Item - 2023.GG2.17

The General Government Committee recommends that:

1. City Council authorize the General Manager, Transportation Services to negotiate and execute a non-competitive agreement for a five (5) year period commencing from the date of award, with Orange Traffic Inc. in the amount of $3,046,590 net of Harmonized Sales Tax ($3,100,210 net of Harmonized Sales Tax recoveries) for the supply and delivery of Traffic Signal Controllers, on terms and conditions satisfactory to the General Manager, Transportation Services and 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 Orange Traffic Inc. for the supply and delivery of Traffic Signal Controllers on behalf of Transportation Services (TS) and via Materials Management and Stores. The term of the contract will be a five (5)-year term from the date of award, in the total amount of $3,046,590 net of Harmonized Sales Tax ($3,100,210 net of Harmonized Sales Tax recoveries).

A recent Request for Quotation (RFQ) Ariba Document Number 3299251684 was issued for the supply and delivery of the Traffic Control Equipment with five (5) biddable Parts, each Part was intended to be awarded separately. However, Part C (for the supply and delivery of the Traffic Signal Controllers) was closed without any bidders. Upon review of the most recent contract for the same traffic controller equipment, Orange Traffic Inc. was the only bid received. The City of Toronto (City) then requested pricing from Orange Traffic Inc. and the costs were deemed consistent with expectations in terms of the increase in costs from the previous bid four (4) years ago when considering Consumer Price Index (CPI) and factoring in current market pricing.

Given the critical need for Transportation Services to maintain a supply of this particular traffic signal component which supports Vision Zero related operations such as advanced green for pedestrians as well as the MoveTO Congestion Management Plan's Smart Signal and Transit Signal Priority deployments; a non-competitive contract with Orange Traffic Inc. is being recommended by Transportation Services and Purchasing and Materials Management Division (PMMD) staff.

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 195-7.3D 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.