Explanations regarding the proposed changes to the contract management policy
Previously, the Law set three levels of contract amounts corresponding to different solicitation methods:
- For expenses (including net taxes) of up to $24,999, contracts were by mutual agreement, that is to say that the municipality was not required to have several bidders;
- For expenses (including net taxes) $25,000 to $105,699, requests for tenders had to be sent to at least 2 suppliers and calls for tenders were therefore “by invitation”;
- For expenses (including net taxes) over $105,700, the tender had to be public, that is, published on the government site SEAO where any supplier can offer their services.
With the regulatory amendment proposed by the Town, the municipality could choose to enter into contracts by mutual agreement for net expenses of up to $100,000. For information, this new threshold is the same as that applied in the towns of Cowansville, Farnham, Bromont, Lac-Brome, Bolton-Ouest or Sainte-Sabine.
In the context of contracts by mutual agreement over $25,000, it should be noted that the Town must first establish a list of potential suppliers who will be chosen based on certain priority criteria, including local or regional affiliation, quality, environmental services, technology or expertise. The Town will also have to establish a rotation in the awarding of contracts so as not to favor a single supplier when the situation lends itself. It must also justify the cases where the rotation could not be applied (for example, for reasons of required equipment, availability, expertise or others).
Thus, the new rules, once adopted by the council, would be as follows:
- For expenses (including net taxes) up to $24,999: contracts by mutual agreement;
- For expenses (including net taxes) of $25,000 to $100,000: contracts by mutual agreement with rotation system;
- For expenses (including net taxes) of $100,001 to $105,699: “by invitation” call for tenders;
- For expenses (including net taxes) over $105,700: public call for tenders.
This new regulation should be adopted at the next council meeting on November 2, 2020.