New procurement policies for City Hall

“Trade agreements have foundational principles, and one of those key principles is that you want as free and open of a bidding community as you can, and that will in turn give you the best price,” said Kris Dalio, the City’s Director of Finance and IT Services. “The more competitive your environment is.”

Despite that recommendation, council opted to make a modest change to the current system.

Under the newly approved policy, five per cent of the total scoring in eligible Requests for Proposals will be based on measurable community benefits. The criteria will include workforce development, local economic resilience, community investment, support for local supply chains, Indigenous partnerships, environmental stewardship, accessibility, and other tangible benefits that proponents can demonstrate as part of their submissions.

Supporters of the amendment say the change strikes a balance between maintaining a fair and competitive procurement process while allowing companies to highlight ways they contribute to the local economy and community.

Councillor Kyle Sampson, who introduced the successful amendment, said the move reflects changing economic realities without undermining the principles that govern public procurement.

“The trade laws that we all live and work under are extremely important to making a fair, competitive society. That’s extremely important,” Sampson said. “But what we’re realizing, especially in the last year and a half, with the political environment and geopolitical environment across borders, it’s important to ensure that your economy is strong.”

The topic has gained prominence in many communities as local governments look for ways to maximize the economic impact of major capital projects. With the Aquatic Centre representing one of the largest projects currently underway in Prince George, council members were interested in determining whether procurement practices could encourage more local benefits without violating trade obligations.

Sampson stressed the amendment is not intended to favour local companies outright or significantly alter how bids are evaluated.

“I’m not looking to turn the bid process upside down,” he said. “I think what we have an opportunity to do here is take a very minute portion of this and just give those local bidders an opportunity to fly their flag and say, ‘This is how we benefit the local economy.’”

He added that the City’s priorities remain unchanged.

“This is not meant to tip the scale. We want best price. We want the best bidders. We want those who will do the best quality job.”

Administration’s review examined multiple possible approaches, some of which would have required substantially more oversight, documentation and evaluation by City staff. Those options would also have required more work from companies preparing bids.

Ultimately, council chose what officials described as one of the least burdensome alternatives available.

Dalio said the additional criterion fits naturally within an existing evaluation process that already examines multiple factors beyond price.

“We already do RFPs — Requests for Proposals — and there’s criteria in there already,” Dalio said. “Things like team makeup, what’s the experience of your team, what methodology you’re going to use. Price is always one of the scoring components.”

The community-benefit category will simply become another element that evaluators consider when reviewing proposals.

“So this is just adding another scoring criteria to do so,” Dalio explained. “It will take proponents a little bit more time to prepare and us a little more time to review. But it’s nothing crazy.”

The relatively modest weighting was a key factor in garnering support. At five per cent of the total score, the new category is unlikely to determine a winner on its own, but it could help distinguish between closely matched proposals.

Supporters argue that approach allows the City to encourage positive community outcomes while maintaining compliance with trade agreements that require fairness and openness in public procurement.

Those agreements generally restrict municipalities from explicitly favouring local companies, a point administration repeatedly emphasized during the review process. As a result, the focus of the amendment is not on where a bidder is located, but on the measurable benefits they can demonstrate for the community.

Examples could include training opportunities, partnerships with Indigenous organizations, investment in local businesses, environmental initiatives, or other contributions that create value beyond the project itself.

The change will not be limited to the Aquatic Centre project. The new procurement requirements will apply to City projects that are subject to trade agreement obligations and require a Request for Proposals process. In most cases, that includes projects valued at more than $75,000.

For council, the decision represents an attempt to balance two competing objectives: obtaining the best value for taxpayers while recognizing broader economic and social benefits that can accompany public spending.

While administration would have preferred maintaining the current approach, staff indicated the selected option can be implemented without major disruption to the procurement process.

With the policy now approved, future proponents will have an opportunity to showcase how their projects support Prince George and its residents, while continuing to compete on the factors that traditionally determine success — price, experience, methodology and overall quality.

As the City embarks on one of its largest capital projects in recent history, council hopes the new measure will deliver an added return on public investment without compromising fairness or competition.

by Cheryl Jahn

New procurement policies for City Hall

What's Trending