County to utilize more local services and goods

By Sean Feagan, Local Journalism Initiative Reporter

Wheatland County has updated its procurement policy to make turning to local businesses for goods and services more likely.

The county’s procurement policy outlines how staff source goods and services. Council approved changes to the policy during its regular meeting on July 7.

Trade agreements, including the New West Partnership Trade Agreement (NWPTA), require that for goods and services procurements over $75,000 and for construction bids over $200,000, the county cannot give preferential treatment to local bidders.

But for procurements under those thresholds, the amended policy allows the county to select local companies that come within five per cent of the lowest bid. The new policy also stipulates that “consideration should be given to obtaining quotes from local suppliers whenever possible” for deliverables under these thresholds.

“Council encourages supporting local when possible and if procurement is under trade agreement thresholds,” said Reeve Amber Link, adding the definition of “local” depends on the purchase, and could mean originating in the county, the region or even just Canada.

The policy will help give priority to local businesses, said Division 1 Councillor Jason Wilson.

“Over the last few years, we’ve seen foreign companies come in and underbid local companies,” he said. “It’s really hard for us who would rather see our neighbours go to work and have the ability to do some of their work in their own backyards.”

County staff are still required to obtain quotes outside of the local area as well, as due diligence, to ensure openness and transparency. In effect, the policy ensures equal access to qualified suppliers and will result in the best value for county residents, said Link.

The number of quotes required depends on the dollar value of the procurement. Procurements up to $5,000 require a single quote, those between $5,001 and $20,000 require two quotes, and those $20,001 and $74,999 require three quotes.

Under Alberta Purchasing Connection (APC), all tender notices for goods and services greater than $75,000 and those for construction greater than $75,000 must be published. The new policy guideline also applies to construction procurements between $75,000 and $200,000, which are selected by a request for proposal (RFP) process.

There is no workaround for the threshold limits. 

“Subdividing, splitting or otherwise structuring procurement requirements or contracts to reduce the value of the procurement or in any way circumvent the requirements of the policy is not permitted,” said Link.