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Municipal Government Purchasing Behaviors?
How would you approach Municipal Government to sell your services/products?
Agenda -Today’s Discussion
1. Municipal Government - Definitions 1. Municipal Government - Definitions
2. How Do I Get The Idea to Purchase? 2. How Do I Get The Idea to Purchase?
3. How Do I Make Purchase Decisions? 3. How Do I Make Purchase Decisions?
4. Pre/Post Purchase & Future Contracts 4. Pre/Post Purchase & Future Contracts
Municipal Government – who are they and where do they get their powers?
A municipality is a corporation of the
residents of its area.
The governing body of a municipality
is its Council.
Municipal Government?
Municipal Government Provides:
Good government of its community.
Services, laws and other matters
for community benefit.
Stewardship of public assets.
Economic, social & environmental well-being.
Purpose of Municipalities?
Municipal Government Powers:
A municipality may provide any service that
the council considers necessary or desirable,
and may do this directly or through another
public authority, person or organization.
Powers of Municipalities?
Budget Cycle Dictates Purchase
Cycle in Municipal Government.
Budget Time Frame for Municipalities
is dictated by Provincial Regulations
Local Government Act Community Charter
Municipal Budget/Purchase Cycle
Budget (Financial Plan) adopted: By Council as of May 15 (Legislated) Preferred Practice – end of December/January
Financial Plan sets out the following: Proposed expenditures by the municipality Proposed funding sources
Financial Plan -Time Frame
Budget Cycle – Time Frame
Sept. Oct. Nov. Dec.
Council Sets Direction
Department Heads meet w/ Staff
Dept. Staff prepare $$$ estimates
Dept. Head prepares Dept. Budget
Senior Staff review Dept. Budgets
CFO prepares public budget document
Council holds public budget meetings
Council adopts Budget
Purchase Cycle Begins
Purchasing Cycle
Step1
Step 2
Step 3
Step 4
Budget Adopted Jan.
Staff Prepare Bids
•Quotations• RFQ• RFP•Tenders
Bids Reviewed By Assigned Staff
Expenditure is w/in Budget Operational
/Capital
Note: ***Purchases Req. Council
Sr. Staff prepares report for Council
Staff prepares purchase
agreement
• PO’s• Purchase Card• Multi-Year
Idea to Purchase?
Language
Life-CyclePlan Conferences
Promotions
Colleagues Experiences
Staff Input
Language
Department Head
Past Experienc
e
Council has the Legislated Powers to: Adopt Purchasing Policy assigning
purchasing powers to specific people.
Purchase Procedures and Practices: CFO develops Purchasing Procedure for
Operational and Capital Expenditures. Dept. Heads assign Purchase Limits for
specific employees i.e. Supervisory Level
Who Makes Purchase Decisions?
Social Factors“Power and
Politics”
Economics“Price vs.
Value”
Purchase Decisions
Personal Style“Facts vs. Intuition”
Cognitive Decision Processes
Purchase Bidding Methods
• Purchasing Policy Guidelines
dictate the bidding method used.
Quotations (Verbal and Written)Request for Quotations (RFQ)Request for Qualifications (RFQ)Request for Proposals (RFP)Call for Tenders
Purchase Policy Guidelines
•Materials•Equip.
Who?
Low Bid
Who?
++ ValueQuotation or Tender?
Adv. Req.
Up to $5000
Assigned Staff
Purchase Agent
3 Verbal
Quotes
Variable
5,001 - 25,000
Assigned Staff
CFO
Dept. Dir.
3 Written Quotes
Variable
25,001-100,000
Assigned Staff
CFO
Dept. Dir.
Public Tender
Locally
100,001-250,000
Deputy City Mng.
Deputy City Mng.
Public Tender
Canada-Wide
over 250,000
Council Council Public Tender
Canada-Wide
Purchase Policy Guidelines
Consulting Services (not Engineering)
Who?
Levels of ApprovalNo. of Proposals
Required
Up to $5000Purchase Agent Dept. Director
Pre-Qualified
Next Consultant
$5,001 - $20,000Purchase Agent Dept. Director
Pre-Qualified
3 Consultants
$20,001- $50,000CFO
Dept. Director
Public Call Proposals
$50,001-100,000General Manager Corporate Service
Public Call Proposals
over $100,000 Council Public Call Proposals
Post Purchase/Future Contracts
• Post Purchase Agreements and Future Contracts must align w/ Purchasing Policy
Terms of Reference must outline all commitments for future contracts.
Emergencies allow Sr. Managers to
make purchases based on past history.
Awards of Services/Contracts can be challenged by bidders not chosen.
Municipal Government Purchasing Behaviors?
How would you approach Municipal Government to sell your services/products?