Item - 2019.IE5.1

The Infrastructure and Environment Committee:

1.  In accordance with Section 195-8.4A of Toronto Municipal Code Chapter 195 (Purchasing By-Law), granted authority to the Chief Engineer and Executive Director of Engineering and Construction Services to negotiate and enter into agreements with 2489960 Ontario Inc., having submitted the highest scoring compliant proposal for Service Area A and having met the specifications in conformance with the Negotiable Request for Proposals Number 4204-19-5019 requirements, in the amount of $56,686,028 net of all taxes ($57,683,703 net of HST recoveries), all in accordance with the terms and conditions as set out in the Negotiable Request for Proposals and any other terms and conditions satisfactory to the Chief Engineer and Executive Director, Engineering and Construction Services and in a form satisfactory to the City Solicitor.

2.  In accordance with Section 71-11.1.C of Toronto Municipal Code Chapter 71 (Financial Control Bylaw), granted authority to amend the following purchase orders with The Municipal Infrastructure Group Limited (TMIG Ltd.) and GHD Limited (GHD Ltd.) to provide additional engineering services for detailed design as follows:

a.  Purchase Order Number 6045918, issued to GHD Limited, be increased by $4,104,404 net of all taxes and charges ($4,176,642 net of HST recoveries), revising the current purchase order value from $10,319,525 to $14,423,929 net of all taxes and charges ($14,677,790 net of HST recoveries); and,

b.  Purchase Order Number 6046025, issued to The Municipal Infrastructure Group Limited, be increased by $2,097,946 net of all taxes and charges ($2,134,870 net of HST recoveries), revising the current purchase order value from $11,823,217 to $13,921,163 net of all taxes and charges ($14,166,175 net of HST recoveries).

The purpose of this report is to advise of the results of Negotiable Request for Proposals (NFRP) Number 4204-19-5019 for the construction of watermains at various locations across the City of Toronto in 2019, 2020 and 2021, and to request the authority to award Service Area A of the Negotiable Request for Proposals to 2489960 Ontario Inc. in the amount of $56,686,028 net of all taxes ($57,683,703 net of HST recoveries). This represents a price proposal of $54,462,328 plus an annual escalation adjustment of three (3) percent in years 2020 and 2021 of the contract to account for commodity and labour price adjustments specified in the Negotiable Request for Proposals.

This Negotiable Request for Proposals is the first strategic sourcing event under the Purchasing and Materials Management Division's Category Management and Strategic Sourcing Transformation (a project under the Supply Chain Transformation). Strategic Sourcing is a collaborative effort between various City Divisions and Purchasing and Materials Management Division (PMMD) to plan and execute a sourcing event. It relies on analysis of market data and input from market sounding meetings with potential proponents in developing the procurement strategy.

Authority is also being requested to amend Purchase Order Numbers 6045918 and 6046025, issued to GHD Limited (GHD Ltd.) and The Municipal Infrastructure Group Limited (TMIG Ltd.), respectively, associated with the award of Request for Proposal (RFP) Number 9117-17-7001 for the Coordinated Professional Services for Toronto Water and Transportation Services Program Management Assignments. The values of the amendments are as follows:

- Increase Purchase Order Number 6045918, issued to GHD Limited, by $4,104,404 net of all taxes and charges ($4,176,642 net of HST recoveries), revising the current purchase order value from $10,319,525 to $14,423,929 net of all taxes and charges ($14,677,790 net of HST recoveries).
 

- Increase Purchase Order Number 6046025, issued to The Municipal Infrastructure Group Limited, by $2,097,946 net of all taxes and charges ($2,134,870 net of HST recoveries), revising the current purchase order value from $11,823,217 to $13,921,163 net of all taxes and charges ($14,166,175 net of HST recoveries).