Report to/Rapport au :

 

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

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2012-CMR-FIN-0017

 

SUBJECT:

DELEGATION OF AUTHORITY – CONTRACTS AWARDED FOR THE PERIOD OCTOBER 1, 2011 TO DECEMBER 31, 2011

 

 

OBJET :

DÉLÉGATION DE POUVOIR – CONTRATS ACCORDÉS POUR LA PÉRIODE DU 1er OCTOBRE AU 31 DÉCEMBRE 2011

 

 

REPORT RECOMMENDATION

That the Finance and Economic Development Committee and Council receive this report for information.

 

 

RECOMMANDATION DU RAPPORT

Que le Comité des finances et du développement économique et le Conseil municipal prennent connaissance du présent rapport.

 

 

BACKGROUND

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.

 

DISCUSSION

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
Services

Workload
related "W"

Specialized
expertise "E"

Independent third party oversight "I"

Regulatory
Requirement "R"

Proprietary
Service "P"

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.

 

Highlights and Summary of Q4 Purchasing 2011

 

Purchases Breakdown

 

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

Contract Value

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

227

$24,953,775.07

Consulting Services

7

$413,453.66

Total

234

$25,367,228.73

 

 

RURAL IMPLICATIONS

There are no rural implications.

 

 

CONSULTATION

The preparation of this report is required by the Purchasing By-law and as such no public consultation is required.

 

 

COMMENTS BY WARD COUNCILLOR(S)

There are no comments by ward councillors required with this report.

 

 

LEGAL IMPLICATIONS

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.

 

 

RISK MANAGEMENT IMPLICATIONS

There are no risk management implications.

 

 

FINANCIAL 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.

 

 

ACCESSIBILITY IMPACTS

There are no accessibility implications to receiving this report.

 

 

ENVIRONMENTAL IMPLICATIONS

There are no environmental implications to this information report.

 

 

TECHNOLOGY IMPLICATIONS

There are no technology implications to this information report.

 

 

TERM OF COUNCIL PRIORITIES

There is no term of council priorities associated with this report.

 

 

SUPPORTING DOCUMENTATION

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)

 

 

DISPOSITION

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