Purchasing Bylaw

This bylaw is a consolidated digital version of the official legal document. It is not an exact reproduction and is for information purposes only.

For any questions related to this bylaw contact 519-747-8785 or municipalenforcement@waterloo.ca

Bylaw number: 2025-12-01
Last passed by council: December 1 2025

A bylaw to establish polices for the procurement of goods and services by the City of Waterloo

  1. Purposes, Goals, and Objectives
  2. Application of By-law
  3. Definitions
  4. Interpretation
  5. Responsibilities and Authority
  6. City Council
  7. Procurement Process
  8. Contract Management and Administration
  9. Contractor Performance Management
  10. Records Retention and Access to Information
  11. Disposal of Surplus Property
  12. Donations
  13. Supplementary Policies
  14. Short Title
  15. Repeal
  16. Enactment
  17. Schedule “A” — Purchasing Exemptions
  18. Schedule “B” — Chart of Bid Irregularities
  19. Schedule “C” — Thresholds of Procurement Methods
  20. Schedule “D” — Purchasing Statement of Ethics

Whereas section 270(1)(3) of the Municipal Act 2001, S.O. 2001, c. 25, as amended (the “Act”), requires all municipalities to adopt and maintain a policy with respect to the procurement of Goods and Services;

And whereas The Corporation of the City of Waterloo (the “City”) is committed to ensuring its procurement decisions are fair, transparent and non-discriminatory;

And whereas effective planning, monitoring and control of procurement is essential for maintaining public trust and confidence;

And whereas purchases made by the City should reflect best value for the City, protect the City’s financial interests and encourage competitive Bidding;

And whereas effective Contractor performance is critical for the success of City projects. Poor workmanship, unnecessary project delays and unsafe work practices will not be accepted.

AND WHEREAS the City should be prepared to manage extraordinary circumstances from time to time, and that such circumstances may require immediate procurement decisions that are necessary to prevent or alleviate serious delay, a threat to public health, safety or welfare, the disruption of essential services or damage to public property or to respond to an emergency or as required under the provincial Emergency Management and Civil Protection Act, R.S.O. 1990, c. E.9, as amended;

AND WHEREAS effective planning, monitoring and control of the City’s procurement activities is essential for maintaining public trust and confidence;

NOW THEREFORE the Council of The Corporation of the City of Waterloo enacts as follows:

1.0 Purposes, goals and objections

1.1 The purposes, goals, and objectives of this by-law and of each of the methods of procurement authorized herein are:

1.1.1 To establish standard rules governing the procurement of Goods and Services by City staff;

1.1.2 To obtain the best value for the City when procuring Goods and Services;

1.1.3 To ensure consistency and fairness amongst Bidders during the procurement process;

1.1.4 To the extent possible, ensure openness, accountability and transparency while protecting the financial best interests of the City;

1.1.5 To avoid conflicts between the interests of the City and those of the City’s employees and members of Council;

1.1.6 To specify roles and responsibilities of individuals, Divisions and Departments through the procurement process;

1.1.7 To promote respect for human rights, international and interprovincial trade treaties or agreements and fair labour practices;

1.1.8 To encourage, whenever possible, the procurement of Goods and Services with due regard to the conservation of a natural environment, and that adopt a pro-active approach to climate change;

1.1.9 To promote and incorporate the requirements of the Accessibility for Ontarians with Disabilities Act, 2005, S.O. 2005, c. 11, as amended (the “AODA”) in procurement activities of the City as well as any requirements contained in other legislation (either provincial or federal) which may impact the procurement activities of the City;

1.1.10 To support effective business planning such that Goods and Services will only be acquired after consideration of need, alternatives, timing and appropriate life cycle management issues;

1.1.11 To mitigate risk in future contracts through monitoring, measuring and recording Contractor performance,

1.1.12 To comply with the requirements of the Act, and

1.1.13 To support, whenever possible, Canadian Businesses by providing greater access to procurement opportunities.

2.0 Application of Bylaw

2.1 This by-law shall apply to purchases by staff in all Departments of the City, including Committees of the City with designated budgets who must coordinate with City staff to facilitate any purchase of Goods or Services.

2.1.1 Notwithstanding section 2.1, this by-law shall not apply:

2.1.1.1 to the purchase of those Goods and Services set out in Schedule “A”; and

2.1.1.2 subject to Section 7.3.6, where the City is engaged in Co-operative Purchasing and where another municipality, government agency or member of the Broader Public Sector is purchasing Goods and Services on the City’s behalf.

2.2 All City of Waterloo elected officials and staff shall comply with the Purchasing By-law for the City of Waterloo. Without limiting the foregoing, such elected officials and staff comply with the Purchasing Statement of Ethics attached as Schedule D to this by-law.

2.3 No contract for Goods and Services shall be structured in such a manner so as to circumvent any intent or thresholds of this by-law.

3.0 Definitions

3.1 In this by-law:

3.1.1 “Authority Limit” means the maximum monetary value delegated to specific staff positions or Council;

3.1.2 “Bid” includes a Bid, proposal, quotation and tender;

3.1.3 “Bid Bond” means a written guaranty from a third-party guarantor submitted to a principal (client or customer) by a Contractor (Bidder) along with a Bid which insures against non-performance of the Bid document’s requirements on the acceptance of a Bid;

3.1.4 “Bid Irregularity” means a deviation from the requirements of a call for Bid;

3.1.5 “Bidder” means one who submits a response to any call for a Low Cost Purchase, Competitive or Non-Competitive procurement;

3.1.6 “Canadian Business” means a supplier, manufacturer or distributor of any business structure that conducts its activities on a permanent basis in Canada. The business either:

i. has its headquarters or main office in any province or territory within Canada, or

ii. has at least 250 full-time employees in any one province or territory within Canada at the time of the applicable procurement process; 

3.1.7 “Chief Administrative Officer” or “CAO” means the Chief Administrative Officer of the City or his or her designate;

3.1.8 “Chief Financial Officer” or “CFO” means the Chief Financial Officer and Treasurer of the City or his or her designate;

3.1.9 “City Solicitor” means the Director of Legal Services, or his or her designate, or outside legal counsel as determined by the Director of Legal Services from time to time;

3.1.10 “City” means The Corporation of the City of Waterloo;

