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Appendix N - Bid depositories

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Published April 1, 1992. The contents of this appendix contain both mandatory requirements as well as guidelines.

1. Bid depositories were established by the industry to improve tendering practices. The bid depository receives and holds in safe custody sealed bids from trade contractors and ensures that prime contractors receive firm bids in writing with enough time to compile their own bids completely and accurately. For projects valued at more than $200,000, contracting authorities should use the services of a local bid depository for the reception of trade bids.

2. For larger construction projects, (over $200,000) the contracting authority may publish an advertisement inviting bids from prime contractors. The prime contractors, in turn, seek bids from trade contractors to compile their own bids. If the bidding advertisement specifies the use of a bid depository for a particular trade, all interested trade contractors must bid to the prime contractors by depositing their bids in the specified depository.

3. Use of bid depositories. For specific trades, contracting authorities may prescribe the use of bid depositories, provided that:

1. the estimated value of the project is greater than $200,000 and the amount of work to be performed by each trade contractor is substantial;
2. the potential for interference with free market forces is minimal compared with the benefits to be achieved;
3. the process does not limit the number of prime or trade bidders;
4. the prime contractors are required to select the trade contractors they will use from those that have bid to them through the bid depository and to list these trade contractors in their own tenders; and
5. the bid depository is included in the list of acceptable bid depositories published by Treasury Board.

4. The contracting authority's advertisement calling for bids specifies the bid depository to be used, the trades affected, and the closing time for bids. Any change to these details is announced in the same manner. The closing time and trades affected might be discussed with the local bid depository and should reflect, where possible, local practice. The closing time should normally be two working days before the closing time for bids from prime contractors. Changes to the bid documents, including plans and specifications, should not normally be issued during the last week before the closing time for the project bids.

5. In selecting the winner of the prime bid, the contracting authority satisfies itself that the prime contractor has selected trade contractors in accordance with the Standard Rules of Practice for Bid Depositories (Federal Government Construction Projects) set forth herein.

6. Acceptable bid depositories. The names and addresses of acceptable bid depositories are listed at the end of this document. Bid depositories can be removed from this list if reviews of their performance reveal unacceptable practices or conflict with the standard rules.

7. A sub-committee of the Construction Contracting Sub-Committee of TBACC is responsible to Treasury Board for:

1. confirming that a bid depository's rules of practice comply with the Standard Rules of Practice;
2. monitoring the implementation of this policy by reviewing bid depository performance; and
3. recommending modification of the policy.

8. Standard rules of practice. The Standard Rules of Practice provide for bid depositories to allow contracting authorities to review reports on the resolution of all complaints. A copy of each such report will be forwarded by the contracting authority to the TBACC Sub-Committee, accompanied by any additional comments, as appropriate.

9. When a bid depository exhibits unsatisfactory performance in its day-to-day operations or in its resolution of complaints, the contracting authority informs the bid depository and requests that corrective action be taken.

10. If the contracting authority is not satisfied with the outcome of such intervention, it advises the TBACC Sub-Committee and, if appropriate, recommends the depository be removed from the Treasury Board list.

11. The Standard Rules of Practice also stipulate that bid depositories notify the contracting authority of the details of any trade bid withdrawals after closing. Those withdrawals that do not appear to be warranted are brought to the attention of the TBACC Sub-Committee which will inform the Department of Consumer and Corporate Affairs.

12. Contracting authorities may intervene in the bid depository tendering process in those exceptional cases where public interest considerations justify it.

13. When the bid depository has not complied with the Standard Rules of Practice, the contracting authority notifies the bid depository and requests that it reconsider its action.

14. If a bid depository receives no more than two bids for a given trade section, the contracting authority, at its discretion, may negotiate with the successful prime contractor and the trade contractor that was selected by the prime contractor. This would happen only when the contracting authority feels that the trade price bid is substantially higher than what would normally be expected as a fair market price. If this action does not lead to a satisfactory conclusion, the contracting authority may require that particular trade bid to be re-called outside the bid depository. Contracting authorities are to note cases where fewer than three bids have been received and bear this in mind in deciding whether to use the bid depository in the future for the trades in question.

