Item - 2020.EC17.11

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, granted authority to:

a.  approve an increase in contract value and date extension of the existing Non-Competitive Purchase Order with 2445212 ONTARIO INC, operating as Comfort Hotel Airport North (Purchase Order 6048213), in the amount of $6,100,000 net of Harmonized Sales Tax ($6,207,360 net of Harmonized Sales Tax recoveries) and extend the validity date to December 31, 2021 for the provision of hotel service, increasing the contract value from $6,554,019 to $12,654,019 net of Harmonized Sales Tax;

b.  approve an increase in contract value and date extension of the existing Non-Competitive Blanket Contract with GARDENA INVESTMENTS LIMITED, operating as Alexandra Hotel (Blanket Contract 47022484), in the amount of $3,300,000 net of Harmonized Sales Tax ($3,358,080 net of Harmonized Sales Tax recoveries) and extend the validity date to December 31, 2021 for the provision of hotel service, increasing the contract value from $1,000,000 to $4,300,000 net of Harmonized Sales Tax; and

c.  approve an increase in contract value and date extension of the existing Non-Competitive Blanket Contract with 2554046 ONTARIO INC, operating as Staybridge Suites Toronto Vaughan South (Contract 47022485), in the amount of $2,100,000 net of Harmonized Sales Tax ($2,136,960 net of Harmonized Sales Tax recoveries) and extend the validity date to December 31, 2021 for the provision of hotel service, increasing the contract value from $1,700,000 to $3,800,000 net of Harmonized Sales Tax.

2.  Authorized the General Manager, Shelter, Support and Housing Administration, to enter into new or amend existing agreements, as required, to implement the authority granted in Part 1 above.

This report is to seek authority from the Economic and Community Development Committee to amend three (3) existing non-competitive contracts established for emergency services for the provision of short-term rental accommodations for shelter clients through the use of hotel/motel services for operated shelters.

Shelter, Support and Housing Administration (SSHA) continues to contract with various hotels and motels to provide shelter to homeless clients. The increase in contract values for the Blanket Contracts and Purchase Orders that were established for these services will be exceeded at some point this year and in late 2021.

SSHA is working with the Purchasing and Materials Management Division (PMMD) with the intent to issue a new Request for Proposals (RFP) for these services in 2020 but due to the COVID-19 pandemic, the competitive call process will likely not be completed during this calendar year and, as such, the existing contracts will need to be amended to ensure the continuity of these emergency essential services until the new RFP is awarded.

The Economic and Community Development Committee's 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 Harmonized Sales Tax allowed under staff authority as per the Toronto Municipal Code Chapter 71, Financial Control, Section 71-11.1.