Award of Negotiated Request for Proposals to Various Suppliers for the Provision of Winter Maintenance Services

Transportation Services currently provides annual winter maintenance services on approximately 5,600 km of roads, 6,960 km of sidewalks, and 940 km of bike lanes/trails/routes, which makes up the transportation network. The majority of winter maintenance is delivered by private contractors. Presently, there are 47 contracts under a 7-year term, which the City manages on a seasonal basis and are due to expire at the end of the 2021/2022 season (April 2022). Winter maintenance contracts are expected to maintain a safe transportation network that is efficient for all road users during the winter months and ensure that the City meets its legislative requirements under the Provincial Maintenance Standards, in addition to City Council's mandated Level of Service. Transportation Services embarked on a process to review the existing winter services contracts with an aim to consolidate, adjust and provide specific and measureable performance measures with enhancements. On October 27, 2020, City Council adopted the Auditor General's Report of the Winter Road Maintenance Program along with a set of recommendations focused on improving the design, management and adherence to service levels. These City Council approved directions informed this procurement for winter services contracts. This procurement is intended to set the foundation for partnerships that leverage the industry and best practices, while increasing performance and quality of work delivered by winter service suppliers. This Negotiated Request for Proposals was developed as a strategic sourcing initiative led by the Purchasing and Materials Management Division's Category Management and Strategic Sourcing unit working with Transportation Services staff and external consultant support. As a result of this sourcing initiative, the City will benefit from better contract controls around Global Positioning System and key performance metrics to hold Suppliers accountable in terms of contract requirements. Other potential benefits include value added services provided by Suppliers such as access to dash camera footage to respond to claims, an insurance rebate, volume discounts, LiDAR (Light detection and ranging) technology to weigh salt quantities, leasing revenue in the off season to store equipment on site, and a pilot to reduce the number of vehicles required for plow teams on expressways.

Infrastructure Maintenance Limited for the provision of Winter Maintenance Services for Contract Area TOA 1-1, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $96,187,111 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation ($97,880,004 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $47,719,300 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($48,559,160 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $143,906,411 net of all applicable taxes and charges ($146,439,164 net of Harmonized Sales Tax recoveries). b. A&F Di Carlo Construction Incorporated for the provision of Winter Maintenance Services for Contract Areas TOA 1-4 and TOA 1-5, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $119,610,422 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($121,715,565 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $59,339,817 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($60,384,198 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $178,950,239 net of all applicable taxes and charges ($182,099,763 net of Harmonized Sales Tax recoveries). c. Maple Crete Incorporated for the provision of Winter Maintenance Services for Contract Area TOA 2-2, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $ 81,463,570 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($82,897,329 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $40,414,817 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($41,126,118 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $121,878,387 net of all applicable taxes and charges ($124,023,447 net of Harmonized Sales Tax recoveries). d. Emcon Services Incorporated for the provision of Winter Maintenance Services for Contract Area Don Valley/Gardiner Expressway, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $39,425,336 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($40,119,222 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $19,547,361 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($19,891,394 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $58,972,697 net of all applicable taxes and charges ($60,010,616 net of Harmonized Sales Tax recoveries). 2. City Council, in accordance with Section 195-8.5 of Toronto Municipal Code Chapter 195 (Purchasing), authorize to the General Manager, Transportation Services to negotiate, enter into, and execute an agreement with 2868415 Ontario Incorporated (Joint Venture) for the provision of Winter Maintenance Services in Contract Areas TOA 1-2, TOA 1-3, TOA 2-3, TOA 2-4, as defined in Negotiated Request for Proposal Doc3136860258, for a contract term of seven (7) years from date of execution of the agreement in the amount of $381,088,780 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($387,795,942 net of Harmonized Sales Tax recoveries), with the option to renew at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $189,061,607 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($192,389,092 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $570,150,387 net of all applicable taxes and charges ($580,185,033 net of Harmonized Sales Tax recoveries), based on the terms and conditions set out in Negotiated Request for Proposal Doc3136860258 and on such other terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor. 3. City Council authorize the General Manager, Transportation Services to negotiate, enter into and execute a non-competitive agreement with 2868415 Ontario Incorporated (Joint Venture) for the provision of Winter Maintenance Services in Contract Areas TOA 2-1 and TOA 2-5, as defined in Negotiated Request for Proposal Doc3136860258, for a contract term of seven (7) years from date of execution of the agreement in the amount of $265,706,565 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($270,383,000 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $131,819,442 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($134,139,464 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $397,526,007 net of taxes and charges ($404,522,464 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor.