Appendix 4: Best practices to support the implementation of the tendering policy

6.1. Invitation and instructions to proponents

The invitation to proponents is issued by the project owner to invite proponents to submit proposals.

The instructions to proponents accompany this invitation. They establish the administrative parameters of the call for proposals so that all proponents have a clear understanding of the process. The instructions must be distributed equally and fairly to all interested proponents.

The instruction to proponents typically includes the following information:

• Definitions/terminology guide/glossary and list of acronyms/abbreviations
• Contracting Authority
• RFP contact for enquiries
• Submission requirements, including language, date, time, format and/or location
• Mandatory requirements
• Statement that the submission of a proposal confirms:
  • there is no conflict of interest, unfair advantage, bias or lobbying
  • acceptance of all the terms and conditions set out in the RFP, including all appendices, addenda and the process rules.
• Evaluation process that will be applied in selecting the successful proponent. This includes:
  • The criteria that will be used to evaluate the proposals 
  • Which evaluation criteria are mandatory and which are point-rated
  • The technical evaluation grid that will determine how proposals will be ranked
  • The selection methodology that will be used to determine how the winning proponent will be selected
• Information sessions
• Cancellation and amendments
• Privacy and ownership
• Costs
• Indemnity

6.2. Terms of reference

The terms of reference describes the project in detail, along with the level of service expected from the proponent and the timeframe for the project. The terms of reference should describe the purpose of the project as well as its desired objectives, deliverables and outcomes.

The terms of reference should be well-defined and include as many details as possible about the problem and scope of the project that are available at the time of the call for proposals. It should include the following:

• RFP purpose and project objectives
• Background information
• Limitations under which the proposed solution will be required to operate
• Contract administration requirements, including list of sub-contracts, requirements for contract term extensions, changes in the work or personnel, and invoicing and payment terms
• Statement of when a contractual relationship will be established and work may proceed

6.3. Scope of work

The scope of work is a detailed description of what is to be achieved. The scope of work defines and quantifies the limits and expected outcomes of the project.

In general, the scope of work may include:

• technical requirements (desired features and benefits)
• references from past work
• clearly established minimum levels of quality control and standards
• identification of potential risk factors
• schedule/timeframe for completion
• deliverables

6.4. Proposal evaluation criteria

The call for proposals must provide the criteria by which proposals will be evaluated and their associated weights. These criteria should be selected in a manner that enables the evaluation to reflect the project requirements and result in selecting the proposal that will provide the best value.

In general, weights should be assigned to each criterion based on the relative importance of the criterion to the project requirements, and pursuant to any requirements listed in sections 7.7.2 and 7.7.3 of the tendering policy.

6.5. Appendices and forms

The appendices may include standard forms to enable uniform responses from proponents. For example, a cost of services form is typically included to standardize how proponents format fees and costs. The cost of services form may include allowances for geotechnical investigations, environmental assessments, and topographic surveys. Other allowances may include other goods and services such as travel.

Additional appendices may include schedules of services, evaluation rubrics, and/or additional information.

7.1. Advertising

Once the call for proposals is accurate and complete, it must be formally released to all potential proponents.

For an invited competitive process, the call for proposals is sent to those proponents who have been directly invited to submit a proposal. However, other proponents who request the documents and express interest in participating should not be refused.

For an open competitive process, the call must be widely accessible, preferably using a secure electronic platform. This platform should be easily accessible to all interested proponents at minimal or no cost. When using an electronic platform, a secure link to access the platform should be provided to consultants who have requested access to the documents. The names of the proponents who have requested access should be recorded for the purpose of sending those proponents any addenda and/or notifications, if required.

7.2. Modifying a call for proposals

Calls for proposals can be changed by issuing either a Letter of Clarification or Letter of Amendment, or by issuing an addendum. All proponents who have received the proposal package should be sent the changes, regardless of their intention to submit a proposal.

All addenda or amendments and clarifications should be identified and logged onto the list of contract documents with the issue date to keep a record of when the amendment was sent out and to whom.

