Item - 2025.GG23.16

The General Government Committee recommend that:

1. City Council authorize the General Manager, Transportation Services to negotiate and execute a non-competitive agreement with Fortran Traffic Systems Ltd., for a period from date of award, and end on December 31, 2025, in the amount of $2,008,750 net of all applicable taxes ($2,044,104 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor.

The purpose of this report is to request City Council authority to enter into a non-competitive contract with Fortran Traffic Systems Ltd., for the supply and delivery of Flashing Beacons on behalf of Transportation Services (City Stores). The term of the contract will be for a period from date of award and end on December 31, 2025, in the total amount of $2,008,750 net of all applicable taxes and charges ($2,044,104 net of Harmonized Sales Tax recoveries).

Non-competitive procurements may be undertaken where both the proposed procurement and supplier can be justified in good faith based on an exception set out in Toronto Municipal Code Chapter 195, Procurement. These procurements will be proceeding under the exception related to Exclusive Rights, where Fortran Traffic Systems and the City has determined in good faith that both the proposed procurement and the selected supplier, along with the terms and conditions of the contract are beneficial to the City (Toronto Municipal Code, Chapter 195, Procurement, Section 7.1K.).

A contract was awarded to Fortran Traffic Systems Ltd. in 2018 resulting from competitive call Request for Quotation Number 1202-18-0299. The contract expired on November 5, 2020. In June 2021, a lower value and short-term contract was awarded to Fortran Traffic Systems Ltd., resulting from a Non-Competitive Procurement Request. This contract covered the immediate purchases necessary for the 2021 installation, as well as on-going maintenance throughout the City of Toronto as part of the Vision Zero School Safety Zone project. A non-competitive Contract 47024374 was awarded to Fortran Traffic Systems Ltd. on January 1, 2022, which expired on December 31, 2024.

This new contract is needed to support the continued supply of equipment, as directed by City Council, for designated school safety zones. These purchases will ensure adequate inventory in City Stores to meet installation and implementation milestones, with completion targeted for the end of 2027 across 111 school safety zones. Moreover, the Flashing Beacons supplied by Fortran Traffic System Ltd., and installed across the City operate on a JSF System that enables wireless communication with the devices in the field. Fortran holds exclusive rights to this system, and no other companies in Canada run on this system. This system has been tailored and customized to meet all City requirements; therefore, it is necessary to proceed with the Non-competitive exception code number 2, Exclusive Rights.

City Council 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 for each supplier, 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.