Item - 2024.GG13.10

The General Government Committee recommend that:

1. City Council authorize the General Manager, Toronto Water, to enter into a non-competitive contract with Directrik Inc. (Directrik), for the continued supply of proprietary parts required for the maintenance of equipment installed at various City water and wastewater treatment plants, on the following terms and conditions:

a. The initial term of the contract be from the date the contract is issued to December 31, 2024, in the amount of $2,200,000 net of all applicable taxes and charges ($2,238,720 net of Harmonized Sales Tax recoveries) and include the option to renew for six (6) additional separate one (1) year periods, at the sole discretion of the City and subject to budget approvals, for the total amount of $16,857,417 net of all applicable taxes and charges ($17,154,107 net of Harmonized Sales Tax recoveries);

b. Directrik continues to be the exclusive distributor of the parts; and,

c. conditional upon such other terms and conditions that are satisfactory to the General Manager, Toronto Water and in a form satisfactory to the City Solicitor.

2. City Council authorize the General Manager, Toronto Water, to enter into a non-competitive contract with HD Compression Inc. (HD Compression), for the supply and delivery of proprietary parts, maintenance services, and bumper-to-bumper warranty for the City's four Ingersoll Rand centrifugal TURBO-AIR at Ashbridges Bay Treatment Plant, on the following terms and conditions:

a. The initial term of the contract be from August 01, 2024 to December 31, 2024, in the amount of $44,724 net of all applicable taxes and charges ($45,511 net of Harmonized Sales Tax recoveries) and include the option to renew for six (6) additional separate one (1) year periods, at the sole discretion of the City and subject to budget approvals, for the total amount of $901,258 net of all applicable taxes and charges ($917,120 net of Harmonized Sales Tax recoveries);

b. HD Compression continues to be the exclusive distributor of parts, maintenance services, and bumper-to-bumper warranty; and,

c. Conditional upon such other terms and conditions that are satisfactory to the General Manager, Toronto Water and in a form satisfactory to the City Solicitor.

The purpose of this report is to request City Council authority to enter into two (2) separate non-competitive contracts with Directrik Inc., and HD Compression Inc., for the supply of proprietary parts, supplies and services. The initial term of Directrik Inc., contract will be from the date of award to December 31, 2024 and the initial term of HD Compression contract will be from August 01, 2024 to December 31, 2024. Both contracts will have the option to extend the agreement for up to six (6) separate one (1) year periods, at the sole discretion of the City and subject to budget approvals, in the total amount of $17,758,674, net of all taxes and charges ($18,071,227 net of Harmonized Sales Tax recoveries).

City Council approval is required in accordance with Toronto Municipal Code Chapter 195-Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five-year commitment for each supplier under Article 7, Non-competitive or Limited solicitations, 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 Toronto Municipal Code Chapter 71, Financial Control, Section 71-11A.