Contract Management Policy

Contract Management Policy
December 2010 (modified June, 2011)
Table of contents
SECTION 1: Objectives, Definitions and Field of Application ............................................................3
1.1 Objectives ...............................................................................................................................3
1.2 Ethics ......................................................................................................................................3
1.3 Scope.......................................................................................................................................4
1.4 Targeted contracts...................................................................................................................4
1.5 Application .............................................................................................................................4
1.6 Definitions ..............................................................................................................................4
SECTION 2: Lobbying..........................................................................................................................6
2.1 Lobbying.................................................................................................................................6
SECTION 3: Provisions Common to All Contracts ..............................................................................7
3.1 Responsibilities.......................................................................................................................7
3.2 Contract splitting ....................................................................................................................9
3.3 Development of call for tenders documents ...........................................................................9
3.4 Identification of the individual responsible for the call for tenders........................................9
3.5 Site visits and information meetings.......................................................................................9
3.6 Bidders identity ...................................................................................................................10
3.7 Administrative compliance of bids.......................................................................................10
3.8 Notice of awarding of contracts............................................................................................11
3.9 Contract modifications..........................................................................................................11
3.10 Act of God ............................................................................................................................11
SECTION 4: Regulations Specific to Invitations to tender.................................................................13
4.1 Bidders obligations..............................................................................................................13
SECTION 5: Regulations Specific to Public Calls for Tenders ..........................................................14
5.1 Estimated contract price .......................................................................................................14
SECTION 6: Regulations Specific to Calls for Tenders Using a Bid Weighting and
Evaluating System ...............................................................................................................................15
6.1 Selection committee..............................................................................................................15
6.2 Access to documents Disclosure of information ...............................................................15
6.3 Estimated contract price .......................................................................................................15
SECTION 7: Coming Into Force.........................................................................................................17
7.1 Coming into force .................................................................................................................17
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June 2011
SECTION 1: Objectives, Definitions and Field of Application

1.1
Objectives
The primary objective of this policy is to ensure citizens that monies allocated to the acquisition
of goods and services is spent in keeping with sound administrative principles.
In order to foster transparency in the management of municipal contracts, as required by article
573.3.1.2 of the Cities and Towns Act (R.S.Q., c. C-19), the Town is implementing this policy
whose measures seek to:
1.2
Ensure that no bidders or bidders representatives have communicated or attempted to

communicate with a member of the selection committee, in an effort to influence them on
calls for tenders on which they have submitted a bid.
Foster respect for applicable laws intended to fight bid rigging.
Ensure compliance with the Lobbying Transparency and Ethics Act (R.S.Q., c. T-11.011)
and the Code of Conduct of Lobbyists adopted under the banner of this law.
Prevent intimidation, influence peddling or corruption.
Avoid conflicts of interest.
Prevent any other situation likely to compromise the impartiality and objectivity of the call
for tenders process and the management of the ensuing contract.
Provide a framework for any decision authorizing the modification of a contract.
Ethics
All stakeholders involved in the contractual process are responsible for helping to uphold the
Towns positive image, develop and maintain good relations between the Town and its suppliers,
and remember that each of them represents the Town in its relations with the latter. To this end,
they must:
Treat every supplier fairly
Ensure transparency in the processing of contract files
Avoid conflicts of interest or situations that could provide personal benefits
Apply this policy in the best interests of the Town.
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June 2011
1.3
Scope
This policy applies to all Town employees and members of the Municipal Council as well as all
prospective and successful bidders, suppliers and other third parties.
1.4
Targeted contracts
This policy applies to any contract concluded by the Town, regardless of the cost involved.
1.5
Application
Under the responsibility of the Council, the General Manager is responsible for the application of
this policy.
1.6
Definitions
Successful bidder
The bidder to whom the contract has been awarded.
Call for tenders
Acquisition, public sale or written invitation process soliciting written price proposals for
goods and services from suppliers or buyers, in keeping with conditions established in the
call for tenders documents.
Council
The Municipal Council of the Town of Rosemre.
Cost overrun
Any cost exceeding the initial cost of the contract submitted by a successful bidder or
supplier.
Call for tenders documents
Set of documents consisting of administrative and technical specifications, the proposal form,
addenda, if required, as well as any other corroborating document.
Supplier
Any person or firm in a position to offer goods and services.
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June 2011
SEAO
Electronic call for tenders system.
Bidder
Any person or firm submitting a proposal within the framework of a call for tenders process.
Town
The Town of Rosemre.
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June 2011
SECTION 2: Lobbying
2.1
Lobbying
2.1.1
Lobbying activities
Unless entered in the registry of lobbyists as required by the Lobbying Transparency and Ethics
Act, L.R.Q., c. T-11.011, a bidder or supplier is prohibited from any having oral or written
communication with a public office holder in an attempt to influence, or that may reasonably be
considered by the initiator of the communication as capable of influencing a decision
concerning:
the development, introduction, amendment or defeat of any legislative or regulatory

