Item - 2024.GG14.4

The General Government Committee:

1. In accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorized the General Manager, Fleet Services Division to amend the legal agreement and increase the current and option year target values for Blanket Contract Numbers 47023953 for Toronto Fire Services, 47023952 for Toronto Paramedic Services, and 47023954 for Fleet Services with UAP / NAPA Auto Parts for the non-exclusive provision of managed inventory services for Fleet-related maintenance:

a. To increase the total blanket contract target value by a total of $3,849,928 net of all applicable taxes ($3,917,687 net of Harmonized Sales Tax recoveries), increasing the total contract target value from $36,576,827 to $40,426,755 net of all applicable taxes ($45,682,234 including all taxes and charges, $41,138,266 net of Harmonized Sales Tax recoveries) for the current contract term to December 29, 2024, and

b. To increase the authorized Option Year Renewal value by an additional $2,766,006 net of all applicable taxes ($2,814,688 net of Harmonized Sales Tax recoveries),

based on 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 request authority to amend Blanket Contract Numbers 47023953 for Toronto Fire Services, 47023952 for Toronto Paramedic Services, and 47023954 for Fleet Services with UAP / NAPA Auto Parts for the non-exclusive provision of parts inventory and managed inventory services for Fleet-related maintenance.

This request is to increase the blanket contract target values by a total of $3,849,928 net of all applicable taxes ($3,917,687 net of Harmonized Sales Tax recoveries), increasing the total contract target values from $36,576,827 to $40,426,755 net of all applicable taxes ($45,682,234 including all taxes and charges, $41,138,266 net of Harmonized Sales Tax recoveries) for the current contract term to December 29, 2024, and to increase the authorized Option Year Renewal value by an additional $2,766,006 net of all applicable taxes ($2,814,688 net of Harmonized Sales Tax recoveries) should the City choose to exercise it.

The requested amendment is required to account for the anticipated over-expenditure due to inflationary increase in parts cost over the contract term and an increase in parts consumption to support repairing the City’s fleet. The requested amendment will ensure that the current and future year periods have sufficient funds to allow for continuity of service delivery of vehicle parts to service the City’s fleet. Parts inventory is required to maintain service levels for city-owned vehicles and equipment in accordance with legislated road safety requirements, to achieve asset lifespan, and to yield greater returns at the end of the asset life cycle.

General Government Committee approval is required in accordance with Section 71-11.1C of the Toronto Municipal Code Chapter 71 (Financial Control By-law), where the current request exceeds the allowable threshold of $500,000 net of all taxes and charges