the competitive position or interferesignificantly with the contractual or other negotiations of a person,group of persons, or organizations;THE CORPORATION OF THE TOWN OF INNISFIL Page 12 of 28POLICY CP.19-07-05

) result in similar information no longer being supplied to the Townwhere it is in the public interest that similar information continue to beso supplied;c) result in undue loss or gain to any person, group, committee orfinancial institution or agency; ord) result in information whose disclosure could reasonably be expectedto be injurious to the financial and other interests of the Town.4.16 Compliance and Continuous ImprovementAll individuals involved in purchasing or other supply chain-related activities must complywith this Code of Ethics and the laws of Canada and Ontario.Participate in professional development programs so that one’s purchasingknowledge and performance are continuously enhancedCooperate with trade, industrial and professional associations and withgovernmental and private agencies for the purpose of promoting and developingsound business methodsCounsel and cooperate with other professionals and promote a spirit of unity and akeen interest in professional growth among themBuyers are encouraged to participate in continuing open discussions of ethicalprinciples with their colleagues and with others.4.17 ContingenciesIn the event that a contract or solicitation makes explicit provision or allowance for thehappening of any contingency, the Director or CAO may authorize disbursement of thecontingency funds provided that the contingency funds are required to complete work setout in the original contract.4.18 Persons with DisabilitiesIn acquiring goods and services for the municipality, municipal staff shall consider andhave regard to disability accessibility issues as they may reasonable pertain to suchacquisitions of goods and services, and shall comply with the requirements of the Town’sAccessibility Plan.4.19 Green ProcurementIn acquiring goods and services for the municipality, municipal staff shall considerwhether it is feasible to incorporate environmental considerations into solicitations forgoods and services. Purchasing Staff shall keep apprised of best purchasing practicesfor responsible environmental procurement, and shall bring same to the attention ofoperating departments wherever the same are applicable.4.20 Legal ClaimsNo tender, proposal or quotation will be accepted from any company inclusive of itssubcontractor(s), which has a claim or has instituted a legal proceeding against theTown or against whom the Town has a claim or instituted a legal proceeding with respectto any previous contract, without prior approval by Council.4.21 CollusionCollusion will not be tolerated and bids will be rejected without further consideration ifcollusion is suspected or present. The following applies to any Call for Bid documentand shall be abided by all bidders.The Proponent warrants that their tender has not been prepared with any consultation,communication, contract, arrangement or understanding with any competitor other than:THE CORPORATION OF THE TOWN OF INNISFIL Page 13 of 28POLICY CP.19-07-05

Where certain joint venture arrangements exist between the Proponent and acompetitorWhere the Proponent and a competitor have an agreement that has beenauthorized by the procuring organizationWhere the Proponent has communicated with a competitor for the purpose ofsubcontracting a portion of the tender, and where the communication with thatcompetitor is limited to the information required to facilitate that particular subcontract.In such a situation the Proponent agrees to fully disclose the full nature and extent of anyagreements with competitors to the tendering body.In the event that no such disclosure is made, the Proponent warrants that their bidhas not been prepared with any consultation, communication, contract, arrangement orunderstanding with any competitor regarding:PricesMethods, factors or formulas used to calculate pricesThe intension or decision to submit, or not submit a bidThe submission of a bid which is non-conformingThe quality, quantity, specifications or delivery particulars of the products orservices to which the call for bids relatesThe terms of the bidThe Proponent acknowledges that if the organization accepts the Proponent’s offer andcompletes any contract, the organization will do so in reliance of this warranty.5. REQUIREMENT FOR APPROVED FUNDS5.1 The beginning of the procurement and payment process commences with theestablishment and approval by Council of the operating and capital budgets for the Town.Upon approval of these budgets, Directors or designates and Purchasing Staff have theauthority to purchase goods and services (excluding leasing), request formal orinformation quotes, tenders/bids following guidelines identified in this policy.5.2 Departmental expenditures shall be authorized by Council each year as part of either theOperating or Capital Budget process. Pending Council's approval of proposed budgetaryestimates, Directors may be authorized to spend up to 50% of the previous year'sapproved Operating Budget.5.3 Sufficient funds must be available for each contract in the appropriate accounts within theCouncil approved operating budget prior to such contract being awarded by the Town.5.4 Acquisition of goods and services that are deemed by a Director to be necessary but thatare not in the approved budget must be approved by Council prior to the submission ofa purchase requisition to Purchasing Staff.5.5 Insufficient Budget at time of award of solicitation In the event that all submissionsreceived in response to a solicitation exceed the funds available for the completion of theproject, the Town may pursue the following options:5.5.1 The Town may add funds to those already allocated to the project, such thatthere are sufficient funds available to allow the Town to select a submission.Service areas are required to submit a report to Council seeking approval ofthe additional funds;5.5.2 All submissions may be rejected and the Town may engage in a furthersolicitation, either with or without amendments from the preceding solicitation.Before proceeding to engage in a further solicitation which does not includeany significant amendment from the preceding solicitation, Purchasing Staff inTHE CORPORATION OF THE TOWN OF INNISFIL Page 14 of 28POLICY CP.19-07-05

