Renewal of Proprietary Technology Maintenance Contracts Supporting the City Services from 2021-2025

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The decision

2020-10-27 · Toronto City Council · amended

As filed

City Council on October 27, 28 and 30, 2020, adopted the following: 1. City Council authorize the Chief Technology Officer, subject to budget approval, to renegotiate and renew the contracts listed in Appendices B and C to the report (September 21, 2020) from the Chief Technology Officer and the Chief Procurement Officer, for a period of up to five (5) years from January 1, 2021 to December 31, 2025, for a maximum estimated amount of $169,353,022, net of Harmonized Sales Tax ($172,333,635 net of Harmonized Sales Tax recoveries), subject to Part 2 below.

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2. City Council authorize the appropriate City Division Heads and the Chief Technology Officer to negotiate, enter into and execute new contracts or to renew and extend existing contracts identified in Appendices B and C to the report (September 21, 2020) from the Chief Technology Officer and the Chief Procurement Officer, and any ancillary documents required to give effect thereto, for a period of up to five (5) years from January 1, 2021 to December 31, 2025, in accordance with City policies and procedures, and in a form satisfactory to the City Solicitor. 3. City Council request the Chief Technology Officer and the Chief Procurement Officer to report to the April 2021 General Government and Licensing Committee meeting on accountability policies, procedures, and enforcement that ensures proper business plans are provided for the future purchase of proprietary IT software and systems.

On the agenda

As the city filed it

The purpose of this report is to seek authority to renegotiate and renew to maximize City interest of 186 non-competitive contracts for maintenance of proprietary technology (which includes software, hardware, and subscriptions), supporting City services identified in Appendix B and C of this report, for the five (5) year period from January 1, 2021 to December 31, 2025. This maintenance is required to maintain the City's Strategic Plan of a Well-Run City.

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The estimated total value of renewing these contracts during this period is up to $169,353,022, net of Harmonized Sales Tax ($172,333,635 net of Harmonized Sales Tax recoveries). As the City reviews modernization of services, Technology Services is reviewing opportunities to limit dependencies on proprietary technology resulting in digitization of government through utilization of best practice standards and platforms such as enterprise customer relationship management tools for call centres. The contracts listed in Appendix B and C are renewed annually to ensure support for the business solutions pertaining to hardware and software applications, many of which are critical to the day-to-day operations of the City and can only be provided by the vendors identified therein because of Exclusive Rights. These renewals will cover the City's most critical and functional enterprise-wide systems and divisional or service specific applications supported by various technology solution providers. Appendix B includes 121 contracts for maintenance of proprietary technology supporting City services that were previously reported to Council in 2015, 2016 and 2017 under GM8.8, GM16.7, and GM23.9 respectively. Appendix C includes 65 new contracts for maintenance of proprietary technology supporting City services that are now being reported to Council. City Council approval is required in accordance with Municipal Code Chapter 195- Purchasing, where the current request exceeds the Chief Purchasing Official's authority of the cumulative five year commitment 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 Harmonized Sales Tax allowed under staff authority as per the Toronto Municipal Code, Chapter 71- Financial Control, Section 71-11A.

Staff recommended

The Chief Technology Officer and the Chief Procurement Officer recommend that: 1. City Council grant authority to the Chief Technology Officer, subject to budget approval, to renegotiate and renew the contracts listed in Appendix B and C, for a period of up to five (5) years from January 1, 2021 to December 31, 2025, for a maximum estimated amount of $169,996,371, net of Harmonized Sales Tax ($172,988,307 net of Harmonized Sales Tax recoveries), subject to recommendation 2.

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2. City Council grant authority to the appropriate City Division Heads and the Chief Technology Officer to negotiate, enter into and execute new contracts or to renew and extend existing contracts identified in Appendix B and C and any ancillary documents required to give effect thereto, for a period of up to five (5) years from January 1, 2021 to December 31, 2025, in accordance with City policies and procedures, and in a form satisfactory to the City Solicitor.

Considered

2020-10-05 · General Government and Licensing Committee · amended
Decision as filed
The General Government and Licensing Committee recommends that: 1. City Council authorize the Chief Technology Officer, subject to budget approval, to renegotiate and renew the contracts listed in Appendices B and C to the report (September 21, 2020) from the Chief Technology Officer and the Chief Procurement Officer, for a period of up to five (5) years from January 1, 2021 to December 31, 2025, for a maximum estimated amount of $169,353,022, net of Harmonized Sales Tax ($172,333,635 net of Harmonized Sales Tax recoveries), subject to recommendation 2.
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2. City Council authorize the appropriate City Division Heads and the Chief Technology Officer to negotiate, enter into and execute new contracts or to renew and extend existing contracts identified in Appendices B and C to the report (September 21, 2020) from the Chief Technology Officer and the Chief Procurement Officer, and any ancillary documents required to give effect thereto, for a period of up to five (5) years from January 1, 2021 to December 31, 2025, in accordance with City policies and procedures, and in a form satisfactory to the City Solicitor.
Clerk’s note
The General Government and Licensing Committee: 1. Requested the City Manager to report to the General Government and Licensing Committee by the second quarter of 2021 on progress to extricate the City from, and avoided entering into, contracts which provide few practical ongoing alternatives but to continue with existing vendors.
2020-10-27 · Toronto City Council · amended

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