proposal, resolution, or directive
the implementation of a call for tenders procedure, its development or cancellation
the awarding of a contract.
The arranging by a lobbyist of a meeting between a public office holder and any other person is
considered to be a lobbying activity.
Not constituting lobbying activities are those listed in articles 5 and 6 of the Lobbying
Transparency and Ethics Act L.R.Q., c. T-11.011.
2.1.2
Definition of Public Office Holder
With respect to the application of the Lobbying Transparency and Ethics Act, and this article, a
public office holder refers to the Council members as well as the Town employees.
2.1.3 Requirement to reveal registration
Any person who could potentially do business with the Town under the terms of a contract, and
who conducts lobbying activities, is required to reveal to the Town Clerk his entry in the registry
targeted by the Act. Moreover, his status as a duly registered lobbyist does not release him from
the obligation to comply with the provisions of this policy and respect the principles of
discretion, integrity and confidentiality of the process surrounding the awarding of a contract.
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June 2011
SECTION 3: Provisions Common to All Contracts

3.1
Responsibilities
3.1.1
General Management
The General Management is responsible for the application of this policy as well as the supply
process, management and application of these regulations.
Its main responsibilities are to:
combine needs, taking into account the specific nature of municipal departments
help municipal departments evaluate their needs
authorize the contractual process and, if need be, confirm the list of suppliers invited to
take part in it
help municipal departments prepare recommendations to members of the Council regarding

the awarding of contracts.
3.1.2
Legal Department Town Clerk
The main responsibilities of the Legal Department Town Clerk are to:
draft administrative specifications
validate overall specifications before launching the call for tenders process
publish the required call for tenders notices
ensure the application of laws and regulations pertaining to the awarding of contracts
proceed, if required, with the distribution of documents via SEAO, for any expenditure
under $100,000
proceed with the distribution of documents via SEAO for any expenditure of $100,000 and
over
proceed with the opening of bids received further to the call of tenders procedure
collaborate with the Finance Department on the publication and updating, on the SEAO
website, of the list of contracts awarded involving an expenditure of $25,000 and over; said
list must be published for a minimum period of three years.
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June 2011
3.1.3
Finance Department
The main responsibilities of the Finance Department are:
managing bid and performance bonds in collaboration with the Legal Department Town
Clerk
collaborating with the Legal Department Town Clerk on the publication and updating, on
the SEAO website, of the list of contracts awarded involving an expenditure of $25,000
and over; said list must be published for a minimum period of three years.
3.1.4
Municipal Services
The main responsibilities of the Municipal Services are:
defining their needs as accurately as possible
establishing the call for tenders calendar
in planning the project, allowing for the contractual process and inherent time requirements
ensuring the availability of required funds and obtaining the authorizations needed in
keeping with applicable municipal bylaws
drafting technical specifications
submitting to the General Manager, if required, the list of suppliers invited to take part in
the process
avoiding the purchase of goods of specific brands and justifying, if required, the refusal of
equivalent goods
preparing, if required, the documents needed for recognition of a single supplier
obtaining, when required, the General Managers approval of the contractual process being
considered
ensuring the availability of call for tenders documents
preparing and issuing addenda, if required
evaluating the compliance of bids received
tracking the execution of the contracts.
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June 2011
3.2
Contract splitting
No contract can be broken down into several similar contracts, except as permitted by article
573.3.0.3 of the Cities and Towns Act, i.e., in cases where this division is justified by sound
administrative reasons.
3.3
Development of call for tenders documents

As a rule, call for tenders documents, including in the case of a call for tenders with bid
weighting and evaluating system, evaluation criteria, are developed in-house by municipal
personnel. When justified by the situation, the Town can call on an outside resource to develop
or help with the development of a call for tenders document.
A consultant or other party entrusted by the Town to draft or assist with the drafting of call for
tenders documents within the framework of this type of process, is bound to ensure the
confidentiality of his mandate and any information to which he was privy within the framework
of his mandates execution, and is ineligible to submit a bid as a supplier on said call for tenders.
In this regard, the consultant or other party is required to sign, at the start of his mandate, a
confidentiality agreement as well as a commitment not to submit a bid within the framework of
the call for tenders.
3.4
Identification of the individual responsible for the call for tenders