consultation with the Director shall consider whether any unfair advantage willbe obtained by any person by so proceeding, and Purchasing Staff ifnecessary shall seek Legal advice with respect to same; or5.5.3 The Town may undertake negotiations. For purposes of the foregoing,negotiation may include minor adjustments in the specifications of the goodsand services to be acquired, and minor adjustment of other obligations of theparties providing they are Director approved.5.6 Where goods and services are routinely purchased on a multi-year basis, the exercise ofauthority to award a contract is subject to:the identification and availability of sufficient funds in appropriate accounts for thecurrent year within Council approved estimates; andthe opinion of service area Director(s) that the requirement for the goods orservices will continue to exist in subsequent years and, in the opinion of theTreasurer, the required funding can reasonably be expected to be made available.6. RESPONSIBILITIES AND AUTHORITIESOverall ConsiderationsTown Staff are accountable for the decisions and actions which they take pursuant tothis Policy and in the administration of contracts which have been awarded pursuant tothis policy.Breaches of this Policy by employees may be subject to disciplinary action.In the absence of Purchasing Staff, the Treasurer shall act as the authorized designate.Where a Director is authorized to undertake any activity pursuant to this Policy, suchactivity may be undertaken by the Director’s authorized designate.6.1 Purchasing StaffPurchasing Staff shall monitor adherence to the provisions of this Policy and theprocedures adopted for its use and shall report any failure to comply with the provisionsof the Policy and the procedures to the Treasurer. The Treasurer shall address allinstances of non-compliance with the appropriate Director(s) and continued noncomplianceshall be reported to the CAO.Purchasing Staff shall be responsible for:6.1.1 all procurement activities that are designated at or aboveestablished thresholds as outlined in this policy and shall beaccountable for achieving best value while following theprocurement principles;6.1.2 providing procurement advice and services to Directors and theirdepartments;6.1.3 monitoring compliance with this policy;6.1.4 conducting training as required to inform staff of the Townregarding the requirements contained within the policy;6.1.5 acting as the Town’s representative with cooperative purchasinginitiatives with other members of the broader public sector orprivate sector entities, where such involvement is determined to bein the best interests of the Town.THE CORPORATION OF THE TOWN OF INNISFIL Page 15 of 28POLICY CP.19-07-05

