Award of Negotiated Request for Proposal Ariba Document Number 1960427682 to Kleenway Building Maintenance Services Inc., Impact Cleaning Services Ltd. and ICS Clean Inc. for the Provision of Custodial Services at Various City of Toronto Locations

The consolidated cost of all three (3) contracts over the award period of three (3) years with two (2) option years of (1+1) to the City of Toronto is $41,590,939 net of all taxes ($42,322,940 net of Harmonized Sales Tax recoveries). The award amount is inclusive of a contingency to address potential scope adjustments and additional services periodically required under normal operations within existing properties. The award value also includes an additional contingency required to address immediate and unknown long-term impacts on cleaning standards that are, and will be, required to combat and prevent the spread of COVID-19 within City facilities and the community. Details of the award are provided in the financial impact and comments sections. This NRFP was developed as a strategic sourcing initiative by the Purchasing and Materials Management Division's Category Management and Strategic Sourcing (CMSS) unit and Corporate Real Estate Management's Strategic Sourcing team. The requirements of the NRFP followed current industry best practices and are outcome-based with a focus on performance. As a result of this sourcing initiative, the City will benefit from a standardized outcome-based custodial services model, enhanced abilities to hold vendors accountable and consistency in terms of contract requirements and performance levels. This is all expected to result in annual cost savings on base services and added benefits ranging from $1.080 million to $1.900 million to be realized over the term of the contract. This contract award is within the delegated authority of the General Government and Licensing Committee pursuant to direction 10 of GM12.21 Council-Directed Follow Up to Community Development Committee Item CD10.2 - the Social Impact of Lower Wage Jobs which states "that prior to the awarding of any further cleaning contracts, the Deputy City Manager and Chief Financial Officer bring results of the call for proposals to the Government Management for approval" and pursuant to Section 195-8.4 of Toronto Municipal Code Chapter 195.

Kleenway Building Maintenance Services Inc. being the top-ranked proponent meeting the requirements set out in the NRFP for the provision of custodial services at multiple City facilities within Large Property Group A and D (as defined in the NRFP) for a period of three (3) years in the amount of $14,886,269 net of all taxes and charges ($15,148,267 net of Harmonized Sales Tax recoveries) with the option to renew the contract for two (2) additional separate one (1) year periods in the amount of $10,427,004 net of all taxes and charges ($10,610,520 net of Harmonized Sales Tax recoveries) for a total contract award including optional years of $25,313,273 net of all taxes and charges ($25,758,787 net of Harmonized Sales Tax recoveries). b. Impact Cleaning Services Ltd. being the top-ranked proponent meeting the requirements set out in the NRFP for the provision of custodial services at multiple City facilities within Large Property Group B (as defined in the NRFP) for a period of three (3) years in the amount of $5,179,267 net of all taxes and charges and inclusive of all contingencies ($5,270,422 net of Harmonized Sales Tax recoveries) with the option to renew the contract for two (2) additional separate one (1) year periods in the amount of $3,627,789 net of all taxes and charges ($3,691,638 net of Harmonized Sales Tax recoveries) for a total contract award including optional years of $8,807,056 net of all taxes and charges and inclusive of all contingencies ($8,962,061 net of Harmonized Sales Tax recoveries). c. ICS Clean Inc., being the top-ranked proponent meeting the requirements set out in the NRFP for the provision of custodial services at multiple City facilities within Large Property Group C (as defined in the NRFP) for a period of three (3) years in the amount of $4,393,328 net of all taxes and charges ($4,470,650 net of Harmonized Sales Tax recoveries) with the option to renew the contract for two (2) additional separate one (1) year periods in the amount of $3,077,282 net of all taxes and charges ($3,131,442 net of Harmonized Sales Tax recoveries) for a total contract award including optional years of $7,470,610 net of all taxes and charges and inclusive of all contingencies ($7,602,092 net of Harmonized Sales Tax recoveries).