Item - 2016.AU6.10

Tracking Status

  • City Council adopted this item on July 12, 2016 with amendments.
  • This item was considered by Audit Committee on July 4, 2016 and was adopted with amendments. It will be considered by City Council on July 12, 2016.

AU6.10 - Audit of City Cleaning Services - Part 2: Maximizing Value from Cleaning Contracts

Decision Type:
ACTION
Status:
Amended
Wards:
All

City Council Decision

City Council on July 12, 13, 14 and 15, 2016, adopted the following:

 

1.  City Council request the General Manager, Facilities Management to ensure specifications, included in call documents to procure cleaning services, are based on accurate measurements of cleanable area.

 

2.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to ensure the labour estimates included in call documents for cleaning services are developed using benchmarked industry cleaning times.

 

3.   City Council request the General Manager, Facilities Management to compare current contracted cleaning service levels to the standard service level in the Custodial Standard Service Model and industry cleaning times to examine opportunities to reduce costs.

 

4.  City Council request the General Manager, Facilities Management to ensure the scope of work included in future procurement processes for contracted cleaning services is consistent with the Custodial Standard Service Model.

 

5.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management, to review the sourcing of consumables to determine the most economical and environmentally friendly procurement strategy for the supply of consumables to facilities where cleaning services are provided by a vendor.

 

6.  City Council request the General Manager, Facilities Management to implement appropriate controls to monitor the acquisition and use of consumables provided by contractors.

 

7.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management, to review the evaluation process for the procurement of cleaning contracts, such review to consider industry practices for evaluation criteria, scoring methodology, and weighting of criteria including the relative importance of price. 

 

8.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management, to ensure adequate analysis of the reasonability of the cost of contract changes is performed and documentation to support the cost of contract changes should be retained in the respective purchasing and contract files.

  

9.  City Council request the General Manager, Facilities Management to implement controls to monitor actual services delivered and cleaning hours provided are in accordance with contracts and where services do not adhere to contracts, payments should be adjusted for any variances in actual cleaning hours provided.   

 

10.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management, to review the standard call documents for cleaning contracts to ensure that the pricing structure allows changes to be made where the actual services delivered significantly deviates from the award.

 

11.  City Council request the General Manager, Facilities Management to monitor and supervise all cleaning contracts to ensure compliance with contractual terms and obligations to maintain, and make available for review, the records related to the contract.

 

12.  City Council request the General Manager, Facilities Management to work collaboratively with the Fair Wage Office to provide any necessary contract related records required to strengthen the compliance reviews conducted to ensure fair wages.

 

13.  City Council request the City Manager, in consultation with the City Solicitor, to consider the City’s obligation to notify appropriate authorities about contractor business activities related to irregular contractor payroll records.

 

14.  City Council request the General Manager, Facilities Management to develop and implement a standard protocol for evaluating custodial contractor performance, the protocol should include:

 

a.  a standard form for contractor performance evaluation;

 

b.  annual review cycles and a mandatory review prior to exercising a renewal option on a contract; and

 

c.  documentation of the results of such performance evaluations to be retained within the contract file.

 

15.  City Council request the General Manager, Facilities Management to complete a service review of all current cleaning contracts including an analysis of their cost effectiveness and the results of such review to be reported to the Government Management Committee.

 

16.  City Council request the City Manager to request the Division Heads and the Chief Executive Officers of City agencies and corporations to review the issues and recommendations included in the report (June 14, 2016) from the Auditor General and consider the relevance to their respective operations.

 

17.  City Council direct the Chief Corporate Officer to ensure that all upcoming competitive procurements for cleaning services, including new and existing contracts that expire or come up for renewal, are issued based on the new standards consistent with Council's decision on this Item, including a contract performance monitoring and evaluation system.

 

18.  City Council request the General Manager, Facilities Management to report to the October 28, 2016 meeting of the Audit Committee with an update on the status of implementing the Auditor General's recommendations.

City Council Decision Advice and Other Information

City Council considered Items AU6.9 and AU6.10 together.