6.1.6 maintaining good vendor relations and for participating innegotiations with vendors, subject to the other provisions of thispolicy.Purchasing Staff shall be provided with assistance from the departments prior to theoutset of any formal Call for Bid’s, in matters that require further expertise and mayrequest departments to undertake research into specific markets.All inquiries regarding materials, prices, services, delivery, terms, conditions andadjustments, are to be conducted by or in conjunction with Purchasing Staff.For formal Call for Bid contract awards:Purchasing Staff shall formulate award letters to the awarded vendors,execute all purchase orders provided that the issuing Department hasapproved a purchase requisition; andPurchasing Staff shall execute all related agreements as per issuingDepartment signing authority outlined in this policy.Supervisor of Purchasing will prepare a semi-annual report for the Treasurer to presentto Council for all Contract Change Orders (CCO) that have been authorized as persection 9.2 of this policy.Supervisor of Purchasing will prepare a Single Source, Sole Source and EmergencyPurchase listing for the Treasurer to present to the CAO annually.Supervisor of Purchasing and/or Purchasing Staff shall bring forward from time to time,amendments to this Policy to update, whether adding new clauses or adjusting thosecurrently in force. (See section 2.12)6.2 Directors6.2.1 The Director shall be responsible for procurement activities withinhis or her department and shall be accountable for determining andachieving specific objectives as outlined for each procurementproject. The Director or appointed designate shall ensure that thereare sufficient funds available and identified for all purchaserequests.6.2.2 Directors shall have the authority to award contracts in thecircumstances specified in this policy provided that the delegatedpower is exercised within the limits prescribed in this policy, and therequirements of this policy are met.6.2.3 The Town Clerk and Directors shall ensure that copies of all legallyexecuted contracts relating to the procurement of goods andservices are forwarded to Purchasing Staff.6.2.4 Agreements/contracts that do not comply with one of the approvedcontract templates (or at the discretion of the CAO) shall bereviewed by the Town Solicitor and authorized by Council.6.2.5 Directors are responsible for ensuring that Contract Change Order(CCO) forms, where required are properly filled out and whereapplicable, proper approvals have been granted by council and areprovided to Purchasing Services and/or Council.6.2.6 Directors are responsible for ensuring that Emergency Purchase,Sole Source and Single Source documents are filled out andTHE CORPORATION OF THE TOWN OF INNISFIL Page 16 of 28POLICY CP.19-07-05

6.3 Chief Administrative Officer (CAO)supplied to the appropriate parties according to Schedule BSummary of Thresholds of Procurement.6.3.1 The CAO shall possess the authority to instruct the Director orPurchasing Staff not to award a contract. The CAO may direct staffto submit recommendations to Council for approval and may provideadditional restrictions concerning procurement where such action isconsidered, in the opinion of the CAO, necessary and in the bestinterests of the Town.6.3.2 The CAO shall ensure Directors adhere to the Purchasing Policy, tosubmit recommendations to Council for approval and provideadditional restrictions concerning procurement where such action isconsidered necessary and in the best interest of the Town.6.3.3 The CAO shall award contracts during the time that regular Councilmeetings are suspended, during a period of recess, in anExtraordinary Circumstance (Emergency Purchase per Schedule B,as a result of a call for bid, provided that a report is submitted toCouncil, as soon as reasonably possible, setting out the details ofany contract awarded pursuant to this authority.THE CORPORATION OF THE TOWN OF INNISFIL Page 17 of 28POLICY CP.19-07-05

