|
1. DELEGATION OF AUTHORITY – CONTRACTS AWARDED FOR THE PERIOD JULY 1, 2011 TO SEPTEMBER 30, 2011
DÉLÉGATION DE POUVOIR –
CONTRATS ACCORDÉS POUR LA PÉRIODE DU 1er JUILLET AU 30 SEPTEMBRE
2011 |
COMMITTEE RECOMMENDATIONS AS AMENDED
2. Approve the direction to staff to return to the standard practice of issuing the Delegation of Authority reports with the Finance and Economic Development Committee Agenda (one week in advance of Committee review) to be received and considered at the meeting for which the Agenda was issued before being forwarded to Council for its information.
RECOMMANDATIONS MODIFIÉES DU COMITÉ
Que le Conseil municipal :
1.
prenne
connaissance du présent rapport; et
2. approuve la directive au personnel de reprendre
la pratique normale, qui consiste à présenter les rapports concernant les
pouvoirs délégués en même temps que l’ordre du jour du Comité des finances et
du développement économique (une semaine avant la réunion) et à les examiner
lors de cette même réunion, puis à les transmettre au Conseil à titre informatif.
DOCUMENTATION
1. City Treasurer’s report dated 7 February 2012 (ACS2012-CMR-FIN-0003).
2. Extract of Finance and Economic Development Committee Minutes dated 6
March 2012.
Finance and Economic Development Committee
Comité des finances et du développement
économique
and Council / et au Conseil
7 February 2012 / le 7 février 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-0003 |
That the Finance and Economic Development Committee table this report to be received and discussed at the next scheduled meeting of FEDCO, and then forwarded to Council for information.
Que le Comité des finances et du développement
économique dépose le présent rapport qui sera discuté à la prochaine réunion
prévue du CFDÉ, 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.
Document 1
The contracts approved for the period of July 1, 2011 to September 30, 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 |
4 |
$257,660.64 |
4 |
- |
- |
4 |
- |
- |
- |
- |
|
CM |
48 |
$3,067,111.08 |
31 |
- |
- |
17 |
- |
- |
- |
14 |
|
CO[1] |
414 |
$92,687,035.15 |
105 |
1 |
- |
88 |
- |
- |
- |
18 |
|
ISCS[2] |
467 |
$227,346,593.03 |
184 |
3 |
- |
35 |
1 |
- |
1 |
150 |
|
Total |
933 |
$323,358,399.90 |
324 |
4 |
- |
144 |
1 |
- |
1 |
182 |
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.
22(7) Any non-competitive contract that does not satisfy the provisions of Subsection 22(1) is subject to the City Manager’s approval.
Document 1 identifies all non-competitive purchases as well as references the appropriate subsection 22(1) and 22(7).
The Supply Branch certifies that all the contracts awarded under Delegation of Authority for the period of July 1, 2011 to September 30, 2011, are in compliance with the Purchasing By-law.
|
2011 Q3 |
Total Contracts |
% of Total Contracts |
Total Amount |
% of Total Amount |
|
$10K - $25K |
314 |
33.7% |
$5,044,757.36 |
1.6% |
|
$25K - $50K |
204 |
21.9% |
$7,368,873.28 |
2.3% |
|
$50K - $100K |
144 |
15.4% |
$9,896,268.73 |
3.0% |
|
≥$100K |
271 |
29.0% |
$301,048,500.53 |
93.1% |
|
Total |
933 |
100% |
$323,358,399.90 |
100% |
2011 Q3 Purchases by Type
|
Type |
# of Contracts |
|
|
Goods, Fleet & Equipment[3] |
160 |
$67,302,582.16 |
|
Construction[4] |
270 |
$211,334,359.00 |
|
Professional & Technical Services[5] |
349 |
$32,028,376.59 |
|
IT & Special Projects[6] |
154 |
$12,693,082.15 |
|
Total |
933 |
$323,358,399.90 |
Professional and Consulting Services Contracts > $10,000
|
2011 Q3 |
Total Contracts
|
Total Value
|
|
Professional Services |
$28,453,457.18 |
|
|
Consulting Services |
4 |
$358,754.88 |
|
Total |
328 |
$28,812,212.06 |
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.
N/A
There are no legal impediments to implementing the recommendation in this report as the information is required to be disclosed pursuant to the Purchasing By-law.
N/A
N/A
N/A
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, 2011 to September 30, 2011 (issued separately and held on file with the City Clerk)
Report forwarded for information pursuant to the Purchasing By-law.
DELEGATION OF AUTHORITY – CONTRACTS AWARDED FOR THE PERIOD JULY 1, 2011 TO SEPTEMBER 30, 2011
DÉLÉGATION DE POUVOIR – CONTRATS
ACCORDÉS POUR LA PÉRIODE DU 1er JUILLET AU 30 SEPTEMBRE 2011
ACS2012-CMR-FIN-0003
city-wide / À l’Échelle de la ville
REPORT RECOMMENDATION
That the Finance and Economic Development Committee and Council receive this report for information.
Jeff Byrne, Chief Procurement Officer, responded to questions from Councillor Egli and Mayor Watson with respect to contracts listed at pages 10, 23 and 24 of the report. Following these exchanges, the report was RECEIVED as presented.
Committee then considered the following direction to staff.
MOTION FED 18/01
Moved by Councillor K. Egli
WHEREAS the Purchasing By-law requires the Supply Branch to report to Council on a quarterly basis with such reports to:
1. Contain information on contracts exceeding $10,000 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; and
WHEREAS, until mid-2007, those quarterly reports were issued with the Standing Committee Agenda (one week in advance of Committee review) and considered at that same meeting before being forwarded to Council for its information; and
WHEREAS, in July 2007, the then-Corporate Services and Economic Development Committee directed staff to amend the standard process so that these reports would be “tabled” at one Standing Committee meeting to be received by the Committee at its subsequent meeting (generally two weeks later) before being forwarded to Council for its information; and
WHEREAS the purpose of the revised process was to allow Members of Council additional time to review the report and forward any questions to staff for a response prior to Standing Committee considering the report; and
WHEREAS subsequently, staff has improved the content and the level of details provided in these reports, resulting in few instances where Members of Council have used the additional time to forward questions to staff with respect to these quarterly reports; and
WHERAS Committee always has the option of deferring consideration of an individual item if it feels it needs more time;
THEREFORE BE IT RESOLVED THAT the Committee direct staff to return to the standard practice of issuing the Delegation of Authority reports with the Finance and Economic Development Committee Agenda (one week in advance of Committee review) to be received and considered at the meeting for which the Agenda was issued before being forwarded to Council for its information.
CARRIED
[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:
· Five year agreement for the supply of Municipal Fleet parts and an inventory management program - $40.4M
· Supply and delivery of Coarse Crushed Rock Salt - $10.1M
[4]Includes:
· Hunt Club Road extension Phase 1, Part B - $37.7M
· Construction of Kanata North Recreation Complex - $33.9M
[5] Includes:
· Tree Pruning Services City-Wide - $2.5M
[6] Includes:
· Phase 1 of the Enterprise Asset Management Project - $1.1M