The city of Yorkton has updated its purchasing policy. The purchasing policy had a complete review as the document needed to be updated to reflect trade agreements, and was adjusted to the adopt the policy of best value, as opposed to best price.
City manager Lonnie Kaal explained that best value has to be outlined thoroughly at the outset of the tender process, to make it clear how the city is weighting the criteria.
Kaal noted that if they did not outline the criteria for best value at the outset of the tender process, it leaves the city open to legal action.
“I can appreciate that best value is a little bit new and a little bit concerning... What it comes down to is weighting of criteria, and that should be established in advance so it can’t be disputed later,” explained Kaal.
An example of how best value could play into a tender is if they weight the expected timeline of the contractor into the tender, and a contractor who would promise a quicker project could get preference if that’s clear in the tender process. She also notes that when you have multiple contractors who are capable of doing the same work, the best price is the best value.
“It’s not this grey area where you can do whatever you want.”
The city will be required to have a minimum of three quotes for anything that costs more than $7,500. The city will also be encouraged to spread the business around to different companies in the area. Kaal used the example of cell phones, as multiple businesses offer very similar costs for the same service.
“It’s just good business practice,” said Kaal.
The new policy allows for much more transparency, though Kaal notes that naturally there needs to be some confidentiality in the process. She notes that the old policy had caused frustration in the business community, and they hope that the new policy will help improve that problem for the city.
The spending limit for departments before they have to appear before council has also been raised, to $350,000 from $200,000. The initial proposal had the limit higher, at $500,000, but council members such as Mitch Hippsley expressed that they felt that spending ceiling was too high, and amended the document to have a lower spending ceiling.
The new policy passed with unanimous approval as amended.