PART V7. METHODS OF PROCUREMENT7.1. GeneralEstablishes common terminology used to describe various options and providesguidance for the selection of the most appropriate procurement methodology, allowingfor a range of management, delivery and contract system options and project types, aspart of the procurement strategy.The following information is summarized for the purpose of this document and iselaborated in the Purchasing Processes and Procedures Document.7.2. Formal Quotations/Call for BidsOne of the following Formal Quotation Processes will be followed for any purchase thatis formal Call for Bid and shall involve Purchasing Staff in consultation with the initiatingDirector or designate.7.2.1. Request for Quotation (RFQ)Request for Quotation (RFQ) shall be called for work, construction, equipmentand/or materials when:Value of project/contract as defined in Schedule B, of the Purchasing Policy,inclusive of all costs and excluding all applicable taxes;Specifications/Scope of Work are clearly able to be defined and identified;Project/contract has been approved in the capital or operational budgetprocess by Council;The award of the contract shall be given to the lowest responsible andcompliant proponent.7.2.2. Request for Tender (RFT)Request for Tenders (RFT) shall be called for work, construction, equipmentand/or materials when:Value of project/contract as defined in Schedule B of the Purchasing Policy,inclusive of all costs and excluding all applicable taxes;Specifications/Scope of Work are clearly able to be defined and identified;Evaluation is predominantly made on price and delivery requirements;Project/contract has been approved in the capital or operational budgetprocess by Council;The award of the contract shall be given to the lowest responsible andcompliant proponent.7.2.3. Requests for Proposals (RFP)RFP may be called, as outlined in this document, in the following circumstances,including for the engagement of professional and consulting services:Value of the project/contract as defined in Schedule B of the PurchasingPolicy, including all costs and excluding all applicable taxes;Specifications/Scope of work are not able to be clearly defined and identified;orSpecifications/Scope of work are non standard or specialized in nature; orThe Town is looking for vendors to provide alternate options or solutions forthe delivery of complex goods, services or constructionTHE CORPORATION OF THE TOWN OF INNISFIL Page 18 of 28POLICY CP.19-07-05

The price is only one component of making up the award and may not be themost important factor of consideration;Project/Contract has been approved in the capital or operational budgetprocess by Council;This process may involve negotiations subsequent to the submission ofproposals on any or all of the specifications, contract terms, and prices.7.2.4. Requests for Standing Offer (RFSO)Request for Standing Offer (RFSO) may be called, as outlined in this document inthe following circumstances, including for the engagement of professional andconsulting services:Value of the project/contract as defined in Schedule B of the PurchasingPolicy “Summary of Thresholds for Procurement”, including all costs andexcluding all applicable taxes;Specifications/Scope of work are not able to be clearly defined and identified;orSpecifications/Scope of work are non standard or specialized in nature; orThe Town is looking for vendors to provide alternate options or solutions forthe delivery of complex goods, services or construction;Project/Contract has been approved in the capital or operational budgetprocess by Council;7.2.5. Requests for Information (RFI)The purpose of an RFI is to gather general supplier/consultant or productinformation. This mechanism may be used when The Town is researching acontemplated a need and has not yet determined what characteristics the idealsolution would have (e.g., the business desires a new warehouse managementsystem but is unsure of which features are most important and needs moreinformation to understand what is available and what are thesuppliers’/consultants’ capabilities).Responses to RFI questions normally contribute to the final version of asubsequent Call for Bid document and may include targeted questions about therequired output/acquisition, seeking combinations of industry leading practices,suggestions, expertise and even concerns and additional questions from theProponents.Responses to an RFI will not pre-qualify a potential supplier/consultant and willnot influence their chances of being the Successful Proponent on anysubsequent opportunity. An RFI submission does not create any contractualobligation between the Town and the interested respondent.7.2.6. Request for Expression of Interest (RFEOI)The purpose of an RFEOI is to gather information on supplier/consultant interestin an opportunity or information on supplier/consultant capabilities/qualifications.This mechanism may be used when the Town wishes to gain a betterunderstanding of the capacity of the supplier community to provide the servicesor solutions needed. Information collected can also facilitate selecting the bestpossible competition method for a follow-up competition.A response to an RFROI will not pre-qualify a potential supplier/consultant andwill not influence their chances of being the Successful Proponent on anyTHE CORPORATION OF THE TOWN OF INNISFIL Page 19 of 28POLICY CP.19-07-05

