Item - 2024.GG12.18

The General Government Committee recommends that:  

1. City Council direct the Chief Procurement Officer to make the required administrative updates to procurement policies, as set out in this report, that result from City Council adoption of GG8.21 - Amendments to Toronto Municipal Code, Chapter 195, Purchasing, and Review of Open Contracting Global Principles and the Role of an Inspector General.

2. City Council amend the Social Procurement Policy, as set out in Attachment 1 to the revised report (April 26, 2024) from the Chief Procurement Officer, effective July 1, 2024.

3. City Council amend the Procurement Processes Policy, as set out in Revised Attachment 2 to the revised report (April 26, 2024) from the Chief Procurement Officer, effective July 1, 2024.

4. City Council direct the Chief Procurement Officer to review the Supplier Suspension Procedure to ensure continued alignment with the amended Procurement Bylaw.

5. City Council direct the Chief Procurement Officer to report back in the first quarter of 2025 with an update on the alignment of the City's procurement policies with TransformTO.

6. City Council amend the definition of Procurement Policies in Municipal Code, Chapter 195, Procurement, effective July 1, 2024, to read: The written policies that are intended to implement this Chapter.

The purpose of this report is to recommend updates to the Purchasing and Materials Management Division's procurement policies to ensure alignment with the amended Toronto Municipal Code Chapter 195, Procurement ("Procurement By-law"), which will take effect on July 1, 2024. This report also responds to a request from City Council to report back on updates required to align the City's procurement policies with the TransformTO Net Zero Strategy.

The Procurement Bylaw was reviewed in 2023. The amendments, adopted by City Council at its meeting on December 13, 14, and 15, 2023, will come into effect on July 1, 2024. To facilitate implementation of the amended Procurement By-law, revisions to procurement policies are also required. Most revisions are considered administrative in nature. This report focuses on the Procurement Processes Policy and the Social Procurement Policy which require more substantial revisions and are being brought to City Council for review and adoption in advance of the July 1, 2024, effective date. The proposed updates to the Procurement Processes Policy include the addition of policy considerations regarding the use of fairness consultants.

A more substantive review, including divisional consultation, will be required to align the City's procurement policies with the TransformTO Net Zero Strategy. This report recommends the Chief Procurement Officer report back in the first quarter of 2025 with required updates. The additional time will provide staff the opportunity to identify how the procurement process can best advance divisional TransformTO objectives and how the Purchasing and Materials Management Division can directly advance TransformTO through the use of procurement.