Item - 2026.GG30.13

The General Government Committee recommends that:

1. City Council authorize the Chief Technology Officer in accordance with Section 195-7.1(C) of Toronto Municipal Code Chapter 195 (Procurement), to negotiate and enter into an agreement with ServiceNow Canada Inc., commencing from December 4, 2026 for a term of three (3) years with options to extend the contract by two (2) additional one (1) year periods in the value of up to $13,508,403 net of all taxes and applicable charges ($13,746,151 net of Harmonized Sales Tax Recoveries), subject to terms and conditions in a form satisfactory to the Chief Technology Officer and City Solicitor.

The purpose of this report is to request City Council authority to enter into a non-competitive contract with ServiceNow, a Canadian Business Subsidiary, for licenses and professional services in the amount of $13,508,403 net of all applicable taxes and charges ($13,746,151 net of Harmonized Sales Tax recoveries Recoveries) commencing from December 4, 2026 for a term of three (3) years with option to extend the contract by two (2) additional one (1) year periods. This report seeks to establish a total ceiling authority, with no commitment to spend the full amount.

ServiceNow is the City’s enterprise platform for managing core Technology Services processes, including Information Technology service desk tickets, projects and portfolios, applications, assets, and new technology requests. The platform provides a centralized portal for City staff to submit requests, track status, access knowledge articles, and route work through standardized governance and approval workflows - supporting ongoing compliance with audit recommendations related to Information Technology asset and license management.

The City's current agreement with a reseller was competitively procured and expires December 3, 2026. This agreement provided stability during implementation, but it limits flexibility and pricing advantages.

This report recommends proceeding with a non-competitive agreement directly with ServiceNow to secure favourable commercial terms and enhanced discounts not offered through resellers, which supports improved cost predictability, better licence optimization, and greater flexibility as the City’s use of the ServiceNow platform evolves.

A non-competitive procurement may be undertaken where both the proposed procurement and the supplier can be justified in good faith under an exception set out in Toronto Municipal Code Chapter 195, Procurement. This procurement will be proceeding under the exception related to Compatibility, where ServiceNow Canada Inc., and the City have 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 7.1.E).

City Council approval is required in accordance with Municipal Code Chapter 195, Procurement, where the current request exceeds the Chief Procurement Officer’s authority of the cumulative five-year (5) 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 the Toronto Municipal Code, Chapter 71 Financial Control, Section 71-11A.