Non-Competitive Contract with Strongco Limited Partnership for Proprietary Original Equipment Manufacturer (OEM) Parts and Services

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The decision

2019-10-29 · Toronto City Council · adopted

As filed

City Council on October 29 and 30, 2019, adopted the following: 1. City Council authorize the General Manager, Fleet Services to negotiate and enter into a non-competitive contract with Strongco Limited Partnership for the supply and delivery to the City of Toronto of Original Equipment Manufacturer parts and specialized services for Volvo, Case, and Terex equipment repair and maintenance on the following terms and conditions: a.

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the initial term of the contract will be for a period of one year, commencing on November 1, 2019 to October 31, 2020, with the option to renew the contract for four additional one-year periods, subject to the exercise of each option year being at the sole discretion of the General Manager, Fleet Services, and subject to the amounts payable under the contract being available in the current Fleet Services Division budget approval(s); the amount of this non-competitive contract is $9,432,631 net of Harmonized Sales Tax ($9,598,645 net of Harmonized Sales Tax recoveries) for the entire duration of the contract, inclusive of all option renewal years; b. the contract will be based on the condition that Strongco Limited Partnership continues to be the exclusive distributor for the proprietary Original Equipment Manufacturer parts and specialized services for Volvo, Case, and Terex equipment; and c. on other terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

On the agenda

As the city filed it

The purpose of this report is to seek City Council authority for the General Manager, Fleet Services, to negotiate and enter into a non-competitive contract with Strongco Limited Partnership for the supply and delivery to the City of Toronto (City) of proprietary Original Equipment Manufacturer (OEM) parts and specialized services for Volvo, Case, and Terex equipment repair and maintenance. The contract will be for a period of one year, commencing on November 1, 2019 to October 31, 2020, with the option to renew the contract for four additional one-year periods at the sole discretion of the City and subject to budget approvals for the total contract amount of $9,432,631 net of HST ($9,598,645 net of HST recoveries), inclusive of all option renewal years.

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City Council approval is required in accordance with Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Purchasing 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 HST allowed under staff authority, as per the Toronto Municipal Code Chapter 71, Financial Control, Section 71-11A.

Staff recommended

The General Manager, Fleet Services, and the Chief Purchasing Officer recommend that: 1. City Council authorize the General Manager, Fleet Services, to negotiate and enter into a non-competitive contract with Strongco Limited Partnership for the supply and delivery to the City of Toronto of Original Equipment Manufacturer parts and specialized services for Volvo, Case, and Terex equipment repair and maintenance on the following terms and conditions: a.

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the initial term of the contract will be for a period of one year, commencing on November 1, 2019 to October 31, 2020, with the option to renew the contract for four additional one-year periods, subject to the exercise of each option year being at the sole discretion of the General Manager, Fleet Services, and subject to the amounts payable under the contract being available under the current Fleet Services Division budget approval(s). The amount of this non-competitive contract is $9,432,631 net of Harmonized Sales Tax ($9,598,645 net of Harmonized Sales Tax recoveries) for the entire duration of the contract, inclusive of all option renewal years; b. the contract will be based on the condition that Strongco Limited Partnership continues to be the exclusive distributor for the proprietary Original Equipment Manufacturer parts and specialized services for Volvo, Case, and Terex equipment; and c. on terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

Considered

2019-10-07 · General Government and Licensing Committee · adopted
Decision as filed
The General Government and Licensing Committee recommends that: 1. City Council authorize the General Manager, Fleet Services, to negotiate and enter into a non-competitive contract with Strongco Limited Partnership for the supply and delivery to the City of Toronto of Original Equipment Manufacturer parts and specialized services for Volvo, Case, and Terex equipment repair and maintenance on the following terms and conditions: a.
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the initial term of the contract will be for a period of one year, commencing on November 1, 2019 to October 31, 2020, with the option to renew the contract for four additional one-year periods, subject to the exercise of each option year being at the sole discretion of the General Manager, Fleet Services, and subject to the amounts payable under the contract being available in the current Fleet Services Division budget approval(s). The amount of this non-competitive contract is $9,432,631 net of Harmonized Sales Tax ($9,598,645 net of Harmonized Sales Tax recoveries) for the entire duration of the contract, inclusive of all option renewal years; b. the contract will be based on the condition that Strongco Limited Partnership continues to be the exclusive distributor for the proprietary Original Equipment Manufacturer parts and specialized services for Volvo, Case, and Terex equipment; and c. on other terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.
2019-10-29 · Toronto City Council · adopted

On the record

The item as the City filed it

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