Item - 2023.GG2.6

The General Government Committee:

1. In accordance with Section 71- 11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorized the amendment of blanket contract number 47023913 issued to Standard Mechanical Systems Limited, increasing the blanket contract value by $5,601,312 net of all applicable taxes and charges ($5,699,895 net of H.S.T. recoveries), and revising the current blanket contract value from $5,019,345 net of all applicable taxes and charges ($5,107,686 net of H.S.T. recoveries) to $10,620,657 net of all applicable taxes and charges ($10,807,581 net of H.S.T. recoveries).

2. In accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorized the amendment of blanket contract number 47023915 issued to Standard Mechanical Systems Limited, increasing the blanket contract value by $1,300,000 net of all applicable taxes and charges ($1,322,880 net of H.S.T. recoveries), and revising the current blanket contract value from $1,019,919 net of all applicable taxes and charges ($1,037,870 net of H.S.T. recoveries) to $2,319,919 net of all applicable taxes and charges ($2,360,750 net of H.S.T. recoveries).

The purpose of this report is to request authority from General Government Committee to amend blanket contract numbers 47023913 for Corporate Real Estate Management (C.R.E.M.) and 47023915 for Parks, Forestry and Recreation (P.F.R.), with Standard Mechanical Systems Limited. The request is to increase the current target value of two blanket contracts by a total of $6,901,312 net of all applicable taxes and charges ($7,022,775 net of Harmonized Sales Tax (H.S.T.) recoveries). This amendment is required to ensure the continuity of critical Heating, Ventilation, and Air Conditioning (H.V.A.C.) maintenance and repair services at City of Toronto properties.

The contract was awarded in 2021 as part of negotiated Request for Proposal Document Number 2738470765. In parallel, C.R.E.M. commenced an asset tagging initiative in City facilities to capture building equipment details that would be used to establish preventative maintenance plans. The asset tagging initiative was completed after the contract award, but provided the C.R.E.M. with an inventory of H.V.A.C. assets requiring repair and maintenance services, including assets not included in the initial contract award. Subsequently assets identified in the initiative are to be included in the current H.V.A.C. contract as an add service. In addition, higher than anticipated demand for critical H.V.A.C. maintenance has resulted in higher portions of the contracts being allocated to address unexpected repairs. As a result of the aforementioned reasons, an amendment is requested to ensure service continuity for the duration of the contract term.

General Government Committee approval is required in accordance with the Toronto Municipal Code, Chapter 71, Financial Control, Section 71-11.1C, where the current request exceeds the threshold of $500,000 net of Harmonized Sales Tax.