Item - 2022.IE29.2

The Infrastructure and Environment Committee recommends that:

1. City Council authorize the General Manager, Transportation Services to negotiate and execute a non-competitive agreement from the date of award to December 31, 2022, with two (2) additional option year renewals with Fortran in the amount of $4,300,926 net of Harmonized Sales Tax ($4,376,622 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory the General Manager, Transportation Services, in a form satisfactory to the City Solicitor.

The purpose of this report is to request authority to enter into a non-competitive contract with Fortran Traffic Systems Limited for the supply and delivery of Primary Solar-powered, Wireless School Zone Flashing Beacons on behalf of Transportation Services (City Stores). The contract will be for an initial period from January 1, 2022 to December 31, 2022, with the option to renew for two (2) additional option year periods, in the total amount of $4,300,926 net of Harmonized Sales Tax ($4,376,622 net of Harmonized Sales Tax recoveries).

A contract was awarded to Fortran Traffic Systems Limited in 2018 resulting from competitive call Request for Quotation 1202-18-0299.The contract expired on November 5, 2020. In June 2021, a lower value and short term contract was awarded to Fortran Traffic Systems Limited resulting from a Non-Competitive Procurement Request.  This was for the immediate purchases necessary for the installation of flashing beacons for the 2021 Vision Zero safety school zone rollout which also included repairs and ongoing maintenance throughout the City of Toronto as part of the Vision Zero project. The new contract is requested to extend the purchases in order to comply with City Council directive to better equip designated school safety zones.  These purchases will allow the installation and execution of Flashing Beacons to complete the remaining Vision Zero identified school safety zones. Moreover, the Flashing Beacons supplied by Fortran Traffic System Limited installed throughout the City of Toronto run on a JSF System which Fortran has exclusive rights. There are no other companies in Canada which run on this system. The Flashing Beacons and reporting system have been tailored and customized to meet all City requirements.

City Council approval is required in accordance with Municipal Code Chapter 195- Purchasing, where the current request exceeds the Chief Purchasing Officer's authority of the cumulative five year commitment for each supplier, under Article 7, 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 the Toronto Municipal Code, Chapter 71- Financial Control, Section 71-11A.