Item - 2024.GG16.6

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 amendment to Purchase Order Number 6054910 issued to Deloitte LLP to increase the value by $1,600,000 net of all applicable taxes and charges ($1,628,160 net of Harmonized Sales Tax recoveries) revising the current purchase order value from $400,000 net of all applicable taxes and charges ($407,040 net of Harmonized Sales Tax recoveries) to $2,000,000 net of all applicable taxes and charges ($2,035,200 net of Harmonized Sales Tax recoveries).

The purpose of this report is to request the authority to amend Purchase Order Number 6054910 issued to Deloitte LLP for commodity tax recovery and tax advisory services.

In 2023, the City entered into a Customer-Supplier Agreement for Payment Recovery Services with Deloitte LLP pursuant to Master Agreement OECM-2019-347-02 between Deloitte LLP and Ontario Education Collaborative Marketplace. Under the contract with the City, Deloitte LLP is entitled to receive a commission fee of fifteen percent (15%) of the total tax recoveries that it earns for the City. 

As a result of the tax recoveries earned to date that are significantly greater than our historical experience, the commission payable to Deloitte LLP has exceeded the current purchase order value. Therefore, an amendment is being requested to facilitate payment for the excess commissions earned to date and also for the commissions that are expected to be earned over the remaining contract term, which expires on February 28, 2025.

The total value of the purchase order amendment being requested is $1,600,000 net of all applicable taxes and charges ($1,628,160 net of Harmonized Sales Tax Recoveries), revising the current purchase order value from $400,000, net of all applicable taxes and charges ($407,040 net of Harmonized Sales Tax Recoveries) to $2,000,000 net of all applicable taxes and charges ($2,035,200 net of Harmonized Sales Tax Recoveries).