Bruderheim town council were given a full briefing on the laws of public procurement before officially authorizing the tender of the ice plant to proceed during its Jan. 4 meeting.

Donna Tilley, an official with Strathcona County, went through all the ins and outs of the laws of tending, procurement policy and manual, trade agreements, spending thresholds and buying local during her 45 minute public presentation.

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Tilley explained that an open formal bidding process, whether it’s a private or public organization, must be open to all qualifying bidders, and is subject to the laws of tendering. In this case the municipality has a duty to be fair, obligated to the process and be defensible in words and actions.

She also pointed out that the laws of tendering came about from legal court challenges between a water resources commission and engineering firm in Ontario in 1981.

Tilley explained that the town could have a third party oversee the procurement process, but that would be outside of the laws of tendering process. That way, for example if there were any deficiences in the work, the tender would be obligated to clear all of them up.

“We usually hold back 10 per cent until we know the subtrades have been paid.”

Councillor George Campbell recommended that stipulation be included in the tender document. He also suggested the manufacturer of the product and its installers be held into account. Tilley said that could be done through the signing of a performance bond.

Tilley also noted that the company that manufactures the equipment has to guarantee the equipment they install.

All trade agreements are governed by the New West Partnership Trade Agreement, the Agreement on International Trade, and the Comprehensive European Trade Agreement.

These trade agreements also have threshold limits on goods or services and construction. Mayor Karl Hauch asked if the spend thresholds could be adjusted, and was told they could when they get quotes in writing.

For example, Strathcona County considers going public for purchases with an aggregate value of $50,000. That aggregate value is defined by determining the timeframe in which the goods or service are required.

Tilley also provided a guideline for council to get three written quotes on projects between $25,000 and $49,999; to make best efforts for three quotes between $10,000 and $24,999 projects; and through direct source with approval of the director if the project is under $10,000.

She urged council to define what buying local is in the tendering document, and if the spend falls within the thresholds of the trade agreements, and the spend is not considered an exemption, then the bid goes public.

Read more in the latest edition of the Lamont Leader – available on newsstands and FREE online!