Item - 2021.GL25.6

The General Government and Licensing Committee:

1. In accordance with Section 195-8.4 of Toronto Municipal Code Chapter 195 (Purchasing), authorized the General Manager, Parks Forestry and Recreation, the General Manager, Children's Services, the Executive Director, Corporate Real Estate Management, the General Manager, Economic Development and Culture, the Chief Operating Officer, Development and the General Manager, Solid Waste Management Services, to enter into, and execute an agreement with Standard Mechanical Systems Limited based on the terms and conditions set out in the Negotiated Request for Proposal document number 2738470765 and in a form satisfactory to the City Solicitor being the top-ranked Supplier meeting the requirements set out in the Negotiated Request for Proposal for Property Group A (Children Services, Parks Forestry and Recreation, Economic Development and Culture, Solid Waste Management Services), and Property Groups E and G (Corporate Real Estate Management) for the provision of Heating Ventilation and Air Conditioning maintenance services as defined in the Negotiated Request for Proposal for a period of three (3) years in the amount of $6,307,849 net of all taxes and charges and inclusive of all contingencies ($6,418,867 net of Harmonized Sales Tax recoveries) with the option to renew the contract for two (2) additional separate one (1) year periods in the amount of $4,830,638 net of all taxes and charges and inclusive of all contingencies plus annual escalation adjustment of two (2) percent to account for Consumer Price Index inflation adjustment ($4,915,657 net of Harmonized Sales Tax recoveries) for a total contract award including optional years of $11,138,487 net of all taxes and charges and inclusive of all contingencies ($11,334,524 net of Harmonized Sales Tax recoveries).

2. In accordance with Section 195-8.4 of Toronto Municipal Code Chapter 195 (Purchasing), authorized the General Manager, Parks Forestry and Recreation, the General Manager, Seniors Services and Long-Term Care, the Executive Director, Corporate Real Estate Management, the General Manager, Economic Development and Culture, the Chief Operating Officer, Development and the General Manager, Solid Waste Management Services, to enter into, and execute an agreement with Ainsworth Inc. based on the terms and conditions set out in the Negotiated Request for Proposal document number 2738470765 being the top-ranked Supplier meeting the requirements set out in the Negotiated Request for Proposal for Property Group C (Seniors Services and Long-Term Care), and Property Groups D and F (Corporate Real Estate Management) for the provision of Heating Ventilation and Air Conditioning maintenance services and Property Group H (Parks Forestry and Recreation, Economic Development and Culture, Solid Waste Management Services) and Property Group I (Corporate Real Estate Management) for the provision of Building Automation Systems maintenance services as defined in the Negotiated Request for Proposal for a period of three (3) years in the amount of $16,510,353 net of all taxes and charges and inclusive of all contingencies ($16,800,935 net of Harmonized Sales Tax recoveries) with the option to renew the contract for two (2) additional separate one (1) year periods in the amount of $12,197,630 net of all taxes and charges and inclusive of all contingencies plus annual escalation adjustment of two (2) percent to account for Consumer Price Index inflation adjustment ($12,412,308 net of Harmonized Sales Tax recoveries) for a total contract award including optional years of $28,707,983 net of all taxes and charges and inclusive of all contingencies ($29,213,243 net of Harmonized Sales Tax recoveries).

3. In accordance with Section 195-8.4 of Toronto Municipal Code Chapter 195 (Purchasing), authorized the General Manager, Parks Forestry and Recreation, and the Executive Director, Corporate Real Estate Management, to enter into, and execute an agreement with Ambient Mechanical Limited based on the terms and conditions set out in the Negotiated Request for Proposal document number 2738470765 being the top-ranked Supplier meeting the requirements set out in the Negotiated Request for Proposal for Property Group H (Parks Forestry and Recreation), and Property Group I (Corporate Real Estate Management) for the provision of Building Automation Systems maintenance services as defined in the Negotiated Request for Proposal for a period of three (3) years in the amount of $306,203 net of all taxes and charges and inclusive of all contingencies ($311,592 net of Harmonized Sales Tax recoveries) with the option to renew the contract for two (2) additional separate one (1) year periods in the amount of  $210,300 net of all taxes and charges and inclusive of all contingencies plus annual escalation adjustment of two (2) percent to account for Consumer Price Index inflation adjustment ($214,001 net of Harmonized Sales Tax recoveries) for a total contract award including optional years of $516,503 net of all taxes and charges and inclusive of all contingencies ($525,593 net of Harmonized Sales Tax recoveries).

