Finance and Economic Development Committee
Comité des finances et du développement économique
and Council / et au Conseil
24 April 2012
/ le 24 avril 2012
Submitted by/Soumis par :
Marian Simulik, City Treasurer/Trésorière municipale
Contact Person/Personne ressource : Jeff Byrne,
Chief Procurement Officer, Supply / Agent principal des achats,
Approvisionnement
Finance Department/Service des finances
613-580-2424 ext./ poste
25175, Jeff.Byrne@ottawa.ca
|
Ref N°: ACS2012-CMR-FIN-0017 |
That the Finance and Economic
Development Committee and Council receive this report for information.
Que le Comité
des finances et du développement économique et le Conseil municipal prennent connaissance
du présent rapport.
The Purchasing By-law requires
the Supply Branch to report to Council on a quarterly basis. Each quarterly report:
1. contains information
on contracts exceeding $10,000 awarded under delegated authority.
2. identifies all contracts categorized as:
(a) Consulting Services
(b) Professional Services
(c) Follow-on Contracts
(d) Amendments
3.
identifies the reason for outsourcing in accordance with the definitions discussed
below.
Document 1
The
contracts approved for the period of October 1, 2011 to December 31, 2011, are
listed in Document 1.
Where
appropriate, staff used the following definitions as outlined in the Purchasing
By-law to identify the contract category, the outsourcing reason and the
non-competitive exception.
Professional Services
Professional
Services means services requiring the skills of professionals for a defined
service requirement or for a specific project related deliverable including but
not limited to the areas of engineering, architecture, design, planning,
information technology, financial auditing and fairness commissioners.
Consulting Services
Consulting
Services means assistance to management, including but not limited to the areas
of strategic analysis, organizational design, change management, policy
development, feasibility studies and other services intended to assist decision
making within the organization.
Amendment
An amendment is an increase in the scope of an
approved contract, which is unanticipated.
Those amendments that are both greater than $50,000 and 50% of the
original contract will be identified in the quarterly report.
Follow-on Contract & Extensions
A follow-on
contract differs from an
amendment in that the original contract or bid solicitation document recognizes
the fact that it is likely that the initial defined contract scope may be
expanded to include a number of related phases that are either included in the
tender document, or are customary in relation to the work assignment. Rates
charged for the follow-on contract are reviewed by the Supply Branch, and must
be based on those rates proposed by the service provider in the original
competitive “bid”.
An extension
to a contract is not categorized as an amendment or a follow-on contract. An extension is a contract term allowing the
City to continue purchasing the good or service for an extended period of time
where the option to extend the contract was outlined in the bid document, or is
deemed to be in the best interest of the City.
Reason for Outsourcing the Work
The reason Consulting and Professional Service contracts are let is
identified as follows:
(a) workload related or lack of internal resources by a “W”;
(b) need for specialized expertise by an “E”;
(c) need for independent third party oversight by an “I”;
(d) regulatory requirement by an “R”;
(e) proprietary service or unique market position by a “P”; and
(f) business model required outsourcing by an “O”.
The
following table summarizes the total number and value of the contracts as well
as the different categories under which the applicable contracts fall.
|
|
Total # of
Contracts |
Total $ Value |
# Prof. Services |
# Consulting |
Workload |
Specialized |
Independent third party oversight
"I" |
Regulatory |
Proprietary |
Business model outsourcing "O" |
|
AG |
3 |
$57,328.39 |
3 |
- |
- |
3 |
- |
- |
- |
- |
|
CM |
51 |
$11,965,629.55 |
16 |
1 |
- |
10 |
- |
- |
- |
7 |
|
CO[1] |
453 |
$62,505,938.49 |
89 |
5 |
- |
74 |
- |
- |
1 |
19 |
|
ISCS[2] |
368 |
$93,423,631.11 |
119 |
1 |
- |
24 |
- |
- |
1 |
95 |
|
Total |
875 |
$167,952,527.54 |
227 |
7 |
- |
111 |
- |
- |
2 |
121 |
Non-Competitive
Purchases
22(1) The
requirement for competitive bid solicitation for goods, services and
construction may be waived under joint authority of the appropriate
Director/General Manager and the Supply Branch and replaced with negotiations
under the following circumstances:
a.