For each call for tenders, a Town employee with a good knowledge of the field involved in the
call for tenders must be identified in the call for tenders documents as responsible for the
project.
This individual must provide potential bidders with administrative and technical information on
the call for tenders procedure and issue addenda. For any question or comment relating to the
call for tenders process or the contract sought, a bidder must contact the person responsible for
the project and no one else.
The person responsible for the project must provide and give bidders access to the same equal
and impartial information, and eliminate any favouritism.
3.5
Site visits and information meetings

As prescribed by law, group site visits and information meeting with all bidders are prohibited.
However, when the scope, complexity or particular nature of a project requires a site visit or
information meeting, the following rules shall apply:
Visits or meetings must be authorized by the General Manager.
Visits or meetings shall be carried out on an individual basis, by appointment.

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June 2011
3.6
The person identified in the call for tenders documents as responsible for the project shall
be in charge of visits or meetings.
The person responsible for the project shall compile questions asked by each of the bidders
during the visit or meeting and issue an addendum at the end of the visits or meetings,
providing the same answers to all bidders.
Bidders identity
Employees and Council members are prohibited from revealing, prior to the opening of the bids,
any information relating to the number or identity of persons submitting a bid, or who have
requested a copy of specifications, or been invited to submit a proposal.
This obligation also applies to any outside consulting firm whose services were retained within
the framework of a call for tenders process.
3.7
Administrative compliance of bids

To be deemed compliant, a bid shall:
Be presented on the form supplied
Be received before the time and date identified as the deadline for submission
Be signed and, if need be, accompanied by the signature authorization.
Furthermore, if they have been specifically requested, the following documents must be attached:
Copy of relevant licenses
Bid bond
Surety bond
Proof of insurance
Any other document specifically mentioned in the call for tenders documents.
The aforementioned notwithstanding, the Council can disregard any minor irregularity in the
tender, provided the latter does not affect the principle of equality among bidders or result in
prejudice.
Bids submitted by fax or email within the framework of a call for tenders will be automatically
rejected as non-compliant.
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June 2011
3.8
Notice of awarding of contracts

All bidders on a project shall be notified of the awarding of the contract via transmission of the
pertinent resolution or other written document.
3.9
Contract modifications
3.9.1
Rules
A contract awarded in the wake of a call for tenders may be modified only to the extent that said
modification constitutes an accessory to the contract and does not alter the nature of the latter.
Except in emergencies or when delaying the authorization of a contract modification could result
in major inconveniences on a job site, no additional contract expense can be incurred until an
authorization has been issued as prescribed in this section.
3.9.2
Unit price contracts
Any contract awarded on the basis of unit prices further to estimated quantities can be modified
subject to the following requirements:
The person responsible for the project shall expose, in writing, the nature of the required
modification, notably, the increase in quantities resulting in an increase in the cost of the
contract, and the reasons justifying it.
The General Manager or his representative designed during his absence shall approve
contract modifications to the extent of the authority delegated to him by the applicable
municipal regulation.
The Council shall authorize contract modifications whose cost exceeds the authority
delegated to the General Manager under the terms of the applicable municipal regulation.
3.9.3
Fixed-price contract
Any contract awarded on the basis of a fixed price can be modified subject to the following
requirements:
3.10
The person responsible for the project shall expose, in writing, the nature of the required
modification involving an increase in the cost of the contract, and the reasons justifying it.
The Council shall authorize the contract modifications.
Act of God
Notwithstanding the measures contained in this policy, in the event of an Act of God that could
jeopardize the life or health of the public or seriously damage Town equipment, the mayor can,
in keeping with article 573.2 of the Cities and Towns Act, award any contract required, without
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June 2011
regard for established regulations. In this event, the mayor is required to present an explanatory
report to the Council at the very first council public meeting that follows.
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June 2011
SECTION 4: Regulations Specific to Invitations to tender

