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?

References

Local Government Act Website,www.qp.gov.bc.ca/statreg/stat/L/96323_00.htm

Community Charter Website,

http://www.legis.gov.bc.ca/37th4th/3rd_read/gov14-3-toc.htm

City of Nanaimo Website, http://www.city.nanaimo.bc.ca/index.asp