Item - 2019.GL8.13

The General Government and Licensing Committee recommends that:

1.  City Council authorize the General Manager, Fleet Services, to negotiate and enter into a non-competitive contract with Joe Johnson Equipment for the supply and delivery to the City of Toronto of Original Equipment Manufacturer parts and specialized services for Labrie, Vactor, Elgin, Trackless, Epoke, and Madvac equipment repair and maintenance on the following terms and conditions:

a.  the initial term of the contract will be for a period of one year, commencing on November 1, 2019 to October 31, 2020, with the option to renew the contract for four additional one-year periods, subject to the exercise of each option year being at the sole discretion of the General Manager, Fleet Services, and subject to the amounts payable under the contract being available in the current Fleet Services Division budget approval(s). The amount of this non-competitive contract is $1,781,842 net of Harmonized Sales Tax ($1,813,202 net of Harmonized Sales Tax recoveries) for the entire duration of the contract, inclusive of all option renewal years;

b.  the contract will be based on the condition that Joe Johnson Equipment continues to be the exclusive distributor for the proprietary Original Equipment Manufacturer parts and specialized services for Labrie, Vactor, Elgin, Trackless, Epoke, and Madvac equipment; and

c.  on other terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

The purpose of this report is to seek City Council authority for the General Manager, Fleet Services, to negotiate and enter into a non-competitive contract with FST Canada Inc., operating as Joe Johnson Equipment, for the supply and delivery to the City of Toronto (City) of proprietary Original Equipment Manufacturer (OEM) parts and specialized services for Labrie, Vactor, Elgin, Trackless, Epoke, and Madvac equipment repair and maintenance.

The contract will be for a period of one year commencing on November 1, 2019 to October 31, 2020, with the option to renew the contract for four additional one-year periods at the sole discretion of the City and subject to budget approvals for the total contract amount of $1,781,842 net of HST ($1,813,202 net of HST recoveries), inclusive of all option renewal years.

City Council approval is required in accordance with Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Purchasing Officer's authority of the cumulative five-year commitment limit for each vendor under Article 7, Section 195-7.3(D) of the Purchasing By-law or exceeds the threshold of $500,000 net of HST allowed under staff authority, as per the Toronto Municipal Code Chapter 71, Financial Control, Section 71-11A.