with current processes.
Timing
Competitive procurement processes are time-consuming and labour-intensive to prepare, administer and evaluate. This pandemic requires the acquisition of a large number of goods and services in a relatively short period of time. It is inevitable that unanticipated needs will arise that require resolution. It would not be practical nor, in some cases, possible to create and execute formal processes for all purchases. A sole-source process would be required for each such purchase followed by council approval pursuant to The Purchasing By-law 93-2012 section 39:
"Where no funds exist within the Council-approved operating of capital budgets, council approval is required prior to the initiation of the purchase of a deliverable"
This would put the City and affiliates at risk because the deliverables being in short supply due to market conditions, including geographic limitations couldn't be acted on in real-time. Additionally, a competitive method of purchasing could interfere with the City's ability to maintain security or order, or to protect human life.
Dollar Threshold
Financial thresholds determine the obligation of the procuring entity. In calculating the purchase price for the purposes of determining the necessary approvals and procedures, all taxes and duties shall be excluded. In the case of multi -year contracts, the purchase price will be the estimated annual expenditure under the contract. No action shall be taken to subdivide purchases in order to reduce the estimated contract price. It is not recommended that the Purchasing Bylaw be waived altogether; rather that the waiver should only be applicable for purchases of $100,000 per transaction or less, exclusive of taxes. This number is suggested because it is the maximum amount permitted by the Purchasing Bylaw to be approved on a general administrative level (with the exception of the CAO, inclusive of Section 37 (b) and (d) of the Purchasing Bylaw 93-2012).
Public-sector entities have discretion with respect to the procurement process adopted, provided such processes are conducted in an open, transparent and nondiscriminatory manner and in compliance with the applicable governance framework such as the Purchasing Bylaw 93-2012. As a general rule, the governance framework (including trade agreements) requires an open competitive process for procurements above a certain financial thresholds. Below such thresholds, a public entity such as the City has more flexibility in conducting its procurements. In this case, the $100,000 or less threshold complies with all of those trade agreements. The principal exclusion/exemptions such as non-competitive procurement is permissible in certain specified situations as set out in the applicable governance framework. For example, the Canadian Free Trade Agreement provide single/sole sourcing exceptions as well a non-application provisions that exempt certain procurement processes from application of the procurement rules. Common circumstances which permit non-competitive procurement include situations of extreme urgency, where a good or service can only be supplied by a particular