Item - 2025.GG24.6

The General Government Committee:

1. In accordance with section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control Bylaw), authorized the Chief Engineer and Executive Director, Engineering and Construction Services to amend Purchase Order 6053569 with Xylem Canada LP, for equipment and services for the Integrated Pumping Station, to increase the value by $25,536,656 net of all taxes and charges ($25,986,102 net of Harmonized Sales Tax Recoveries), revising the current Purchase Order value from $71,178,263 net of all taxes and charges ($72,431,000 net of Harmonized Sales Tax Recoveries) to $96,714,919 net of all taxes and charges ($98,417,102 net of Harmonized Sales Tax Recoveries).

The purpose of this report is to request authority to amend Purchase Order Number 6053569, awarded under Request for Proposal Doc2767753648, issued to Xylem Canada LP, for equipment and services for the Integrated Pumping Station at the Ashbridges Bay Treatment Plant.

The total value of the Purchase Order Amendment being requested is $25,536,656 net of all taxes and charges ($25,986,102 net of Harmonized Sales Tax Recoveries), revising the current Purchase Order value from $71,178,263 net of all taxes and charges ($72,431,000 net of Harmonized Sales Tax Recoveries) to $96,714,919 net of all taxes and charges ($98,417,102 net of Harmonized Sales Tax Recoveries).

The requested amendment is required to adjust the contract value to reflect higher equipment costs resulting from inflation since the original proposal in 2021, as provided for under the price escalation clause in the Agreement between the City and Xylem Canada LP dated June 1, 2022, and to increase the contingency allowance.

This amendment request supports timely procurement and readiness of critical pumping equipment, while reducing exposure to further cost escalation and helping maintain continuity on this major infrastructure project.