Item - 2026.GG27.4

The General Government Committee: 

1. In accordance with Section 195-8.4 of Toronto Municipal Code Chapter 195 (Procurement By-Law), authorized the Executive Director, Corporate Real Estate Management, to enter into and execute an agreement with the following successful suppliers based on the terms and conditions set out in the Negotiated Request for Proposal Doc5179720264 and in a form satisfactory to the City Solicitor:

a. Ainsworth Inc., for Property Group 1 (Corporate Real Estate Management - West and Toronto Shelter and Support Services), Property Group 2 (Corporate Real Estate Management - North and Parks and Recreation), and Property Group 6 (Seniors Services and Long-Term Care - East), for a term of five years from the date of award. The total contract value, including contingency and a three percent annual escalation adjustment for Consumer Price Inmdex applicable to years four and five, is up to $36,299,091, net of all applicable charges and taxes ($36,937,956 net of Harmonized Sales Tax recoveries).

b. Standard Mechanical Systems Limited for Property Group 3 (Corporate Real Estate Management - East, Children Services, Economic Development and Culture and Solid Waste Management Service), Property Group 4 (Corporate Real Estate Management - Central and Toronto Water), and Property Group 5 (Seniors Services and Long-Term Care - West) for a term of five years from the date of award. The total contract value, including contingency and a three percent annual escalation adjustment for Consumer Price Index applicable to years four and five, is up to $40,690,499 net of all applicable charges and taxes ($41,406,652 net of Harmonized Sales Tax recoveries).

The purpose of this report is to advise on the results of the Negotiated Request for Proposal Doc5179720264, issued in July 2025, for the provision of Heating, Ventilation, and Air Conditioning maintenance and repair services at various City of Toronto locations, and to request authority for the Executive Director, Corporate Real Estate Management and Chief Procurement Officer, to award contracts for a five-year term, to the following top-ranked suppliers, as identified through the Negotiated Request for Proposal:

- Ainsworth Inc., in the amount of $36,299,091 net of all applicable taxes and charges ($36,937,956 net of Harmonized Sales Tax recoveries); and

- Standard Mechanical Systems Limited in the amount of $40,690,499 net of all applicable taxes and charges ($41,406,652 net of Harmonized Sales Tax recoveries).

The total value of the two contract awards, inclusive of a contingency and a Consumer Price Index adjustment applicable to year 4 and year 5 of the contracts, is $76,989,590 net of applicable taxes and charges ($78,344,608 net of Harmonized Sales Tax recoveries). This amount represents the maximum upset limit for all awarded contracts. Suppliers will be compensated for the actual work performed, and the City is obligated to pay only for work requested and performed by suppliers.

The following eight City Divisions and one City Agency, grouped into six property groups in the Negotiated Request for Proposal and collectively representing more than 13,000 pieces of equipment, participated in this strategic sourcing initiative:

- Corporate Real Estate Management, serving as the lead Division;

- Senior Services and Long-Term Care;

- Toronto Water;

- Solid Waste Management Services;

- Children’s Services;

- Toronto Shelter and Support Services;

- Parks and Recreation;

- Economic Development and Culture; and

- Toronto Parking Authority.

Each Division will be responsible for overseeing its respective contract and ensuring the performance of related work. Toronto Parking Authority will seek authority to award a contract from its Board and will manage the subsequent contract independently of the City.

Given the City’s limited internal resources and capacity to manage Heating, Ventilation, and Air Conditioning maintenance and repairs across its extensive building portfolio, external service providers are required and will take on the role of prime contractor, responsible for coordinating and delivering comprehensive Heating, Ventilation, and Air Conditioning maintenance and repair services. This includes scheduled preventive maintenance, corrective repairs, and emergency interventions to ensure Heating, Ventilation, and Air Conditioning equipment remains safe, efficient, and fully operational.

These services will primarily apply to routine maintenance and repairs that require specialized Heating, Ventilation, and Air Conditioning expertise, as well as regulatory compliance and, where applicable, permits, given potential impacts on health, safety, and building codes. Engaging suppliers under these conditions ensures adherence to City standards, quality assurance, and accountability. Additionally, these contracts may be used to accelerate small Heating, Ventilation, and Air Conditioning related projects where timely delivery is critical to minimize service disruptions and maintain continuity of City operations.