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General Government Committee · 2025-04-07 · 2025.GG20.1

The filed record

Amendment to Blanket Contract Number 47023934 with Standard Mechanical Systems Limited, for Heating, Ventilation, and Air Conditioning Preventive Maintenance Services at Various City of Toronto Children’s Services Locations

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The decision

2025-04-07 · General Government Committee · adopted

As filed

The General Government Committee: 1. By Section 71- 11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorized the amendment of contract number 47023934 with Standard Mechanical Systems Limited, for Heating, Ventilation, and Air Conditioning preventative maintenance services, increasing the contract value by $200,000 net of all taxes and charges ($203,520 net of Harmonized Sales Tax

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recoveries), thereby revising the current contract value from $533,696 net of all taxes and charges ($543,089 net of Harmonized Sales Tax recoveries) to $733,696 net of all taxes and charges ($746,609 net of Harmonized Sales Tax recoveries).

On the agenda

As the city filed it

The purpose of this report is to request authority from the General Government Committee to amend Blanket Contract number 47023934 issued to Standard Mechanical Systems Limited, for Heating, Ventilation, and Air Conditioning preventative maintenance services, increasing the contract value by $200,000 net of all taxes and charges ($203,520 net of Harmonized Sales Tax recoveries), revising the current contract value from $533,696 net of all taxes and charges ($543,089 net of Harmonized Sales Tax recoveries) to $733,696 net of all taxes and charges ($746,609 net of Harmonized Sales Tax recoveries).

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This amendment is required to ensure the continuation of critical Heating, Ventilation, and Air Conditioning maintenance services at City of Toronto Children's Services locations for the remainder of the current contract and remaining option year, if exercised. Blanket Contract number 47023934 was awarded as part of Negotiated Request for Proposal Doc2738470765, which led to the creation of three separate vendor contracts, including one with Standard Mechanical Systems Limited. Since the initial award of this contract, Children's Services has experienced a significant increase in unplanned repairs and additional services, requiring changes to the existing contract. This resulted in the need to amend contract number 47023934 with Standard Mechanical Systems Limited in April 2024 to ensure sufficient value was available for the base term of the contract. Since this amendment, one option term (contract year 4) has been exercised to extend the current contract to September 2025, with one remaining option year left. At the conclusion of this contract, staff will issue a competitive solicitation in advance of the current contracts' expiration to ensure a seamless transition to new agreements. The latest requested amendment is required to ensure there is sufficient value on the contract during the option terms to ensure service continuity for the duration of year 4 (to September 30, 2025), and the one remaining option year, if exercised. General Government Committee approval is required by Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Purchasing Officer's authority of the cumulative five-year commitment limit 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 71-11.1.

Staff recommended

The General Manager, Children's Services, and the Chief Procurement Officer recommend that: 1. The General Government Committee, by Section 71- 11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), authorize the amendment of contract number 47023934 with Standard Mechanical Systems Limited, for Heating, Ventilation, and Air Conditioning preventative maintenance services, increasing the contract

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value by $200,000 net of all taxes and charges ($203,520 net of Harmonized Sales Tax recoveries), thereby revising the current contract value from $533,696 net of all taxes and charges ($543,089 net of Harmonized Sales Tax recoveries) to $733,696 net of all taxes and charges ($746,609 net of Harmonized Sales Tax recoveries).

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