Item - 2020.GL13.1

The General Government and Licensing Committee recommends that:

1.  City Council, in accordance with Section 71 11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control Bylaw), grant authority to the Chief Purchasing Officer to amend the contract awarded to Kodiak Group Holdings Co. operating as Work Authority for the supply of various Safety Footwear, Occupational Footwear and Galoshes for Male and Female Employees for the City of Toronto's various Divisions, arising from Request for Quotation No. 0114-18-0008 by increasing the maximum value of the contract including all option years as outlined in Attachment No. 1 to this report, to not exceed $8,140,206 net of HST recoveries, $9,039,341 including all applicable taxes and charges and $7,999,416 net of all applicable taxes and charges.

The purpose of this report is to request authority to amend the contract issued to Kodiak Group Holdings Co. operating as (o/a) Work Authority ("Work Authority"), arising from Request for Quotation No. 0114-18-008 ("RFQ No. 0114-18-0008") for the non-exclusive supply of various safety footwear, occupational footwear, and galoshes for male and female employees of various City of Toronto Divisions ("Safety Footwear Contract").

This amendment would be in accordance with Section 71 11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control Bylaw). On September 5, 2018, the City's Bid Award Panel approved the awarding of the Safety Footwear Contract, based on the estimated costs for the various City Divisions based on the estimated volume for each Division, and the average price established in Work Authority's response to RFQ No. 0114-18-0008. However, due to specific obligations under the Collective Agreement between the City of Toronto and the Toronto Professional Fire Fighters' Association, Local 3888 (CA), the average cost incurred by the City per eligible Toronto Fire Services (TFS) employee is significantly higher than this estimated cost, resulting in the estimated total cost for the Safety Footwear Contract being higher than contained in the 2018 Staff Report to the Bid Award Panel.

The Safety Footwear Contract is in effect from September 10, 2018, and will end on June 30, 2020, with the option to renew for three (3) additional separate one (1) year terms. The total potential amount of the Safety Footwear Contract, including all option years was estimated, based on the calculations at the time of the 2018 award at $6,533,497 net of HST recoveries, $7,255,161 including all applicable taxes and charges and $6,420,496 net of all applicable taxes and charges. In calculating the estimate of the total value, the proposed amendment would correct the shortcoming of the previous estimate, by including the complications in safety footwear expenses incurred by TFS.

The proposed amendment would increase the value of Safety Footwear Contract, including all option years by $1,606,710 net of HST recoveries, $1,784,181 including all applicable taxes and charges and $1,578,921 net of all applicable taxes and charges.