Item - 2026.GG28.10

The General Government Committee recommends that:  

1. City Council authorize the Fire Chief and General Manager, Toronto Fire Services to negotiate and enter into an agreement with Integrated Distribution Systems LP, operating as Wajax Limited, and other business names ("Wajax Limited")  for the supply and delivery of, on an as and when required basis, of the Repairs, Maintenance, Service Calls, and Authorized Warranty Work, concerning automatic transmissions manufactured by Allison Transmissions Inc., (the "Work"), in the maximum total amount of $1,167,038 net of all applicable taxes and charges ($1,187,578 net of Harmonized Sales Tax Recoveries) for the period commencing on June 1, 2026, and concluding on December 30, 2030, inclusive and otherwise on the terms and conditions satisfactory to the Fire Chief and General Manager, Toronto Fire Services, and in a form acceptable to the City Solicitor.

The purpose of this report is to seek City Council authority to permit the Fire Chief and General Manager, Toronto Fire Services to negotiate and enter into an agreement with Integrated Distribution Systems LP, operating as Wajax Limited, Wajax Equipment and Wajax Power Systems and Wajax Power Systems for the supply, on an as and when needed basis, of all Original Equipment Manufacturer parts, labour, materials, equipment and supplies, necessary to perform repairs, maintenance, service calls and authorized warranty work (the "Work") concerning automatic transmissions manufactured by Allison Transmissions Inc., for Toronto Fire Services firefighting apparatus. The total value of the agreement is in the maximum total amount of $1,167,038 net of all applicable taxes and charges ($1,187,578 net of Harmonized Sales Tax Recoveries).

Toronto Fire Services operates a fleet of approximately 190 firefighting apparatus, all of which utilize Allison brand transmissions. The City currently has an existing agreement with Wajax Limited for the supply and delivery of Repairs, Maintenance, Service Calls, and Authorized Warranty Work for automatic transmissions manufactured by Allison Transmissions Inc., with respect to Toronto Fire Services vehicles. The term of the current agreement concludes as of November 30, 2026. Allison Transmissions Inc., has identified to the City that Wajax Limited has an agreement with Allison Transmission Inc., for the exclusive right to provide maintenance and Original Equipment Manufacturer parts for automatic Transmissions manufactured by Allison Transmissions Inc., within Ontario, and that this arrangement is set to expire as of December 31, 2030.

Therefore, it is not practical to commence a competitive procurement process at this time, as there is only one (1) available supplier. A further agreement with Wajax Limited, the current exclusive supplier for the necessary goods and services is required to ensure that the City can continue to receive the critical parts and service required to maintain the Allison brand transmissions in the Toronto Fire Services fleet of firefighting apparatus. Toronto Fire Services believes that any gaps between the current contract and the future contract should be avoided as such gaps in necessary goods and services could potentially compromise the safety and reliability of the firefighting apparatus.  The term of the agreement sought would be approximately four and a half (4.5) years and would commence as soon as possible due to the current rate of spend of the current agreement and conclude in accordance with the current exclusivity agreement between Allison Transmissions Inc., and Wajax Limited.

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 with Wajax Limited 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 7.1E.).

City Council approval is required in accordance with Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Procurement Officer’s authority of the cumulative five-year commitment limit for each vendor 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 71-11(A).