Item - 2022.IE28.5

Infrastructure and Environment Committee recommends that:

1. City Council authorize the General Manager, Toronto Water, to negotiate and enter into a non-competitive contract with Alfa Laval Incorporated (Alfa Laval) for the continued supply of proprietary parts required for the maintenance of centrifuges installed at various City wastewater and water treatment plants, on the following terms and conditions:

a.  The initial term of the contract be from the date the contract is issued to March 31, 2023, and include the option to renew for six (6) additional separate one (1) year periods, at the sole discretion of the City and subject to budget approvals, for the total amount over seven (7) years of $5,346,254 net of Harmonized Sales Tax ($5,440,348 net of Harmonized Sales Tax recoveries);

b.  Alfa Laval continues to be the manufacturer or exclusive distributor of the parts; and

c.  Conditional upon such other terms and conditions that are satisfactory to the General Manager, Toronto Water, and in a form satisfactory to the City Solicitor.

2. City Council authorize the General Manager, Toronto Water, to negotiate and enter into a non-competitive contract with Pro Aqua, Incorporated (Pro Aqua) for the continued supply of proprietary parts required for the maintenance of equipment installed at various City wastewater treatment plants, on the following terms and conditions:

a. The initial term of the contract be from the date the contract is issued to March 31, 2023, and include the option to renew for six (6) additional separate one (1) year periods, at the sole discretion of the City and subject to budget approvals, for the total amount over seven (7) years of $6,551,044 net of Harmonized Sales Tax ($6,666,342 net of Harmonized Sales Tax recoveries);

b. Pro Aqua continues to be the exclusive distributor of the parts; and

c. Conditional upon such other terms and conditions that are satisfactory to the General Manager, Toronto Water and in a form satisfactory to the City Solicitor.

3. City Council authorize the General Manager, Toronto Water, to negotiate and enter into a non-competitive contract with the Veolia Water Technologies Canada Incorporated (Veolia Water Technologies) for the continued supply of proprietary parts required for the maintenance of equipment installed at various City wastewater treatment plants, on the following terms and conditions:

a. The initial term of the contract be from the date the contract is issued to March 31, 2023, and include the option to renew for six (6) additional separate one (1) year periods, at the sole discretion of the City and subject to budget approvals, for the total amount over seven (7) years of $414,146 net of Harmonized Sales Tax ($421,435 net of Harmonized Sales Tax recoveries);

b. Veolia Water Technologies continues to be the manufacturer or exclusive distributor of the parts; and

c. Conditional upon such other terms and conditions that are satisfactory to the General Manager, Toronto Water, and in a form satisfactory to the City Solicitor.

The purpose of this report is to request authority for the General Manager, Toronto Water, to negotiate and enter into three (3) non-competitive contracts with each of Alfa Laval Incorporated, Pro Aqua, Incorporated, and Veolia Water Technologies Canada Incorporated. These contracts will be for the supply of proprietary parts and supplies required for the maintenance of City wastewater and water treatment process equipment installed at the various plants. The initial term of these contracts will be from the date the contracts are issued to March 31, 2023, with the option to renew for six (6) additional one (1) year periods, at the sole discretion of the City and subject to budget approvals, for the total amount of $12,311,444, net of Harmonized Sales Tax (Harmonized Sales Tax) ($12,528,126 net of Harmonized Sales Tax recoveries).

City Council approval is required in accordance with Toronto Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five-year commitment for each vendor under Article 7, Non-competitive or Limited solicitations, Section 195-7.3(D) of the Purchasing By-law or exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority as per Toronto Municipal Code Chapter 71, Financial Control, Section 71-11A.