Award of Negotiable Request for Proposal Number 6907-19-0145 to Canada Clean Fuels Inc. for Supply of Various Fuels and Services

The value of the award is $82,952,275 net of HST recoveries ($92,114,849 including all taxes and charges, $81,517,566 net of HST) for the initial term of the contract based on daily fuel pricing; $116,202,385 net of HST recoveries ($129,037,633 including all taxes and charges, $114,192,596 net of HST) for the full potential value of the contract, inclusive of option renewal years. The NRFP was developed as a strategic sourcing initiative under the Purchasing and Materials Management Division's Category Management and Strategic Sourcing (CMSS) Unit. Strategic Sourcing for the supply of various fuels was a collaborative effort between various City Divisions (Fleet Services, Corporate Real Estate Management, Toronto Fire Services, Parks, Forestry and Recreation, Toronto Water, Economic Development and Culture, and Shelter, Support and Housing Administration), the Toronto Transit Commission (TTC), the Toronto Police Service (TPS), the Toronto Zoo, the Toronto Community Housing Corporation (TCHC), the Toronto District School Board (TDSB), and York University. As of result of this sourcing initiative, the City will benefit from a higher discount off rack pricing for fuel purchased; move to daily, as opposed to weekly, pricing mechanism to improve cost; receive standard rates across all fuel types supporting the City's Green Fleet initiative; enjoy competitive delivery rates; and obtain improved reporting, invoicing, and tracking of deliveries for contract administration purposes. Immediate benefits associated with the increased of fuel discount will result in annual cost savings of $1.1 million for the City and $6.8 million for other Agencies and Public Bodies throughout the term of the contract based on estimated annual volumes for the term of the contract. Participating Agencies and Public Bodies named in this report will be seeking authority to award contracts to Canada Clean Fuels Inc. from their individual Boards and will manage the subsequent contracts independently from the City.

the initial term of the contract will be for a period of five years, commencing on January 1, 2020 to December 31, 2024, with the option to renew the contract for one additional two-year period, subject to the exercise of the option period being at the sole discretion of the General Manager, Fleet Services, and subject to annual Operating Budget approvals; b. the amount to award Negotiable Request for Proposal Number 6907-19-0145 is $116,202,385 net of Harmonized Sales Tax recoveries ($129,037,633 including all taxes and charges, $114,192,596 net of Harmonized Sales Tax) based on daily fuel pricing for the duration of the contract, inclusive of option renewal years, based on the terms and conditions set out in Negotiable Request for Proposal Number 6907-19-0145; and c. on other terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.