Procurement

What is procurement?

Procurement is the act of acquiring and sourcing goods and services from an external source. The process includes identifying, preparing and processing a demand or need the Municipality has and then finding and agreeing to terms with a vendor to provide the goods or services required. The procurement process is used to ensure the Municipality receives goods and services at the best possible price when variables such as quality, quantity, time, safety and past compliance are compared.

What is a request for tendering?

A request for tendering (RFT) is the process used when our needs are clearly defined and explicit. The scope of the project and technical requirements are well-known, specific and explicitly referenced in the RFT document. Vendors are invited to bid on the opportunity and the tender is awarded to the compliant technical bid with the lowest overall cost structure.

What is a request for proposal?

A request for proposal (RFP) is the process used when our needs are very technical or specialized. The procurement need will have been identified, but how it will be achieved is not known at the outset. An RFP allows vendors to propose solutions or delivery methods to achieve the desired outcome, while taking into consideration numerous variables. Vendors are invited to bid on the opportunity and the contract is awarded to the highest scoring bid. Bids are scored based on the review of the technical and commercial requirements, as well as the cost.

What is a request for quotation?

A request for quotation (RFQ) is the process used when the good or service required is specific and can be precisely identified. RFQ's are typically used for procurement needs below trade agreement thresholds and generally considered low risk purchases.

What is a request for information?

A request for information (RFI) is used to seek information about either the market or a pending scope of work.

What is a request for prequalification?

The request for prequalification process is intended to qualify contractors prior to publicly posting any opportunity. Those businesses that meet the pre-qualifications are invited to participate in a subsequent tender or RFP process. Pre-qualification is done to reduce the time and expenses incurred by businesses when preparing bids, as well as the time and expenses incurred by the Municipality when evaluating bids. Prequalification is often used when the Municipality has a large scale or complex procurement need.

What is a commercial review?

A commercial review is done to ensure compliance with the requirements of the market request specified in the bid opportunity. It may also include sealed bid bonds, safety, consent of surety, evidence of receipt of addenda and proof of insurance.

What is a technical review?

A technical review is done to ensure the bid has complied with the scope of work and specifications included in the bid opportunity. It also done to verify the total bid price.

Can the Municipality give preferential treatment to bids submitted by local businesses?

The Municipality cannot give preferential treatment to bids submitted by local vendors. The Municipality is legally required to ensure all bid opportunities are open to vendors inside and outside of the region, while ensuring the procurement process is fair, transparent and accountable to everyone. These legislated requirements are in accordance with exiting trade agreements and Canadian tender law. These same trade agreements allow local businesses to take advantage of opportunities outside of Wood Buffalo. The Municipality awards contracts to bids that satisfy the procurement need and provide the best value for every taxpayer's dollar spent.

For goods and services which are below trade agreement thresholds, we encourage purchases from local businesses, but will always consider the cost associated with procuring and maintaining these goods and services. The technical requirements and specifications of the procurement need are also taken into consideration.

Local businesses are encouraged to stay up to date on all bid and tender opportunities by registering as a vendor in our E-Procurement program. Local businesses are also encouraged to take part in procurement workshops to learn more about the procurement process and how to develop and submit a competitive bid. RMWB staff from the procurement branch are available to answer any question you may have with the procurement process. For assistance, please contact PULSE.