Item - 2025.GG26.26

The General Government Committee recommend that:

1. City Council authorize the General Manager, Toronto Water, to negotiate and enter into non-competitive agreements with the suppliers listed below, for the supply and delivery of proprietary parts and maintenance services for specialized laboratory instrumentation for a three (3) year period from date of award, on terms and conditions satisfactory to the General Manager, Toronto Water and in a form satisfactory to the City Solicitor:

a. Thermo Fisher Scientific (Mississauga) Inc., with the maximum contract price of $81,853 net of all applicable taxes and charges ($83,294 net of Harmonized Sales Tax recoveries);

b. Waters Limited with the maximum contract price of $154,797 net of all applicable taxes and charges ($157,521 net of Harmonized Sales Tax recoveries);

2. City Council direct that contracts in Recommendation 1 above, will also be on the condition that the vendors continue to be the manufacturers or are exclusive distributors for the goods and services.

The purpose of this report is to request City Council authority to enter into two (2) non-competitive contracts for proprietary parts and services for specialized laboratory instruments with Thermo Fisher Scientific (Mississauga) Inc., and Waters Limited for the Toronto Water Laboratory. Both contracts will have a three (3) year contract period. The total amount for both contracts is $236,650 net of all applicable taxes and charges ($240,815 net of Harmonized Sales Tax recoveries).

Toronto Water uses specialized laboratory instruments to conduct critical analyses of the city's drinking water and wastewater. These contracts help ensure that the necessary preventive maintenance is performed and that the instrumentation systems remain operational, which is essential for managing risks and meeting regulatory standards.

A non-competitive procurement is required for both Thermo Fisher Scientific (Mississauga) Inc. and Waters Limited as they use proprietary technology in their specialized laboratory instrumentation. The technology and required parts and service are available exclusively from each supplier as sole manufacturers and distributors.

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 procurement will be proceeding under the exception related to Exclusive Rights, where both Thermo Fisher Scientific (Mississauga) Inc. and Waters Limited and the City have determined in good faith that both the proposed procurements and the selected suppliers, along with the terms and conditions of the contract, are beneficial to the City (Toronto Municipal Code, Chapter 195, Procurement, Section 7.1.C).

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 (5)-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.