Item - 2019.IE3.4

Infrastructure and Environment Committee recommends that:

1. City Council authorize the General Manager, Toronto Water to negotiate and, subject to the terms and conditions being acceptable to the General Manager, enter into and execute on behalf of the City a non-competitive agreement with IBI Group Inc. to provide TOO system support and maintenance services, including GUI upgrades, at a cost not to exceed $651,264 net of HST recoveries, for a period of up to three years (a base two-year term plus a City option to renew for an additional one year period) and in a form acceptable to the City Solicitor.

The purpose of this report is to request authority to enter into a non-competitive contract with IBI Group Inc. (IBI), for the continued post-warranty support and maintenance of the Transmission Operations Optimizer ("TOO") proprietary system software for a period of up to a three years (two-year base term with a City option to renew for an additional one-year period). The software generates pumping schedules for the City's water filtration plants and pumping stations and saves on hydro costs while maintaining standards for emergency storage levels, system pressure and water quality. TOO is a unique and successful customized computer software linked to data channels and the Toronto Water Supervisory Control and Data Acquisition (SCADA) network.

City Council approval is required in accordance with Municipal Code Chapter 195-1 Purchasing, and Chapter 71-11 Financial Control where the cumulative five-year commitment and $500,000 threshold exceeds staff authority. The original five-year contract with IBI was awarded through a competitive process by the Bid Committee #34 September 5, 2007, and work began in 2008. The initial work took longer than expected as it is highly complicated and the first of its kind in Canada and was completed in 2015. IBI extended the warranty period, which expired on December 31, 2018.