Item - 2026.PA19.7

The Board of the Toronto Parking Authority:

1. Authorized the President, Toronto Parking Authority, to enter into an agreement with Microsoft Canada Ltd. in an amount not to exceed $3,850,060, excluding Harmonized Sales Tax (HST), over a three (3) year term:

a. to renew Toronto Parking Authority's Enterprise Subscription Agreement with Microsoft Canada Ltd. for a further three-year period on terms no less favourable than the existing Enterprise Subscription Agreement, and to acquire under the renewed Enterprise Subscription Agreement subscription additional licenses listed in Table 1 in the report (May 15, 2026) from the President, Toronto Parking Authority, under the section Financial Impact to support the expansion of these capabilities across Toronto Parking Authority's business lines; and

b. to award sole-source contracts to Microsoft Canada Ltd. for Microsoft Azure cloud services and unified support listed in Table 2 in the report (May 15, 2026) from the President, Toronto Parking Authority, to provide 24/7 technical support across all Microsoft services.

The President, Toronto Parking Authority (TPA), recommends that the Board authorize a three-year Enterprise Subscription Agreement (ESA) with Microsoft Canada Ltd. The not-to-exceed value is $3,850,060, excluding Harmonized Sales Tax.

The agreement establishes Microsoft as Toronto Parking Authority's strategic enterprise technology partner across productivity, customer engagement, data and analytics, Artificial Intelligence, and cloud hosting — capabilities that are now core to Toronto Parking Authority's day-to-day operations across parking, Bike Share, and Electric Vehicle business lines. Consolidating these services under a single integrated vehicle:

(i) replaces fragmented third-party arrangements for hosting and support with a single accountable vendor relationship and a unified escalation path;

(ii) replaces a separate managed-hosting commitment with consumption-based Azure billing, aligning cost to actual demand with no minimum commitment; and

(iii) positions Toronto Parking Authority to realize the full value of Microsoft's Artificial Intelligence, governance, data, and compute services as an integrated stack rather than discrete tools.

The agreement also secures volume-based pricing and unified commercial terms, reduces contract administration overhead, and gives Toronto Parking Authority the flexibility to scale capabilities across business lines within a single authorized envelope.