Date Enacted: September 7, 2007
Date Updated: May 5, 2025
Note: Adopted by Council at its meeting held on June 19, 20 and 22, 2007.
1.1 To assist external organizations seeking to do business with the City outside of the conventional procurement process, Council adopted the Unsolicited Proposals Process Policy at its meeting on June 19, 20 and 22, 2007.
1.2. While the Policy provides guidance for those seeking to do business with the City outside of the conventional procurement system, it does not establish a definitive process through which such proposals may receive serious consideration. With this in mind, the following sets out a framework through which potential partners have an opportunity for their ideas to be presented and evaluated. Furthermore, the framework provides a formal mechanism for the disposition of all unsolicited proposals in a timely and conclusive manner.
2.1. An unsolicited proposal involves an offer for a new or innovative idea, goods and services submitted to the City on the initiative of a supplier for the purpose of obtaining a contract with the City with the express intent of securing a financial return for the supplier. In addition, as per section 3.2 of this Policy, the proposal cannot be in response to a current or anticipated request for proposal or any City-initiated solicitation or program.
3.1 Unsolicited quotations or proposals should not be allowed to circumvent the City’s procurement process.
3.2 Requirements: An unsolicited quotation or proposal should not be considered if:
3.2.1. It does not resemble a current or upcoming competitive procurement that has or will be requested;
3.2.2. It does not require substantial assistance from the City to complete the quotation or proposal;
3.2.3. The goods or services proposed are not readily available from other sources;
3.2.4. It is deemed by the Division Head to be of sufficient value to the City of Toronto.
3.3. If the unsolicited proposal meets all of the criteria in Section 3.2 and the Division Head is willing to consider it, the following minimum information must be submitted to the Division Head as part of the unsolicited proposal, as applicable:
3.3.1. Supplier Information
3.3.2. Proposal overview
3.3.3. Objectives and outcomes
3.3.4. Project scope or specifications and time frames
3.3.5. Deliverables and work plan
3.3.6. Project controls and constraints
3.3.7. Reporting and project management
3.3.8. Vendor and City respective responsibilities
3.3.9. Pricing and benefit/risk sharing
3.3.10. Proposed contractual terms
3.3.11. Acknowledgement that the supplier will abide by the City’s Policies and Bylaws.
3.4. If the Division Head feels that the unsolicited proposal has merit, the Division Head should assemble an Evaluation Team with sufficient expertise to evaluate the unsolicited proposal or quotation.
3.5. Prior to any evaluation of the unsolicited quotation or proposal, the Division Head, through PMMD, must obtain in writing the supplier’s agreement to abide by this policy and acknowledgement that the City is under no obligation to accept the proposal, that all costs incurred by the supplier in relation to the unsolicited proposal or quotation are incurred at the supplier’s own risk and that the City shall not be liable for any costs or damages in connection with the rejection or non-acceptance of the proposal or quotation.
3.6. The Evaluation Team:
3.6.1. Evaluates the supplier’s technical, commercial, managerial and financial capability to determine whether the supplier’s capabilities are adequate for undertaking the proposed project.
3.6.2. Weighs the technical, commercial, managerial and financial aspects of the unsolicited quotation or proposal and determines if the scale and scope of the project is in line with the requirements, the funding ability, or the interests of the City.
3.6.3. Determines whether the sharing of risks as proposed in the proposal or quotation is acceptable to the City and if the project is in conformity with long term objectives of the City.
3.6.4. Based on the evaluation, the Evaluation Team may decide to reject the proposal, to request amendments to the quotation or proposal, or to continue with the process.
3.6.5. If the Evaluation Team recommends any modification to the technical, scale, scope and risk sharing of the proposal, the supplier will be allowed to consider the recommendations and resubmit its quotation or proposal within a given time period determined by the Evaluation Team.
3.6.6. If the Evaluation Team and Division Head conclude that the unsolicited quotation or proposal is acceptable, the Division Head shall prepare a report to Council requesting authority to apply the “Swiss Challenge” approach to invite counter proposals, as described in Section 7 below. The report will outline how the challenge will be conducted.
3.7. The Swiss Challenge:
3.7.1. If Council approves the “Swiss Challenge” approach, the Division Head must ensure transparency, fair competition and best value for the City in accepting an unsolicited quotation or proposal by:
3.7.2. Inviting, through the Purchasing and Materials Management Division and in consultation with Legal Services, competing counter proposals giving adequate notice. The unsolicited quotation or proposal and contract principles of the quotation or proposal will be made available to any interested party (proprietary information contained in the unsolicited quotation or proposal would remain confidential and would not be disclosed) for the purpose of providing the City with counter proposals.
3.7.3. Ensuring the Evaluation Team that evaluated the unsolicited quotation or proposal evaluate all counter proposals received.
3.7.4. Giving the original supplier an opportunity to match any competing counter proposals that may be superior to the original unsolicited quotation or proposal. In the case the original supplier matches or improves on the competing counter quotation or proposal, the Project will be awarded to the original supplier. In the event that the original supplier does not match or improve on the competing counter quotation or proposal, the City can award the project to other supplier, and the original quotation or proposal prepared by the original supplier becomes the property of the City.
3.7.5. Reporting jointly with the Chief Procurement Officer, the results of the acceptance of an unsolicited proposal or counter proposal under this policy to the appropriate Committee and Council before entering into a contract with any supplier resulting from the application of this policy.
The Unsolicited Proposal Policy as adopted by Council at it meeting of June 19, 20, and 22, 2007, Report 5, Clause 6 of the Government Management Committee.
Toronto Municipal Code, Chapter 195 – Purchasing as adopted by Council at its meeting of July 20, 21 and 22, 2004, Report 5, Clause 7 of the Administration Committee.
Should you have any questions please contact the Purchasing and Materials Management Division at supplychain@toronto.ca or call 416-397-4141