3.1.11 “Commissioner” means a person with administrative responsibilities for a Department of the City, or his or her designate;

3.1.12 “Commitment Approval” means the authorization to use approved budgeted funds up to an allowable Authority Limit but does not include the authority to sign any contract, except where permitted by the By-Law To Delegate Authority to Execute Documents or other City policies;

3.1.13 “Contractor” means a person or firm having a contract with the City to furnish Goods and/or Services;

3.1.14 “Construction” means a service that has as its objective the realization by whatever means of civil or building works, based on Division 51 of the United Nations Provisional Central Product Classification. For clarity, Construction does not include Consulting Services relating to construction;

3.1.15 “Consultant” means a person or firm that provides Consulting Services;

3.1.16 “Consulting Services” means the provision of expertise or strategic advice that is presented for consideration and decision-making;

3.1.17 “Co-operative Purchasing” means a procurement method where the City of Waterloo leverages existing contracts established by other public sector entities or group purchasing organizations creating contracts on behalf of municipalities, publicly funded or public sector entities;

3.1.18 “Corporate Management Team” or “CMT” means the group consisting of the CAO and the Commissioners of all Departments;

3.1.19 “Council” means the Council of the City;

3.1.20 “Covered Procurement” means procurement for governmental purposes for which the value equals or exceeds the relevant thresholds set out in the in the Canadian Free Trade Agreement or the Canada-European Union Comprehensive Economic and Trade Agreement or any other trade treaty the City may be subject to;

3.1.21 “Department” means a collection of Divisions under the control of a Commissioner of the City;

3.1.22 “Director” means a Deputy Commissioner, Senior Director, Executive Director, Director, the City Solicitor, the City Clerk or a Deputy Fire Chief of the City, or his or her designate, who is responsible for a specific Division;

3.1.23 “Director of Procurement” means the Director of Fleet and Procurement of the City, or his or her designate, who is under the general direction of the Commissioner of Corporate Services;

3.1.24 “Division” means a part of a Department of the City;

3.1.25 “Donation” means a cash and/or in-kind contribution made to the City with no reciprocal commercial benefit expected or required from the City. Donations do not involve a business relationship and are distinct from sponsorship and/or advertising initiatives; 

3.1.26 “Emergency” means a situation or threat or an impending situation which may affect the environment, life, safety, health or welfare of the general public or the property of the residents of the City that requires immediate repair or replacement of equipment, services, or facilities in order to prevent or mitigate the loss or impairment of life, health, essential services or property within the City;

3.1.27 “Estimated Purchase Value” means the factor that determines the allowable procurement method. In determining the Estimated Purchase Value consideration must be given to the total value of the procurement over its entire duration, whether awarded to one or more suppliers, taking into account all forms of remuneration, including (i) premiums, fees, commissions and interest; and (ii) the total value of renewals if the procurement provides for the possibility of renewals; (iii) the value of any contingent payments (e.g. cash allowances), excluding sales taxes;

3.1.28 “Goods” means personal property (including the costs of installing, operating, maintaining or manufacturing such personal property) and includes raw materials, products, equipment and other physical objects of every kind and description whether in solid, liquid, gaseous or electronic form, unless they are procured as part of a general construction contract;

3.1.29 “Goods and Services” “Goods or Services” means all Goods and/or services including Construction Services and Consulting Services;

3.1.30 “In-House Work” is where the provision of Goods and/or Services will be completed entirely by City staff;

3.1.31 “Limited Procurement” means a competitive or non-competitive procurement method where one or more suppliers of the City’s choice are invited to Bid;

3.1.32 “Manager” means a Manager or his or her designate, who is responsible for a specific Section;

3.1.33 “Multi-Use List” means a list of Contractors that the City has determined satisfy the conditions for participation in that list, and that the City intends to use more than once;

3.1.34 “Non-Competitive Procurement” means a purchase negotiated directly from one supplier or a purchase made using a Limited Procurement method when an Open Competitive Procurement method is required in accordance with Schedule “C” of this by-law;

3.1.35 “Open Competitive Procurement,” means a competitive solicitation method, where a notice of intended procurement is advertised to the public, giving all suppliers an equal opportunity to submit a Bid in response to the solicitation;

3.1.36 “Prequalified Contractor” means a Contractor who has submitted a response to an advertised request for prequalification and has been determined to have met the minimum disclosed criteria and standards for technical qualifications and professional competence, and has the necessary equipment, facilities and experience for specific future solicitations;

3.1.37 “Purchasing Card” means a card provided by the City to duly authorized City staff to make purchases in compliance with the Purchasing Card Policy;

3.1.38 “Procurement Division” means the Section of the City managed by the Director of Procurement”;

3.1.39 “Purchase Order” means a contractual agreement with a Contractor that specifies payment terms, delivery dates, item identification, quantities, freight terms and all other obligations and conditions;

3.1.40 “Section” means a part of a Division of the City;

3.1.41 “Standing Arrangement” means an arrangement developed by the City or under which the City participated in, with a Contractor or Contractors under which the City may purchase Goods and/or Services from the Contractor(s) through a competitive or noncompetitive procurement method over a period specified in the arrangement. The arrangement includes all terms applicable to the procurement, such as the cost of the Goods and Service and delivery requirements;

3.1.42 “Surplus Property” means items no longer having a use to the City and shall include furniture, vehicles, equipment, supplies, and other Goods or materials, which are deemed surplus or which have become obsolete, worn out, or otherwise incapable of use.

3.2 To establish the definition of any other purchasing term not herein included, reference shall be made to the latest edition of the National Institute of Governmental Purchasing Inc. (NIGP) Public Procurement Dictionary of Terms.

3.3 All monetary amounts outlined in this by-law shall, unless otherwise stated, exclude all applicable taxes.

3.4 The monetary thresholds outlined in Schedule “C” shall be consistent with the City’s estimated or budgeted amounts for the specific procurement or project, not the amount actually Bid.

