Item - 2024.GG12.12

The General Government Committee recommends that:

1. City Council authorize the General Manager, Fleet Services Division to amend the Legal Agreement and Blanket Contract Number 47022515 with Joe Johnson Equipment for the supply and delivery of labour, materials, and equipment necessary to provide overflow warranty and non-warranty Original Equipment Manufacturer authorized parts and services for Labrie, Vactor, Elgin, Trackless, and any other equipment for which Joe Johnson Equipment is the authorized dealer, to extend the target date by one (1) year from November 1, 2024 to October 31, 2025, with the option to renew the contract for four (4) additional (1) one year periods, at the sole discretion of the City, and increase the total target value by $2,743,207 net of Harmonized Sales Tax and all applicable charges, ($2,791,488 net of Harmonized Sales Tax recoveries), revising the current Blanket Contract value from $1,761,067 to $4,504,274 net of all taxes and charges, based on the following conditions:

a. The agreement will be based on the condition that Joe Johnson Equipment continues to be the exclusive distributor for the proprietary Original Equipment Manufacturer parts and specialized services for Labrie, Vactor, Elgin, Trackless, and other equipment; and,

b. On other terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

The purpose of this report is to seek authority from City Council to amend non-competitive Blanket Contract 47022515 with Joe Johnson Equipment to extend the contract validity and date by an additional 5 year term and increase the budget by $2,743,207 net of Harmonized Sales Tax ($2,791,488 net of Harmonized Sales Tax Recoveries). The term extension will revise the maximum duration from five (5) years to ten (10) years, where all optional extension years are exhausted. This blanket contract value increase will revise the target value from $1,761,067 to $4,504,274, net of Harmonized Sales Tax ($5,089,830 including all taxes and charges, $4,583,099 net of Harmonized Sales Tax Recoveries).

The contract is for the supply and delivery of labour, materials, and equipment necessary to provide overflow warranty and non-warranty Original Equipment Manufacturer authorized parts and services for Labrie, Vactor, Elgin, Trackless, and any other Original Equipment Manufacturer for which Joe Johnson Equipment is an authorized parts and service dealer. The parts and specialized services cannot be obtained through the competitive procurement process as Joe Johnson Equipment is the only authorized dealer in the Greater Toronto Area.

This equipment is required to ensure the continued delivery of critical services across the City of Toronto, specifically to support and maintain water infrastructure for Toronto Water Operations and to support haulage operations for Solid Waste Management. Access to Original Equipment Manufacturer parts and specialized services for warranty / non warranty repair and maintenance is vital to ensuring that units are safe, reliable and available when required.

Additionally, completing preventative maintenance services in line with Original Equipment Manufacturer recommended standards and specifications supports Fleet Services’ ongoing work to advance fleet availability and reliability by optimizing fleet performance and equipment health and safety. A better return on investment is also expected, with well maintained vehicles having a lengthy lifespan, and yielding greater returns at the end of their life cycle. 

City Council approval is required in accordance with Municipal Code Chapter 195-Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five (5) year commitment for each vendor, 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 71-11.1.