Item - 2025.GG23.11

The General Government Committee recommends that:

1. City Council, in accordance with Municipal Code Chapter 195 - Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five-year commitment, 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, authorized the Executive Director, Corporate Real Estate Management, to negotiate and enter into a non-competitive agreement with Nederman Canada Limited for the supply of proprietary original equipment manufacturer parts and services to Nederman Canada Limited, for a period of five years from August 1, 2025 to July 31, 2030 in the amount of $636,000 net of Harmonized Sales Tax ($647,194 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor.

The purpose of this report is to request authority to enter into a non-competitive contract with Nederman Canada Limited for the supply of Nederman Manufactured Parts and Maintenance and Repair Services for the City of Toronto’s Corporate Real Estate Management Division in the amount of $636,000 net of Harmonized Sales Tax ($647,194 net of Harmonized Sales Tax recoveries) for an initial period of three years, commencing on August 1, 2025 to July 31, 2028, with two separate single year option terms.

A non-competitive procurement is required, as the Nederman Magna System utilizes proprietary technology for vehicle exhaust extraction and is available exclusively from Nederman Canada Limited, the sole manufacturer and seller of the required parts. As such, the contract meets the criteria for Exception Code 2 - Exclusive Rights - under the City’s Purchasing By-law.

The Nederman Canada Limited Magna exhaust evacuation system is installed and used at various City facilities managed by Corporate Real Estate Management, where the maintenance and repair of City-owned vehicles occur, including police cars, ambulances, fire trucks, and other vehicles. The maintenance and repair of the Nederman Canada Limited exhaust evacuation system was previously outsourced to a third-party supplier. However, as part of a cost efficiency strategy, Corporate Real Estate Management is now self-performing most of the required maintenance and repairs. This contract will supply the necessary Nederman Canada Limited parts needed to keep the systems operational and includes a provision for maintenance and repair services for instances where City staff cannot complete the work.

General Government Committee 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 commitment limit for each vendor 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 71-11(A).