4.0 Interpretation

4.1 Headings contained in this by-law are for reference only.

4.2 Schedule “A” - Purchasing Exemptions is incorporated into and forms a part of this by-law.

4.3 Schedule “B” - Chart of Bid Irregularities or Non-Compliance is incorporated into and forms a part of this by-law.

4.4 Schedule “C” - Thresholds of Procurement Methods is incorporated into and forms a part of this by-law.

4.5 Schedule “D” – Purchasing Statement Of Ethics is incorporated into and forms a part of this by-law.

5.0 Responsibility and authority

5.1 Director of Procurement – The Director of Procurement is responsible for:

5.1.1 Providing procurement advice and related services including the necessary forms, contracts and Bid document templates that may be required by Departments, the CAO and Council for the purposes of fulfilling the procurement needs of the City;

5.1.2 Facilitating all aspects of calls for Bids including opening and ensuring compliance with the terms and conditions of the call for Bid;

5.1.3 Ensuring compliance with this by-law and associated policies and procedures and reporting non-compliance, in writing, to the appropriate Director, Commissioner or CAO, where warranted;

5.1.4 Approve, in consultation with the City Solicitor, by-law exception requests made pursuant to section 7.3.5 herein;

5.1.5 The standardization of Goods and Services in conjunction with Divisions, where appropriate and feasible;

5.1.6 The consolidation of the procurement of all similar Goods and Services where appropriate and feasible;

5.1.7 Ensuring that there is City representation in respect of cooperative purchasing initiatives; and,

5.1.8 Complying with the purposes, goals, and objectives of this by-law.

5.2 Manager, Procurement – The Manager, Procurement is responsible for:

5.2.1 ensuring the consistent application of this by-law and providing procurement services to City staff;

5.2.2 developing Procurement strategies and continually analyzing business requirements and spending patterns to identify opportunities for strategic sourcing;

5.2.3 researching, developing, maintaining, updating, and communicating procurement protocols, procedures, and templates;

5.2.4 addressing any issues or concerns that arise in respect of a procurement process and seeking guidance, support, and advice of the Director of Procurement or Legal Services, as required;

 5.2.5 providing appropriate orientation, training, and tools to City staff involved in procurement activities; and

5.2.6 Assisting Divisions with the disposal of Surplus Property;

5.3 Procurement Division Employees - Procurement Division Employees are responsible for:

5.3.1 complying with this by-law and ensuring this by-law and all protocols and procedures are applied consistently:

5.3.2 providing strategic support, consultation and procurement services to City staff;

5.3.3 communicating procurement protocols, procedures, and templates to City staff;

5.3.4 training City Staff on this by-law, protocols and forms; and

5.3.5 ensuring that all documentation relating to a procurement that is facilitated by the Procurement Division is properly filed and maintained in a procurement project file.

5.4 Commissioners, Directors and Managers – Commissioners, Directors and Managers are responsible for ensuring that:

5.4.1 all procurement within their respective Departments or Divisions or Sections is in compliance with this by-law and any associated policies and procedures;

5.4.2 no procurement, except for Emergency purchases, shall be contrary to Council’s approved budget or any specific direction from the CAO, CFO or Council, unless otherwise authorized by a Council-approved policy;

5.4.3 payments to Contractors are approved for processing within the times set out in the contract, provided the Contractor has met all the conditions of the contract; and,

5.4.4 all Goods and Services contracted for have been received and accepted by the City and appropriate documentation reflecting any approved changes in the terms and conditions of a contract is maintained.

5.5 City Solicitor – City Solicitor is responsible for:

5.5.1 Creating template contracts and updates as required;

5.5.2 Preparing amendments to contracts;

5.5.3 Preparing negotiated contracts for signature;

5.5.4 Reviewing and advising on interpretation of policies and legislation in relation to the Purchasing By-Law;

5.5.5 Providing legal advice and opinions as required in relation to legal issues arising during or as a result of purchasing activities;

5.5.6 Reviewing and providing legal advice and opinion regarding large, complex or unique purchases.

5.6 CAO – The CAO is responsible for ensuring:

5.6.1 that all City staff complies with this by-law.

6.0 City council

6.1 The following contract awards shall be subject to Council approval:

6.1.1 any contract prescribed by statute to be made by Council;

6.1.2 any contract that includes third party financing as part of the acquisition of Goods and Services;

6.1.3 any contract where this by-law is being waived;

6.1.4 any contract where Council has expressly directed staff to report prior to an award;

6.1.5 any contract where authority to approve has not been expressly delegated;

6.1.6 any contract where a submission in response to a call for Bid contains an irregularity not resolved by Schedule “B” of this by-law and which was not able to be otherwise resolved by the Procurement Division; or,

6.1.7 any contract through a Non-Competitive Procurement process, except where permitted in Schedule C or Section 7.3.5 of this by-law.

6.2 Council may waive, by resolution, the application of any part of this by-law in respect of any given procurement.

7.0 Procurement process

7.1 Procurements shall be undertaken in compliance with the following requirements:

7.1.1 each call for Bid shall be conducted in a fair, transparent, equitable, consistent, non-discriminatory and professional manner; and

7.1.2 the call for Bid document shall be publicly advertised, where required, in accordance with Schedule “C” to maximize the response potential to the call for Bid.

7.2 Procurement Planning 

7.2.1 Before a Bid can be posted, a comprehensive procurement plan must be developed with the Procurement Division that will consider, at a minimum:

7.2.1.1 available budget;

7.2.1.2 the procurement method;

7.2.1.3 the total estimated cost including all options, as well as maintenance costs, as applicable;

7.2.1.4 contract terms and conditions;

7.2.1.5 the procurement schedule;

7.2.1.6 evaluation procedures and method of selection; and

7.2.1.7 contract management requirements.

7.2.2 The requesting Division should, prior to initiating any procurement process for Goods and/or Services:

7.2.2.1 Ensure that the Goods and/or Services are legitimately required for City purposes;

7.2.2.2 Consider short and long-term requirements with respect to quantities and supply duration, or total project cost considering the life span of the program or project;

7.2.2.3 Consider the cost of ongoing maintenance, support, and licensing, etc.;

7.2.2.4 Confirm availability of funding;

7.2.2.5 Allow sufficient time to complete the procurement process, in accordance with process timelines posted by the Procurement Division; and

7.2.2.6 Prepare detailed specifications, statements of work and quantity requirements with the underlying premise of encouraging transparent and fair competition. Specifications must not be developed in a way that are prescriptive to specific branded products/services but instead descriptive of the performance requirements of the product/service needed.

