Item - 2025.GG24.12

The General Government Committee recommend that:

1. City Council authorize the General Manager, Parks and Recreation to negotiate and enter into a non-competitive agreement with Vermeer Canada Incorporated for the supply, delivery, and warranty of proprietary Original Equipment Manufacturer parts and services for Vermeer equipment in the amount of $194,408 net of Harmonized Sales Tax ($197,830 net of Harmonized Sales Tax recoveries) for an initial period of one (1) year, commencing on October 23, 2025 to October 22, 2026, with four (4) separate one (1) year options.

The purpose of this report is to request City Council authority to enter into a non-competitive contract with Vermeer Canada Incorporated, being the only authorized dealer in Ontario for the supply of proprietary Original Equipment Manufacturer parts and service for Vermeer chippers, stumpers and skid steers, in the amount of $30,009 net of all applicable taxes and charges ($30,528 net of Harmonized Sales Tax recoveries) for an initial period of one (1) year, commencing on October 23, 2025 to October 22, 2026, with four (4) separate one (1) year options at the sole discretion of the City. If all of the extension options are exercised, there would be a total potential contract value of $194,408 net of all applicable taxes and charges ($197,830 net of Harmonized Sales Tax recoveries).

As with all Parks and Recreation specialized equipment, chippers, stumpers and skid steer units are acquired by Fleet Services and are sourced through a competitive solicitation process. Parks and Recreation's Small Engine Mechanics maintain the equipment and must use Original Equipment Manufacturer parts to ensure the manufacturer's warranties for the equipment remains valid.

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. This non-competitive procurement will be proceeding under the exception code related to Exclusive Rights, 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.).

City Council approval is required in accordance with Municipal Code Chapter 195 - Purchasing, where the current request exceeds the Chief Purchasing 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.