Item - 2023.GG4.9

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) granted authority to amend Purchase Order Number 6052599 with Deltera Contracting Inc. - Bayside 2, for the provision of full Construction Services by an additional amount of $3,040,381 net of all taxes and charges ($3,093,892 net of Harmonized Sales Tax recoveries) revising the current Purchase Order value from $19,364,100 net of all taxes and charges ($19,704,908 net of Harmonized Sales Tax recoveries) to $22,404,481 net of all taxes and charges ($22,798,800 net of Harmonized Sales Tax recoveries).    

The purpose of this report is to request authority to amend Purchase Order Number 6052599 with Deltera Contracting Inc. - Bayside 2 for the construction of the East Bayfront Community Recreation Centre awarded under Non-Competitive Procurement SR3102296662. A construction management contract is currently in place with Deltera Contracting Inc. and the contractor to complete the construction on behalf of the City of Toronto.

This purchase order amendment is required to account for the increased building construction costs which has impacted the fit-out construction of the facility, scheduled to commence in the fourth quarter of 2023.  As an outcome of the COVID-19 pandemic, there continues to be uncertainties within the supply chain, fluctuating material costs, and overall inflation impacting project outcomes.

The total value of the Purchase Order Amendment being requested is $3,040,381 net of all taxes and charges ($3,093,892 net of Harmonized Sales Tax recoveries), revising the current purchase order value from $19,364,100 net of all taxes and charges ($19,704,908 net of Harmonized Sales Tax recoveries) to $22,404,481 net of all taxes and charges ($22,798,800 net of Harmonized sales Tax recoveries).