15. Records. Departments and agencies are to maintain records, including assessments, on how often bid depositories are used and bid depository complaints resolution. This information is to be available for Treasury Board review as required.

16. Bid depository use

Trade contractors are required to submit their bids through a bid depository only when the contracting authority's advertisement for prime tenders specifies the use of a bid depository. The bid depositories specified in the advertisement are the only ones to which tenders may be submitted. The tendering process must be consistent with the Standard Rules of Practice for Bid Depositories (Federal Government Building Construction Projects). The Standard Rules of Practice do not cover bid depository organization, administration and internal procedures; these are included in local bid depository rules at the discretion of the depository. The local depository rules should be available in printed form to all interested parties.

17. Approved bid depositories

To be considered for federal government building construction projects, the bid depository's rules of practice and any amendments thereto must be approved by the federal government. Normally this involves submitting the rules through the construction association national body. Bid depositories whose rules have been approved and are otherwise acceptable to the federal government are listed below.

18. Non-discrimination

On a given project, the facilities of the bid depository must be equally available to all prime contractors and to all trade contractors in the affected trades, regardless of whether the trade contractors are members of any association and their respective geographical location. No preference shall be shown by the bid depository management to any local or other bidders.

19. Bid and contract security

Security deposited with the bid depository may be subject to scrutiny by the depository and prime contractors will be notified if defects are discovered. The bid depository shall not, however, require security nor shall it disqualify bids that do not meet security requirements.

20. Trades affected

The use of bid depositories shall be restricted to those trades named in the bid solicitation documents.

21. Tender closing time

The bid depository's closing time and date for the trade contractors' tenders will be determined by the government contracting authority and the local bid depository and will be specified in the contracting authority's bid solicitation.

22. Complaints

All complaints from prime or trade contractors about tendering irregularities or bid depository operations must be made in writing and addressed to either the bid depository or the local construction association. A complaint will be investigated only after the closing time for prime contractors and will not disqualify trade tenders. The depository must report all complaints and their resolution promptly in writing to the tender calling office of the federal contracting department or agency for review.

23. Procedure for trade contractors

1. Trade contractors may quote separate prices for any complete trade section specified in the tendering documents. A lump-sum price may also be quoted for two or more complete trade sections, provided that separate trade section prices are also quoted. The lump sum need not be the aggregate of the individual prices.
2. The above quotations must be based on the plans and specifications. However, alternatives will be considered, whether called for or not, provided that they accompany a quotation based on the plans and specifications.
3. Trade contractors' tenders must be submitted in official envelopes obtained from the bid depository. The original of each tender must be enclosed in a separate envelope bearing the prime contractor's name, and a copy of each tender is to be enclosed in a separate envelope for the bid depository. These envelopes must be enclosed in a designated larger envelope delivered to the bid depository, bearing the name of the trade contractor and the project being bid, and indicating how many tenders are enclosed.
4. Written advice (including delivered telegrams and telex messages) about amendments to trade contractors' tenders may be submitted to the bid depository provided that both the amendment and the original tender are received before the bid depository closing time. Each amendment submitted must be addressed to each prime contractor concerned and accompanied by a copy for the bid depository.
5. Tenders must not be altered or amended in any way after the bid depository closing time.
6. After the bid depository has closed, a trade contractor who has already submitted at least one bid to the bid depository, but who has inadvertently missed a prime contractor, may (up to fourhours before the closing time for prime contractors) bid to that prime contractor, if the terms are identical to those of an offer the trade contractor has made through the bid depository on the same project. The bid may be made by telegram to the bid depository with a copy to the missed prime contractor.
7. Tenders may be withdrawn no later than sixhours before the tender closing time for prime contractors. Withdrawals after bid depository closing times are permitted only on the basis of substantial demonstrable error. It is the trade contractor's responsibility to notify the bid depository and all affected prime contractors of the decision to withdraw and to confirm to them in writing, citing the reasons. The bid depository must notify the contracting authority immediately of the known details of any withdrawals made after bid depository closing.

