Item - 2019.EC10.9

The Economic and Community Development Committee:

1.  In accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-Law) granted authority to amend Contract Number 47021306 issued to GFS - Gordon Food Services Canada Ltd. for the provision of groceries to long-term care homes, by an additional amount of $5,599,273.28 net of all taxes ($5,602,743.69 net of HST recoveries) revising the overall contract value from $38,547,063.13 to $44,146,336.40 net of all taxes ($44,173,698.15 net of HST recoveries) based on the following:

 
- Increasing the initial term of the contract (April 1, 2018 to March 31, 2020) by $2,161,707.89 net of HST recoveries from $14,881,840.25 (net of HST recoveries) to $17,043,548.14 (net of HST recoveries);

- Increasing the first option year (April 1, 2020 to March 31, 2021) from $7,664,147.73 (net of HST recoveries) to $8,777,427.29;

- Increasing the second option year (April 1, 2021 to March 31, 2022) from $7,894,072.16 (net of HST recoveries) to $9,040,750.11;

- Increasing the third option year (April 1, 2022 to March 31, 2023) from $8,130,894.33 (net of HST recoveries) to $9,311,972.61;

The purpose of the report is to request authority to amend Contract Number 47021306 issued to GFS - Gordon Food Services Canada Ltd. The contract is based on the provincial funding per diem which is 100 percent provincial and zero net to the City. The provincial funding per diem for long-term care home residents has increased by 14.53 percent from $8.33 to $9.54. The contract is set up as an initial two years (April 1, 2018 to March 31, 2020), with three (3) one year options.  The total potential contract value for all five years stands at $38,547,063.13 net of all taxes. This report requests an amendment to increase the contract value by $5,599,273.28 spread out across the initial term and the option years.  The total potential value of the contract would increase from $38,547,063.13 to $44,146,336.40.