4.1
Bidders obligations
Any supplier wishing to enter into a contract with the Town or who is under contract to the latter,
must refrain from engaging in intimidating measures, influence peddling or corruption or
entering in any form of collusion, communication, agreement or arrangement with other
suppliers or third parties relating to a contract.
To this end, the following rules were established:
4.1.1
Declaration of absence of attempts to influence
Any call for tenders document shall require the bidder to attach, to his proposal, a sworn
declaration stating that neither he nor any of his representatives or third party mandated by him
has attempted to contact Town representatives or members of the selection committee, when
applicable, for the purpose of influencing their choice, judgment, appreciation, recommendation
relating to the contract, or with members of the Council to influence their decision.
4.1.2
Declaration of absence of collusion
declaration stating that he has produced his proposal without collusion, communication,
agreement or arrangement with a competitor with regards to prices, methods, factors or formulas
for setting prices, to the decision to submit or not submit a proposal or to present a proposal that
does not comply, directly or indirectly, with specifications contained in the call for tenders.
4.1.3
Default/Violation
Any call for tenders document must stipulate that the bidders failure to attach the sworn
declarations required in articles 4.1.1 and 4.1.2 shall result in the automatic rejection of his
proposal.
Any call for tenders document must stipulate that, in the event that a bidder, one of his
representatives or third party mandated by him, has been in violation of the statements called for
by articles 4.1.1 and 4.1.2, the bidders proposal shall be rejected.
Any call for tenders document must also stipulate that the Town can cancel a contract that has
been awarded, should it become aware, during the course of the contract, of a situation
contravening the sworn statements required by articles 4.1.1 and 4.1.2.
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June 2011
SECTION 5: Regulations Specific to Public Calls for Tenders

5.1
Estimated contract price

In the case of any contract with an estimated value, including all renewal or other options and
taxes, is $100,000 or more, the person responsible for the project must produce, prior to the
opening of the bids, and if need be, at the contracts conclusion, a written realistic and reasonable
estimate of the contracts cost. He must date, sign and add this estimate to the file.
5.2
Bidders obligations
5.2.1
declaration stating that neither he nor any of his representatives or third party mandated by him
has attempted to contact Town representatives or members of the selection committee, when
applicable, for the purpose of influencing their choice, judgment, appreciation, recommendation
relating to the contract, or with members of the Council to influence their decision.
5.2.2
for establishing prices, to the decision to submit or not submit a proposal or to present a proposal
that does not comply, directly or indirectly, with specifications contained in the call for tenders.
5.2.3
Default/Violation
proposal.
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June 2011
SECTION 6: Regulations Specific to Calls for Tenders Using a

Bid Weighting and Evaluating System
6.1
Selection committee
Members of a selection committee are appointed in compliance with regulations established in
the Bylaw delegating to some municipal officers the power to authorize expenses, approve a
contract, and form selection committees.
In order to avoid any form of intimidation, influence peddling or corruption, the identity of
members of a selection committee must be kept confidential.
6.2
Access to documents Disclosure of information

Bidders whose proposals are evaluated by a selection committee cannot, at any time, have access
to the notes of members of the selection committee or other notes, whether they refer to their
proposal or that of competitors.
Only the following information can be disclosed to bidders:
Final score attributed to their proposal
Their ranking
Interim score attributed to their proposal, should it fail to reach 70.
6.3
Estimated contract price

In the case of any contract with an estimated value, including all renewal or other options
and taxes, of $100,000 or more, the person responsible for the project must produce, prior
to the opening of the bids, and if need be, at the contracts conclusion, a written realistic
and reasonable estimate of the contracts cost. He must date, sign and add this estimate to
the file.
6.4
Bidders obligations
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June 2011
6.4.1
declaration stating that neither he nor any of his representatives or third party mandated
by him has attempted to contact Town representatives or members of the selection
committee, when applicable, for the purpose of influencing their choice, judgment,
appreciation, recommendation relating to the contract, or with members of the Council to
influence their decision.
6.4.2
for establishing prices, to the decision to submit or not submit a proposal or to present a proposal
that does not comply, directly or indirectly, with specifications contained in the call for tenders.
6.4.3
Default/Violation
proposal.
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June 2011
SECTION 7: Coming Into Force

7.1
Coming into force

This policy goes into effect upon adoption by the Council.
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June 2011

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Contract Management Policy

December 2010 (modified June, 2011)

SECTION 1: Objectives, Definitions and Field of Application

Ensure that no bidders or bidders representatives have communicated or attempted to

Foster respect for applicable laws intended to fight bid rigging.

Prevent intimidation, influence peddling or corruption.

Avoid conflicts of interest.

Provide a framework for any decision authorizing the modification of a contract.

Treat every supplier fairly

Ensure transparency in the processing of contract files

Avoid conflicts of interest or situations that could provide personal benefits

Apply this policy in the best interests of the Town.

the development, introduction, amendment or defeat of any legislative or regulatory

the implementation of a call for tenders procedure, its development or cancellation

the awarding of a contract.

Definition of Public Office Holder

SECTION 3: Provisions Common to All Contracts

help municipal departments evaluate their needs

help municipal departments prepare recommendations to members of the Council regarding

Legal Department Town Clerk

draft administrative specifications

publish the required call for tenders notices