The purpose of this report is to advise on the results of Negotiated Request for Proposal Document Number 2738470765 for the provision of Heating Ventilation and Air Conditioning and Building Automation Systems maintenance services for various locations throughout the City of Toronto, and to request authority for the General Manager Parks Forestry and Recreation, General Manager, Children's Services, Executive Director, Corporate Real Estate Management, General Manager, Seniors Services and Long-Term Care, General Manager, Economic Development and Culture, Chief Operating Officer - Development and General Manager, Solid Waste Management Services to enter into agreements with the top-ranked Suppliers meeting the requirements set out in the Negotiated Request for Proposal.

The consolidated cost of all awarding contracts to the three successful Suppliers over the award period of three (3) years with two (2) option years of (1+1) to the City of Toronto is $40,362,972 net of all taxes and inclusive of all contingencies ($41,073,361 net of Harmonized Sales Tax recoveries).

This Negotiated Request for Proposal was developed as a strategic sourcing initiative led by the Purchasing and Materials Management Division's Category Management and Strategic Sourcing unit working with Parks Forestry and Recreation, Children's Services, Seniors Services and Long-Term Care, Economic Development and Culture, Solid Waste Management Services, Corporate Real Estate Management's team and Toronto Parking Authority. 

There are three components comprising this Negotiated Request for Proposal:

Heating Ventilation and Air Conditioning Maintenance Services

Building Automation Systems Maintenance Services

Heating Ventilation and Air Conditioning Capital Replacement Roster

The third component of this Negotiated Request for Proposal (Heating Ventilation and Air Conditioning Capital Replacement) will allow the City to establish a Roster with six (6) pre-qualified Vendors for future Heating Ventilation and Air Conditioning Capital Replacement solicitations. It is anticipated that having a Capital Replacement Roster of qualified Suppliers ready to undertake the work will reduce the overall time for delivery of second stage procurement solicitations. The Capital Replacement Roster will have a contract term of three (3) years with an option to extend for two (2) additional one (1) year periods at the sole discretion of the City. The pre-qualified Suppliers will be eligible to bid on and be considered for the award of the Work Assignment Agreements by the City of Toronto during the Term of the Roster. The Roster with the six (6) following Suppliers is established and this statement is added to the Staff report for information purposes only.

Prequalified Suppliers for Roster for the Heating Ventilation and Air Conditioning Capital Equipment

- Ainsworth Incorporated
- Ambient Mechanical Limited
- Plan Group Incorporated
- Regulvar Canada Incorporated
- Smith and Long
- Standard Mechanical Systems Limited

 
As a result of this sourcing initiative for Heating Ventilation and Air Conditioning and Building Automation Systems maintenance services, the City will benefit from a standardized and flexible hybrid maintenance model comprising of both preventative and comprehensive maintenance services with standardized and competitive on-demand and ad-hoc rates across all participating City divisions and agency (Toronto Parking Authority). The new contracts will bring enhanced and best in class reporting and maintenance system (Computerized Maintenance Management System) which enables real time reporting access to City's staff and facilitates the processes of scheduling maintenance, repair and replacement of equipment and assets.  The improved reporting and tracking of service delivery will help the City to manage contracts and vendor performance effectively to ensure contract compliance. This is all expected to result in overall cost optimization and enhanced service levels.

Participating Agencies named in this report (Toronto Parking Authority - Property Group B) will be seeking authority to award contract to Standard Mechanical Systems Limited for Heating Ventilation and Air Conditioning Maintenance Services from their individual Board and will manage the subsequent contracts independently from the City.