Item - 2025.TTC3.16

The TTC Board:

1. Authorized the award of a contract to Deloitte Inc. for SAP solution implementation and support services in the total amount of $20.256 million, inclusive of HST, for an initial term of four years commencing on May 1, 2025.

2. Delegated authority to the TTC’s Chief Executive Officer to approve the three optional two-year extension terms valued at $1.933 million, inclusive of HST, to be exercised at the TTC’s sole discretion.

The SAP-Enterprise Resource Planning (ERP) program (“SAP program”), launched as part of the TTC’s Five-Year Corporate Plan, is designed to modernize and transform legacy systems that have been in use for more than 40 years. The SAP program aims to re-engineer outdated, paper-based processes and establish a modern platform using the SAP ERP platform as a foundation to support the transformation.

The third phase of the SAP ERP program focuses on modernizing and transforming the TTC’s procurement, materials management, and finance functions by replacing outdated, fragmented systems with an integrated SAP Solution. To successfully implement this solution and ensure ongoing support throughout the process, the TTC requires a qualified vendor to provide implementation and support services.

The purpose of this report is to obtain the TTC Board’s authorization to award a contract to Deloitte Canada for the SAP solution implementation and support services with a total contract value of $20.256 million, inclusive of HST, for an initial term of four years. The contract includes three optional two-year extension terms valued at $1.933 million, inclusive of HST, which if exercised, would result in a total 10-year contract value of $22.189 million, inclusive of HST. The extension options will be exercised at the TTC’s sole discretion and can be authorized under staff authority. These expenditures are funded from the TTC’s 10-Year Capital Budget and Plan and Operating Budget.

TTC Board approval is required as this contract award exceeds the Chief Executive Officer’s delegated authority threshold of $5 million.