where competition is precluded due to the
application of any Act or legislation or because of the existence of patent
rights, copyrights, technical secrets or controls of raw material,
b.
where due to abnormal market conditions, the
goods, services or construction required are in short supply,
c.
where only one source of supply would be
acceptable and cost effective,
d.
where there is an absence of competition for
technical or other reasons and the goods, services or construction can only be
supplied by a particular supplier and no alternative exists,
e.
where the nature of the requirement is such
that it would not be in the public interest to solicit competitive bids as in
the case of security or confidentiality matters,
f.
where in the event of a "Special
Circumstance" as defined by this By-law, a requirement exists,
g.
where the possibility of a follow-on contract
was identified in the original bid solicitation,
h.
where the total estimated project cost for
professional services does not exceed $50,000, or
i.
where the requirement is for a utility for which there
exists a monopoly.
Document 1 identifies all
non-competitive purchases as well as references the appropriate subsection
22(1).
The Supply Branch certifies that all
the contracts awarded under Delegation of Authority for the period of October 1,
2011 to December 31, 2011, are in compliance with the Purchasing By-law.
|
2011 Q4 |
Total
Contracts |
% of Total
Contracts |
Total
Amount |
% of Total
Amount |
|
$10K
- $25K |
288 |
32.9% |
$4,648,999.19 |
2.8% |
|
$25K
- $50K |
198 |
22.6% |
$6,874,831.15 |
4.1% |
|
$50K
- $100K |
150 |
17.2% |
$10,720,713.63 |
6.4% |
|
≥$100K |
239 |
27.3% |
$145,707,983.57 |
86.7% |
|
Total |
875 |
100.0% |
$167,952,527.54 |
100.0% |
2011 Q4
Purchases by Type
|
Type |
# of Contracts |
|
|
Goods,
Fleet & Equipment[3] |
162 |
$35,700,299.42 |
|
Construction[4] |
210 |
$40,241,910.27 |
|
Professional
& Technical Services[5] |
339 |
$66,105,697.74 |
|
IT
& Special Projects[6] |
164 |
$25,904,620.11 |
|
Total |
875 |
$167,952,527.54 |
Professional
and Consulting Services Contracts > $10,000
|
2011 Q4 |
Total Contracts
|
Total Value
|
|
Professional Services |
$24,953,775.07 |
|
|
Consulting
Services |
7 |
$413,453.66 |
|
Total |
234 |
$25,367,228.73 |
There are no
rural implications.
The
preparation of this report is required by the Purchasing By-law and as such no public consultation is required.
There
are no comments by ward councillors required with this report.
There are no
legal impediments to receiving the information contained in this report, as
By-law No. 50 of 2000, as amended, being the Purchasing By-law, requires reporting to Council on a quarterly
basis.
There are no risk
management implications.
Prior to a contract approval,
Supply Branch staff confirms that the appropriate funds are available in the
budget, based on receipt of a funded requisition in SAP. The availability of funds is a condition of
approval under the Purchasing By-Law.
There are no
accessibility implications to receiving this report.
There are no
environmental implications to this information report.
There are no
technology implications to this information report.
There is no term of
council priorities associated with this report.
Document 1 - List of Contracts with a value of $10K or
more, awarded under delegated authority for the period October 1, 2011 to December
31, 2011 (Issued separately to all Members of Council and held on file with
the City Clerk)
Report forwarded for information pursuant to
the Purchasing By-law.
[1] Excludes purchases made by the Ottawa Public Health Department. These are now reported to the Board of Health on a quarterly basis.
[2] Excludes purchases made by the Transit Services Department. These are now reported to the Transit Commission on a quarterly basis.
[3] Includes:
· Purchase of Twenty-two (22) Dual Stream Rear Compaction Curbside Waste Collection Trucks - $6.3M
[4]Includes:
· Baseline Station Transitway Tunnel, College Avenue Overpass and Navaho Drive Overpass - $4.5 M
[5] Includes:
· Curbside residential solid waste collection in Zones C1, C2, C4 and C5 - $28.2 M
[6] Includes:
· Printing Services - General Printing and Supporting Services (4 year estimate) - $4.8 M