24. Handling of tenders

1. All tender envelopes received by the bid depository before the closing time must be time-stamped and kept safe. Envelopes received after the appointed closing time must be returned unopened.
2. Immediately after the bid depository closing time, the tender box must be opened by an official of the bid depository and each large envelope opened. The bid depository makes available to each addressee contractor its respective sealed envelopes. At the same time, the bid depository must prepare a certified list of the names of the trade contractors that bid to each prime contractor and send it to the government contracting authority by registered mail or by other agreed means. The remaining envelopes will be retained unopened in a secure place until the prime contract has been awarded.
3. After the prime contract has been awarded, the bid depository opens its set of envelopes containing the copies of the tenders that were sent to the successful prime contractor and tabulates the tenders by trade section. All other envelopes are retained for thirty days and then destroyed unopened unless a complaint is under investigation. Only those trade contractors who bid to the successful prime contractor through the bid depository may examine the tabulated list for their trades.
4. No one, other than bid depository staff preparing a tabulation or members of a bid depository committee investigating a complaint, is entitled to see the tender documents retained in the bid depository.

25. Procedure for prime contractors

1. It is the responsibility of any prime contractor who is bidding and soliciting prices through the depository to advise trade contractors of that fact.
2. The prime contractor will normally arrange to pick up the tender envelopes at the bid depository after closing, but may instruct the bid depository to deliver them in which case the bid depository assumes no responsibility for delivery beyond mailing the tenders or sending them by courier or other carrier.
3. Except as provided in paragraphs(d) and (e) below, the prime contractor must place a sub-contract for each of the trades specified in the tender call with one of the trade contractors whose bid was received through the bid depository, but not necessarily the lowest.
4. If no tenders are available for a trade section called, the prime contractor may solicit tenders directly from trade contractors outside the bid depository.
5. If only two-bids for a complete trade section have been received by the depository, the government contracting authority may require further negotiations between itself, the successful prime contractor, and the trade contractor selected by the prime contractor. If the negotiations are unsatisfactory, the contracting authority may require that tenders for the trade affected be re-called outside the bid depository.
6. When the forces of a prime contractor are to be used for one or more of the complete trade sections, the prime contractor must nevertheless deposit a self-addressed bid for the work, in accordance with these rules.

26. Approved bid depositories

The following bid depositories have been approved:

Newfoundland & Labrador Construction Association

P.O. Box 8008
St. John's, Nfld.
A1B 3M7

P.O. Box 649
Grand Falls, Nfld.
A2A 2K2

18 Park Street
Lower Level
Corner Brook, Nfld.
A2H 2W9

109 Trans-Canada Highway
Gander, Nfld.
A1V 1P6

The Bid Depository of Nova Scotia

P.O. Box 1476 North
5450 Cornwallis Street
Halifax, Nova Scotia
B3K 5H7

c/o Cape Breton Island Builder's Exchange
P.O. Box 131
Sydney, Nova Scotia
B1P 6G9

Construction Association of Prince Edward Island

Construction Association of Prince Edward Island
Construction Centre of Prince Edward Island
40 Enman Crescent
P.O. Box 728
Charlottetown, P.E.I.
C1A 7L3

Construction Association of NewBrunswick Inc. Bid Depository

Fredericton Construction Association
P.O. Box 275 (190 Brunswick Street)
Fredericton, N.B.
E3B 1G6

Moncton Northeast Construction Association
P.O. Box 2038 'A'
(341 Collinshaw Road)
Moncton, N.B.
E1C 8H7

Saint John Construction Association
P.O. Box 2144 'C'
(263 Germain Street)
Saint John, N.B.
E2L 3T5

Ontario

Barrie District Bid Depository
80 Bradford Street
Barrie, Ontario
L4N 6S7

Chatham Bid Depository
P.O. Box 703
Chatham, Ontario
N7M 5K3

Grand Valley Bid Depository
25 Sheldon Drive
Cambridge, Ontario
N1R 6R8

Hamilton Bid Depository
370 York Blvd., Suite 100
Hamilton, Ontario
L8R 3L1

Kingston Bid Depository
P.O. Box 625
Kingston, Ontario
K7L 4X1

London Bid Depository
280 Maitland Street
London, Ontario
N6B 2Y6

Niagara Peninsula Bid Depository
34 Scott Street
St. Catharines, Ontario
L2R 6Z4

Durham Bid Depository
2001 Thickson Road South
Unit 1
Whitby, Ontario
L1N 6J3

Ottawa Valley Bid Depository
196 Bronson Avenue
Ottawa, Ontario
K1R 6H4

Peterborough Bid Depository
P.O. Box 56
Peterborough, Ontario
K9J 6Y5

Quinte Bid Depository
12 North Front Street
Unit 201
Belleville, Ontario
K8P 3A7

Sarnia Bid Depository
P.O. Box 545
Sarnia, Ontario
N7T 7J4

Sault Ste. Marie District Bid Depository
117 White Oak Drive East
Sault Ste. Marie, Ontario
P6B 4J7

