3.12 Procurement Practices

To establish policies for the procurement of necessary goods and services on a competitive basis at the lowest cost consistent with the quality, appropriateness, and service required by the Thunder Bay Public Library.

All TBPL employees and the TBPL Board.

Purchasing Principles and Goals 

All goods and services required by the Library will be purchased in accordance with the following principles:

1. That the goods and services acquired meet the quality, quantity and appropriateness necessary for the Library's operations and be obtained in an efficient and cost effective manner to enable the Library to fulfill its mission.
2. That the Library receives the best value for its purchasing dollar.
3. That the Library acknowledges that it operates within the local and national business communities.
4. That the necessary goods and services are procured with due regard to the natural environment, encouraging vendors to supply goods made by a method resulting in the least damage to the environment and incorporating recycled materials where practicable.
5. Purchasing policies shall be applied fairly and equally to all bidders.
6. Purchasing policies shall be applied objectively by purchasers.
7. Purchasing policies shall be reviewed by the Finance and Audit Committee of the Thunder Bay Public Library Board every four years to ensure that purchasing goals are being applied.
8. Conflict of interest shall be declared by any Board member or staff member who has private interest in conflict with the public interest.
9. When relevant, proprietary information is to be handled confidentially and the bids maintained in accordance with provisions of the Municipal Freedom of Information and Protection of Privacy Act.
10. Board members and staff involved in procurement processes shall not accept gifts from suppliers or potential suppliers.
11. The Thunder Bay Public Library shall be under no obligation to accept the lowest bid or any bid received in response to a verbal or written request.
12. The CEO may remove a vendor’s name from consideration for contracts under this policy on the basis of poor performance or non-performance on a Thunder Bay Public Library contract.

CEO

The CEO

1. Shall exercise general supervision and control over the procurement of goods and services within the approved limits and policies established by the Board.
2. Is hereby authorized to make an issue on administrative procedures as are required to implement the policy contained in this document.
3. May direct and/or assign negotiations for the purpose of co-operative consortium buying procedures with other municipal bodies and agencies as may be deemed advantageous to the Board.
4. May delegate as appropriate to any other person or persons any part or parts of the duties set out in this policy.
5. Shall bring any purchase of single item or service with a value in excess of $40,000 to the Library Board for prior approval before finalizing the purchase.

Purchasing Conditions

The following terms and conditions shall apply to the procurement of goods and services for the Thunder Bay Public Library:

1. All purchases shall be in accordance with approved budgets and estimates except in emergency situations where Board approval will be sought
2. Goods and services may be ordered from such suppliers and upon such terms and conditions, according to established criteria, subject to the following conditions:

• on individual purchases up to $5,999.99 in accordance with established principles
• on purchases of $6,000.00 or more but not exceeding $34,999.99 after inviting three written quotations from qualified suppliers
• on purchases of $35,000.00 or more, after having publicly obtained three written quotations
• all single purchases of $40,000.00 or more require the approval of the Board
• goods and services procurement with estimated value of $100,000 shall be in compliance with the Agreement on the Opening of Public Procurement for Ontario and Quebec and the Agreement on Internal Trade
• construction procurement with an estimated value of $100,000 or more shall be in compliance with the Agreement on the Opening of Public Procurement for Ontario and Quebec Internal Trade
• construction procurement with an estimated value of $250,000 or more shall be in compliance with the MASH (Municipal Organizations, School Boards, and Publicly-funded Academic, Health and Social Service Entities) to the Agreement on Internal Trade

1. The requirements for inviting tenders and quotations set out in Section 2 above may be waived by the CEO  or designate under the following circumstances:

• due to market conditions, goods or services are in short supply
• due to library-specific requirements, there is only one source of supply for goods or services
• due to an emergency situation, goods and services must be procured immediately, to rectify the situation

All such occurrences shall be fully documented.

4. All purchase orders, supply agreements, and contracts shall show firm unit price.

5. Bids with escalation clauses will not be accepted except under the following conditions:

• where a specific form of escalation is defined by the Thunder Bay Public Library in the tender documents, or
• where the trade practices have resulted in a standardized pattern of escalation.

Standing Purchase Orders and Review

Where the ongoing regular supply of goods and services from a single source are deemed necessary, a Standing Purchase Order may be issued in accordance with the "Purchasing Principles & Goals". Where Standing Purchase Orders are in effect, they shall be reviewed every five years, to ensure compliance with the "Purchasing Principles & Goals". This review will include a survey of the marketplace, to ensure that the Library is receiving the best value.

Library Materials

The acquisition of "Library Materials" is recognized as a vital and specialized activity which, by its inherent nature, requires the establishment of a relationship with vendors and suppliers and agencies on an ongoing basis similar to a Standing Purchase Order basis. A contract/agreement outlining the terms to be adhered to both parties will be obtained when purchase from one vendor exceeds 15% of the Library Collections budget, unless the agreement is part of a consortium arrangement. Such arrangements shall be reviewed every three years.  This review will include a survey of the marketplace, to ensure that the Library is receiving the best value.

Specifications

• The Purchaser whose budget provides for the acquisition of goods or services  shall be responsible, in consultation with the CEO, and Director of  Resources,  for the preparation and approval of all specifications to be used for the acquisition of such goods or services.
• Wherever practicable, the acquisition method utilized shall provide for consideration of alternatives to approved specifications provided that all potential bidders shall be notified that minor amendments to approved specifications may be made without further notice.

Forms of Commitment

1. Expenditures of $3,000.00 or less may be authorized by a Librarian or Manager and may be made without the involvement of the Accounting Department in accordance with the policies and procedures prescribed in this Policy.
2. Except as otherwise directed by the Board, expenditures of over $3,000.00 shall be made by the CEO, Head Librarian or Director of Resources or designate, by Purchase Order, provided that the appropriate Purchasing Conditions have been followed to select the vendor(s).
3. Except as otherwise directed by the Board, all expenditures in excess of $40,000.00 for a single item shall be approved by the Board, and executed on behalf of the Library by theCEO or designate.

Purchase Orders and Contracts:

1. Purchase Orders

The purchase order issued by the Board shall be considered a legal and binding document. Where the order is based on a written quotation or tender, such quotation or tender will form part of the order.

2. Contract

1. A formal contract shall be required for tendered purchases, and may be required for other purchases and comply with the "Standard Terms and Conditions of Tenders, Contracts and Proposals".
2. Where applicable, the "Contractor Safety Policy" shall also form part of the contract.

Exempt Categories

Subject to the same "Purchasing Principles" enunciated above, the following goods and services are not subject to the "Purchasing Conditions," and "Purchase Orders and Contracts" sections of this document:

1.  Petty Cash Items
2. Training and Education

• Conferences
• Courses
• Conventions
• Memberships
• Seminars
• Staff Training
• Staff Development+-
• Staff Workshops
• Subscriptions

3. Refundable Employee Expenses

• Advances
• Meal Allowances
• Travel Expenses
• Miscellaneous - Non-Travel
• Hotel Accommodation

4. Employer's General Expenses

• Payroll Deduction Remittances
• Medical and Dental Expenses
• Petty Cash Replenishment
• Tax Remittances
• Employee Income
• Bank Charges and Underwriting Services where covered by Agreements

5.Professional and Special Services

• Committee Fees
• Witness Fees
• Honoraria
• Arbitrators
• Appraisers
• Legal Settlements

6.Utilities

• Postage
• Water Charges
• Hydro
• Gas
• Telephone Service Charges