new - merged capital procurement checklist final_ 2007-12-11

8/12/2019 NEW - MERGED Capital Procurement Checklist FINAL_ 2007-12-11

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August 2007 Ministry of Finance - Capital Procurement Checklist 1

Capital Procu rement Checklist - Overview

The Ministry of Finance has recently implemented a capital procurement checklist tosupport the Capital Asset Management Framework (CAMF) and related provincialpolicies for capital projects. The checklist is a comprehensive listing of minimumexpectations and requirements that currently exist for publicly-financed capitalconstruction project procurement undertaken by provincial public sector agencies.

The checklist is based on the principle that taxpayers are best served throughcompetitive procurement processes that are open, fair and transparent. The processshould be well-structured, objective and inclusive. Bidders will be more likely toparticipate, and there will be more competition, where the selection process is clear andwell understood, and where the risks between contractor, design authority and the publicsector owner are allocated to those best able to manage them.

The checklist is based on the lifecycle phases of typical capital constructionprocurement, from conceptual plans through business case approval, the selection andcontracting of advisors, development of tender documents, the tender process, andexecution of contracts. The checklist identifies procurement objectives, key risks, criteriaand examples of evidence that demonstrates that the criteria were met.

The checklist was developed based on the following assumptions that: individuals managing capital procurement are qualified and knowledgeable with

respect to public sector procurement processes. individuals managing capital procurements are fully aware of the contents of the

CAMF, Chapter 6 (Procurement) of the Core Policy and Procedures Manual(CPPM), inter-governmental trade agreements and any procurement policieswhich apply to the specific agency.

all documentation provided as evidence is of an appropriate standard andquality, exhibits an appropriate level of due diligence and has received thenecessary approvals.

There may be subsequent refinements to the checklist should results indicate thatfurther clarity is needed to help ensure adherence with provincial policy.

Although the checklist currently does not specifically address other aspects of the

procurement process such as administration, monitoring, reporting and contractevaluation, it is expected that the provisions of the CAMF and CPPM Chapter 6 relatedto these elements of the procurement process will continue to be adhered to.

This checklist should be used in conjunction with the CAMF and CPPM Chapter 6, whichprovide further detail on governments capital policy. The CAMF, along with links to otherrelevant policies for capital projects, can be found on the Ministry of Finance website athttp://www.fin.gov.bc.ca/tbs/camf.htm . CPPM Chapter 6 can be found athttp://www.fin.gov.bc.ca/ocg/fmb/manuals/CPM/06_Procurement.htm .


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Capital Procurement Checklist Frequently Asked Questions

What is the checklist?

The checklist is a comprehensive summary of the governments minimum expectationsand requirements that currently exist for capital construction procurement undertaken bypublic sector agencies. This includes publicly financed procurement in the form ofconstruction management, stipulated price or design-build approaches.

All public sector agencies are expected to immediately begin using the checklist toassess adherence to provincial procurement policies.

Who must use the checklist?

Just as with governments capital policies, the checklist applies to all provincialgovernment ministries and public sector agencies including taxpayer-supported andcommercial Crown corporations, Health Authorities, post-secondary institutions andschool districts.

What projects does the checklist apply to?

The policies and principles in the checklist apply to all service and construction contractsassociated with capital construction projects that are procured using a design-bid-buildor construction management procurement process with provincial funding over thefollowing amounts, which are the current competitive thresholds under existing policy:

Services associated withconstruction (IncludingConsulting)

Construction

Ministries, Agencies, Boards andCommissions

$ 75 K $100 K

Post-Secondary, Education and HealthSectors

$ 100 K $250 K

Crown Corporations $ 500 K $5 million

Not all service and construction contracts associated with capital construction projectsabove these thresholds are required to be reviewed. Determination of which contractsare to be reviewed should be done using a risk-based assessment approach. Thishigher-level approach considers the broader risks to a ministry in relation to its goals andobjectives and may include considerations such as procurement methodology, impact onservice delivery, environmental, economic & social impacts, and ministerialinterdependencies. For assistance in developing a risk-based assessment tool, pleasecontact the Risk Management Branch at 250-356-8915.

The checklist does not apply to other types of capital acquisitions or projects such asgoods and information technology systems.


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Does the checklist apply to publ ic private partnership projects?

