Item - 2021.GL24.7

The General Government and Licensing Committee:

1. In accordance with Section 195-8.4 of Toronto Municipal Code Chapter 195 (Purchasing), authorized the Executive Director, Corporate Real Estate Management, to enter into and execute an agreement with the Kleenway Building Maintenance Services Incorporated for a period of three (3) years in an amount of $3,468,858 net of all taxes and charges ($3,529,910 net of Harmonized Sales Tax recoveries), with the option to renew the contract for two (2) additional separate one (1) year periods in the amounts of $1,184,792 net of all taxes and charges ($1,205,644 net of Harmonized Sales Tax recoveries) for year one, and $1,203,550 net of all taxes and charges ($1,224,732 respectively, net of Harmonized Sales Tax recoveries) for year two, for a total contract award including option years of $5,857,200 net of all taxes and charges ($5,960,286 net of Harmonized Sales Tax recoveries) based on the terms and conditions set out in the Negotiated Request for Proposal document number 2625552649 and in a form satisfactory to the City Solicitor.

The purpose of this report is to request authority for the Executive Director, Corporate Real Estate Management, to award the Negotiated Request for Proposal Document Number 2625552649 to Kleenway Building Maintenance Services Incorporated for the provision of Custodial Services at Union Station, for a period of three (3) years, with the option to extend the agreement for two (2) additional one (1) year terms. The contract value for all five years is $5,857,200 net of all taxes and charges ($5,960,286 net of Harmonized Sales Tax recoveries).

The General Government and Licensing Committee originally awarded Negotiated Request for Proposal Document Number 2625552649 in April 2021. However, the vendor that was awarded Property Group H, Union Station, withdrew their bid in May 2021, citing they could not honour the pricing submitted in the Negotiated Request for Proposal Document Number. Consequently, Purchasing and Materials Management and Corporate Real Estate Management engaged the next highest scoring vendor, Kleenway Building Maintenance Services, entered into negotiations, and are now ready to seek authority to award an agreement.

This contract award is within the delegated authority of the General Government and Licensing Committee pursuant to direction 10 of GM12.21 Council-Directed Follow Up to Community Development Committee Item CD10.2 - the Social Impact of Lower Wage Jobs, which states "that prior to the awarding of any further cleaning contracts, the Deputy City Manager and Chief Financial Officer bring results of the call for proposals to the Government Management for approval" and pursuant to Section 195-8.4 of Toronto Municipal Code Chapter 195.