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General Government Committee · 2024-05-30 · 2024.GG13.9

The filed record

Amendment to Non-Competitive Blanket Contract 47022513 with Strongco Limited Partnership for Proprietary Original Equipment Manufacturer (OEM) Parts and Services

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The decision

2024-06-26 · Toronto City Council · adopted

As filed

City Council on June 26 and 27, 2024, adopted the following: 1. City Council authorize the General Manager, Fleet Services to amend the Legal Agreement and Blanket Contract 47022513 with Strongco LP for the supply and delivery of labour, materials, and equipment necessary to provide overflow warranty and non-warranty Original Equipment Manufacturer authorized parts and services for Volvo, Case, Fassi, National Crane,

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and any other equipment Strongco LP is the authorized dealer, to extend the target date by one (1) year from November 1, 2024 to October 31, 2025, with the option to renew the contract for four (4) additional (1) one year periods, at the sole discretion of the City, and increase the total target value by $7,457,061 net of Harmonized Sales Tax and all applicable charges, ($7,588,306 net of Harmonized Sales Tax Recoveries), revising the current Blanket Contract value from $7,547,751 to $15,004,812 net of all taxes and charges, based on the following conditions: a. the agreement will be based on the condition that Strongco LP continues to be the exclusive distributor for the proprietary Original Equipment Manufacturer parts and specialized services for Volvo, Case, Fassi, National Crane, and other equipment; and b. on other terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

On the agenda

As the city filed it

The purpose of this report is to seek authority from City Council to amend non-competitive Blanket Contract 47022513 with Strongco Limited Partnership (Strongco LP) to extend the contract validity and date by an additional five (5) year term and increase the contract value by $7,457,061 net of Harmonized Sales Tax ($7,588,306 net of Harmonized Sales Tax Recoveries). The term extension will revise the maximum duration from five (5) years to ten (10) years, where all optional extension years are exhausted.

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This blanket contract value increase will revise the target value from $7,547,751 to $15,004,812 net of Harmonized Sales Tax ($16,955,438 including all taxes and charges, $15,268,897 net of Harmonized Sales Tax Recoveries). The contract is for the supply and delivery of labour, materials, and equipment necessary to provide overflow warranty and non-warranty Original Equipment Manufacturer (OEM) authorized parts and services for Volvo, Case, Fassi, National Crane, and any other equipment for which Strongco LP is an authorized parts and service dealer. The parts and specialized services cannot be obtained through the competitive procurement process as Strongco LP is the only authorized dealer in the Greater Toronto Area. This fleet equipment is required to ensure the continued delivery of critical services across the City of Toronto, specifically to: - Support and maintain water infrastructure for Toronto Water operations - Support haulage operations for Solid Waste Management - Maintain and develop parks, urban forests, and recreation facilities for Toronto Parks, Forestry and Recreation, and - Build and maintain the transportation network for Transportation Services. Access to Original Equipment Manufacturer parts and specialized services for warranty/non-warranty repair and maintenance is vital to ensuring that units are safe, reliable, and available when required. Additionally, completing preventative maintenance services in line with Original Equipment Manufacturer recommended standards and specifications supports Fleet Services' ongoing work to advance fleet safety and reliability by optimizing fleet performance and equipment health and safety. With properly maintained fleet equipment, a better return on investment can be expected, including longer in-service availability and higher returns yielded from market returns when this equipment is sent to auction at the end of it's life cycle. City Council approval is required in accordance with Municipal Code Chapter 195-Purchasing, where the current request exceeds the Chief Procurement Officer's authority of the cumulative five (5) 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 71-11.1.

Staff recommended

The General Manager, Fleet Services, and the Chief Procurement Officer recommend that: 1. City Council authorizes the General Manager, Fleet Services Division to amend the Legal Agreement and Blanket Contract Number 47022513 with Strongco LP for the supply and delivery of labour, materials, and equipment necessary to provide overflow warranty and non-warranty Original Equipment Manufacturer authorized parts and services

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for Volvo, Case, Fassi, National Crane, and any other equipment Strongco LP is the authorized dealer, to extend the target date by one (1) year from November 1, 2024 to October 31, 2025, with the option to renew the contract for four (4) additional (1) one year periods, at the sole discretion of the City, and increase the total target value by $7,457,061 net of Harmonized Sales Tax and all applicable charges, ($7,588,306 net of Harmonized Sales Tax Recoveries), revising the current Blanket Contract value from $7,547,751 to $15,004,812 net of all taxes and charges, based on the following conditions: a. The agreement will be based on the condition that Strongco LP continues to be the exclusive distributor for the proprietary Original Equipment Manufacturer parts and specialized services for Volvo, Case, Fassi, National Crane, and other equipment; and b. On other terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

Considered

  • 2024-05-30 · General Government Committee · adopted

    Decision as filed

    The General Government Committee recommend that: 1. City Council authorizes the General Manager, Fleet Services Division to amend the Legal Agreement and Blanket Contract Number 47022513 with Strongco LP for the supply and delivery of labour, materials, and equipment necessary to provide overflow warranty and non-warranty Original Equipment Manufacturer authorized parts and services for Volvo, Case, Fassi, National Crane,

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    and any other equipment Strongco LP is the authorized dealer, to extend the target date by one (1) year from November 1, 2024 to October 31, 2025, with the option to renew the contract for four (4) additional (1) one year periods, at the sole discretion of the City, and increase the total target value by $7,457,061 net of Harmonized Sales Tax and all applicable charges, ($7,588,306 net of Harmonized Sales Tax Recoveries), revising the current Blanket Contract value from $7,547,751 to $15,004,812 net of all taxes and charges, based on the following conditions: a. The agreement will be based on the condition that Strongco LP continues to be the exclusive distributor for the proprietary Original Equipment Manufacturer parts and specialized services for Volvo, Case, Fassi, National Crane, and other equipment; and b. On other terms and conditions satisfactory to the General Manager, Fleet Services, and in a form satisfactory to the City Solicitor.

  • 2024-06-26 · Toronto City Council · adopted

On the record

The item as the City filed it

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