Sudbury Bid Depository
257 Beatty Street
Sudbury, Ontario
P3C 4G1

Toronto Bid Depository
1 Sparks Avenue, Room G-7
Willowdale, Ontario
M2H 2W1

Thunder Bay Bid Depository
P.O. Box 2000
Thunder Bay, Ontario
P7C 4Y4

Windsor Bid Depository
1090 Crawford Avenue
Windsor, Ontario
N9A 5C9

Manitoba Bid Depository Inc.

Winnipeg Construction Association
P.O. Box 737
290 Burnell Street
Winnipeg, Manitoba
R3C 2L4

Brandon Construction Association
P.O. Box 936
950-10th Street
Brandon, Manitoba
R7A 5Z9

The Saskatchewan Bid Depository Incorporated

Moose Jaw Branch
Box 637
Moose Jaw, Saskatchewan
S6H 4P4

Prince Albert Branch
3700 2nd Avenue West
Prince Albert, Saskatchewan
S6W 1A2

Regina Branch
1935 Elphingstone Street
Regina, Saskatchewan
S4T 3N3

Saskatoon Branch
532 - 2nd Avenue North
Saskatoon, Saskatchewan
S7K 2C5

Swift Current Branch
163 First Avenue NE
Swift Current, Saskatchewan
S9H 2B1

Alberta Bid Depository Ltd.

10215 - 176 Street
Edmonton, Alberta
T5S 1M1

2725 - 12 Street N.E.
Calgary, Alberta
T2E 7J2

9809 - 116 Avenue
Grand Prairie, Alberta
T8V 4B4

2918 - 7 Avenue N.
Lethbridge, Alberta
T1H 5C6

949 - 17 Street S.W.
Medecine Hat, Alberta
T1A 7T4

7803 - 50 Avenue
Red Deer, 205, Alberta
T4P 1M8

The BritishColumbia Construction Association

Campbell River Bid Depository
c/o North Vancouver Island Construction Association
171 Beech Street
Campbell River, B.C.
V9W 5G4

Cranbrook Bid Depository
c/o Southern Interior Construction Association
204-201 - 14th Avenue N.
Cranbrook, B.C.
V1C 3W3

Dawson Creek Bid Depository
c/o Dawson Creek Construction Association
1130 - 102nd Avenue
Dawson Creek, B.C.
V1G 2C1

Fort St.John Bid Depository
c/o Fort St. John Construction Association
10307 - 95th Avenue
Fort St. John, B.C.
V1J 5T5

Kamloops Bid Depository
c/o Southern Interior Construction Association
710 Laval Crescent
Kamloops, B.C.
V2C 5P3

Kelowna Bid Depository
c/o Southern Interior Construction Association
#401-1415 Hunter Court
Kelowna, B.C.
V1X 6E6

Nanaimo Bid Depository
c/o Nanaimo Construction Association
2301-D McCullough Road
Nanaimo, B.C.
V9S 4M9

Penticton Bid Depository
c/o Southern Interior Construction Association
209-483 Ellis Street
Penticton, B.C.
V2A 4M1

Port Alberni Bid Depository
c/o Alberni Valley Construction Association
4770 Johnston Road
Port Alberni, B.C.
V9Y 5M3

Prince George Bid Depository
c/o Prince George Construction Association
3851 - 18th Avenue
Prince George, B.C.
V2N 1B1

Vancouver & Lower Mainland Bid Depository
c/o Amalgamated Construction Association
2675 Oak Street
Vancouver, B.C.
V6H 2K3

Victoria Bid Depository
c/o Construction Association of Victoria
1075 Alston Street
Victoria, B.C.
V9A 3S6