Item - 2020.IE13.2

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, Engineering and Construction Services to negotiate and enter into agreements with 2489960 Ontario Inc., O/A  Kore Infrastructure Group, having submitted the highest scoring compliant proposal and having met the specifications in conformance with the Negotiable Request for Proposals (NRFP) Doc. 230486942 requirements, in the amount of $22,404,769.75 net of all taxes and charges ($25,317,389.81 including HST, $22,799,093.69 net of HST recoveries) inclusive of contingencies and price escalations, all in accordance with the terms and conditions as set out in the NRFP 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.

The purpose of this report is to advise of the results of Negotiable Request for Proposals (NFRP) Doc. 230486942 for the construction of watermains at various locations across the City of Toronto in 2020 and 2021 and to request the authority to award the NRFP to 2489960 Ontario Inc., O/A Kore Infrastructure Group in the amount of $22,799,093.69 net of HST recoveries ($25,317,389.81 including all taxes and charges, $22,404,769.75 net of HST).

This NRFP is the second strategic sourcing initiative in watermain construction under the Purchasing and Materials Management Division's Category Management and Strategic Sourcing (CMSS) team. Strategic Sourcing is part of the category management approach to procurement. It relies on analyzing information about the supplier market, anticipated volumes and dollar value of purchases. Negotiation with suppliers and periodic assessments of supply transactions are hallmarks of effective Strategic Sourcing. As a result of this sourcing initiative being awarded, the contract pricing after negotiations came in 21% below the pre-solicitation engineering estimate.