Item - 2020.EC18.10

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 amend Contract Number 47022687, issued to Mister Chemical Ltd. for the provision of housekeeping and laundry chemicals to long-term care homes, by an additional amount of $1,285,000 net of all taxes ($1,307,617 net of Harmonized Sales Tax recoveries) based on the following:

a.  Increasing the initial term of the contract (February 21, 2020 to March 31, 2021) by $481,330 net of Harmonized Sales Tax recoveries from $119,054 (net of Harmonized Sales Tax recoveries) to $600,384 (net of Harmonized Sales Tax recoveries);

b.  Increasing the first option year (April 1, 2021 to March 31, 2022) by $197,505 net of Harmonized Sales Tax recoveries from $122,626 (net of Harmonized Sales Tax recoveries) to $320,131 (net of Harmonized Sales Tax recoveries);

c.  Increasing the second option year (April 1, 2022 to March 31, 2023) by $203,430 net of Harmonized Sales Tax recoveries from $126,305 (net of Harmonized Sales Tax recoveries) to $329,735 (net of Harmonized Sales Tax recoveries);

d.  Increasing the third option year (April 1, 2023 to March 31, 2024) by $209,533 net of Harmonized Sales Tax recoveries from $130,094 (net of Harmonized Sales Tax recoveries) to $339,627 (net of Harmonized Sales Tax recoveries); and

e.  Increasing the fourth option year (April 1, 2024 to March 31, 2025) by $215,819 net of Harmonized Sales Tax recoveries from $133,997 (net of Harmonized Sales Tax recoveries) to $349,816 (net of Harmonized Sales Tax recoveries).

The purpose of the report is to request authority to amend Contract Number 47022687 issued to Mister Chemical Ltd. The contract is set up as an initial year (February 21, 2020 to March 31, 2021), with four (4) one-year optional terms. The total potential contract value for all five years stands at $621,143 net of all taxes. This report requests an amendment to increase the contract value by $1,285,000 spread out across the initial term and the four (4) optional years. The total potential value of the contract would increase from $621,143 to $1,906,143, net of all applicable taxes and charges.

The requested contract amendment is required as a result of the COVID-19 pandemic, additional disinfectant products, hand sanitizer dispensers and hand sanitizer needed to respond to the pandemic within the City's directly operated long-term care homes. The prolonged and significant increase in product usage was not anticipated and has resulted in the need to increase the contract value and procurement. Additional provincial funding has been received to offset the increased costs associated with the COVID-19 pandemic response.