No it does not.The checklist was designed to reflect the procurement process that would be followedfor a stipulated price, design-build or construction management model. Theprocurement model for public private partnerships involves different processes andcontractual arrangements.

For each public private partnership, following the conclusion of a contract agreement,the procurement process is made public in a value for money report. These projectsalso typically have a "fairness advisor" who observes the procurement process andreports out periodically.

However it is important to note that the underlying policy requirements and objectives of

fair, open and transparent procurement apply to all procurement models including publicprivate partnerships.

Why is this c hecklist needed? The checklist reinforces existing policy and provides an additional level of detail andassurance that will assist agencies in meeting the objectives of fairness, openness,competition, and transparency in the procurement process.

The checklist is based on best practices and the requirements set out in the provincesCapital Asset Management Framework, Chapter 6 (Procurement) of the Core Policy andProcedures Manual, and other related capital policies. Its use will support consistent

procurement practices across the public sector.

How does this checklist change the procurement process? The procurement process remains unchanged; the checklist does not impose newrequirements on the process; it provides a detail and clear expectations for existinggovernment policy. It is also serves as a comprehensive tool for reviewing procurementprocesses.

How is the checklist used?

For new projects: the checklist will help guide procurement managers design aprocurement process, based on best practices that will meet government policyrequirements.

For procurement processes and projects that are completed: the checklist will be used toassess if best practices were followed and government policy requirements were metand can also identify ways the procurement process can be improved on future capitalconstruction projects.


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Who performs reviews of compliance against the checklist?

Each ministry will determine who performs reviews. They can be conducted by internalor external auditors, ministry staff or external agencies. Internal Audit and AdvisoryServices in the Ministry of Finance is available to undertake adhoc reviews on a costrecovery basis.

For completed procurement processes/projects: ministries are responsible for ensuringthat reviews are conducted on a selection of completed procurement processes/projects.Each Ministry and agency can determine, using a risk-based assessment, whichcompleted projects/processes will be evaluated using the checklist. Treasury Board, orthe Ministry of Finance may also provide direction on specific projects to be reviewed.

Agencies should contact their responsible ministry to determine the process for

conducting reviews for completed procurement processes and projects.

Where can I get more info rmation and resources on procurement? Training resources

Procurement and Contract Management Program governments new comprehensiveprocurement training programhttp://www.procurementlearning.gov.bc.ca/

Policy resources

Capital Asset Management Frameworkhttp://www.fin.gov.bc.ca/tbs/camf.htm

Core Policy and Procedures Manualhttp://www.fin.gov.bc.ca/ocg/fmb/manuals/CPM/CPMtoc.htm

Agreement on Internal Trade (AIT)http://www.ecdev.gov.bc.ca/ProgramsAndServices/Trade/AIT.htm

British Columbia Alberta Trade, Investment and Labour Mobility Agreement (TILMA)http://www.gov.bc.ca/ecdev/popt/media_room/bc_ab_trade_investment_mobility_agreement.htm

Freedom of Information and Protection of Privacy Act http://www.qp.gov.bc.ca/statreg/

Financial Administration Act http://www.qp.gov.bc.ca/statreg/

Risk Management Guidelines and Risk Management Standardshttp://www.min.fin.gov.bc.ca/pt/rmb/forms/index.stm


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Capital Procurement Checklist

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Objective Risk Criteria Evidence Sample PolicyReferences

Selecting onbasis of lowestcost (ratherthan value formoney) resultsin incurringhigher capitaland operatingcosts due toinferior designfrom less-qualifiedconsultants.

Lack ofappropriatedesign and fieldresources forconstructionadministrationleads to poorintegration ofdesign tasksand delays andadditionalcosts.

Processes thatare not fair,open andtransparentbreachprovincial policyregardingprocurement ofservices.

Processescould breach

Agreement onInternal Trade(AIT) and theTrade

Investment andLabour Mobility Agreement(TILMA)requirements.

Competitive selectiondocuments clearlydefine evaluationcriteria.

Confirmation thatselected firm hasassigned sufficientstaff and time to becommitted to project.

Evidence of numerousaddenda, changeorders, or contractamendments couldindicate poor design

or scope at time of bidor poorcommunication onsite.

Justify and documentkey decisionsincluding anydeviations fromprocurement policy inmemo to file.


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Objective Risk Criteria Evidence Sample PolicyReferences

Avoid conflictsof interest orunfairadvantage.

