Item - 2023.GG2.15

The General Government Committee:

1. In accordance with Section 71-11.1C of City of Toronto Municipal Code Chapter 71, (Financial Control Bylaw) granted authority to issue a non-competitive bridging contract, for a six-month period, to Gordon Food Services Canada Ltd, for the supply and delivery of groceries at the City of Toronto's 10 directly-operated long-term care home locations in the amount of $5,000,000 net of all taxes and charges ($5,088,000, net of all HST recoveries) to avoid any gap in service delivery pending the issuance of a new contract.  

The purpose of this report is to request authority to establish a six (6) month Non-competitive bridging contract to GFS - Gordon Food Services Canada Ltd, for the Non-exclusive Supply and Delivery of Groceries, Frozen Foods, Seafood, Meat and Meat Products, Nutrition Supplements and Tube Feeding Formulas at Various City of Toronto long-term care home locations to avoid any gap in service while a new contract is processed and awarded prior to Q3 2023.   

The consolidated value of this bridge contract for the period of April 1, 2023, to September 30, 2023, to the City of Toronto is $5,000,000, net of Harmonized Sales Tax ($5,088,000 net of Harmonized Sales Tax recoveries).

Seniors Services and Long-Term Care (SSLTC) currently has a contract with GFS – Gordon's Food Services Canada that is set to expire on March 31, 2023. A new sourcing request for an RFP was initiated on April 5, 2022, to award a new contract. The original decision was for the RFP to cover the service needed for SSLTC only. In accordance with the corporate guidance and procurement best practices, the direction was received from Purchasing Material Management Division (PMMD) to include Shelter Support and Housing Administration (SSHA) and Children's Service Division (CSD) to the RFP to achieve cost savings through volume discounts as well as establishing City-wide sustainability program as such, the new RFP was not issued to market. The decision to merge three divisions into one broader RFP resulted in increased complexity in the procurement process as other participating divisions needed to provide input, comments, reviews and approval of the final scope of work and pricing of the RFP to meet their service requirements. Given the volatility of the food market, grocery procurement requires additional care, and caution to complete successfully.

In addition, SSLTC (acting as lead on behalf of the three divisions) consulted with the Environment and Climate Division to address the City’s requirements from vendors for data reporting to support the City’s Cool Food Pledge commitment (2019.HL10.2) which aligns with recommendations adopted in the TransformTO Net Zero Strategy (2021.IE26.16, Item #17). This was a time-intensive process involving engagements with multiple stakeholders, including external consultants who provided input, comments, reviews and approval of the language and scope.

For the above-mentioned reasons and revised timeline, PMMD indicated to SSLTC to proceed with an interim bridging contract to ensure continued service within the City's directly-operated long-term care homes. Due to the lower threshold of the SSHA and CSD bridging contracts, these will be authorized under separate authorities. Termination of all bridging contracts will be aligned.