Item - 2024.GG18.20

The General Government Committee recommend that:

1. City Council authorize the Chief Technology Officer to execute a non-competitive contract under the same terms and conditions as Request for Proposal 3409-19-0079 with HP Canada Ltd., for and amount of $8,836,630.25 net of all applicable taxes and charges ($8,992,154.94 net of Harmonized Sales Tax recoveries) and for a period of two (2) years.

The purpose of this report is to request City Council authority to enter a non-competitive bridge contract with HP Canada Ltd., for the supply of printers, plotters and related services and maintenance for a two (2) years period until a new, competitive contact is in place.

The City's current contract adopted by Bid Award Panel Item 2019.BA38.1 (Request For Proposal Number 3409-19-0079, Blanket Contract 47022649) with HP Canada expires January 15, 2025. This report requests authorization to enter a non-competitive bridge contract under the same terms, conditions as, and total cost as Request for Proposal 3409-19-0079 for two (2) years to leverage the remaining contract value ($8,992,154.94 as of Oct 2024). This contract also acts as a foundational agreement for City agencies to leverage and develop their own sub-contracts tailored to their specific needs.

Current market analysis conducted by City staff indicates that present-day pricing is higher than existing contract rates, making an extension more cost-effective than immediately going to market. Over the two-year extension, the City will leverage remaining contract value to right-size the City’s printer fleet and equipment allocation to reflect hybrid work under ModernTO and up-to-date printer usage. During the extension, City will issue and award a new competitive print services contract, including an option for agencies and corporations to participate in the solicitation to maximize overall purchasing power.

City Council approval 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 (5) 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. The original competitive solicitation resulted in a blanket contract with a set term. As per City Policy, Purchase Order Amendments for blanket contracts are permitted to support payment processing on outstanding invoices, but not to extend the contract. A non-competitive bridge contract is required to extend the same terms and conditions beyond the current validity date.