Contracts mightbe challengedon basis thatconflicts ofinterest causedbias orunfairness orbreach ofRFP/tenderinvitations.

Project/Agencyloses credibilityif conflicts ofinterest or unfairadvantagesarise.

Procurement processshould include formalconsideration to checkfor conflicts of interestsor opportunities forunfair advantages.

Documentation ofpolicy and sign-off byall individualrepresentatives of the

Agency andconsultant.

Provide list of Agency's consultantsand advisors who areunavailable to beretained byconsultants (restrictedparties) inprocurementdocuments.

CAMF, Sections:

8.0. CapitalProcurement ingeneral specificallysection 8.3. Legaland EthicalIssues

AIT Chapter 5 ,

Procurement TILMA

Article 14 ,Procurement

Core Policy andProcedures Manual,Chapter:

6. Procurement -specificallysection 6.3 Pre-

Award andSolicitation

Developfunctional

programs anddesign conceptswith appropriateinput and reviewby the Agency.

Design isdeveloped and

project isconstructed thatdoes not meetneeds or budgetof Agency.

Review anticipateddesign development

process to identifyrequired Agencysreview.

Require coordination ofengineering disciplines.

Require time for siteinspections.

Use standard industrycontract documents,

with appropriatedesign/reviewconsultation andresponsibility(schematic designapproval, designdevelopment approvaland working drawingsapproval, etc.)amended to include

Agencysrequirements for theproject.

CAMF, Sections: 8.0. Capital

Procurement ingeneral specificallysection 8.5.3.1.2The DesignProcess

9.0. Budget andCostManagement


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Objective Risk Criteria Evidence SamplePolicyReferences

Preparecontractdocuments(back-enddocuments technicalspecifications,design drawingsand workingdrawings) whichalign with theprojectobjectives, asstated in thebusiness case,reflect realisticprojectscheduling, andareappropriatelycomplete tomitigateschedule andbudget risk.

Designdocumentssupport fair,open andtransparentprocurementprocess whichprovides valuefor money.

Project does not meetfunctionalrequirements.

Project is over budget,over/under scope andor over schedule.

Project is delayed orterminated becauseproject exceedsavailable funds.

Fast tracking is usedunnecessarily and

results in greater riskexposure to the ownerwith respect tobudget, scope and/orschedule.

Where designdocuments areincomplete, pricescould be higherbecause bidders areforced to includeamount for uncertaintyrisk.

Incomplete designdocuments could leadto scope, scheduleand budgetchallenges due toextras and changeorders.

Qualified biddersdecline to bid.

Design documentsgive unfair advantageto one bidder overanother.

Design documentsoffer disproportionaterisk allocation.

Prepare completefunctional programs(schematic designs andcost estimates) to trackthrough process.

Have a costmanagement strategy,which includes formalbudget review at definedmilestones.

Prepare completedesign drawings unlessunique projectconditions support lessthan completedocuments.

Documents are projectspecific and have beencompletely reviewedand coordinated with

Agency and DesignTeam members.

Design documents arecomplete to thedetermined level and

provide sufficientinformation as requiredby the contractingmarket to prepare bidsand prices.

Design documents arecompatible with thecontracting form,supplying sufficientinformation in a way thatdoes not favour any onebidder.

Contract administratorhas appropriateexperience for scale ofproject.

Contract documentsdescribe appropriate risktransfer specific toindemnity andinsurance.

Evidence ofdocumentation offunctionalprograms.

Business caseincludes a riskassessment and

justification forproceeding totender prior tocompletion ofdesigndocuments.

Evidence ofconsultation withRisk ManagementBranch, whereappropriate.

Designdocuments(technicalspecifications anddrawings) havebeen preparedthat meet qualitystandard requiredand expected byindustry, includingidentifying designlife.

Credentials ofcontractadministrator ofowner and/orcoordinatingProfessional.

CAMF, Sections: 8.0. Traditional

CapitalProcurement

9.0. Budget andCostManagement

ProcurementOptions Analysisguidance (underdevelopment). CAMF, Sections:

8.0. CapitalProcurement ingeneral specificallysection8.5.3.1.3PreparingContractDocuments.


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APPROVALPHASE 2

.

