Municipal Government Purchasing Behaviors? How would you approach Municipal Government to sell your services/products?

Agenda -Today’s Discussion 1. Municipal Government - Definitions 2. How Do I Get The Idea to Purchase? 3. How Do I Make Purchase Decisions? 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 Step 1 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-Cycle Plan Conferences Promotions Colleagues Experiences Staff Input Language Department Head Past Experience

 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? ++ Value Quotation or Tender? Adv. Req. Up to $5000 Assigned Staff Purchase Agent 3 Verbal Quotes Variable 5, ,000 Assigned Staff CFO Dept. Dir. 3 Written Quotes Variable 25, ,000 Assigned Staff CFO Dept. Dir. Public Tender Locally 100, ,000 Deputy City Mng. Public Tender Canada- Wide over 250,000 Council Public Tender Canada- Wide

Purchase Policy Guidelines Consulting Services (not Engineering) Who? Levels of Approval No. of Proposals Required Up to $5000 Purchase Agent Dept. Director Pre-Qualified Next Consultant $5,001 - $20,000 Purchase Agent Dept. Director Pre-Qualified 3 Consultants $20,001- $50,000 CFO Dept. Director Public Call Proposals $50, ,000 General 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,  Community Charter Website,  City of Nanaimo Website,