Item - 2022.EC31.11

The Economic and Community Development Committee:    

1. In accordance with Section 71-11.1.C of the City of Toronto Municipal Code Chapter 71 (Financial Control), authorized the Chief Procurement Officer to amend Toronto Paramedic Services' contract for the provision of linen laundering services, by an additional amount of $726,251 excluding all taxes and charges ($739,033 net of Harmonized Sales Tax recoveries), increasing the current City-wide value from $9,246,668 to $9,972,920 excluding all taxes and charges ($9,409,410 to $10,148,443 net of Harmonized Sales Tax recoveries).

The purpose of this report is to request approval to amend the existing contract  Number 47022988, issued to Ecotex Healthcare Linen Services LLP ("Ecotex") as a result of the City-wide Request for Proposal Number 0105-19-0127 Doc2101183619, for the provision of linen laundering services by a total amount of $726,251 (excluding all taxes and charges) or $739,033 (net of Harmonized Sales Tax recoveries) for the period up to and including the separate, optional one-year renewals, to the expiry date ending February 28, 2025. This City-wide call was awarded as separate contracts to Senior Services and Long-Term Care, Children's Services and Toronto Paramedic Services.

Currently, most linen used by Paramedics in the course of patient care is deposited at hospitals for pick-up and laundering by the various hospitals' contracted vendors. In many cases, the hospital vendor is Ecotex. Coincidentally, the remaining used linen (from Paramedic stations) is also laundered by Ecotex, but directly under the above-mentioned contract that was independently awarded by the City in February 2020 following a competitive bid process.

Prior to the City contract award, Toronto Paramedic Services used the authority under Schedule A of the City's Financial Control Bylaw, Chapter 71 ("Emergency Hospital Linen Services"), to pay for all City-wide linen laundry services, including stations and hospital sites. Following the City award to Ecotex in February 2020, Toronto Paramedic Services was invoiced at the lower rate for both hospital and station-based laundry services.

An amendment to City contract number 47022988 with Ecotex is requested to increase the contract capacity to account for hospital laundry volumes for Toronto Paramedic Services linen. Given the reduced pricing already being provided by Ecotex, the requested amendment would result in a cost avoidance of $100,980 annually. The requested additional capacity will be in accordance with the same, relevant terms and conditions of the original Request for Proposal Number 0105-19-0127 Doc2101183619.