Objective Risk Criteria Evidence PolicyReference

Project hasappropriateplanningfoundation, andhas beenapproved by theappropriateauthority.

Project is releasedto market/publicwithout requiredgovernmentapproval;

Time and effort isspent and publicinterest isgeneratedprematurelybefore the projectundergoesappropriateinvestigation.

The outputs(benefits) and thescope of theproject are notclearly defined,creating the riskthat cost andschedule controlswill not beappropriate orimplemented.

Risk that projectmust be delayedand re-scoped oreven cancelled attender stagebecause it is overbudget , resulting,for example inhigherconstruction costsbecause ofinflation; loss of

confidence in theproject.

Have appropriatebusiness caseapproval.

Business casegenerally includes:

clear identification of aneed that the projectwill fill;

scope of project anddraft deliverables;

link to Service Plan; cost benefit analysis

with reasonableassumptions;

project schedulebased on project-specific requirements;

current reasonableestimate of the cost ofthe project/contractbased on sufficientlydetailed project scope;

financial plan orproject proformaincluding anticipatedcash flow schedule;

results of marketsounding (consultingwith potential bidders)where appropriate (i.e.where marketresponse to project,procurement methodand contract modelare uncertain);

Business casedocumentation.

Options analysisis documented,including userinput asappropriate.

Evidence ofappropriateapprovals.

Evidence of costmanagementstrategy from theplanning file.

CAMF, Sections: 4. Planning and

specificallysection 4.4 and4.5 (Options

Analysis andBusiness Cases)

5. ConsolidatedCapital PlanProcess and

Approvals 9.0. Budget and

CostManagement

CAMF BusinessCase Tool Kit(underdevelopment).

2 Approvals can take place at one or more milestones during the life-cycle of a project. Typicallya project would require some level of approval, based on an appropriate business case, prior tosignificant design effort being undertaken. In addition, from a procurement audit prospective -this phase recognizes projects commonly require approval before proceeding to a tender phase.


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Inconsistent withCapital AssetManagement

Framework(CAMF) approvalprocesses.

solicitation/procurement plan(including description

of the consultants thatwill be required; a planas to when each willbe required; and adescription of theanticipatedprocurement/appointment method).


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TENDER AND AWARDPHASEObjective Risk Criteria Evidence Policy

ReferenceProcurementPlanningStage: Determine

optimum riskallocation tominimize costto the Agency.

Inappropriateallocation ofrisk tocontractorcould result intoo hightender/contractprice, and/orrisk ofclaims/disputesregardingcontractorsunanticipatedcosts.

Project-specificrisk analysisundertaken incontext ofcurrent marketconditions.

Determineappropriateinsurance andbonding.

Evidence of appropriateand informed risk analysiscompleted as part ofapproved business plan.

Evidence of consultation

with Risk ManagementBranch, whereappropriate.


specifically section4.4 and 4.5(Options Analysis

and BusinessCases) CAMF Business Case

Tool Kit (underdevelopment).

Optimizeprocurementstrategy toencourage

competitionand meetprojectobjectives.

Lack of interestfrom qualifiedbidders;

Procurementapproach doesnot achieveprojectobjectives or isnot appropriateto manage

Agency risks.

Informedanalysis ofprocurementoptions

undertaken. Procurement

options analysisbased onprocurementoption guidance.

Procurementoption whichbest meetsprojectobjectives isselected.

Evidence ofcomprehensive andproject-specificcomparison of different

procurement methods andform of contract (design-bid-build; design/build;constructionmanagement), as part ofapproved business plan.


specifically section4.4 and 4.5(Options Analysisand BusinessCases)

CAMF Business CaseTool Kit (underdevelopment)


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Selectconstructioncontract formand paymentregime that ismatched toproject -specificconditions andwill achievelowest overallcost.

Higher tenderprices.

Analysis ofproject-specificconditions andrisks, includingscope,complexity,location andmarketconditions, todetermineappropriate formof contract.

Use ofprocurementoptionsguidance.

Evidence of assessmentof project specificconditions and risks(documentationreferenced in businessplan).

Evidence of review ofcontract options such aslump sum; cost-plus;constructionmanagement, etc.

Documentation inbusiness case of

justification for form of

contract chosen. Select form of contract

before preparing tenderdocuments.