subsequent opportunity. An RFROI submission does not create any contractualobligation between the Town and the interested respondent.7.2.7. Request for Pre-Qualification (RFPQ)7.3. In-House BidThe goal of an RFPQ is to gather information on supplier/consultant capabilitiesand qualifications, with the intention of creating a list of pre-qualifiedsuppliers/consultants. It can assist to determine market interested in fulfilling therequirements, and to evaluate such Proponents based on but not limited to,reference checks, past performance, and financial liability in order to produce ashort list of acceptable pre-qualified potential suppliers/consultants.An RFPQ can be used:To understand which Proponents have the capabilities that the Townrequires, as the first stage in a two-stage solicitation (followed by either anRFQ, RFP or RFT), whereby only pre-qualified suppliers/consultant will beinvited to respond to the Call for Bid.To pre-qualify suppliers/consultant who are interested in supplying materialsor services in the future, on a when and if requested basis. The typical resultof this procedure is a VOR.When the RFPQ is utilized, a pre-qualification document shall be provided tothe Proponents that have been pre-qualified setting out the criteria for prequalification,which may include:evaluation criteria and weightingstipulated performance and experience level;meeting fundamental mandatory standards or regulations of thefederal, or provincial, or The Town standards;references provided from other customers for similar work;verification of applicable licenses and certificates; andfinancial capabilityThe selection of qualified Proponent following a pre-qualification process doesnot create any contractual obligation between the Town and the pre-qualifiedrespondent(s). Pre-qualification may be made a specific pre-condition of anyother procurement procedure utilized by the Town.This is the process of internal Departments providing a submission on a Call for Bid.THE CORPORATION OF THE TOWN OF INNISFIL Page 20 of 28POLICY CP.19-07-05

PART VI8. ALTERNATIVE METHODS OF PROCUREMENT8.1 Contracts Without TenderPurchasing Staff in consultation with the Director shall be authorized to contractwithout tender, proposals or quotations as further described in the PurchasingProcess and Procedures Document8.2 Single, Sole and Sole Brand PurchasingThese types of purchases are purchases without a competition. There are anumber of reasons for this; patents, trademarks, proprietary information, only oneresource, volatile market conditions.8.3 Emergency (Extraordinary) ProcurementThis type of purchase shall only apply in case of an emergency or when an eventoccurs that is determined by the CAO and or the Treasurer or their designate withthe collaboration of the Departments’ Director.8.4 Vendors of Record (VOR) and Cooperative PurchasingThese can be used to reduce costs and are also used to reduce workload byworking with other Municipalities and other levels of Governments, and allow theability to piggy back (use) contracts.8.5 Unsolicited ProposalsUnsolicited proposals received by the Town shall be reviewed by the Director andPurchasing Staff. Any procurement activity resulting from the receipt of anUnsolicited Proposal shall comply with the provisions of this policy.8.6 Negotiated PurchasesThe Director is authorized to negotiate with one or more bidders and in suchcases the requirement for inviting tenders or quotations is waived:When in the opinion of Council, formal advertising can accomplish nouseful purpose;When in the judgment of Purchasing Staff, goods are deemed to be inshort supply due to market conditions;Where two or more identical compliant bid submissions have beenreceived;When the lowest compliant bid submission is above the available funds.When all bids received fail to meet the specifications or tender terms andconditions and it is impractical to recall the call for bid;When no bids are received in a call for bid process;When only one bid is received in a call for bid process;Where a contract has expired or will shortly expire and unforeseeablecircumstances have caused a delay in issuing a new call for biddocument; (timeframe for extended contract should not exceed 1 year);Where Expanded works or coordinated works are appropriate in thecircumstances;When negotiations are deemed necessary by Council, they shall becarried out jointly between Purchasing Staff and user department subjectto the conditions of this policy.The methods of negotiation shall be those accepted as standardnegotiating procedures that employ fair ethical practices.THE CORPORATION OF THE TOWN OF INNISFIL Page 21 of 28POLICY CP.19-07-05

