Item - 2023.GG7.8

The General Government Committee recommend that:

1. City Council authorize the General Manager, Toronto Water to negotiate and execute a non-competitive agreement from the date of award to July 31, 2025, with Wachs Canada Ltd., for an initial contract period of two (2) years, commencing on the date of award to July 31, 2025, with three (3) separate optional one (1) year renewals in the amount of $1,506,345 net of Harmonized Sales Tax ($1,532,857 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the General Manager, Toronto Water, in a form satisfactory to the City Solicitor.

The purpose of this report is to request City Council authority to enter into a non-competitive contract with Wachs Canada Ltd., for replacement parts and equipment for all water trucks on behalf of Toronto Water Division. The contract will be for an initial period of two (2) years, commencing on the date of award to July 31, 2025, with three (3) separate optional one (1) year renewals, in the total amount of $1,506,345 net of Harmonized Sales Tax ($1,532,857 net of Harmonized Sales Tax recoveries).

The contract was originally awarded to Wachs Canada Ltd., on February 28, 2021, where the City entered into the non-competitive Blanket Contract number 47023553 with Wachs Canada Ltd., the exclusive distributor of Wachs equipment.

The new contract is requested to continue procurement of replacement parts and equipment for all trucks which come equipped from Fleet Services with Wachs Canada Ltd., winders equipment installed. Wachs is the sole distributor and exclusive supplier for the repair components for their own equipment. A proprietary letter confirms the exclusive distributorship of Wachs Canada Ltd., for the parts and equipment required.

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 195-7.3 (D) 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.