CAMF, Sections:

4. Planning andspecifically section4.4 and 4.5(Options Analysisand BusinessCases)

CAMF Business CaseTool Kit (underdevelopment)

Implementfair, openprocurementand awardthat gains theconfidence ofthe biddersand the public

and providesbest value fortaxpayerdollars.

Unfairness, oreven thepotential ofunfairness orlack ofopenness putsproject at risk.

Project doesnot achievebest value formoneythrough, forexample,limitedcompetition.

Documentationprepared withthe objective ofestablishing afair (to qualifiedbidder), openand transparent(to the public)

and accountableprocess whichprovides thebest value formoney.

Documentation whichadequately describes thescope of work and theexpertise required, whichis advertised appropriately(i.e. BC Bid).

CAMF, Section: 8.0. Capital

Procurement AIT

Chapter 5 ,Procurement

TILMA Article 14 ,

Procurement


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Pre-qualification:

Prequalificationis used only inappropriatecircumstances,for example, forprojectsrequiringcontractors withspecific skills,experience,financial

capacity orothercharacteristics,or where thecost of biddingis unusuallyhigh, agenciesmay considerusingprequalificationprocesses thatwill invitecontractors withdesiredexpertise anddo not unfairlyfavour specificcontractors.

Pre-qualification isusedunnecessarilyrestrictingcompetitionand potentiallyreducingcompetitionandcompromising

potential valuefor money. RFQ

description istoo impreciseresulting inqualifiedparties failingto respondmaking themineligible tosubmittenders.

RFQrequirementsare toonarrow,resulting inthe exclusionof qualifiedbidders andtherebyreducingcompetitionandcompromisingpotential valuefor money.

Analyze whetherthe specificcontract, or theproject, wouldbenefit from pre-qualificationprocess (forexample wherespecificqualifications arerequired as a

condition ofaward; or wherethere is risk thatlowest price frompoorly qualifiedbidder will notachieve lowestcost to Agency; orwhere marketinterest will beheightened andcompetitionimproved byrestricting actualnumber ofbidders).

FollowGovernmentsPre-Qualificationguidancedocument.

Write RFQ sointerested partiescan participatewith reasonablecost and effort.

Evidence ofconsideration thatshows fair process toqualify and solidgrounds for selection(memo to appropriatesigning authority withapproval). Internalsign-off by Agencycalibrated to size of theproject.

Copy of RFQdocumentation --standard, or if notstandard,documentation on whyand on approval.

RFQ selection criteriaare clear and concise.

If prequalification isused, then at tenderstage, qualification isno longer grounds for

selection such that, allelse being equal,lowest compliant bidsuch be selected.


Procurement ingeneral specifically section8.5.3.2.4ContractorPrequalification

Provincial Pre-Qualification

Guidelines andPrinciples CAMFToolkit (Underdevelopment)

AIT Chapter 5 ,

Procurement particularly Article504 ReciprocalNon-discrimination

TILMA



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Pre-qualification asksonly for information thatis specifically relevant tothe pre-qualificationprocess (for example,work on hand, project ofsimilar size, scope orcomplexity, key projectpersonnel, bondingcapacity, ability toobtain the requiredinsurance, safety recordetc).

If RFQ is used, potentialproject, or at least thenature of the work,should be described soas to attract correctparty/expertise.

Any minimumqualifications must beclearly defined(expertise, experience,bonding capacity, abilityto obtain the requiredinsurance).

Pre-qualify thenumber of partieswho are qualified toundertake andcomplete the workas appropriate formarket conditionsand market interest.

Potentiallyqualifiedcontractorscould beexcluded fromthe process.

Too small a listcould lead toinsufficientcompetition.

Perception ofpreferentialtreatment ofbidders couldlead to lack ofinterestedbidders onfuture projects.

Records relating toevaluation of pre-qualificationsubmissions must bemade and maintainedfor a reasonable period.

Criteria must be statedbased on therequirements of theproject.

Report to projectexecutiveoutlining theprocess followedand result ofprocess.

Debriefingoffered to allbidders andcarried out in atimely manner, ifrequested.

Copy ofprequalificationdocuments onfile.


Procurement ingeneral specifically section8.5.3.2.4ContractorPrequalification

Provincial Pre-QualificationGuidelines andPrinciples CAMFToolkit (Underdevelopment)


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Preparation ofConstructionContract

Cost-effective andfair, open andtransparentprocurement, clearlydescribing anddefining fair andcost-effectiveallocation of risksand responsibilities.