8.1. Sole proposal received

If only 1 proposal is received, the call for proposals should first be reviewed to rule out any biases therein and to ensure that it contained enough information to encourage competitive responses. Where bias or insufficient scope is found, the call for proposals should be cancelled and re-written.

If the call for proposals is deemed to be of sufficient scope and free from bias, the sole proposal must be evaluated to ensure compliance with the mandatory requirements of the call for proposals and acceptability to the project owner. If this assessment is satisfactory, the contract may be awarded to the sole proponent.

10.1. Evaluation committee

A best practice for reviewing and evaluating proposals is to assemble an evaluation committee. Typically, this committee would consist of at least 3 evaluators, selected by the project owner, and include at a minimum:

• A person who is authorized to administer the contract
• A subject matter expert relative to the project
• A stakeholder representing a diversity of perspectives relevant to the project

The evaluators must have no real, perceived, or apparent conflict of interest that could affect their ability to make a fair decision. Each evaluator must sign a declaration confirming that they are not in a conflict of interest before the evaluation process begins.

To ensure an impartial evaluation, all proposals must be reviewed and evaluated independently by each evaluator of the committee to obtain an unbiased rating. Only when individuals' detailed evaluations are completed does the committee reconvene to:

1. discuss their perspectives, including where scores greatly differed across evaluators, as individual evaluators may have identified information that others did not
2. be given the opportunity to revise their individual scores based on the discussion in point 1, ensuring the evaluators' final rating reflects their best assessment
3. consolidate and finalize scores
4. identify the top proponent(s)

The evaluation and all supporting documents, including declarations from the evaluation committee, are to be recorded per section 7.9 of the tendering policy.

10.2. Compliance review (mandatory requirements)

Each proposal is reviewed for compliance with the mandatory requirements that were included in the call for proposals. These are assessed on a pass/fail basis. Any proposal not fully meeting each of the mandatory requirements should not be further considered.

If the proponent submits an alternative to a stated mandatory requirement, or if the information related to a mandatory requirement is altogether missing, the proposal should be considered non-compliant and not further considered.

10.3. Technical evaluation

All proponents should be treated fairly and equally, and their proposals should be evaluated in accordance with the process described in the call for proposals. Care must be taken during this process to not take any actions or make any decisions that could be construed as providing an unfair advantage to any proponent.

See Appendix 5 for more information for technical evaluations.  

10.4. Price evaluation

Typically, once a proponent's technical proposal has been evaluated, their price proposal is then evaluated. The manner in which price is evaluated will depend on the selection methodology used. See section 7.7.3 of the tendering policy for a list of these methodologies and see Appendix 5 for more information on their application.

10.5. Seeking clarifications and additional information

A call for proposals process allows for the receipt of information after the close of proposals if information is requested by the project owner to, for example:

• substantiate any part of the proposal;
• provide additional detail; and/or
• confirm or clarify any aspects of the proposal that are unclear.

Proponents must not be allowed to correct or amend their proposal.

Any clarifications, confirmations and additional information should be received in writing.  

10.6. Reference checks

If the call for proposals requires proponents to provide references, each compliant proponent's references should be checked. Questions asked should be objective and directly related to the evaluation criteria. The same questions should be posed to all references. Both questions and answers should be recorded per section 7.9 of the tendering policy.

10.7. Negotiations

After the proposals have been evaluated, the evaluation committee may have agreed to an apparent winner. Negotiations may be undertaken with the apparent winner or a short list of proponents to clarify points contained within the proposal, contract terms, or minor revisions to the scope of work.

If negotiations are conducted with more than 1 proponent, all proponents who will be involved in the final negotiations should be made aware of the process and the purpose of the negotiations. All parties participating in negotiations must be treated equally and fairly. Additional information must be distributed to all participants.