7.2.3 Requirement for approved funds 

7.2.3.1 The authority to procure Goods and Services or award a contract is subject to the identification and availability of funds in appropriate accounts within Council’s approved budget.

7.2.3.2 All purchases which are outside the Council-approved budget shall be subject to the appropriate City budget policy. 

7.2.4 Social and sustainable procurement 

7.2.4.1 All Departments, Divisions and Sections of the City are encouraged to consider the social and environmental impacts of their procurement of Goods and Services to balance fiscal responsibility with social and environmental values. The City’s Social Procurement Policy shall be considered for the procurement of Goods and Services.

7.2.5 Estimated purchase value 

7.2.5.1 The Estimated Purchase Value is used to identify recommended procurement methods.

7.2.5.2 The value of a procurement must not be reduced in any attempt to avoid the application of other requirements of this By-Law, including requirements relating to procurement method.

7.2.5.3 Where similar Goods and/or Services are required in connection with one project, all of those Goods and/or Services, including all contemplated phases of the project, shall be included in determining the Estimated Purchase Value.

7.3 Procurement methods 

7.3.1 Unless otherwise specified in this by-law, Goods and Services shall be purchased or procured in accordance with the methods described in this section and in accordance with Schedule “C” of this by-law.

7.3.2 Low cost purchase (“LCP”)

7.3.2.1 A LCP may be conducted for the procurement of Goods and Services having a purchase value up to the limit stated in Schedule “C” of this by-law.

7.3.2.2 A LCP may be made utilizing a purchase order, petty cash, a vendor offered charge account or Purchasing Card or other similar method.

7.3.2.3 A Manager or Director may authorize specific individuals to make LCPs and set monetary limits to that authority, in accordance Schedule “C” of this by-law.

7.3.3 Competitive procurement

7.3.3.1 All Competitive Procurements must be Publicly Advertised. The methods for requesting a Bid include, but are not limited to:

7.3.3.1.1 Request for Expression of Interest (REOI);

7.3.3.1.2 Request for Information (RFI);

7.3.3.1.3 Request for Prequalification (RFPQ);

7.3.3.1.4 Request for Proposal (RFP);

7.3.3.1.5 Request for Tender (RFT);

7.3.3.1.6 A multi-step process which may involve a combination of the above.

7.3.3.2 The Procurement Division Employee is responsible for determining the procurement method and conducting and managing the procurement process for all competitive procurements including the evaluation process and the maintenance of Bids, Bidder information and Bid results;

7.3.3.3 The project manager is responsible for determining the requirements and preparing detailed specifications or statements of work and quantity requirements on behalf of their Division;

7.3.3.4 The Procurement Division Employee is responsible for reviewing the specifications or statements of work and quantity requirements, developing an appropriate Bid Request and evaluation method and criteria ensuring that the principles outlined in Section 7 are followed;

 7.3.3.5 Following Bid review and/or evaluation and determination of the recommended Bidder(s), approval to Award the Contract(s) is required in accordance with this by-law.

7.3.4 Negotiation 

7.3.4.1 Negotiation, conducted under the direction of the Director of Procurement and/or the Procurement Division, may be used for the procurement of Goods and Services or for any contract when one or more of the following criteria apply:

7.3.4.1.1 due to abnormal market conditions, the Goods and Services required are in short supply or market price fluctuations or instability exists; 

7.3.4.1.2 where only one Bid is received and it exceeds the amount budgeted for the procurement;

7.3.4.1.3 where extending the existing contract was provided for in the original Bid document;

7.3.4.1.4 where a Bid document expressly allow for negotiations to occur;

7.3.4.1.5 where extraordinary circumstances exist, as determined by the Director of Procurement;

7.3.4.1.6 where Council has authorized negotiation; or,

7.3.4.1.7 where all submitted Bids are non-compliant with the terms of the call for Bid.

7.3.5 Non-competitive procurements 

7.3.5.1 Unless allowable pursuant to Schedule “C” of this by-law, a Non-Competitive Procurement may only be facilitated and negotiated, if:

7.3.5.1.1 The circumstances for the Non-Competitive Procurement meet one of the allowable exceptions in

7.3.5.2 below or as may be permitted under the Canadian Free Trade Agreement;

7.3.5.1.2 A rationale of how the request represents an allowable exception has been either:

i. approved by the Director of Procurement, in consultation with the City Solicitor,

ii. or if the request is denied by the Director of Procurement, approved by the Corporate Management Team, in consultation with the Director of Procurement and the City Solicitor.

7.3.5.1.3 Proper approvals in accordance with Authority Limits have been obtained; and

7.3.5.1.4 The Estimated Purchase Value is below the thresholds for a Covered Procurement and approval has been provided by the Director of Procurement.

7.3.5.2 Non-Competitive Procurements are permitted for Goods or Services of any contract value without the competitive Bid process in the following circumstances (allowable exceptions):

7.3.5.2.1 No compliant Bids were submitted or no Bidders responded to or met conditions for participation under a Bid or request for pre-qualification, or submitted Bids were collusive;

7.3.5.2.2 If the Goods and/or Services can be supplied only by a particular supplier and no reasonable alternative or substitute Goods or Services exist for any of the following reasons:

i. the requirement is for a work of art;

ii. the protection of patents, copyrights, or other exclusive rights;

iii. due to an absence of competition for technical reasons;

iv. the Supply of goods or services is controlled by a supplier that is a statutory monopoly;

v. to ensure compatibility with existing Goods, or to maintain specialized goods that must be maintained by the manufacturer of those Goods or its representative;

vi. work is to be performed on property by a contractor according to provisions of a warranty or guarantee held in respect of the property or the original work; or

vii. work is to be performed on a leased building or related property, or portions thereof that may be performed only by the lessor.

