Item - 2023.GG1.6

The General Government Committee recommends that:

1. City Council, in accordance with Section 195-8.5.B. of Toronto Municipal Code Chapter 195, Purchasing, award the contract for Request for Quotation, Ariba Document Number 3744719435 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 ("RFQ") to Air Products Canada Ltd., being the lowest bidder meeting RFQ specifications, for a minimum period of five (5) years, with an option in favour of the City to extend the contract for one (1) additional four (4) year period on the same terms and conditions, for a total potential total contract value of $4,369,524 net of all applicable taxes and charges ($4,446,428 net of HST Recoveries) and inclusive of estimated annual adjustments for consumer price index (CPI) and optional items that the City may elect to exercise.

The purpose of this report is to advise City Council of the results of Request for Quotation Ariba Document Number 3744719435, 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 "RFQ"), and to request authority to award the contract to Air Products Canada Ltd., in the amount of $2,524,558 net of all applicable taxes and charges ($2,568,991 net of HST recoveries) for the initial term inclusive of optional items that the City may elect to exercise with an option in favour of the City to extend the contract for an option period of four (4) years, for a total potential contract award of $4,369,524 net of all applicable taxes and charges ($4,446,428 net of HST recoveries).

The proposed contract is for a minimum period of five (5) years, with an option in favour of the City to extend the contract on the same terms and conditions for one (1) additional four (4) year period. Since the proposed contract term, inclusive of any extension of the contract term as exercised by the City, exceeds five (5) years, City Council authority to award the contract is required in accordance with Section 195-8.5.B. of Municipal Code Chapter 195, Purchasing (the "City's Purchasing By-law").