253464_Procurement_GuideAug8_for_web_English.doc

When preparing the bid documents if it is unclear how

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When preparing the bid documents …if it is unclear how bids will be kept secure, then risks to the effectiveness of the process can arise. Consider adopting policies about how bids are to be kept secure, how proprietary information is to be handled and the confidentiality of bids maintained in accordance with provisions of the Municipal Freedom of Information and Protection of Privacy Act . A Guide to Developing Procurement Bylaws 35
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Risks to Effectiveness (Cont’d) Risks How to maintain integrity and protect interests When evaluating the bids …if a bid does not show total costs, including taxes, there is a risk that the evaluation of comparable bids can be invalid. Ensure a policy is in place on how bids are to be presented in terms of costs. …if a bid does not show the net present value of goods or services that are to be received at a later date, then it may be difficult to evaluate the bid against other bids where all the goods or services are to be received up front. Policies about how net present value is to be calculated need to be clearly set out. …if there are no common evaluation criteria in place that bids are usually subject to, regardless of the type of item procured, then there is a risk of missing an opportunity to advance an important corporate goal of the municipality/local board. Policies that set out common criteria for evaluation of bids, e.g., price, quality, risk, qualifications and experience, strategy, approach, methodology, scheduling, past performance, facilities and equipment. When negotiating and preparing the contract …if the contract language is not carefully reviewed, then it may have unintended legal consequences, e.g., the effect of establishing an employee-employer relationship. A policy of having the municipal solicitor view significant contracts for these types of implications can reduce this risk. …if the suppliers have unsatisfactory liability insurance coverage to indemnify the municipality/local board from any damage claims arising from the contract, then municipality/ local board may be at financial risk. A policy of requiring suppliers to provide evidence of satisfactory insurance coverage can reduce these risks. A Guide to Developing Procurement Bylaws 36
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Risks to Effectiveness (Cont’d) Risks How to maintain integrity and protect interests When negotiating and preparing the contract …if the supplier has arrears of premiums owed to or levied by the Workplace Safety and Insurance Board, then the municipality faces potential for financial risks. A policy of requiring suppliers to provide a Certificate of Clearance can mitigate this risk. …if there are no policies in place about how contracts will be terminated, then there can be risks to the overall effectiveness of the procurement process including risks of legal challenges.
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