7.3.5.2.3 For additional deliveries by the original supplier of Goods and/or Services that were not included in the initial procurement, if a change of supplier for such additional Goods or Services: i. cannot be made for economic or technical reasons such as requirements of interchangeability or interoperability with existing equipment, software, services, or installations procured under the initial procurement; and ii. would cause significant inconvenience or substantial duplication of costs for the City;

7.3.5.2.4 If strictly necessary, and for reasons of urgency brought about by events unforeseeable by the City, the Goods or Services could not be obtained in time using an open Bid process;

7.3.5.2.5 For the purchase of Goods on a commodity market;

7.3.5.2.6 If the City procures a prototype or a first good or service that is developed in the course of, and for, a particular contract for research, experiment, study, or original development. Original development of a first Good or Service may include limited production or supply in order to incorporate the results of field testing and to demonstrate that the Good or Service is suitable for production or supply in quantity to acceptable quality standards, but does not include quantity production or supply to establish commercial viability or to recover research and development costs;

7.3.5.2.7 If a contract is awarded to the winner of a design contest, provided that:

i. The contest has been organized in a manner that is consistent with the advertising requirements set out in Schedule A; and

ii. The participants are judged by an independent jury with a view to a design contract being awarded to a winner.

7.3.5.2.8 For the purchase of Goods under exceptionally advantageous circumstances such as liquidation, bankruptcy or receivership, but not for routine purchases from regular Contractors;

7.3.5.2.9 For procurements that target poverty reduction for disadvantaged natural persons if the value of the procurement is below $200,000; or

7.3.5.2.10 If Goods or Services regarding matters of a confidential or privileged nature are to be purchased and the disclosure of those matters through an open tendering process could reasonably be expected to compromise government confidentiality, result in the waiver of privilege, cause economic disruption or otherwise be contrary to the public interest.

7.3.6 Co-operative purchasing

7.3.6.1 The City may participate with other government agencies or members of the Broader Public Sector in co-operative purchasing initiatives where it is in the best interests of the City to do so.

7.3.6.2 The purchasing policies of the originating co-operative (or lead agency) shall form the basis of accepted policy and procedure when participating in, or calling, co-operative Bids and this by-law shall be otherwise waived. The City will review the originating co-operatives’ purchasing policies before entering a co-operative purchasing arrangement.

7.3.7 Unsolicited submissions, proposals and offers

7.3.7.1 All unsolicited submissions, proposals and offers received by the City if being considered shall be directed to the Director of Procurement for review with the Director or Commissioner of the appropriate Division or Department for their review.

7.3.7.2 If it is determined that there is a legitimate need for the Goods and/or Services offered by way of an unsolicited proposal, then a procurement process shall be conducted in accordance with this By-law.

7.3.8 Emergency purchases 

7.3.8.1 Notwithstanding any of the provisions of this by-law, Goods and Services may be immediately purchased during an Emergency, as determined by any of the CAO, CFO, the Director of Procurement, or a Commissioner, which includes a circumstance where there is a threat to any of the following:

7.3.8.1.1 public health;

7.3.8.1.2 the maintenance of essential services or to prevent the disruption of essential services;

7.3.8.1.3 the welfare of persons or of public property; or,

7.3.8.1.4 the security of the City’s interests.

7.3.8.2 Notwithstanding any of the provisions of this by-law, any of the CAO, CFO, the Director of Procurement, or a Commissioner, shall have the necessary authority to secure any Goods and Services required, in an efficient, expeditious manner for all Emergency purchases using a Purchasing Card or Purchase Order. In the case of an after-hours emergency, a Purchase Order will be issued the next regular business day.

7.3.8.3 If the value of the Emergency purchase exceeds the value permitting Limited Procurements as outlined in Schedule “C”, as soon as is practicable after an emergency purchase has been made, the appropriate Director or Commissioner shall forward a report to Council outlining:

7.3.8.3.1 the nature of the Emergency;

7.3.8.3.2 why the Emergency purchase was necessary;

7.3.8.3.3 the method by which the Emergency purchase was conducted; and,

7.3.8.3.4 the total cost of the Emergency purchase, including any budgetary impacts.

7.3.9 In-house work 

7.3.9.1 For any studies, assessments, evaluations, renovations, surveys, construction and any other work involving City-owned lands, infrastructure and facilities the City reserves the right, to conduct such activities using its own staff and resources.

7.4 Bid administration 

7.4.1 Consulting services 

7.4.1.1 Consulting Services over one hundred and twenty five thousand dollars ($125,000) shall be procured by RFP, Multi-Use List, Standing Arrangement, or Co-operative Purchasing Arrangement, unless a Non-Competitive Procurement process is permitted under Schedule “C” Threshold of Procurement Methods or is approved in accordance with Section 7.3.5.

7.4.1.2 When evaluating an RFP for consulting services required under 7.4.1.1, the criteria of “price” shall be scored at least thirty five percent (35%), unless the criteria of price is negotiated in accordance with Section 7.3.4.1.4.

7.4.1.3 Notwithstanding Section 7.4.1.2, the City may include as part of its evaluation criteria the requirement that a Bidder meet a defined minimum technical score in order to have its Bid considered.

7.4.1.4 Consultants may be hired in, but not limited to, any the following circumstances:

7.4.1.4.1 the project requires special knowledge, skills, expertise, experience or available resources which the City does not possess in-house;

7.4.1.4.2 another organization is partially or wholly funding the project and strict timelines have been placed on the funding; or,

7.4.1.4.3 the nature of the project is such that it would not be in the public or City’s interest to perform it in-house, as determined by the appropriate Director, in consultation with the Director of Procurement.

7.4.1.5 Under this section, all Consultant proposals procured by RFP shall include, at a minimum:

7.4.1.5.1 a methodology and timetable to complete the project;

7.4.1.5.2 demonstrated experience and qualifications required to perform the project; and,

7.4.1.5.3 a list of personnel who will be directly involved in the completion of the project.

7.4.1.6 Proposals for Consulting Services shall be evaluated by a panel consisting of at least three (3) people, including a minimum of two (2) City staff members familiar with the project or the Services being acquired.

7.4.1.7 All of the members of the evaluation panel described in section 7.4.1.6 of this by-law must participate in the evaluation process and score the proposal.

7.4.1.8 The liaison Councillor may be invited to join the evaluation panel described in section 7.4.1.6 of this by-law but, if invited, the liaison Councillor shall comply with section 7.4.1.7 of this by-law.

7.4.2 Bid irregularities  

7.4.2.1 Where a Bid is received that includes an irregularity, the City shall follow the protocol as appropriate for the particular irregularity, as outlined in Schedule “B”.