14.1. Notification and introductory information

A notification for the call for tenders should be prepared and contain the following information:

• name and location of project;
• contract authority information;
• contact information for individuals receiving enquiries;
• prime consultant information;
• brief description of project - size and type of infrastructure;
• bid closing date, time and submission details;
• method for obtaining bid instructions, documents and addenda;
• date and location of pre-bid meeting, if applicable;
• construction start and completion dates, if applicable;
• type of contract.

14.2. Solicitation

For an open competitive process, the solicitation is the public advertising of the call for tenders. This is preferably done using a secured online procurement platform. For an invited competitive process, solicitation is typically a written invitation to select bidders to submit a bid.

The solicitation should provide a brief summary of the project and important details that will allow bidders to assess their interest in submitting a bid and their capability to perform the work.

14.3. Instructions to bidders

The Instructions to bidders should specify the terms and conditions of the bidding contract including all the bidders' and the owner's rights and obligations with respect to the tender.

The instructions should include details on the following information:

• submission format, date, time and location
• submission requirements, for example for authorized signatures, seals, witnessing, or other considerations
• document availability
• site visits and pre-bid meetings
• amendments to bids
• withdrawal of bids
• number of days for which the bid will be irrevocable
• mandatory requirements, including securities, established using the words "shall," "must," and/or "will." The strict compliance standard (in other words, that a bidder must comply with all mandatory requirements) should also be clearly stated
• evaluation process (other than lowest compliant bid) that will be applied in selecting the successful bidder. This includes:
  • the criteria that will be used to evaluate the bids
  • which evaluation criteria are mandatory, and which are point-rated
  • the technical evaluation grid that will determine how bids will be ranked
  • the selection methodology that will be used to determine how the winning bidder will be selected
• substitution of material
• distribution of enquiries and addenda;
• the cut-off date and time for the acceptance of questions and enquiries and the issuance of addenda
• selected owner's rights and privileges that follow the principles of the law of competitive bidding in Canada

14.4. Available project information

The call for tenders must disclose fairly and equally all relevant information concerning subsurface or concealed conditions or physical conditions and/or constraints at the project site.

Services, equipment and materials that may be supplied by the project owner must also be disclosed equally and fairly.

14.5. Tender forms

Tenders require project-specific bid forms that meet the necessary requirements to create a legally binding bid. Additional documents or supplemental forms may also be required.

The project owner may require that trades be listed on the bid forms, or provide bidders with 48 hours to submit this information following the submission of the bid.  

14.6. Additional bid information and forms (bid form supplements)

Bidders may be required to submit additional documents and/or information (also known as bid form supplements) in addition to the tender forms. This could include documents confirming compliance with specialized qualifications criteria or bidding conditions (for example, securities) and additional pricing information (for example, alternative prices).

The use of bid form supplements should be limited, as requesting additional information increases the complexity of the bidding process.

For more information on bid form supplements, including those that are commonly required, see CCDC 23 – A guide to calling bids and awarding construction contracts, or refer to other industry standard documentation.

14.7. Contract documents

Project owners may wish to explore the use of industry standard contract templates, such as those established by the CCDC. They may also wish to develop their own tender and contract forms. It is highly recommended that the project owner engage their legal counsel in this process. Extreme care should be taken to ensure there is agreement, and not duplication or conflict, between the contract documents and other parts of the tender package.

14.8. Addenda

If addenda have been issued during the tender call period, they must be included as part of the tender package. See section 16.2 for more information on modifying tenders and issuing addenda.

15.1. Security deposit

When a security deposit is used as bid security, the security deposit of the successful bidder may be kept by the project owner to mitigate damages if the bidder:

• refuses to enter into a contract; or
• refuses or is unable to provide the required contract security; or
• withdraws the tender during the tender acceptance period and prior to the acceptance by the project owner.

15.2. Bid bond

Bid bonds must be in a form approved by, and from a company whose bonds are acceptable to, the project owner.