PART VII9. OTHER9.1 Analysis – Evaluation Committee and Submission Review Committee9.1.1 Submissions shall be analyzed as follows:9.1.2 Each competitive process requires an Evaluation Committee that willbe responsible for reviewing all the submissions. The submissions willbe tabulated and analyzed for compliance.9.1.3 Any bid irregularities shall be addressed in accordance with ScheduleB of the Purchasing Processes and Procedures Document.9.1.4 If a bid contains an irregularity, except those specifically listed in thebid documents and/or listed in Schedule B of the PurchasingProcesses and Procedures Document, or if there is a challenge to thecall for bids process, the issue shall be referred to the Bid ReviewCommittee to determine whether the bid complies with the submissionrequirements set out in the call for bids or to determine the validity ofthe challenge.9.1.5 If the Bid Review Committee does not agree unanimously that the bidshall be accepted or rejected, a report shall be prepared by therequisitioning departments Director for submission to Council settingout the nature of the informality, irregularity or challenge and theproposed action to be taken. The Bid Review Committee shall becomposed of, at a minimum, the Director of the requisitioningdepartment, a member of the requisitioning department, Treasurer ordesignate and a member from Legal Services.9.1.6 Tie Bids - In the case of tie bids between two responsive andresponsible bidders, and where multiple awards are not an alternativefor award the Town shall determine the successful bidder by coin toss.9.1.7 In the case of tie bids between three or more responsive andresponsible bidders, and where multiple awards are not an alternativefor award, the Town shall determine the successful bidder by a draw ofthe bidder names from a receptacle.9.2 Contract Change Orders (Change in Scope)9.2.1 Where goods, services and/or construction have been purchasedunder this purchasing policy pursuant to a contract or price agreement,where a change in the scope of the project to which the contract orprice agreement relates occurs which necessitates the purchase ofadditional or related goods, services and/or constructions, suchadditional goods, services and/or construction shall not be purchasedunless:a) a report to request approval is submitted to Council; orb) the procurement procedures set out in this policy are complied withas if the additional purchase is a new contract or price agreement; orc) the total cost of the additional goods, services or construction doesnot exceed ten percent (10%) of the total cost of the original contractor price agreement and the 10% does not exceed $50,000; orTHE CORPORATION OF THE TOWN OF INNISFIL Page 22 of 28POLICY CP.19-07-05

d) the total cost of the additional goods services or construction is to bepaid in full by a third party, and security to ensure payment is in place,to the satisfaction of the Treasurer.The requesting Director, Treasurer and CAO may jointly authorize the purchaseof additional goods, services or construction provided that:I. the requirement for the additional goods, services and/or constructioncould not reasonably have been anticipated at the time of the award ofthe original contract or price agreement; andII. the authorization to purchase the additional goods, services and/orconstruction is required to prevent interruption in service delay or toavoid incurring extra costs; andIII. a request is submitted to the Director, Treasurer and CAO on a ContractChange Order Form prescribed by the Treasurer and a copy is issued toPurchasing Staff; andIV. That the overall value has not exceeded the level authorized by Council.9.3 Council Reporting and Approval9.3.1 Report to Council is required when:a) the value of the goods, services and/or construction to be procuredthrough a Request For Tender or a Request for Proposal is greater than$1,000,001 and is within the approved budget;b) the CAO or Council requests a report;c) a Sole Source Procurement or a Single Source Procurement is greaterthan $10,001d) a report is listed as a requirement as per Schedule B Summary ofThresholds for Procurement9.3.2 Council Approval shall be required where the:9.3.2.1 value of the goods, services and/or construction (excluding tangiblecapital assets) is over $50,001 and prior budget approval has notbeen received;9.3.2.2 prior budget approval has not been issued for a requested tangiblecapital asset;9.3.2.3 purchasing policy is being waived;9.3.2.4 lowest responsive vendor submission is not being recommended;9.3.2.5 where there is a challenge to the call for bids process that cannot beresolved by the Evaluation Committee;9.3.2.6 requests for Tenders or Requests for Proposals as per Schedule B,Summary of Thresholds for Procurement;9.3.2.7 the acquisition exceeds the approved budget by more than 10% andthe 10% is equal to or greater than $50,001;9.3.2.8 Any contract requiring approval from the Ontario Municipal Board;9.3.2.9 Any contract prescribed by statue to be authorized by Council;9.3.2.10 Otherwise specifically provided in this policy.9.3.3 For acquisitions that exceed the approved capital budget but are less thanthe thresholds identified in 9.3.2.7, the CAO and Treasurer shall identify andTHE CORPORATION OF THE TOWN OF INNISFIL Page 23 of 28POLICY CP.19-07-05