7.4.3 Only one bid received 

7.4.3.1 In the event only one Bid is received in response to a competitive Bid, the Director of Procurement may return the unopened Bid to the Bidder. In returning the unopened Bid, the Director of Procurement shall inform the Bidder that the City may be re-issuing the competitive Bid at a later date.

7.4.3.2 In the event that only one Bid is received in response to a request for competitive Bid, the Bid may be opened and evaluated.

7.4.3.3 If the Bid does not exceed the amount budgeted, it may be awarded in accordance with this by-law.

7.4.3.4 Where the Bid exceeds the amount budgeted for the procurement, negotiations may be conducted with the only Bidder, in accordance with this by-law.

7.4.4 Exclusion of bidders 

7.4.4.1 If there is supporting evidence, the City may exclude all Bids submitted by a Bidder on grounds such as:

7.4.4.1.1 that Bidder is engaged in a legal action or there is a potential of legal action with the City unless waived by the City Solicitor;

7.4.4.1.2 bankruptcy or insolvency under the Bankruptcy and Insolvency Act, RSC 1985, C B-3 (BIA), or any application or assignment under the BIA or the Companies' Creditors Arrangement Act, RSC 1985, c C-36;

7.4.4.1.3 false declarations;

7.4.4.1.4 significant or persistent deficiencies in performance of any substantive requirement or obligation under a prior contract or contracts;

7.4.4.1.5 final judgments in respect of serious crimes or other serious offences;

7.4.4.1.6 professional misconduct or acts or omissions that adversely reflect on the commercial integrity of the Bidder;

7.4.4.1.7 failure to pay taxes; and

7.4.4.1.8 compliance with Provincial and/or Federal government directives for procurements.

7.4.5 No Lobbying 

7.4.5.1 Unless authorized by the City to do so, no Bidder shall contact any member of Council or any City staff person to attempt to influence the award of a contract.

7.4.5.2 If a Bidder contacts any member of Council or any City staff person to attempt to influence the award of a contract, the Bidder shall be disqualified, unless the Bidder’s actions have been authorized by the City.

7.4.6 Evaluation 

7.4.6.1 Evaluation criteria must be clearly disclosed in the procurement documents.

7.4.6.2 Evaluation criteria must not be developed in a way that create hidden evaluation criteria.

7.4.6.3 All participants in the evaluation process must be trained on the particulars of that specific evaluation process, including their role, responsibilities and obligations during the evaluation process. Individuals who have not been trained on the evaluation process or have not complied with the City’s evaluation procedures will not be eligible to evaluate bids for that procurement and will not be permitted to participate in that procurement’s evaluation process.

7.4.7 Tie Bids

In the event that two (2) or more compliant, equal Bids are submitted during a competitive Bid process, the City shall determine the successful Bidder by drawing a Bidder’s name from a receptacle or by flipping a coin, as determined by the Director of Procurement.

7.4.8 Logical or geographical preference 

7.4.8.1 The City shall comply with the Discriminatory Business Practices Act, R.S.O. 1990, c. D.12, as amended.

7.4.8.2 Notwithstanding section 7.4.8.1 the City may when trade agreements allow, limit its tendering to Canadian goods, services, or suppliers or as part of its evaluation criteria accord a preference for Canadian value-add.

7.4.9 Purchasing approvals 

7.4.9.1 All Commitment Approvals and subsequent execution of contract documents, including contract changes resulting in increases in contract value must be approved in accordance with the City’s By-Law to Delegate Authority to Execute Documents or other City policies.

7.4.10 Bidder debriefings  

7.4.10.1 Where the City has conducted a competitive procurement process, unsuccessful Bidders may request a debriefing. Debriefings must be managed and responded to in accordance with the City’s Debriefing Protocol.

7.4.11 Procurement protests 

7.4.11.1 Suppliers may formally protest the outcome of a procurement process. Formal protests must be made by Bidders and must be managed and responded to by the City in accordance with the City's Procurement Protest Protocol.

8.0 Contract management and administration

8.1 All contracts must be managed by the respective City staff in accordance with this By-law and all applicable procedures and protocols to ensure that both the City and the supplier fulfil the requirements of the contract. City staff must involve the Procurement Division and Legal Services in the management of contract disputes, as required by applicable procedures and protocols.

8.2 When managing contracts, attention should be paid to ensure that:

8.2.1 payments are in accordance with the provisions of the Contract; 

8.2.2 performance is managed and documented, and any performance issues are addressed as per Section 9 of this by-law

8.2.3 procurement documents, including the contract, identify the framework under which price increases will be permitted including, but not limited to, the frequency of price increases, allowable amount of increase, and any benchmarks (including inflation indices) that will be used to confirm the price increase.

9.0 Contractor performance management

9.1 The City may, for any contract created pursuant to this By-law, undertake performance evaluation during or after completion of the contract. 9.2 Documented performance on any City Contract may:

9.2.1 Determine the eligibility of a Contractor or Consultant to continue to provide Goods, Services or Consulting Services to the City;

9.2.2 Determine the eligibility of a Contractor or Consultant to participate in future Bid opportunities;

9.2.3 Be considered as part of the evaluation criteria for any future Bid opportunities.

9.3 Performance evaluations and corrective actions will be conducted in an appropriate and consistent manner, in accordance with the City’s Supplier Performance Evaluation Program (the “Program”).

9.4 The Director of Procurement is responsible:

9.4.1 for the implementation and oversight of the Program, including suspending or placing any Contractor or Consultant on probation as permitted under the Program;

9.4.2 for maintaining a list of Contractors or Consultants status under the Program;

9.4.3 to ensure that all Bidders have access to the Program and performance evaluation criteria; and

9.4.4 to ensure reference to the Program is detailed in all Bids that are subject to the Program.

9.5 Prior to issuing a formal notice of suspension as permitted under the Program, the Director of Procurement will consult with the City Solicitor.

9.6 Commissioners, Directors and Managers are responsible to ensure that their Departments, Divisions and Sections monitor and document a Contractor’s performance and comply with their obligations under and the requirements of the Program.

10.0 Records retention and access to information

10.1 Records Retention

10.1.1 All procurement records, including contracts, bids, supporting documentation, and related correspondence, are the property of the City and must be retained in accordance with the City’s Retention By-Law 2013-071, as amended, and any applicable policies and procedures.