Once a bidder's tender is accepted by the project owner, the surety (bonding company) is liable under the bid bond. The surety will be liable if the bidder:

• refuses to enter into a contract, or
• refuses or is unable to provide the required contract security, or
• withdraws the tender during the tender acceptance period and prior to the acceptance by the project owner.

The surety will be liable under the bid bond for damages suffered by the project owner. The maximum damages payable under the bid bond, regardless of the actual loss, is the face value of the bond.

16.1. Advertising

Once the call for tenders is accurate and complete, it must be formally released to all potential bidders. A call for tender should notify local businesses and labour of potential opportunities to participate in the bidding process.

For an invited competitive process, the call for tenders is normally supplied only to contractors who have been directly invited to submit a bid. However, other contractors who request the documents and express interest in bidding should not be refused.

For an open competitive process, the call must be widely accessible. The use of a secure electronic platform is preferred. This platform should be easily accessible to all interested bidders at minimal or no cost. When using an electronic platform, a secure link to access the platform should be provided to contractors who have requested access to the documents. The names of the contractors who have requested access should be recorded.

16.2. Modifying a call for tenders

An addendum is any change or clarification to the tender documents issued by the project owner prior to the closing date and time. Addenda must be used to ensure that all bidders receive written notice of changes or clarifications made during the tender call period.

The call for tenders should require the contractor to acknowledge receipt of addenda.

Changes to the specifications should be made well in advance of the closing date. The Instructions to bidders should contain the cut-off date for questions or enquiries from bidders and for the issuance of addenda.

Once issued, addenda become part of the tender package.

17.1. Modification to and withdrawal of a bid

Amendments to bids must be permitted if they are submitted in the same way the bids are required to be submitted, and are submitted prior to the closing time. Likewise, a bid can be withdrawn if the request is submitted in the same way bids are required to be submitted, and are withdrawn prior to the closing time.

After the closing time, bids become irrevocable and cannot be amended or withdrawn. One exception is when there is a significant and obvious error relating to price and specific conditions are present. See section 19.5.2 for more information.

17.2. Protecting bids

Information relating to bids that have been received (for example, the number of bids received, the names of bidders and so on) should be kept confidential. Releasing this information may impact the integrity of the tender process.

17.3. Extending the closing date

Typically, the closing date established and published in the call for tenders is changed only in the most exceptional circumstances.

Any notice of change concerning the closing date should be issued at least 7 calendar days before the original closing date and must reach all contractors and professionals in the same way as for any addendum.

If a contractor has already submitted a bid before the extension was established and published, such contractor must be informed that its bid may be amended, provided the amendment is received at the designated office on the revised closing date at the latest.

19.1. Administrative review

A "compliant" bidder is one that has submitted a bid that complies with the mandatory requirements stated in the call for tenders. If a mandatory requirement is not met (e.g., failure to provide bid security where it is required with the tender), then the bid must be considered non-compliant and disqualified.

19.2. Disqualifying a bid

Project owners should consult with their legal counsel for advice on whether a bid should or can be disqualified.

In all cases where a bid is officially disqualified as a result of the evaluation (either administrative or technical), the bidder must be notified via the process outlined in the call for tenders.

19.3. Evaluation committee

A best practice for reviewing and evaluating bids when using a selection methodology that considers technical criteria is to assemble an evaluation committee. Typically, this committee would consist of at least 3 evaluators, selected by the project owner, and include at a minimum a:

• person who is authorized to administer the contract
• subject matter expert relative to the project
• stakeholder representing a diversity of perspectives relevant to the project

The evaluators must have no real, perceived, or apparent conflict of interest that could affect their ability to make a fair decision. Each evaluator must sign a declaration confirming that they are not in a conflict of interest before the evaluation process begins. Such declarations are to be recorded per section 7.9 of the tendering policy.

