Item - 2026.GG30.7

The General Government Committee:

1. In accordance with Section 195-8.4 of the Toronto Municipal Code Chapter 195 (Procurement By-Law), authorized the Executive Director, Corporate Real Estate Management to award and enter into an agreement with CTI Working Environments, being the highest scoring proponent for Lot 2, meeting all the requirements of Negotiated Request for Proposals Doc4711617964, for the non-exclusive Supply, Delivery and Installation of Office Furniture, in the total amount of $75,900,905 net of all applicable taxes and charges ($77,236,761 net of Harmonized Sales Tax recoveries) and in accordance with the Negotiated Request for Proposal’s requirements.

The City of Toronto is taking a Council-approved programmatic approach to simultaneously address much needed state of good repair requirements, make accessibility improvements, including ensuring compliance with the Accessibility for Ontarians with Disabilities Act, and achieve net zero targets. A component of this comprehensive, touch-it-once approach includes the supply and delivery of office furniture; the City is using an integrated project management model that ensures furniture installation is coordinated with construction activities.

The purpose of this report is to advise on the results of Negotiated Request for Proposals Doc4711617964 for the non-exclusive Supply, Delivery and Installation of Office Furniture and Task Chairs, and to request authority for the Executive Director, Corporate Real Estate Management and Chief Procurement Officer to award a blanket contract for a term of three years with two separate one-year options to CTI Working Environments in the amount of $75,900,905 net of all applicable taxes and charges ($77,236,761 net of Harmonized Sales Tax recoveries). This amount represents the maximum upset limit. The City will only pay for goods and services requested and delivered.

This contract will:

- Support the delivery of office furniture for City staff as a component of the Council-approved integrated touch-it-once approach to advancing state of good repair, accessibility, and net zero programs at City Hall, Metro Hall, and the new Etobicoke Civic Centre; and,

- Replace the existing corporate-wide furniture contract and establishes a consolidated, standardized solution for all City Divisions to replace necessary office furniture at other City facilities as needed. City Agencies and Corporations can also leverage this contract for their office furniture needs, however they would execute and manage separate agreements.

CTI Working Environments is a family-owned, Canadian corporation that employs approximately 100 Ontario-based staff and will act as a single service provider across the furniture lifecycle exclusively for all City office spaces, supplying items such as desks, meeting tables, lockers, monitor arms, and filing cabinets.

Much of the furniture that will be replaced dates back to the 1980s and 1990s and is well past its useful life. Furniture purchased through this contract will improve ergonomics, support employee wellness, enhance workplace functionality, and ensure compliance with current building codes and accessibility standards.

This contract is also critical to maintaining operational continuity. The City’s current bridging contract for office furniture expires in July 2026, and failure to award a new contract before that date will impact service delivery, potentially affecting strategic projects and day-to-day operations. Delays in awarding the contract may result in cost escalations due to inflation, supply chain volatility, and potential tariff impacts.

The procurement was structured into two separate lots. Lot 1 (Task Chairs) was awarded under the Chief Procurement Officer’s authority to POI Business Interiors LP and presented to the Government and General Committee in May 2026 (GG29.16) with a total value of $9,114,652 over five years (including option years). This report addresses Lot 2 (Office Furniture). The negotiated approach to this procurement yielded substantial value for the City, reducing the proponent’s initial pricing by approximately $16.7 million, or 18 per cent. In addition to these negotiated savings, the agreement secures a minimum discount of 54 per cent and up to 76 per cent off supplier list pricing, compared to purchasing furniture outside of this Master Service Agreement, providing significant ongoing cost advantages.