approve the additional funding sources required for the unfavourablevariance.9.3.4 Where a Council Report is required, an Information/Memo to Council iscreated by the Director of the requesting department and presented toCouncil for information purposes only.9.3.5 Where Council Approval is required, a Staff Report is created by theDirector of the requesting department and presented to Council for theirconsideration for approval of the contents of the report.THE CORPORATION OF THE TOWN OF INNISFIL Page 24 of 28POLICY CP.19-07-05

SCHEDULE AGOODS & SERVICES “EXEMPT” FROM PROVISIONS OF THE PROCUREMENT POLICY1. Petty Cash Items $2502. The purchases of items / services under $500.00; for one time or occasional purchasesnot ongoing requirements3. Training and Educationa) Booksb) Conferencesc) Coursesd) Conventionse) Membershipsf) Seminarsg) Periodicalsh) Magazinesi) Staff trainingj) Staff developmentk) Staff workshopsl) Subscriptions4. Refundable Employee Expensesa. Advancesb. Meal allowancesc. Travel & Hotel accommodationd. Entertainmente. Mileagef. Miscellaneous – Non-Travel5. Employer’s General Expensesa) Payroll deduction remittancesb) Licences (vehicles, elevators, radios, etc.)c) Debenture paymentsd) Grants to agencies/donationse) Payments of damagesf) Tax remittancesg) Charges to/from other Government or Crown Corporationsh) Employee wagesi) Freight charges6. Professional and Special Servicesa. Committee feesb. Witness feesc. Court reporters’ feesd. Honorariae. Arbitratorsf. Legal settlementsg. Temporary Helph. Recreation Instructor Feesi. Courier Chargesj. Legal feesTHE CORPORATION OF THE TOWN OF INNISFIL Page 25 of 28POLICY CP.19-07-05

SCHEDULE AGOODS & SERVICES “EXEMPT” FROM PROVISIONS OF THE PROCUREMENT POLICY(Continued)7. Utilities/Other8. Advertisinga) Postageb) Water and sewer chargesc) Hydrod) Cable television chargese) Telephone, connectivity (excluding cellular services)f) Natural gas/propaneg) Refunds and rebates to ratepayersa. Classified advertising such as help wanted, for sales, etc.b. Display advertising such as event noticesc. Public tender advertisingTHE CORPORATION OF THE TOWN OF INNISFIL Page 26 of 28POLICY CP.19-07-05

