Item - 2025.GG22.10

The General Government Committee recommends that:

1. City Council grant authority, to the General Manager, Fleet Services, to enter into an amending agreement with Atlas Polar Company Limited to extend the term of the non-competitive agreement (Blanket Contract number 47023385) for the non-exclusive supply of all labour, materials, and equipment necessary to perform mechanical and structural safety inspections, repairs, and certifications for various Hiab and Effer equipment based on the following conditions:

a. The initial extension term will be for a period of one (1) year, from February 1, 2026 to January 31, 2027, with the option to renew for four (4) additional one (1) year periods. The exercise of each option year will be at the sole discretion of the General Manager, Fleet Services Division, and subject to the availability of funds within the approved Fleet Services Division budget. This extension will revise the total contract term from five (5) years to ten (10) years, where all optional years are exhausted;

b. The total value of this extension, including all optional years, will be $1,389,984 net of Harmonized Sales Tax ($1,414,447 net of Harmonized Sales Tax Recoveries);

c. The agreement will remain contingent upon Atlas Polar Company Limited continuing to be the exclusive distributor for the proprietary Original Equipment Manufacturer supplies required to perform mechanical and structural safety inspections, repairs, and certifications for various Hiab and Effer equipment; and,

d. The agreement will be on other terms and conditions deemed satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

2. City Council grant authority, to the General Manager, Fleet Services, to enter into an amending agreement with Altec Industries Ltd., to extend the term of the non-competitive agreement (Blanket Contract number 47023205) for the non-exclusive supply of all labour, materials, and equipment necessary to perform mechanical and structural safety inspections, repairs, and certifications for various Altec Industries Ltd., equipment based on the following conditions:

a. The initial extension term will be for a period of four (4) months, from November 1, 2025 to February 28, 2026, with the option to renew for four (4) additional one (1) year periods. The exercise of each option year will be at the sole discretion of the General Manager, Fleet Services Division, and subject to the availability of funds within the approved Fleet Services Division budget. This extension will revise the total contract term from five (5) years to ten (10) years, where all optional years are exhausted;

b. The total value of this extension, including all option years, will be $1,039,736 net of Harmonized Sales Tax ($1,058,036 net of Harmonized Sales Tax Recoveries);

c. The agreement will remain contingent upon Altec Industries Ltd., continuing to be the exclusive distributor for the proprietary Original Equipment Manufacturer supplies required to perform mechanical and structural safety inspections, repairs, and certifications for various Altec Industries Ltd., equipment; and,

d. The agreement will be on terms and conditions deemed satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

The purpose of this report is to seek approval to amend non-competitive Blanket Contract 47023385 with Atlas Polar Company Limited and Blanket Contract 47023205 with Altec Industries Ltd. Each contract will be amended by extending the contract term for an additional five (5) years (exercisable as separate one (1) year terms) and increasing the combined budget by $2,429,720 net of Harmonized Sales Tax ($2,472,483 net of Harmonized Sales Tax Recoveries). These extensions will adjust the total term for each contract from five (5) years to ten (10) years. The proposed budget increase will raise the combined total value of the contract’s total value from $2,119,834 to $4,549,554 net of Harmonized Sales Tax ($4,629,626 net of Harmonized Sales Tax Recoveries).

This is the first request to extend the validity date of the two contracts. The two contracts cover the provision of all labour, parts, materials, and equipment required to conduct mechanical and structural safety inspections, repairs, and certifications for proprietary Original Equipment Manufacturer equipment for approximately 67 units at the time of this report. These parts and specialized services cannot be procured through a competitive process as Atlas Polar Company is the sole authorized dealer in the Greater Toronto Area for Hiab and Effer equipment and Altec Industries Ltd., is the sole authorized dealer in the Greater Toronto Area for Altec equipment.

The equipment includes aerial buckets, combining a high aerial lift with an integrated chipper body and cranes which are both mounted on Class 8 heavy-duty truck chassis, which are essential for maintaining the uninterrupted delivery of critical services across the City of Toronto, particularly in support of the daily operations of Toronto Water, Transportation Services and Environment, Climate and Forestry. Timely access to mechanical and structural safety inspections, repairs, certification, parts and both warranty and non-warranty maintenance is crucial to ensuring that units remain safe, reliable, and readily available when needed.

In accordance with Section 195-8.5B of the City of Toronto Municipal Code Chapter 195 (Procurement By-law), where the current request exceeds the Chief Procurement Officer's authority of the cumulative five (5) year commitment for each supplier, and under Article 7, Section 195-7.3 (D) of the Procurement 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.