Background Information (Committee)

(June 14, 2016) Report from the Auditor General - Audit of City Cleaning Services - Part 2: Maximizing Value from Cleaning Contracts
https://www.toronto.ca/legdocs/mmis/2016/au/bgrd/backgroundfile-94618.pdf
Presentation Material submitted by the Auditor General and the Assistant Auditor General
https://www.toronto.ca/legdocs/mmis/2016/au/bgrd/backgroundfile-94776.pdf

Motions (City Council)

1 - Motion to Amend Item (Additional) moved by Councillor Janet Davis (Carried)

That City Council direct the Chief Corporate Officer to ensure that all upcoming competitive procurements for cleaning services, including new and existing contracts that expire or come up for renewal, are issued based on the new standards consistent with the recommendations in this Item, including a contract performance monitoring and evaluation system.

Vote (Amend Item (Additional)) Jul-14-2016 6:29 PM

Result: Carried Majority Required - AU6.10 - Davis - motion 1
Total members that voted Yes: 30 Members that voted Yes are Paul Ainslie, Maria Augimeri, Ana Bail„o, Jon Burnside, John Campbell, Christin Carmichael Greb, Raymond Cho, Gary Crawford, Joe Cressy, Vincent Crisanti, Janet Davis, Glenn De Baeremaeker, Frank Di Giorgio, Sarah Doucette, Mary Fragedakis, Mark Grimes, Michelle Holland, Stephen Holyday, Norman Kelly, Mike Layton, Chin Lee, Josh Matlow, Mary-Margaret McMahon, Joe Mihevc, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Jaye Robinson, Kristyn Wong-Tam
Total members that voted No: 0 Members that voted No are
Total members that were Absent: 14 Members that were absent are Shelley Carroll, Josh Colle, Justin J. Di Ciano, John Filion, Paula Fletcher, Jim Karygiannis, Giorgio Mammoliti, Pam McConnell, Denzil Minnan-Wong, Ron Moeser, Cesar Palacio, David Shiner, Michael Thompson, John Tory

Motion to Adopt Item as Amended (Carried)

Motion to Reconsider Item moved by Councillor Paul Ainslie (Carried)

That in accordance with the provisions of Chapter 27, Council Procedures, City Council reconsider Item AU6.10.


2 - Motion to Amend Item (Additional) moved by Councillor Paul Ainslie (Carried)

That City Council request the General Manager, Facilities Management to report to the October 28, 2016 meeting of the Audit Committee with an update on the status of implementing the recommendations of the Auditor General.


Motion to Adopt Item as Amended (Carried)

AU6.10 - Audit of City Cleaning Services - Part 2: Maximizing Value from Cleaning Contracts

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

The Audit Committee recommends that:

 

1.  City Council request the General Manager, Facilities Management to ensure specifications, included in call documents to procure cleaning services, are based on accurate measurements of cleanable area.

 

2.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to ensure the labour estimates included in call documents for cleaning services are developed using benchmarked industry cleaning times.

 

3.   City Council request the General Manager, Facilities Management to compare current contracted cleaning service levels to the standard service level in the Custodial Standard Service Model and industry cleaning times to examine opportunities to reduce costs.

 

4.  City Council request the General Manager, Facilities Management to ensure the scope of work included in future procurement processes for contracted cleaning services is consistent with the Custodial Standard Service Model.

 

5.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to review the sourcing of consumables to determine the most economical and environmentally friendly procurement strategy for the supply of consumables to facilities where cleaning services are provided by a vendor.

 

6.  City Council request the General Manager, Facilities Management to implement appropriate controls to monitor the acquisition and use of consumables provided by contractors.

 

7.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to review the evaluation process for the procurement of cleaning contracts.  Such review to consider industry practices for evaluation criteria, scoring methodology, and weighting of criteria including the relative importance of price. 

 

8.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to ensure adequate analysis of the reasonability of the cost of contract changes is performed.  Documentation to support the cost of contract changes should be retained in the respective purchasing and contract files.

  

9.  City Council request the General Manager, Facilities Management, to implement controls to monitor actual services delivered and cleaning hours provided are in accordance with contracts.  Where services do not adhere to contracts, payments should be adjusted for any variances in actual cleaning hours provided.   