SCHEDULE BSUMMARY OF THRESHOLDS FOR PURCHASINGPurchase Threshold Purchase Type Method Advertising APPROVAL PurchaseOne Time or Multiple PurchasesUp to $10,000Purchases made bydepartment staff at thediscretion of theDepartment HeadOVER $10,000 up to$25,000Purchases made bydepartment staff at thediscretion of DepartmentHeadOver $25,000 up to$75,000Purchases made bydepartment staff at thediscretion of theDepartment HeadOver $75,000Facilitated byPurchasing ServicesOver $25,000 up to$200,000Facilitated byPurchasing ServicesOVER $200,000facilitated byPurchasing ServicesLow CostPurchase (LCP)Informal RFQ orRFPRFP forConsulting &ProfessionalServicesRFP forConsulting &ProfessionalServicesFORMAL RFQ orRFPExcludingConsultingServicesRFT or RFPOfficial purchase order, petty cash,or corporate purchasing cardCompetitive bids must be solicitedfrom a minimum of three bidders.The bid solicitation and purchasecan be facilitated directly by therespective department or,facilitated by Purchasing Services;upon request.Proposal request may beadministered directly by thedepartment, based on statedterms of reference and for valuebased award. Alternatively, aformal RFP process can beadministered by PurchasingServices, upon request.Formal competitive bid processadministered by PurchasingServices on Behalf of therequesting department and basedon specifications or terms ofreference as provided by thedepartmentFormal competitive bid processadministered by PurchasingServices on Behalf of therequesting department and basedon specifications or terms ofreference as provided by thedepartmentFormal competitive bid processadministered by PurchasingServices on behalf of the userdepartment and based on thespecifications or terms ofreference as provided by the userdepartmentAdvertisingDiscretionaryAdvertisingDiscretionaryAdvertisingDiscretionaryAdvertisingRequiredAdvertisingRequiredAdvertisingRequiredThe Department Head shallauthorize specific individualsto make (LCP) and assign alimit of spending authority thatis submitted to the TreasurerThe Department Head shallauthorize specific staff to makebid solicitations as warranted;however there must be priorauthorization obtained for thelevel of spendThe Department Head shallauthorize specific staff to makebid solicitations as warranted;however there must be priorauthorization obtained for thelevel of spendThe requesting departmentmust obtain spend approvalbefore the process beginsThe requesting departmentmust obtain spend approvalbefore the process beginsThe requesting departmentmust obtain spend approvalbefore the process beginsEither by petty cash, purchasingcard or a requisition issued toinitiate the purchase process –when using the latter option, apurchase order must be issued inadvance of the purchase transactionPurchase Requisition, PurchaseOrder and contract requiredPurchase Requisition, PurchaseOrder and contract requiredPurchase Requisition, PurchaseOrder and contract requiredPurchase Requisition, PurchaseOrder and contract requiredPurchase Requisition, PurchaseOrder and contract requiredTHE CORPORATION OF THE TOWN OF INNISFIL Page 27 of 28POLICY CP.19-07-05

SCHEDULE BSUMMARY OF THRESHOLDS FOR PURCHASING (continued)Purchase Threshold Purchase Type Method Advertising APPROVAL PurchaseSupply agreement based on unit cost pricingANY AMOUNTFacilitated by PurchasingServicesProcess inaccordance withprecedingthreshold valuesFormal competitive bidprocess administered byPurchasing Services on behalfof the user department andbased on the specifications orterms of reference as providedby the user departmentThis is a value based awardwhere price is only onecomponent of consideration toaward.Where deemed necessary,can utilize Two EnvelopeProcessAdvertisingRequiredThe requesting departmentmust obtain spend approvalbefore the process beginsPurchase Requisition, PurchaseOrder and contract requiredExpression of Interest, request for information and pre-qualificationsRequest for Formal solicitation processInformation (RFI) administered by theExpression of Purchasing Services on behalfNOT APPLICABLE Interest (EOI) of the user department andRequest for Prequalification(RFPQ)based on the specifications orterms of reference as providedby the user departmentSingle or Sole source Purchase$10,001 and overExtraordinary (Emergency) Purchase$10,001 and overSingle SourceSole SourcePurchases underan emergencybasisPurchase process at thediscretion of the Supervisor orPurchasing given thecircumstancesPurchase process at thediscretion of the CAO andDirector given thecircumstances.AdvertisingRequiredThe requesting departmentmust obtain spend approvalbefore the process beginsNot Applicable The requesting departmentmust obtain spend approvalbefore the process beginsNot ApplicableCouncil will be advised asappropriate of need foremergency purchase andfunding source to beaccessed.Not applicablePurchase Requisition, PurchaseOrder and contract requiredPurchase Requisition, PurchaseOrder and contract requiredTHE CORPORATION OF THE TOWN OF INNISFIL Page 28 of 28POLICY CP.19-07-05