Standarddocuments maynot appropriatelyallocate risk,potentiallyresulting in un-intended riskallocation andprice impact;

Risk that drafting/

negotiatingcustomizedcontract form iseither tooexpensive, hasone-sided riskallocation or isincomplete.

Contractors willdecline to bid orwill increase bidamount (bid riskpremium) onprojects using nonstandarddocuments that donot clearlydescribe risks.

Use Agency orindustry-based orgeneral standardform (i.e. CCDC)amended withlimited variations asapproved bydesignatedauthority, to include

Agencysrequirements for theproject.

Amendments tostandarddocuments,including insurance,indemnification andlimitation of liability,should notinappropriatelyallocate risk andshould beimplemented

through approvedSupplementaryConditions, withoutdirect amendment ofthe standarddocument.

Constructioncontract basedon standardform contractwith appropriateamendments toaddress publicsector businesspractices andrisk tolerancesand approved bythe appropriateapprovalauthority.

CAMF, Sections: 8.5.3. Traditional

CapitalProcurement

Contract Documentsreflect selected riskallocation, and otherproject-specificrequirements.

Industry standarddocuments are notnecessarilybalanced fairly forowners and mayimpose unfaircosts and risks.

Use Agency orindustry-based orgeneral standardform (ie CCDC)amended with limitedvariations asapproved bydesignated authority,to include Agencysrequirements for theproject and approvedSupplementaryConditions.

ContractDocuments,based on astandard formcontract, containlimited specificSupplementaryConditions toachievenecessaryadjustments,approved byappropriateapprovalauthority.


CapitalProcurement


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Standard documents maynot fully reflect publicsector risk allocation.

Standard documents maynot provide contractsupport for some aspectsof the project.

Inappropriate riskallocation may reduceContractor interest inbidding on future projects.Less competition couldlead to increased costs onfuture projects.

Appropriatestandardinsurance formsprovided by RiskManagementBranch, Ministryof Finance(RMB) are used,or, if not,revisionsapproved byRMB.

Standard formsused; or non-standard withdocumentationof approval.

CAMF, Sections:

8.5.3. TraditionalCapitalProcurement

Preparation ofTenderDocuments:

Use tenderdocuments thathave beendrafted for usewith the selectedconstructioncontract.

Instructions to bidders areincomplete orincompatible resulting innon-compliant bids,reduction of competition,or higher bids.

Poorly drafted selection

and award criteria mightforce Agency to selectsub-optimal bid or makeattractive bid unavailable.

Inappropriate privilegeclause may deter qualifiedcontractors from bidding.

Sub contractorsconcerned about unfairtreatment and complain togovernment.

Tenderdocumentationshould beprepared only bypersons properlytrained andqualified to doso.

Coordinatingprofessionalaccountable forcompletenessand coordinationof documents(i.e. architect orengineer).

Use of standardtender processwith clear,uncomplicated

tender closing. Consider the

use of the biddepository formajor trade andsupply contracts(+$100,000).

Tenderdocuments thatmeet industrystandards,includingchanges intender law.

Tender Formrequirescontractorqualifications.

Resumes/relevant work historiesof personsresponsible forpreparation oftenderdocuments.

Written evidenceof fullconsideration,provided byproject manager.


CapitalProcurement

AIT Chapter 5 ,

Procurement particularly Article 504reciprocal Non-discrimination

TILMA Article 14 ,

Procurement


CapitalProcurement


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Confirmsuccessful bidderis financiallycapable ofcompleting theproject or hasappropriatebonding.

Project is not deliveredwithin scope, schedule,and/or budget.

Bidders are thirdparty secured fortheir bid.

Instructionsrequire bidbond andconsent ofSurety.

CAMF, Sections:

8.5.3.TraditionalCapitalProcurement

Optimize designand pricing.

Risk that selecteddesign/material/equipment solution described indesign documents is notoptimal.

Consider use ofseparate andalternate prices asappropriate.

Writtenevidence of fullconsiderationby projectmanager.

CAMF, Sections: 8.5.3.

TraditionalCapitalProcurement

Minimize legalrisks indocumentation.

Agency could makedecisions on improper,or out-of-date legaladvice.

The law of tender ischanging constantly.