 

10.  City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to review the standard call documents for cleaning contracts to ensure that the pricing structure allows changes to be made where the actual services delivered significantly deviates from the award.

 

11.  City Council request the General Manager, Facilities Management to monitor and supervise all cleaning contracts to ensure compliance with contractual terms and obligations to maintain, and make available for review, the records related to the contract.

 

12.  City Council request the General Manager, Facilities Management to work collaboratively with the Fair Wage Office to provide any necessary contract related records required to strengthen the compliance reviews conducted to ensure fair wages.

 

13.  City Council request the City Manager, in consultation with the City Solicitor, to consider the City’s obligation to notify appropriate authorities about contractor business activities related to irregular contractor payroll records.

 

14.  City Council request the General Manager, Facilities Management to develop and implement a standard protocol for evaluating custodial contractor performance.  The protocol should include:

 

a.  A standard form for contractor performance evaluation

 

b.  Annual review cycles and a mandatory review prior to exercising a renewal option on a contract

 

c.  Documentation of the results of such performance evaluations to be retained within the contract file.

 

15.  City Council request the General Manager, Facilities Management to complete a service review of all current cleaning contracts including an analysis of their cost effectiveness.  The results of such review to be reported to Government Management Committee.

 

16.  City Council request the City Manager to request Division Heads and Chief Executive Officers of City agencies and corporations to review the issues and recommendations included in this report and consider the relevance to their respective operations.

Decision Advice and Other Information

The Audit Committee considered the following Items together:

 

- AU6.9, headed "Audit of City Cleaning Services - Part 1: Opportunities to Control Costs, Improve Productivity and Enhance Quality of Cleaning Services"; and

 

- AU6.10, headed "Audit of City Cleaning Services - Part 2: Maximizing Value from Cleaning Contracts".

 

Beverly Romeo-Beehler, Auditor General, and Ina Chan, Assistant Auditor General, gave a presentation to the Audit Committee on these Items.

Origin

(June 14, 2016) Report from the Auditor General

Summary

This report presents the results of the audit of cleaning services provided by the Facilities Management Division.  The objective of this audit was to assess whether these services are effective, efficient and economical.

 

The audit results are presented in two separate reports:

 

·        Part 1, the management of overall cleaning services provided by Facilities Management, is contained in a separate report entitled Opportunities to Control Costs, Improve Productivity and Enhance Quality of Cleaning Services

 

·        Part 2, the procurement and administration of cleaning services obtained under contract, is contained in this report.

 

This report includes 16 recommendations to strengthen the procurement, management, and administration of cleaning contracts.  Addressing the recommendations in a timely manner presents an opportunity to achieve significant savings on current and future cleaning contracts by:

 

·        Ensuring cleaning specifications are data driven

·        Improving procurement of cleaning services

·        Strengthening contract monitoring to ensure value-for-money is achieved.

Background Information

(June 14, 2016) Report from the Auditor General - Audit of City Cleaning Services - Part 2: Maximizing Value from Cleaning Contracts
https://www.toronto.ca/legdocs/mmis/2016/au/bgrd/backgroundfile-94618.pdf
Presentation Material submitted by the Auditor General and the Assistant Auditor General
https://www.toronto.ca/legdocs/mmis/2016/au/bgrd/backgroundfile-94776.pdf

Motions

1 - Motion to Amend Item (Additional) moved by Councillor Mary-Margaret McMahon (Carried)

That the Audit Committee amend Recommendation 5 contained in the report (June 14, 2016) from the Auditor General by adding the words "and environmentally friendly" before the words "procurement strategy", so that Recommendation 5 now reads:

 

5. City Council request the General Manager, Facilities Management, in consultation with the Director, Purchasing and Materials Management Division, to review the sourcing of consumables to determine the most economical and environmentally friendly procurement strategy for the supply of consumables to facilities where cleaning services are provided by a vendor.


2 - Motion to Adopt Item as Amended (Carried)
Source: Toronto City Clerk at www.toronto.ca/council