Item - 2025.GG20.6

The General Government Committee recommends that:

1. City Council authorize the Chief Procurement Officer to negotiate and execute non-competitive procurement contracts with Mister Safety Shoes Inc operating as Mister Safety Shoes in the amount of $8,182,012 net of all taxes and charges ($8,326,016 net of Harmonized Sales Tax recoveries) to provide for the non-exclusive supply and fitting of Various New Safety Footwear and Related Items for various City of Toronto Divisions, for a one (1) year period and will commence on July 1, 2025, with an option to renew the contract for four (4) additional one (1) year periods at the discretion of the City on terms and conditions satisfactory to the Chief Procurement Officer and in a form satisfactory to the City Solicitor.

2. City Council authorize the Chief Procurement Officer to negotiate and execute a non-competitive contract with Kodiak Group Holdings operating as Work Authority in the amount of $4,843,684 net of all applicable taxes and charges ($4,928,933 net of Harmonized Sales Tax recoveries) to provide for the non-exclusive supply and fitting of Various New Safety Footwear and Related Items for various City of Toronto Divisions, for a one (1) year period beginning and will commence on July 1, 2025, with an option to renew the contract for four (4) additional one (1) year periods at the discretion of the City on terms and conditions satisfactory to the Chief Procurement Officer and in a form satisfactory to the City Solicitor.

The purpose of this report is to request City Council authority to enter into non-competitive contracts with Mister Safety Shoes Inc operating as Mister Safety Shoes and Kodiak Group Holdings operating as Work Authority for the non-exclusive supply and fitting of Various New Safety Footwear and Related Items for various City of Toronto Divisions. The total amount requested for both contracts is $12,505,494 net of all taxes and charges ($12,725,591 net of Harmonized Sales Tax recoveries) and will commence on July 1, 2025, with an option to renew the contract for four (4) additional one (1) year periods.

This non-competitive procurement is required as the recent competitive procurement for safety footwear was unsuccessful, with no compliant or viable bids received. To ensure continuity of service and meet the City's obligations, particularly those tied to collective agreements, this Non-Competitive Procurement will allow us to maintain access to essential safety footwear in the interim. The current bridge contract, which was put in place to support operation continuity during the evaluation period of the competitive procurement, is set to expire on June 30, 2025.  This Non-Competitive Procurement will provide the necessary time to investigate the challenges encountered in the previous solicitation, engage stakeholders, develop a more effective and sustainable procurement strategy for future safety footwear requirements.

Pursuant to City of Toronto Municipal Code Chapter 195, Procurement, Section 195-7.3 (D), Standing Committee and Council approval is required for all procurement valued up to or over $500,000, or where the term of the contract exceeds five (5) years or exceeds the projected capital funding for the project as approved by Council. Approval is also required under City of Toronto Municipal Code Chapter 71, Financial Control, Section 71-11A., as the procurement value exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority.

The purpose of this supplementary report is to replace Recommendation 2 from GG20.6 requesting City Council authority to amend the recommended value of the non-competitive procurement for Kodiak Group Holdings operating as Work Authority for the non-exclusive supply and fitting of Various New Safety Footwear and Related Items for various City of Toronto Divisions. The updated total amount requested for Toronto Fire is $4,843,684 net of all applicable taxes and charges ($4,928,933 net of Harmonized Sales Tax recoveries) which is an increase of $520,202 net of all applicable taxes and charges ($529,358 net of Harmonized Sales Tax recoveries) from the original report.