Item - 2024.GG14.17

The General Government Committee recommend that:

1. City Council grant authority to the Executive Director, Toronto Emergency Management to negotiate a service agreement with Canadian Red Cross for the provision of Emergency Social Services on the following terms:

a. the City pays Canadian Red Cross a mutually agreed upon annual contribution to build and maintain the organization's capacity to deliver Emergency Social Services;

b. the service agreement be for a two (2) year term, with an option to renew for one (1) additional two (2) year period and one (1) additional one (1) year period, totaling five (5) years, at the discretion of the Executive Director, Toronto Emergency Management;

c. the total value of the agreement annually is $3,000,000, including all applicable taxes and charges; and

d. on such other terms and conditions satisfactory to the Executive Director, Toronto Emergency Management and 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 agreement with Canadian Red Cross for the provision of Emergency Social Services. The non-competitive contract will commence January 1, 2025, to December 31, 2029, for an initial two (2) year term, with an option to renew for one additional two (2) year period and one (1) additional one (1) year period, totaling five (5) years. This non-competitive contract will ensure there is a local and scalable agency to meet the immediate, short-term needs of Toronto residents affected by an emergency.

As part of the environmental scan of Emergency Social Services providers, it has been noted that Canadian Red Cross offers a wide array of services and possesses capacity, especially in addressing rapid-response situations of varying scales. Considering the breadth of services and capabilities offered by Canadian Red Cross, establishing a non-competitive contract agreement is deemed essential to guarantee efficient and reliable access to these resources.

While a non-competitive service agreement is being sought by Toronto Emergency Management for Emergency Social Services, Toronto Emergency Management will be exploring procurement options with additional suppliers that can complement Canadian Red Cross' capabilities. Over the next five years, Toronto Emergency Management will actively identify and collaborate with secondary suppliers to build the sector's capacity, paving the way for a competitive procurement process in the future.

City Council authority 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-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.