Non-Competitive Contract with HP Canada for Supply and Provision of Single and Multi-function Printers, Plotters, and Related Maintenance and Services

This report requests authorization to enter a non-competitive bridge contract under the same terms, conditions as, and total cost as Request for Proposal 3409-19-0079 for two (2) years to leverage the remaining contract value ($8,992,154.94 as of Oct 2024). This contract also acts as a foundational agreement for City agencies to leverage and develop their own sub-contracts tailored to their specific needs. Current market analysis conducted by City staff indicates that present-day pricing is higher than existing contract rates, making an extension more cost-effective than immediately going to market. Over the two-year extension, the City will leverage remaining contract value to right-size the City's printer fleet and equipment allocation to reflect hybrid work under ModernTO and up-to-date printer usage. During the extension, City will issue and award a new competitive print services contract, including an option for agencies and corporations to participate in the solicitation to maximize overall purchasing power. 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-year (5) commitment for each supplier, 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. The original competitive solicitation resulted in a blanket contract with a set term. As per City Policy, Purchase Order Amendments for blanket contracts are permitted to support payment processing on outstanding invoices, but not to extend the contract. A non-competitive bridge contract is required to extend the same terms and conditions beyond the current validity date.