6. DELEGATION
OF AUTHORITY – CONTRACTS AWARDED FOR THE PERIOD JULY 1 TO SEPTEMBER 30, 2009, AND LEGAL
OUTSOURCING COSTS
DÉLÉGATION
DE POUVOIR – CONTRATS ACCORDÉS POUR LA PÉRIODE DU 1er JUILLET AU 30 SEPTEMBRE 2009 ET FRAIS LÉGAUX D’IMPARTITION
COMMITTEE RECOMMENDATION
That Council receive
this report for information.
Recommandation DU Comité
Que le Conseil
municipal prennent connaissance du présent rapport.
Documentation
1. Corporate Services and Economic Development Committee report dated 16 November 2009 (ACS2009-CMR-FIN-0056)
Report to/Rapport au :
Corporate Services and Economic
Development Committee
Comité des services organisationnels et du
développement économique
and Council / et au Conseil
16 November 2009 / le 16 novembre 2009
Submitted by/Soumis par: Marian Simulik, City
Treasurer/Trésorière municipale
Contact/Personne-ressource: Jeff Byrne, Manager, Supply /
Gestionnaire, Approvisionnement
(613) 580-2424 ext./ poste 25175; Jeff.Byrne@ottawa.ca
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.
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.
includes details about the Legal Outsourcing Costs.
Document 1
The
contracts approved for the period of July 1 to September 30, 2009 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 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.
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”.
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 |
10 |
$216,110.75 |
10 |
- |
- |
10 |
- |
- |
- |
- |
|
CM |
72 |
$15,095,217.37 |
26 |
4 |
- |
22 |
1 |
- |
- |
7 |
|
CO |
358 |
$36,729,131.77 |
98 |
16 |
- |
96 |
2 |
- |
- |
16 |
|
ISCS |
483 |
$187,067,715.10 |
175 |
11 |
- |
47 |
- |
- |
- |
139 |
|
Total |
923 |
$239,108,174.99 |
309 |
31 |
- |
175 |
3 |
- |
- |
162 |
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 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).
Supply
Branch certifies that all the contracts awarded under Delegation of Authority
for the period of July 1 to September 30, 2009, are in compliance with the
Purchasing By-law.
Since previous reports have been based on a
reporting threshold of $25,000, and this report, as well as
all subsequent reports, include contracts with a value of $10,000 or
more, statistical comparisons should be viewed within that context.
In an effort to enhance the revised reporting methodology approved by
Council 22 April 2009, and add perspective to the data, staff provided the
following overview.
Purchases > $10,000, and > $25,000
|
2009 Q3 |
Total Contracts |
% of Total
Contracts |
Total Amount |
% of Total
Amount |
|
Purchases 10K – 25K |
319 |
34.6% |
$5,254,597 |
2.2% |
|
Purchases 25K - above |
604 |
65.4% |
$233,853,578 |
97.8% |
|
Total |
923 |
100% |
$239,108,175 |
100% |
|
Type |
# of Contracts |
|
|
Fleet |
115 |
$40,245,591[1] |
|
Construction & Technical Services |
297 |
$143,165,943[2] |
|
Professional Services |
340 |
$29,571,866[3] |
|
Goods |
171 |
$26,124,775[4] |
|
Total |
923 |
$239,108,175 |
Professional and Consulting Services Contracts >
$10,000
|
2009 Q3 |
Total Contracts
|
Total Value
|
|
Professional
Services |
$28,098,883 |
|
|
Consulting Services |
31 |
$1,472,983 |
|
Total |
340 |
29,571,866 |
Document 2
Legal costs paid for the third Quarter 2009 are listed in Document 2.
Although the City Clerk and Solicitor is required by the Purchasing By-law to identify those law firms in receipt of an annual cumulative total of $100K or more, in an effort to be completely transparent the Department has identified all of the law firms providing external legal services to the City during the first three Quarters of 2009, 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. Also included in this report 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, but rather, are paid from the North-South Light Rail budget within the Infrastructure Services and Community Sustainability Department.
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.
There are no adverse legal or risk management implications as the information is required to be disclosed pursuant to the Purchasing by-law.
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.
Document 1 - List of Contracts with a value of $10k or more, awarded under delegated authority for the period July 1 to September 30, 2009 (Previously distributed and held on file).
Document 2 - Expenditures for outsourcing legal services
in the first, second and third quarters of 2009 (Previously distributed and held on file).
Report forwarded for information pursuant to the Purchasing By-law.
[1] Includes the provision of ambulatory and non-ambulatory taxi services for Para Transpo clients - $5.84 M
[2] Includes:
· Road Widening on Earl Armstrong Road, (River Road to Limebank Road) - $35.05 M
· Strandherd Drive Extension, (Crestway Drive to Prince of Wales Drive) - $14.90 M
· Southwest Transitway Extension, (Stage 1 – Berrigan Drive to Oriska Way) - $13.08 M
[3] Includes:
· Engineering Services - $16.38 M
[4] Includes the supply and installation of 1,200 mobile radio systems within Transit’s vehicle fleet - $11.42 M