Item - 2025.GG22.4

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 Executive Director, Corporate Real Estate Management, to amend Blanket Contract Number 47025041 with Carson Electric (1991) Limited operating as Anronn Electric Motor Repair for Repair and Maintenance Services of Pumps and Motors, increasing the contract value by $1,554,231 net of all taxes and charges ($1,581,585 net of Harmonized Sales Tax recoveries),  revising the current contract value from $2,153,497 net of all taxes and charges ($2,191,399 net of Harmonized Sales Tax recoveries) to $3,707,728 net of all taxes and charges ($3,772,984 net of Harmonized Sales Tax recoveries).

2. In accordance with Section 71- 11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorized the General Manager, Parks and Recreation, to amend Blanket Contract Number 47025092 with Carson Electric (1991) Limited operating as Anronn Electric Motor Repair for Repair and Maintenance Services of Pumps and Motors, increasing the contract value by $650,000 net of all taxes and charges ($661,440 net of Harmonized Sales Tax recoveries), revising the current contract value from $739,017 net of all taxes and charges ($752,024 net of Harmonized Sales Tax recoveries) to $1,389,017 net of all taxes and charges ($1,413,464 net of Harmonized Sales Tax recoveries).

The purpose of this report is to request authority to amend Blanket Contract 47025041 for Corporate Real Estate Management and Blanket Contract 47025092 for Parks and Recreation issued to Carson Electric (1991) Limited operating as Anronn Electric Motor Repair, a Canadian owned and operated company. This amendment is required to ensure the continuity of the non-exclusive provision of repair and maintenance services for electrically powered pumps and motors across City of Toronto facilities. The request is to increase the current target value of the two blanket contracts by $2,204,231 net of all taxes and charges ($2,243,025 net of Harmonized Sales Tax recoveries).

The original blanket contracts were awarded in 2023. Corporate Real Estate Management’s contract was based on equipment usage estimates that reflected reduced building occupancy during the COVID-19 pandemic. However, post-pandemic building occupancy has increased significantly, resulting in similarly increased equipment usage leading to more repairs and failures than those estimated in the contract. Furthermore, Corporate Real Estate Management has expanded its preventative maintenance program on additional equipment, which will result in fewer repairs and replacements on the same equipment in the future. Parks and Recreation has experienced unanticipated increased equipment replacement in community centres and parks, driven by historic rainfall levels and equipment obsolescence. In consideration of the above factors, coupled with higher than anticipated increases in the cost of replacement parts, Corporate Real Estate Management and Parks and Recreation are requesting contract value increases to support ongoing operational continuity for the remainder of the current contract.

A new competitive solicitation for the maintenance and repair of pumps and motors for Corporate Real Estate Management and Parks and Recreation will be issued, and a resultant contract is expected to be in place by July 2026. There are no plans to exercise the two remaining option terms on the current contract.