10.1.2 The official record of all contracts executed pursuant to this policy shall be retained in the City’s designated electronic or physical records management system.

10.1.3 Procurement records required for reporting, auditing, or operational purposes must be maintained in a recoverable form in accordance with The City of Waterloo Records Classification and Retention Schedule established under By-Law 2013-071. Records shall not be destroyed except under the authority of By-Law 2013-071.

10.2 Access to Information

10.2.1 The disclosure of procurement information must be made in accordance with applicable City’s policies, procedures and protocols, in compliance with the Municipal Freedom of Information and Protection of Privacy Act (MFIPPA), R.S.O. 1990, c. M.56, as amended, and the Personal Health Information Protection Act (PHIPA), 2004, S.O. 2004, c. 3, Sched. A, as amended, where applicable.

10.2.2 The disclosure of information relating to the issuance of competitive bids and/ or the award of contracts shall be made in accordance with MFIPPA, s. 4 by the City Clerk or their designate.

11.0 Disposal of surplus property

11.1 Any Surplus Property not required by Division that has a residual value, as determined by the appropriate Director, shall be sold or disposed of in accordance with one of the following methods, as jointly determined by the Director of Procurement and the appropriate Director:

11.1.1 Call for Bid: If it is determined by the Director of Procurement and the appropriate Director that the highest return for Surplus Property is by a call for Bid, a Bid shall be issued;

11.1.2 Public auction: If it is determined by the Director of Procurement and the appropriate Director that the highest return for Surplus Property is by public auction, the Procurement Division shall arrange for the Surplus Property to be sold at a public auction;

11.1.3 Return to supplier: If it is determined by the Director of Procurement and the appropriate Director that a higher return net of disposal cost can be achieved by sale or trade-in of the Surplus Property to the original supplier or suppliers in that line of business, the appropriate Director shall sell or trade in such Surplus Property at the highest return;

11.1.4 In accordance with policy: If Council has established a policy in relation to the disposal of certain types of Surplus Property, then the provisions of that policy shall be followed by the Director of Procurement; or,

11.1.5 The Division may notify community interest, non-profit organizations or other levels of government of the relevant items for disposal and, request they submit to the appropriate Director, a letter of interest.

11.2 Any Surplus Property not required by Departments and that has no residual value, as determined by the appropriate Director, shall be disposed of in accordance with one of the following methods, as determined by the Director of Procurement and appropriate Director:

11.2.1 The Division may notify a single community interest, non-profit organization or other levels of government of the relevant items for disposal and request they submit, to the appropriate Director, a letter of interest;

11.2.2 The Divisions may dispose of the items directly through the applicable waste process;

11.2.3 Public auction: the Procurement Division shall offer the Surplus Property for sale through a public auction.

11.3 No staff member or Councillor of the City shall personally obtain any Surplus Property with a value of more than $100.00 unless it is obtained through a public process.

11.3.1 Notwithstanding section 11.3, a staff member or Councillor of the City may personally obtain Surplus Property at a price determined jointly by the Director of Procurement and the Director of Information Management & Technology Services, or his or her designate, without going through a public process if the property being obtained is information technology, such as a computer, laptop, or cell phone.

12.0 Donations

12.1 The City may accept Donations for Goods and Services, at Council’s sole and absolute discretion.

13.0 Supplementary policies

13.1 Council may prescribe supplementary policies, not inconsistent with this by-law, relating to the purchasing procedures or policies of the City, as Council deems necessary or expedient.

14.0 Short title

14.1 The short title of this by-law shall be the “Purchasing By-Law”.

15.0 Repeal

15.1 By-Law 2019-026 (Amended by By-Law No. 2025-09, May 26, 2025) is hereby repealed.

16.0 Enactment 

16.1 This by-law shall come into force and effect upon the day of passing
thereof.

Schedule A - Purchasing exemptions 

1. This by-law does not apply to the following purchases: 

  • Training and Education
  • Conferences, conventions, courses and seminars
  • External continuing education fees, workshops and seminars
  • Magazines, books, periodicals and subscriptions Memberships, association fees or dues 

2. Refundable Employees’ Expenses

  • Advances (Cash)
  • Meal allowances
  • Taxi fare charges
  • Travel, hotel accommodations expenses 

3. City’s General Expenses

  • Bank charges
  • Charges to and from other government bodies
  • Collective agreements
  • Damage claims
  • Debenture payments
  • Election expenses including
  • Electronic equipment and ballots (For greater certainty, the City Clerk is exempt from this by-law pursuant to the Municipal Elections Act, 1996, S.O. 1996, c. 32, Sched., as amended, in relation to election-related expenses).
  • Fees and charges payable to the Federal and Provincial Government
  • Insurance premiums Licenses (vehicle, firearms, elevators, communications, etc.)
  • Postage
  • Property Rentals
  • Refunds
  • Tax remittances
  • Wages 

4. Professional and Special Services

  • Actuarial services and expenses
  • Arbitrator services
  • Committee fees
  • Easements, encroachments and licenses
  • Electronic equipment and ballots for election purposes
  • Employee benefit premium payments
  • Honorariums
  • Insurance claims
  • Investments
  • Legal services
  • Medical, dental, laboratory and pharmacy fees
  • Mortgage/loan payments
  • Payments to local boards
  • Payroll deduction remittances
  • Permits certificates acquired through Government agencies
  • Real estate fees or land transfer taxes
  • Real estate transactions, including buying, selling or leasing real property
  • Registry office fees
  • Research assignments
  • Revenue collected on behalf of a third party
  • Witness fees 

5. Utilities (monthly charges) Cable Television Hydro Natural Gas Telephone (excluding cellular) Water and Sewer

6. Payments to educational institutions

7. Payment to recreation program facilitators or hosts

8. Events or engagements supporting local non-profit organizations

9. Entertainers for theatre or special events

10. Expenses related to an event which it is anticipated will be recovered in full from a third party

11. Any purchases relating, either directly or indirectly, to a site plan agreement, a subdivision agreement or any other agreement or requirement that is specified in the Planning Act, R.S.O. 1990, c. P.13, as amended.