To ensure an impartial evaluation, all bids must be reviewed and evaluated independently by each evaluator of the committee to obtain an unbiased rating. Only when individuals' detailed evaluations are completed does the committee reconvene to:

1. discuss their perspectives, including where scores greatly differed across evaluators, as individual evaluators may have identified information that others did not
2. be given the opportunity to revise their individual scores based on the discussion in step 1, ensuring the evaluators' final rating reflects their best assessment
3. consolidate and finalize scores
4. identify the top bidder(s)

The evaluation and all supporting documents are to be recorded per section 7.9 of the tendering policy.

If, at the discussion stage, prior to establishing the final rating, the evaluation committee wishes to clarify an ambiguity in a bid, the project owner can obtain written clarifications from the bidder. However, it is recommended that this be discussed with the project owner's legal advisor as this is extremely delicate. A clarification is an explanation on some already existing aspect of a bid that does not amount to a correction or modification of the bid. This cannot result in adding information to a bid, nor can the evaluation committee relax or modify the evaluation criteria. The clarification process cannot give anyone an advantage over the others and, in no event can clarifications alter the price quoted or allow for any changes to a bid.

The contract must only be awarded to the bidder recommended by the evaluation committee.

19.4. Bid evaluation

To determine best value, project owners may choose to evaluate some technical aspects of compliant bids using a point system, in addition to evaluating the bid price. Examples of technical evaluation criteria are provided in section 7.7.2 of the tendering policy.

For the methodologies described in section 7.7.3 of the tendering policy that incorporates a technical evaluation, a 2-envelope process will typically be used. Under a 2-envelope process, technical details and criteria are in the first envelope submitted by each bidder, and the bid price is in the second envelope.

All bidders should be treated fairly and equally, and their bids should be evaluated in accordance with the process described in the call for tenders. Care must be taken during this process to not take any actions or make any decisions that could be construed as providing an unfair advantage to any bidder.

Bid price may be evaluated and the winning bid selected in various ways, depending on the methodology used.

Please refer to Appendix 5 for sample evaluation rubrics and processes for each selection methodology outlined in the tendering policy.

19.5. Particular situations

The below sections describe some specific situations that may arise in the evaluation process, and best practices to address these.

19.6. Requesting clarification and substantiation

Additional information can be requested from bidders to confirm or substantiate information about subcontractors, suppliers and labourers provided in the bid. When confirming or substantiating information, bidders must not be permitted to amend their bids.  

20.1. General

Prior to entering into a contract, project owners must confirm that the contract cost falls within their budget, including any contributions provided that are to be provided by ISC.

20.2. Tender acceptance and notification of award

Once the above is confirmed, project owners may proceed with finalizing the contract in the approved form, including articulating the exact terms and conditions, and notifying the successful bidder. This should be done with minimum delay.

20.3. Tender acceptance period

Although a contract may be awarded at any time after the closing of the call for tenders, the bidder is not obligated to accept a contract if awarded to them after the specified tender acceptance period.

The call for tenders must state the process for extending the acceptance period. If it becomes unlikely that a contract can be awarded before the tender acceptance period ends, bidders may either be advised that the acceptance period has been extended or asked to agree to extend the terms of their bids beyond the acceptance period, per the process stated in the call for tenders. 

20.4. Contract security

Contract security is provided by the successful bidder to ensure they will complete the project as agreed upon in the contract. Once the contract is awarded, the successful bidder typically has 14 days to submit the required contract security. The contract securities must comply with the requirements set out in the call for tenders.

Traditional forms of contract security include:

• Performance bond and labour and material payment bond, typically each in the amount of 50% of the amount payable under the contract
• A security deposit in an amount typically equal to 10% of the contract amount.

Upon receipt of acceptable contract security, the project owner must return the bid security to the contractor within 48 hours. The project owner may convert the bid security deposit to contract security at the request of the contractor.

Section 7.6.3.2 of the tendering policy outlines the minimum security requirements for capital projects. The use of alternative forms of security than the ones listed above is permitted in specific circumstances as prescribed by the policy.

20.5. Contract

The formal contract from the call for tenders may be sent to the successful bidder. Examples of contract templates can be sourced from CCDC or other industry centers of expertise.