Item - 2023.GG1.4

The General Government Committee:

1. Authorized the General Manager, Fleet Services to amend Blanket Contract Number 47023372 by increasing the total Blanket Contract target value by $9,678,999 net of HST and all applicable charges ($9,849,350 net of HST recoveries), revising the current Blanket Contract value from $18,127,637 to $27,976,986 net of all taxes and charges.

2. Authorized the General Manager, Fleet Services to amend Purchase Order Number 6047621 by increasing the total Purchase Order value by $4,262,709 net of HST and all applicable charges ($4,337,732 net of HST recoveries), revising the current Purchase Order value from $17,562,802 to $21,825,511 net of all taxes and charges. Should the optional year be extended by the Ministry of Government and Consumer Services for the final year, Fleet Services is also requesting to exercise optional renewal term from July 1, 2023 to June 30, 2024.

3. Requested the General Manager, Fleet Services to report back to the General Government Committee on the possibility of purchasing "green vehicles" prior to exercising any option years.

The purpose of this report is to seek authority for the General Manager, Fleet Services Division to amend and increase the target values of Blanket Contract Number 47023372 issued to Ford Motor Company of Canada Limited (Ford), and of Purchase Order Number 6047621 issued to FCA Canada Inc. (Fiat Chrysler Automobiles). Should the optional year be extended by the Ministry of Government and Consumer Services for the final year, the General Manager, Fleet Services Division is also seeking authority to extend the term to include the second optional year term from July 1, 2023 to June 30, 2024 for Purchase Order Number 6047621 in accordance with the Vendor of Record (VOR) Number OSS-00634452.

Fleet Services Division completed a review of the 2022 to 2024 replacement plan and concluded that there will be a funding shortfall. The additional funding will allow Fleet Services to continue supporting vehicle requisitions on behalf City divisions.

The total amendment being requested for Blanket Contract Number 47023372 with Ford is for an additional amount of $9,678,999 net of all applicable taxes and charges ($9,849,350 net of HST recoveries) to December 31, 2023, inclusive of all optional renewal terms.

The total amendment being requested for Purchase Order Number 6047621 with FCA Canada Inc. is for an additional amount of $4,262,709 net of all applicable taxes and charges ($4,337,732 net of HST recoveries), inclusive of potential optional renewal terms from July 1, 2023 to June 30, 2024 should the optional year be extended by the Ministry of Government and Consumer Services for the final year.  

General Government Committee approval is required in accordance with Section 71-11.1C of the Toronto Municipal Code Chapter 71 (Financial Control By-law), where the current request exceeds the threshold of $500,000 net of all taxes and charges.