The City of Medicine Hat is looking into possible changes to how and when it issues tenders for bids on local projects.--NEWS FILE PHOTO
cgallant@medicinehatnews.com@CollinGallant
Changes could be coming to bidding protocol for smaller businesses looking for sales with the City of Medicine Hat.
Complaints arose last term when administrators moved to require suppliers and service companies to fill out forms and submit qualifications showing certain safety or business certifications.
That “pre-qualification” process was a condition of being allowed to bid on city contracts.
Now, the city’s procurement office is suggesting to raise the threshold where such documentation becomes a condition to be considered, while promising to track buying practice.
“The public looks for best value for dollars to spend, and vendors are looking for consistency in a fair, open and transparent system,” said Denis Egert, head of the corporate services division.
The changes, called for by the Chamber of Commerce and Medicine Hat Construction Association, would also be coupled with greater leeway for city managers to build and use an internal system for finding local suppliers.
That will be tracked, examined and a report produced after one year, if approved at council later this month.
Currently, the city issues invitations to tender for items or contracts valued at more than $10,000 in operations, or $200,000 in construction, as most smaller projects are covered under standing agreements renewed every few years.
A recommendation from a consultants’ report tabled this week at the division’s committee meeting on Thursday, would see the limit requiring an open bid process begin at $75,000 for operational purchases.
That would align city policy with various provincial, inter-provincial and national trade agreements which bind it.
Administrators say it would also reduce the burden on smaller companies, not having to “pre-qualify” to be eligible for relatively small contracts.
City supply chain manager Richard Connolly called the $10,000 hurdle “extremely low.”
“If you’re going to require everyone to pre-qualify at this level, you’re probably going to eliminate some (contenders) who shouldn’t be,” he said. “Ideally, you want a healthy vendor community.”
The city’s total procurements, including major construction and oilfield work, totals about $200 million each year, of which $12 million comprises individual items valued under $75,000.
Couns. Shila Sharps and Cassi Hider supported the item, which proceeds to a council vote.
Some work is sole-sourced or preferred sourced work, such as vehicle warranty work that must be done by a certain brand dealership, but the change would open competition to those firms which might not bother with the process, councillors said.
“It reduces red tape on them,” said committee chair, Coun. Robert Dumanowski, who also lauded potential changes that would create clearer language in calls for bids on deadlines and requirements of work.
“It can put the city in a real bind when things change. (Companies) need to know the rules when they put forward bids.”
