Item - 2019.EC6.11

The Economic and Community Development Committee recommends that:

1.  City Council authorize the General Manager, Shelter, Support and Housing Administration, to negotiate and enter into six (6) agreements with the six (6) successful proponents having met all the requirements set out in Request for Proposal 6815-18-7217 for the Provision of Short Term Accommodations for Shelter Clients through the use of Hotel/motel Services for Operated Shelters, on terms and conditions set out in the Request for Proposal and satisfactory to the General Manager, Shelter, Support and Housing Administration, and in a form satisfactory with the City Solicitor, as follows:

a.  73719 Newfoundland and Labrador Inc., for an initial term of one year from the date of award in in the amount of $8,600,000 excluding all taxes ($8,751,360 net of Harmonized Sales Tax recoveries), with the option to renew for four additional separate one-year periods in the amount of $8,600,000 excluding all taxes ($8,751,360 net of Harmonized Sales Tax recoveries), for a total contract value of $43,000,000 excluding all taxes ($43,756,800 net of Harmonized Sales Tax recoveries);

b.  Om Tatsat Inc. (New Plaza Motel), for an initial term of one year from the date of award in the amount of $2,700,000 excluding all taxes ($2,747,520 net of Harmonized Sales Tax recoveries), with the option to renew for four additional separate one-year periods in the amount of $2,700,000 excluding all taxes ($2,747,520 net of Harmonized Sales Tax recoveries), for a total contract value of $13,500,000 excluding all taxes ($13,737,600 net of Harmonized Sales Tax recoveries);

c.  InnVest Hotels LP a/o Comfort Inn Pickering, for an initial term of one year from the date of award in the amount of $13,500,000 excluding all taxes ($13,737,600 net of Harmonized Sales Tax recoveries), with the option to renew for four additional separate one-year periods in the amount of $13,500,000 excluding all taxes ($13,737,600 net of Harmonized Sales Tax recoveries), for a total contract value of $67,500,000 excluding all taxes ($68,688,000 net of Harmonized Sales Tax recoveries);

d.  InnVest Hotels LP a/o Comfort Inn Newmarket, for an initial term of one year from the date of award in the amount of $9,600,000 excluding all taxes ($9,768,960 net of Harmonized Sales Tax recoveries), with the option to renew for four additional separate one-year periods in the amount of $9,600,000 excluding all taxes ($9,768,960 net of Harmonized Sales Tax recoveries), for a total contract value of $48,000,000 excluding all taxes ($48,844,800 net of Harmonized Sales Tax recoveries);

e.  2361173 Ontario Inc. (Sunray Group of Hotels) for an initial term of one year from the date of award in the amount of $53,800,000 excluding all taxes ($54,746,880 net of Harmonized Sales Tax recoveries), with the option to renew for four additional separate one-year periods in the amount of $53,800,000 excluding all taxes ($54,746,880 net of Harmonized Sales Tax recoveries), for a total contract value of $269,000,000 excluding all taxes ($273,734,400 net of Harmonized Sales Tax recoveries); and

f.  2656601 Ontario Inc. (Toronto Plaza Hotel & Conference Centre Toronto Airport), for an initial term of one year from the date of award in the amount of $20,100,000 excluding all taxes ($20,453,760 net of Harmonized Sales Tax recoveries), with the option to renew for four additional separate one-year periods in the amount of $20,100,000 excluding all taxes ($20,453,760 net of Harmonized Sales Tax recoveries), for a total contract value of $100,500,000 excluding all taxes ($102,268,800 net of Harmonized Sales Tax recoveries).

This report is to obtain City Council's authority to award Request for Proposal No. 6815-18-7217 for the provision of Short Term Accommodations for shelter clients through the use of hotel/motel services for operated shelters for the period of one (1) year from date of award with the option to renew the contract for an additional four (4) separate one (1) year periods  for a total award of  $541.5 million net of all applicable taxes, $611.9 million including HST and all applicable charges and $551.0 million net of HST recoveries.   Should the option(s) be exercised, then the General Manager of Shelter, Support and Housing Administration will request the Chief Purchasing Officer to process the renewals under the same terms and conditions.

Refer to Appendix A for the breakdown of the total value of award for each of the recommended six (6) proponents. 

Further, this report advises City Council, pursuant to Chapter 195 of the Toronto Municipal Code (Purchasing By-Law Section 195-7.4), of the related emergency amendments that were processed on four (4) existing non-competitive Purchase Orders.