Local Contractors Benefit from Bonnyville’s New Incentive Structure

One of Bonnyville Council’s top priorities for 2016 was finding a way to help encourage and support local contractors, sub-contractors, tradespeople, and generally local companies involved with the construction progress. Heading into the year the policy called for bids to be awarded to the lowest bidders, with a ten percent buffer for local contractors. So if a local contractor came within ten percent of the lowest bid, the job would be given to the local company.

The key in reshaping the policy was to make for a “local preference, while keeping an eye on the public pocket-book,” says Mayor of Bonnyville, Gene Sobolewski to Council. It was important for Council to adapt an amended policy before the new Town Hall project went to the budding stage. According to the Town of Bonnyville Administration, the Architechs on the project, Manacs Isaac, “has indicated that the Town could include local involvement option as part of the tender evaluation criteria, as long as all submissions are graded in a consistent manner.”

With that in mind, the Town Council voted in two key policies, the first is an amendment under the “Purchasing of Goods & Services” and the second the Town Hall Tender Criteria.

Purchasing Goods & Services

Local Preference will be awarded on bids as follows:

• 10% for up to $30,000
• 6% for over $30,000 and up to $50,000
• 4% for over $50,000 and up to $75,000
  • Each structure allows for approximately $3,000 difference on bids.

Town Hall Tender Criteria

Bidders will be chosen based on the following formula:

• 15% for Related Experience
• 15% for Local Preference
• 70% for Lowest Price
  • This structure allows for other factors to come into play and ensures the most qualified contractor, with the lowest bid is awarded; rather than simply the lowest bid.

Chief Administrative Officer (CAO), for the Town of Bonnyville, Mark Power explains, “in a perfect world, you’d have two identical bids and then this criteria really comes into play.” The criteria will be listed in the Instruction to Bidders document when the Town Hall project goes to tenders, says Mayor Sobolewski, “The criteria on how they are going to be judged will be right there in the Instructions to Bidders and then they can put forward their bids accordingly.”

The Town is hopeful that both of these policies will allow for more local contractors to have opportunities to work on Town projects; including the new Town Hall.