Item - 2022.IE27.2

The Infrastructure and Environment Committee recommends that:

1. City Council authorize an amendment to Purchase Order Number 6044699 issued to Air Products Canada Ltd. ("Supplier") for the supply of liquid oxygen, the lease of liquid oxygen equipment and the provision of specialized maintenance services at the F.J. Horgan Water Treatment Plant ("Purchase Order") in the amount of $225,000 net of all taxes and charges ($228,960 net of Harmonized Sales Tax recoveries) revising the current Purchase Order value from the amount of $570,000 net of all taxes and charges ($580,032 net of Harmonized Sales Tax recoveries) to $795,000 net of all taxes and charges ($808,992 net of Harmonized Sales Tax recoveries) and to extend the expiry of the term of the Purchase Order from February 22, 2022 to February 22, 2023.

2. City Council authorize the General Manager, Toronto Water, to negotiate, enter into and execute an amending agreement to the City's current contract with the Supplier dated February 17, 2017 and expiring on February 22, 2022 to give effect to the Purchase Order amendments set out in Recommendation 1 above on such terms and conditions as are acceptable to the General Manager, Toronto Water, and in a form satisfactory to the City Solicitor.

The purpose of this report is to request authority to amend the value and extend the term to February 22, 2023 of Purchase Order 6044699 issued to Air Products Canada Ltd. (the "Supplier") for the supply of liquid oxygen, the lease of liquid oxygen equipment and the provision of specialized maintenance services at the F.J. Horgan Water Treatment Plant (the "Purchase Order"). This report further seeks delegated authority to the General Manager, Toronto Water, to enter into and execute an amending agreement to the City's current contract with the Supplier to give effect to these Purchase Order amendments.

The City is in the process of procuring a new liquid oxygen supply contract for these specialized services, however, the new contract will not be awarded prior to the expiration of the City's current contract with the Supplier on February 22, 2022. To avoid any adverse operational impacts, and to ensure the uninterrupted and continuous operation of the F.J. Horgan Water Treatment Plant and its ozonation system which is critical to the City's water supply operations, a contract extension is required to maintain liquid oxygen supply through the forthcoming contract transition period. The total value of the Purchase Order amendment being requested is $225,000 net of all taxes and charges ($228,960 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from the amount of $570,000 net of all taxes and charges ($580,032 net of Harmonized Sales Tax recoveries) to $795,000 excluding Harmonized Sales Tax ($808,992 net of Harmonized Sales Tax recoveries).