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Bid Award Panel · 2023-11-22 · 2023.BA55.1

The filed record

Award of Ariba Document Number 4160373628 to Markland Property Management Inc. for the Non-Exclusive Provision of Property Management Services at 800 Kipling Avenue for Corporate Real Estate Management

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The decision

2023-11-22 · Bid Award Panel · adopted

As filed

The Bid Award Panel adopted the following: 1. Bid Award Panel grant authority to award the contract in accordance with the Contract Details set out in the report (November 16, 2023) from the Chief Procurement Officer: Solicitation Number: Request for Quotation, Ariba Document Number 4160373628 Description: For the supply of Property Management Services necessary to maintain the physical property located at 800 Kipling Ave., Toronto, Ontario, and meet the City's obligation to its commercial tenants on-premises, as defined in this Scope of Work, which includes performing or causing to be performed Lease Administration, Property Accounting, Building Maintenance, Repair, and Operations (including cleaning) on a 24/7/365 basis.

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The award is for an initial contract period of two (2) years from November 1, 2023, to October 31, 2025, with an option in favour of the City to extend the contract on the same terms and conditions for an additional term of up to two (2) separate one (1) year periods. Should the option year(s) be exercised, the Corporate Real Estate Management Division will request the Chief Procurement Officer to process the renewals under the same terms and conditions. Recommended Supplier: Markland Property Management Inc. Contract Award Value: $3,274,000 net of all applicable taxes and charges $3,699,620 including HST and all applicable charges $3,331,622 net of HST recoveries The contract is expected to start on November 1, 2023, and end on October 31, 2025. Option Year 1 - From November 1, 2025, to October 31, 2026 $1,450,110 net of all applicable taxes and charges $1,638,624 including HST and all applicable charges $1,475,632 net of HST recoveries Option Year 2 - From November 1, 2026, to October 31, 2027 $983,613 net of all applicable taxes and charges $1,111,483 including HST and all applicable charges $1,000,925 net of HST recoveries The total potential contract award to the supplier identified in this report, including all option years, is $5,707,723 net of all applicable taxes and charges and $6,449,727 including all applicable taxes and charges. The total potential cost to the City, including all option years, is $5,808,179, net of HST recoveries. The above cost calculations include a three percent (3 percent) Consumer Price Index adjustment applied to each term after the initial two (2) year contract period.

On the agenda

As the city filed it

Solicitation Issued: July 7, 2023 Solicitation Closed: August 9, 2023 Number of Addenda Issued: Two (2) Number of Bids: Two (2) Table 2: Summary of Bids Received, including bid price: Supplier Name Bid Price* (excluding HST) MARKLAND PROPERTY MANAGEMENT INC. $5,668,000 CAD COMPASS COMMERCIAL REALTY LP $6,769,056 CAD *Bid price does not include 3 percent Consumer Price Index adjustment applied to Option Years

Staff recommended

The Chief Procurement Officer recommends that the Bid Award Panel grant authority to award the following contract: Solicitation Number: Request for Quotation, Ariba Document Number 4160373628 Description: For the supply of Property Management Services necessary to maintain the physical property located at 800 Kipling Avenue, Toronto, Ontario, and meet the City's obligation to its commercial tenants on-premises, as defined in this Scope of Work, which includes performing or causing to be performed Lease Administration, Property Accounting, Building Maintenance, Repair, and Operations (including cleaning) on a 24/7/365 basis.

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The award is for an initial contract period of two (2) years from November 1, 2023, to October 31, 2025, with an option in favour of the City to extend the contract on the same terms and conditions for an additional term of up to two (2) separate one (1) year periods. Should the option year(s) be exercised, the Corporate Real Estate Management Division will request the Chief Procurement Officer to process the renewals under the same terms and conditions. Recommended Supplier: Markland Property Management Inc. Contract Award Value: $3,274,000 net of all applicable taxes and charges $3,699,620 including HST and all applicable charges $3,331,622 net of HST recoveries The contract is expected to start on November 1, 2023, and end on October 31, 2025. Option Year 1 - From November 1, 2025, to October 31, 2026 $1,450,110 net of all applicable taxes and charges $1,638,624 including HST and all applicable charges $1,475,632 net of HST recoveries Option Year 2 - From November 1, 2026, to October 31, 2027 $983,613 net of all applicable taxes and charges $1,111,483 including HST and all applicable charges $1,000,925 net of HST recoveries The total potential contract award to the supplier identified in this report, including all option years, is $5,707,723 net of all applicable taxes and charges and $6,449,727 including all applicable taxes and charges. The total potential cost to the City, including all option years, is $5,808,179, net of HST recoveries. The above cost calculations include a three percent (3 percent) Consumer Price Index adjustment applied to each term after the initial two (2) year contract period.

    On the record

    The item as the City filed it

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