Obtain qualifiedlegal advice fornon-standarddocuments orunusualconditions.

Prior tocommencing acompetitiveprocess, the

Agency shouldidentify who wouldprovide qualifiedlegal advice whendeveloping tenderdocuments (if notstandard) andduring the process(if necessary).

Retention ofexperiencedlegal counsel.

Legal counselopinion on file.

CAMF, Section: 8.3 Legal and

Ethical Issues

Prepare tenderdocuments which:

attract qualifiedbidders tocreate

competition; provide clear

description ofrights andobligationsthrough toaward.

Bidders are uncertain asto submissionrequirements,evaluation etc. with therisk that either qualifiedbidders fail to respond,or Agency is faced withclaims.

Insufficient biddersleads to a noncompetitive price.

Tenderdocuments shouldinclude proceduralinformation,project andproponentinformation,technical and legalinformation.

Hold open biddersconference toanswer questions.

Evidence thatwork wascompletedincludingcompletetenderdocumentsand writtenevidence ofbiddersconference.

CAMF, Sections: 8.5.3.

TraditionalCapitalProcurement


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Administer tenderfairly in strictconformity withtender documents.

Project may result inclaims that ambiguitiesnot dealt with orlegitimate questions notanswered.

Advertise projectin compliance with

AIT and CAMF(using BC Bid).

Meet AIT criteriaor CAMFthresholds:nationalnotificationrequired asfollows: forministries whereprocurement valueis $100,000 orgreater for localagencies wherethe procurementvalue is $250,000or greater, and forCrownCorporations,where theprocurement valueis $ 5 million orgreater.

TILMA requiresnotification whereprocurement valueis $100,000 orgreater for allgovernmententities (effective

April 1, 2007 forgovernment; April1, 2009 for Crowncorporations andMASH sector).

Request orobservations frombidders are

appropriately dealtwith: respond,clarify and takecorrective actionas may berequired.

Evidence ofnotification;evidence ofapproval to runadvertisements; if nonotification,then

justification isapproved anddocumented orif direct award,use Notice ofIntent.

Writtendocumentationto showappropriateand inaccordancewith agencypolicy withsign-off formappropriateauthority.

CAMF, Sections:


AIT Chapter 5 ,

Procurement TILMA



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Evaluation:

Evaluate tendersstrictly as requiredby Instructions toBidders.

If evaluationprocedurenot followed,

Agencycould beexposed toclaims fromunsuccessfulbidders.

Process should onlybe administered bypersons properlytrained or qualified todo so.

Where appropriate,for example, projectsusing RFPs, projectswhich are complex orvery large, considerwhether processmonitor is needed for

project. Where appropriate,

for example, projectsusing RFPs, projectswhich are complex orvery large, considerpreparing anevaluation handbookor tender openingprocess handbook.

Documentation ofprocess monitorexisting and/or

justification for noprocess monitor.

Evaluationhandbook exists andin alignment withproject objectives.

Resumes/relevantwork histories ofpersons responsiblefor preparation.


CapitalProcurement

Process isnot

transparentand open.

Each tender isopened in public and

signed by Agencypersonnel present.

Proper record ofreceipt and opening

of tenders. Public opening with

attendance sheet.


CapitalProcurement,especially8.5.3.3.1

Process maynot be fair.

The Agency is notentitled to use or takeany benefit from onetender in anynegotiation bidshopping is unfairand prohibited.


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If circumstance requiresdeviation from the statedtender process, seeklegal advice beforeproceeding. Examplescould include (not acomplete list):

Negotiating with a bidder; Using privilege clauses; Dealing with non-

compliant bids; Disqualifying; Cancellation of process.

Written evidence infile that legal counselwas consulted onthese issues.

Contract Award:

Contract isimplementedas intended.

Project is notdelivered on scope,schedule and/orbudget.

Timely execution ofContract Documents.

Contract date;evidence of date ofstart of work.

The notifications.

CAMF,Sections:


Dispute as to finalcontract form andcontents i.e.reference ProjectSchedule; version ofspecifications anddrawings etc.

Have a properly executedcontract.

The actual contract. Certificate of

Insurance/Evidence ofBonding.

Debrief session withbidders who request one.

Writtendocumentation ofdebrief sessions.

Monitoring andperformance feedback;post contract evaluations.

Writtendocumentation ofreviews.