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2. DELEGATION OF AUTHORITY
– CONTRACTS AWARDED FOR THE PERIOD JULY 1 TO SEPTEMBER 30, 2008, AND LEGAL
OUTSOURCING COSTS DÉLÉGATION DE POUVOIR – CONTRATS ACCORDÉS POUR LA PÉRIODE DU 1er
JUILLET AU 30 SEPTEMBRE 2008, ET FRAIS LÉGAUX D’IMPARTITION |
Committee Recommendation
That Council receive this report for
information.
Recommandation du comité
Que le Conseil prenne connaissance de ce rapport à titre
d'information.
DOCUMENTATION
1. City Treasurer’s report dated 10
November 2008 (ACS2008-CMR-FIN-0048).
Report to/Rapport au:
Corporate Services and Economic Development
Committee/
Comité des services organisationels et du
développement économique
Contact/Personne-ressource :
Phil Andrews, Manager, Supply Management Division / gestionnaire par
interim, Division de la gestion de l'approvisionnement,
(613) 580-2424 ext./poste 25176; Phil.Andrews@ottawa.ca
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City-wide / À l’échelle de la ville |
Ref N° ACS2008-CMR-FIN-0048 |
SUBJECT: DELEGATION
OF AUTHORITY – CONTRACTS AWARDED FOR THE PERIOD JULY 1 TO SEPTEMBER 30, 2008,
AND LEGAL OUTSOURCING COSTS
OBJET : DÉLÉGATION
DE POUVOIR – CONTRATS ACCORDÉS POUR LA PÉRIODE DU 1er JUILLET AU 30 SEPTEMBRE
2008, ET FRAIS LÉGAUX D’IMPARTITION
REPORT RECOMMENDATION
That the Corporate Services and Economic Development Committee table this report, to be received and discussed at the next scheduled meeting of CSEDC, and then forwarded to Council for information.
Que le Comité des services organisationnels et
du développement économique dépose le présent rapport, qui sera discuté à la
prochaine réunion prévue du CSODE, puis transmis au Conseil municipal pour
information.
On 28 November 2007, City Council amended the Purchasing By-Law to include a requirement to identify professional and consulting contracts in the quarterly reports, rather than the previous format, which required that that information be reported only annually. In addition to the more timely information, Council is also provided with enhanced detail in terms of the reasons for outsourcing.
The amended Purchasing by-law provides that the quarterly report:
1. contain information on contracts exceeding $25,000 awarded under delegated authority;
2. identify all contracts categorized as:
(a) Consulting Services
(b) Professional Services
(c) Follow-on Contracts
(d) Amendments
3. identify the reason for outsourcing in accordance with the definitions discussed below.
In addition to the above, this report includes Legal Outsourcing Costs for the first to third quarters and is listed in Document 2.
DISCUSSION
Document 1
The contracts approved for the period of July 1 to September 30, 2008 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.
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
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 Supply Management Division, 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.
Reasons 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”.
Non-Competitive
Purchases
Under
subsection 22(1) and (8) of the Purchasing By-law the requirement for competitive
bid solicitation for goods, services and construction may be waived under joint
authority of the appropriate Director and Supply Management and replaced with
negotiations by the Director and Supply Management under the following
circumstances:
22(1) The requirement for competitive bid
solicitation for goods, services and construction may be waived under joint
authority of the appropriate Director and Supply Management and replaced with
negotiations by the Director and Supply Management 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,
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,
d. 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,
e. where in the event of a "Special Circumstance" as defined by this By-law, a requirement exists, or
f. where the possibility of a follow-on contract was identified in the original bid solicitation.
g. where the total estimated project cost for professional services does not exceed $50,000.
h. where the requirement is for a utility for which there exists a monopoly.
22(8) Despite any other provision of this by-law, the Director of Infrastructure Services and Supply Management may jointly award a contract for which no competitive bids were solicited provided that,
a. the contract is to complete outstanding works in approved plans of subdivision or site plans, and
b. the City holds sufficient funds as security to complete the works or the subdivision or site plan agreement contains provisions to recover the costs from the developer.
This report identifies all non-competitive purchases as well as references the appropriate subsection 22(1) and (8) exception.
Supply Management Division certifies that all the contracts awarded under Delegation of Authority for the period of July 1 to September 30, 2008, are in compliance with the Purchasing By-law.
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 |
2 |
90,565 |
2 |
|
|
|
2 |
|
|
|
|
CMO |
25 |
16,863,253 |
2 |
4 |
|
6 |
|
|
|
|
|
CO |
273 |
51,541,337 |
58 |
7 |
|
51 |
|
|
3 |
11 |
|
ISCS |
154 |
81,328,166 |
51 |
9 |
|
17 |
1 |
|
|
42 |
|
|
454 |
149,823,321 |
113 |
20 |
0 |
74 |
3 |
0 |
3 |
53 |
Document 2
Legal
costs paid for the periods from January 1 to March 31, 2008, April 1 to June
30, 2008 and July 1 to September 30, 2008 are listed in Document 2. The cumulative totals for these three
Quarters are also included in the Document.
Although
Legal Services is required by the Purchasing By-law to identify those law firms
in receipt of an annual cumulative total of $100K or more, the Branch has
identified all of the law firms providing external legal services to the
City during the first three Quarters of 2008, as well as identifying
disbursement and GST costs for that same period of time as per Sections 13(1)
and (2) of the Purchasing By-law.
Included in the Q2 and Q3 figures are the amounts paid to external law
firms with respect to litigated insured claims. These amounts represent legal fees and disbursements associated
with litigation, which are funded by the City's Self-Insurance account and
therefore, are not paid from the Legal Services' budget. Similarly, the amounts reported for external
legal services provided with respect to the Light Rail project and litigation
are not paid from the Legal Services’ budget, and, instead, are paid from the
North-South Light Rail budget within the Infrastructure Services and Community
Sustainability Department.
The Purchasing By-law requires the preparation of this report and as such no public consultation is required.
Prior to a contract approval, Supply Management Division 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 delegated authority.
Report forwarded for information pursuant to the By-law. No further action required.