Item - 2025.GG23.15

The General Government Committee recommends that:

1. City Council, in accordance with Section 195-8.5(B) of Toronto Municipal Code Chapter 195 (Procurement By-Law), grant authority to the General Manager, Fleet Services, to execute and enter into an agreement on behalf of the City of Toronto with UAP Inc., for the non-exclusive supply of automotive equipment parts and inventory management solution, with respect to the operations of the City Division known as Fleet Services, for an initial term of two (2) years from December 1, 2025 to November 30, 2027, in the amount of $29,506,358 net of Harmonized Sales Tax recoveries ($32,765,511 including all taxes and charges), with the option to renew for four (4) additional two (2) year periods, for a total amount of $185,907,484 net of Harmonized Sales Tax recoveries ($206,442,076 including all taxes and charges) including the initial term and all option years, in accordance with the terms and conditions of the  Negotiated Request for Proposal and any other terms and conditions satisfactory to the General Manager, Fleet Services and in a form satisfactory to the City Solicitor.

2. City Council, in accordance with Section 195-8.5(B) of Toronto Municipal Code Chapter 195 (Procurement By-Law), grant authority to the Chief, Toronto Paramedic Services, to execute and enter into an agreement on behalf of the City of Toronto with UAP Inc., with respect to the operations of the City Division known as Toronto Paramedic Services, for the non-exclusive supply of automotive equipment parts solution, for an initial term of two (2) years from December 1, 2025 to November 30, 2027, in the amount of $8,692,130 net of Harmonized Sales Tax recoveries ($9,652,228 including all taxes and charges), with the option to renew for four (4) additional two (2) year periods, for a total amount of $57,754,897 net of Harmonized Sales Tax recoveries ($64,134,271 including all taxes and charges) including the initial term and all option years, in accordance with the terms and conditions of the Negotiated Request for Proposal and any other terms and conditions satisfactory to the Chief, Toronto Paramedic Services, and in a form satisfactory to the City Solicitor.

3. City Council, in accordance with Section 195-8.5(B) of Toronto Municipal Code Chapter 195 (Procurement By-Law), grant authority to the Fire Chief and General Manager, Toronto Fire Services, to execute and enter into an agreement on behalf of the City of Toronto with UAP Inc., with respect to the operations of the City Division known as Toronto Fire Services, for the non-exclusive supply of automotive equipment parts solution, for an initial term of two (2) years from December 1, 2025 to November 30, 2027, in the amount of $3,730,960 net of Harmonized Sales Tax recoveries ($4,143,067 including all taxes and charges), with the option to renew for four (4) additional two (2) year periods, for a total amount of $24,536,142 net of Harmonized Sales Tax recoveries ($27,246,305 including all taxes and charges) including the initial term and all option years, in accordance with the terms and conditions of the Negotiated Request for Proposal and any other terms and conditions satisfactory to the Fire Chief and General Manager, Toronto Fire Services, and in a form satisfactory to the City Solicitor.

The purpose of this report is to advise on the results of the Negotiated Request for Proposal Doc4833008494, which identified UAP Inc. (operating as NAPA Auto Parts) as the highest-ranked proponent meeting the requirements of the Negotiated Request for Proposal.

UAP Inc., is a Canadian Business Subsidiary (as defined in the Mayor’s Economic Action Plan in Response to US Tariffs, adopted by Executive Committee on March 18, 2025), with a Head Office in Montreal, Quebec, and 14 distribution centres across Canada. UAP Inc., sources 96 percent of products through a network of 762 Canadian-based suppliers, distributors, and manufacturers.

This report requests authority for:

- The General Manager, Fleet Services Division, to enter into a contract on behalf of the City with UAP Inc., operating as NAPA Auto Parts, for the non-exclusive supply of an automotive equipment parts and inventory management solution with respect to the operations of Fleet Services Division;

- The Chief, Toronto Paramedic Services, to enter into a separate contract with UAP Inc., operating as NAPA Auto Parts, for non-exclusive supply of an automotive equipment part solution, with respect to the operations of Toronto Paramedic Services; and,

- The Fire Chief and General Manager, Toronto Fire Services, to enter into a separate contract with UAP Inc., operating as NAPA Auto Parts, for non-exclusive supply of an automotive equipment part solution with respect to the operations of Toronto Fire Services.

As part of the Negotiated Request for Proposal, Fleet Services Division conducted a comprehensive review of its delivery model, which included market soundings with nine municipalities and agencies and four key automotive industry suppliers. This analysis confirmed that the existing model, where an external supplier manages on-site parts management, inventory, and distribution, remains the most effective approach for managing the complexity and scale of Fleet Services Division’s operations. This model offers benefits such as improved parts availability, reduced vehicle downtime, performance accountability, and specialized staffing resources.

Separately, Toronto Paramedic Services and Toronto Fire Services use a variety of auto parts in the maintenance of emergency service vehicles and support vehicles managed by the respective divisions. The contract with UAP Inc., will work alongside a number of other existing contracts as part of their overall parts inventory, managed internally by the divisions.

Each of the separate contracts will be for a term of two (2) years, commencing December 1, 2025 to November 30, 2027, with an option to renew for four (4) additional two (2) year periods at the sole discretion of the General Manager, Fleet Services Division, the Chief, Toronto Paramedic Services, and the Fire Chief and General Manager, Toronto Fire Services, respectively, and subject to budget approval.

The total potential value of all three separate contracts for the initial two (2) years term is $41,929,448 net of Harmonized Sales Tax recoveries ($46,560,806 including all taxes and charges), and $268,198,523 net of Harmonized Sales Tax recoveries ($297,822,652 including all taxes and charges) for a total of ten (10) years inclusive of all option renewal years.

In accordance with the terms of the Negotiated Request for Proposal, Agencies and Public Bodies within the Province of Ontario may piggyback on the terms of these three separate contracts. Any such agreements will be managed independently by the participating Agencies and Public Bodies.