12. Procurement of Goods intended for resale to the public.

13. Procurement of Goods or Services on behalf of an entity not covered by this by-law.

14. Procurements between enterprises that are controlled by or affiliated with the same enterprise or between one government body or enterprise and another government body or enterprise.

15. Any forms of assistance such as grants, loans, equity infusions, guarantees and fiscal incentives.

16. Non-legally binding agreements.

17. Procurement of Goods or Services financed primarily from donations that require the procurement to be conducted in a manner inconsistent with this by-law.

Schedule B - Chart of bid irregularities or non-compliance

Notes:

I) The following list of Bid Irregularities should not be considered exhaustive. 

II) This chart of Bid Irregularities shall apply only where an irregularity exists with respect to a stated requirement of a relevant competitive Bid document (e.g. an RFQ, RFT or RFP) or a RFI issued by the City.

III) Where notice of a specified time-period to correct an irregularity has been given, or extended by the City and that time period, or extended time period, has elapsed without the correction having been made, the Bidder shall be deemed to be in default and, where applicable, the Bid deposit shall be forfeited. The Bid shall be given no further consideration for award.

 

Bid Irregularities — General
Item Irregularity Response
1 Bidder not registered to carry on business in Ontario at time of submission Rejection
2 Late submissions Rejection. The submission will not be opened. Should it not be clear as to the Bidder’s name and address then the package will be opened solely to access this information.
3 Unsealed submission package Rejection unless, in the opinion of the Director of Procurement, the unsealed submission package did not result in missing information would adversely affect an award decision.
4 Bidder has not been previously qualified under a related pre-qualification process, where applicable. Rejection
5 Failure to have a representative in attendance and registered at a mandatory attendance site/information meeting. Rejection
6 Failure to include the Form of Tender, Quotation, Proposal or Pre-Qualification, as may be applicable. Rejection, unless, in the opinion of the Director of Procurement, the missing information is minor and would not adversely affect an award decision.
7 Omission of a detail indicated to be mandatory. Rejection
8 Forms that compose the submission documents are not completed in their entirety. Rejection, unless, in the opinion of the Director of Procurement, the missing information is minor and would not adversely affect an award decision.
9 Conditional Bids (Bids qualified, based on a Bidder’s condition or restricted by an appended statement). Rejection, unless, in the opinion of the Director of Procurement, the qualification or restriction is minor and would not adversely affect an award decision.
10 Bids containing clerical errors that do not result in any ambiguity with respect to the overall submission or award decision, in the opinion of the Director of Procurement. Two business days to correct and initial
11 Failure to acknowledge addenda Rejection, unless, in the opinion of the Director of Procurement, the failure to acknowledge was an oversight and the contents of the addenda would not adversely affect an award decision.
12 Any irregularity or non‑compliance Despite the provisions herein contained, Council may waive any irregularity or non-compliance.
Bid Irregularities — Pricing
Item Irregularity Response
13 Failure to include schedules of items/prices, price form or price details as may be applicable, for inclusion with the submission. Rejection, unless, in the opinion of the Director of Procurement, the missing information is minor and would not adversely affect an award decision.
14 Pricing appears to be unbalanced to the extent that it may have a significant adverse effect to the City if awarded, in the opinion of the Director of Procurement. Rejection
Bid Irregularities — Bid Deposit
Item Irregularity Response
15 Bid deposit or Bid Bond not submitted with Bid. Rejection
20 Bid deposit or Bid Bond amount insufficient by more than $1,001 Rejection
21 Surety provider’s or Bidder’s authorized signature missing from Bid Bond. Rejection
22 Effective period of Bid Bond is less than the period set out in the Bid documents. Rejection
Bid Irregularities — Agreement to Bond
Item Irregularity Response
23 Agreement to bond not submitted with Bid. Rejection
24 Agreement to bond not in form specified Rejection
25 Agreement to bond amount insufficient by more than $1,001 Rejection
26 Surety provider’s or Bidder’s authorized signature missing from agreement to bond. Rejection
Bid Irregularities — Post‑Award Notification
Item Irregularity Response
27 Failure to execute required bonding or financial security within prescribed time period Rejection and bid deposit forfeiture
28 Failure to execute a contract within the prescribed period Rejection and bid deposit forfeiture
29 Failure to provide supporting documents, as specified within the Bid document and within the prescribed period. Rejection and bid deposit forfeiture

Schedule C - Thresholds of Procurement Methods

Download Schedule C (PDF)

Schedule D - Purchasing statement of ethics

All individuals authorized to purchase goods, services, and/or construction on behalf of the City of Waterloo must adhere to the City’s Code of Conduct Policy and the following procurement principles:

1. Open and Honest Dealings with All Involved in the Procurement Process

Procurement activities must be transparent and accountable. This includes interactions with all businesses the City contracts with or purchases from, as well as all staff members and the public who utilize procurement services. 

2. Fair and Impartial Award Recommendations for All Contracts and Tenders

Contracting and procurement activities must be fair, transparent, and aimed at obtaining the best value for public money. Preferential treatment to any vendor, including local companies, is prohibited to ensure fair and open competition. 

3. An Irreproachable Standard of Personal Integrity

 Individuals involved in procurement must act with integrity and professionalism. Honesty, care, and due diligence are essential. Respect for each other and the environment is paramount. Confidential information must be safeguarded, and conflicts of interest must be avoided.

4. Cooperation with Other Public Agencies

The City will collaborate with other public agencies to achieve the best value for every tax dollar. This includes participating in cooperative purchasing groups to leverage collective expertise and resources. 

5. Continuous Development of Procurement Skills and Knowledge

 All procurement team members are encouraged to continuously improve their knowledge and skills through available opportunities, ensuring adherence to good public purchasing principles.

6. Declaration of Conflicts

All participants in a procurement process, including external consultants or service providers acting on the City's behalf, must declare any perceived, possible, or actual conflicts of interest. 

7. Personal Purchases

No purchase will be processed for personal items of direct benefit to officers or employees of the City or any member of Council, except where permitted by policy. 

8. Purchases from City Employees

No Deliverables will be purchased from an officer or employee of the City, or any associate or immediate family member, except where permitted under this by-law. 

9. Conflict of Interest Forms All City employees

and others participating in the evaluation for any procurement process must complete and sign a Conflict of Interest Form.

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