Item - 2023.GG2.3

The General Government Committee:

1. Granted authority to the General Manager, Fleet Services Division to amend Blanket Contract Number 47023881 by increasing the total Blanket Contract target value by $4,380,665 net of all applicable charges ($4,457,765 net of Harmonized Sales Tax Recoveries), revising the current Blanket Contract value from $1,141,885 net of all taxes and charges ($1,161,982 net of Harmonized Sales Tax Recoveries) to $5,522,550 net of all taxes and charges ($5,619,747 net of Harmonized Sales Tax Recoveries).

The purpose of this report is to seek authority for the General Manager, Fleet Services Division to amend and increase the target value of Blanket Contract Number 47023881 issued to Toromont Material Handling a Division of Toromont Industries Ltd. (Toromont) for the supply and delivery of various makes and models of lift trucks with related accessories, attachments and supplies from September 9, 2021 to October 26, 2024 with the option to renew the Blanket Contract for one (1) optional term from October 27, 2024 to October 26, 2025.

Fleet Services Division completed a review of the 2023 to 2025 replacement plan and concluded that there will be a funding shortfall. The additional funding will allow Fleet Services to continue supporting lifting equipment requisitions on behalf City divisions. This amendment is requested in response to the original under estimated contract value and escalating unit costs resulting from increased raw material costs, global supply chain challenges and significant production impact by supply chain disruptions, component shortages, labor shortages, and increased freight cost.

The total amendment being requested for Blanket Contract Number 47023881 with Toromont is for an additional amount of $4,380,665 net of all applicable taxes and charges ($4,457,765 net of HST recoveries), inclusive of all optional renewal terms.

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 allowable threshold of $500,000 net of all taxes and charges.