Item - 2026.GG29.14

The General Government Committee recommends that:

1. City Council authorize the General Manager, Toronto Water to negotiate and enter into non-competitive contracts with the suppliers listed below on terms and conditions satisfactory to the General Manager, Toronto Water and in a form satisfactory to the City Solicitor, for a period from date of issuance to December 31, 2026, with the option to extend each contract for up to four (4) separate one (1) year periods at the sole discretion of the City and subject to budget approval(s), on the condition that the vendors continue to be the manufacturers or are exclusive distributors for the goods and services, with the total estimated amount of these non-competitive contracts is $7,085,485 net of all applicable taxes and charges ($7,210,190 net of Harmonized Sales Tax recoveries), and with the Non-Competitive Contracts as follows:

a. Toromont Power Systems with the maximum contract price of $2,654,568 net of all applicable taxes and charges ($2,701,288 net of Harmonized Sales Tax recoveries);

b. KSB Pumps Inc. (Canada), with the maximum contract price of $1,592,741 net of all applicable taxes and charges ($1,620,773 net of Harmonized Sales Tax recoveries);

c. APGN Inc., with the maximum contract price of $1,150,000 net of all applicable taxes and charges ($1,170,240 net of Harmonized Sales Tax recoveries);

d. John Brooks Company Limited with the maximum contract price of $1,141,464 net of all applicable taxes and charges ($1,161,554 net of Harmonized Sales Tax recoveries); and

e. Devine & Associates Limited with the maximum contract price of $546,713 net of all applicable taxes and charges ($556,335 net of Harmonized Sales Tax recoveries).

The purpose of this report is to request City Council authority to enter into five (5) separate non-competitive contracts with the suppliers noted below for the supply of proprietary parts and maintenance services required at various water treatment and wastewater facilities. The initial term of the contracts will be from the date of issuance to December 31, 2026, with the option to extend each contract for up to four (4) separate one (1) year periods, at the sole discretion of the City and subject to budget approvals, for the total amount of $7,085,485, net of all applicable taxes and charges ($7,210,190 net of Harmonized Sales Tax recoveries).

A non‑competitive procurement is required for the following suppliers: Toromont Power Systems, KSB Pumps Inc. (Canada), APGN Inc., John Brooks Company Limited, and Devine & Associates Limited. The equipment, parts, and related services provided by these suppliers are highly specialized and proprietary because each supplier is the sole manufacturer or authorized distributor.

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. These procurements will be proceeding under the exception related to Exclusive Rights, where the existence of exclusive rights such as patent, copyright, licence or warranty exists and the City has 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 Toronto Municipal Code Chapter 195-Procurement, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five-year commitment for each supplier under Article 7, Section 195-7.3 (D) of the Procurement By-Law or exceeds the threshold of $500,000 net of Harmonized Sales Tax allowed under staff authority as per Toronto Municipal Code Chapter 71, Financial Control, Section 71-11.A.