Item - 2020.GL19.17

The General Government and Licensing Committee recommends that:  

1. City Council authorize the General Manager, Fleet Services to amend Purchase Order Number 6050803 by increasing the Purchase Order value by $21,577,224 net of Harmonized Sales Tax and all applicable charges (or $21,956,983 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from $17,211,134 to $38,788,358 net of Harmonized Sales Tax and all applicable charges ($39,471,033 net of Harmonized Sales Tax recoveries) and to extend the term of the Purchase Order to include the second optional year team under the provisions of the Vendor of Record Number OSS-00634452, from July 1, 2023 to June 30, 2024, to be exercised at the sole discretion of the General Manager, Fleet Services.

The purpose of this report is to seek authority from City Council to amend and increase Purchase Order No. 6050803 issued to City Buick Chevrolet Cadillac the authorized dealer for General Motors of Canada Company under the Vendor of Record Number OSS-00634452, for the provision of vehicle acquisitions and up-fitting - Category 1A - General Vehicle Acquisition, for various divisions as part of the Centralized Model.  The total Purchase Order Amendment being requested is for an additional amount of $21,577,224 net of Harmonized Sales Tax and all applicable charges ($21,956,983 net of Harmonized Sales Tax recoveries).

Should the optional years be extended by the Ministry of Government and Consumer Services for the final year, the General Manager, Fleet Services Division is seeking authority to extend the term to include the second 2nd optional year term from July 1, 2023 to June 30, 2024 for additional vehicle acquisitions and up-fitting, in accordance with the Vendor of Record Number OSS-00634452.

The initial term of the Contract is from September 14, 2018 to June 30, 2022 with the option to renew the Contract for two (2) additional separate one (1) year terms.

By adopting the manufacturer-direct service delivery model with General Motors of Canada Company under the Vendor of Record Number OSS-00634452 Fleet Services anticipates a total cost avoidance of $6,924,412 will be realized during the contract term, including any optional years.  This includes $1,362,060, for Toronto Paramedic Services and Toronto Fire Services as part of this amendment. 
  

This agreement also provides considerable efficiency improvements through increasing delivery time by 50-70 percent, which directly supports the reduction of vehicle downtime and state of good repair backlog (SOGR) reduction, resulting in reduced costs and improved service levels.