Non-Competitive Contracts for the Provision of the City’s Traffic Electrical Maintenance and Emergency Services, and Traffic Electrical Planned Capital Works Roster

all taxes and charges ($18,057,669 net of Harmonized Sales Tax recoveries) and $5,851,671 net of all taxes and charges ($5,954,660 net of Harmonized Sales Tax recoveries) respectively, for a 12-month period from August 1, 2026 to July 31, 2027, under the same terms and conditions set out in the current service contracts, Negotiated Request for Proposal (nRFP) Doc2865468161, that was awarded in June 2021. The current service contracts under (Negotiated Request for Proposal) Doc2865468161 will expire on July 31, 2026. Based on the current annual review of contract pricing, the proposed contract is considered fair and reasonable for continued service delivery, as it maintains the same terms, scope, and unit pricing as the existing contracts, with the only adjustment being the application of the permitted Consumer Price Index increase in accordance with the contractual provisions. The contracts provide 24/7 emergency response, maintenance, operation, and state-of-good-repair services for electrical traffic control and related devices, as well as maintenance and state-of-good-repair for the City's RESCU traffic management infrastructure, including traffic cameras, expressway variable message signs, travel time systems, and automatic traffic counting systems. This report also seeks authority to extend the existing Traffic Electrical Planned Capital Works Roster for a 12-month period from August 1, 2026 to July 31, 2027. The current roster consists of four contractors: Black & McDonald Limited, TM3 Inc., Guild Electric Limited, and Beacon Utility Contractors Ltd. Each contractor has an approved Master Agreement value of $19,894,553 net of all taxes and charges ($20,244,697 net of Harmonized Sales Tax recoveries). No increase to the approved roster values is required as part of this extension. This roster provides construction and delivery of planned traffic electrical capital works, including new installations, traffic signal upgrades and replacements, electrical and infrastructure construction, and associated civil and system integration work required to support the City's approved traffic signal and intelligent transportation systems capital programs. A new competitive solicitation will be tendered. However, the procurement timeline has been adjusted to ensure that lessons learned from recent Auditor General recommendations for other large procurements and the findings of the Forensic Audit of the 2021 Winter Maintenance Procurement are fully incorporated. This additional due diligence is intended to mitigate procurement and contract management risks and to support a fair, transparent, and competitive process for these critical City-wide operational services. As a result, the revised procurement and approval schedule will not allow new contracts and roster agreements to be awarded prior to the final Council meeting in July 2026. Given the size, operational criticality, and heightened governance considerations associated with these contracts, City Council approval is required for the proposed interim arrangements. In addition, a transition period of approximately three (3) to four (4) months would be required should a new supplier be awarded the contract, in order to support staffing, training, operational onboarding, systems integration and the continuity of emergency response services. Accordingly, the proposed 12-month extension is intended to ensure continuity of critical operations while the competitive procurement process is completed, and new contracts are fully implemented. The proposed 12-month contracts will ensure uninterrupted service delivery while the competitive procurement is completed, contracts are awarded, and any required handover and ramp‑up activities occur. This approach also mitigates risk during a period of heightened operational demand in 2026, including the FIFA World Cup and associated "tear‑down" activities, when continuity of traffic electrical emergency response and system reliability will be essential to public safety, congestion management, and the efficient operation of the City's road network. To ensure continuity of critical services and approved capital programs throughout this period, the General Manager, Transportation Services, and the Chief Procurement Officer recommend entering into non‑competitive contracts with the incumbent Service Area (A and B) suppliers, Black & McDonald Limited and TM3 Inc., and extending the existing four Traffic Electrical Planned Capital Works Roster contractors, while the competitive procurement is completed, City Council approval is obtained, budget authority is confirmed, and an orderly transition can occur. The proposed 12-month contracts ensure service continuity while addressing audit diligence and Council oversight requirements and supporting an orderly transition to long‑term service delivery. The non-competitive procurements will be proceeding under the exception code related to "Other Reason" for non-competitive requirements that do not apply to any of the other reason codes available to support the request and the City has determined in good faith that the proposed procurements and the selected suppliers, along with the terms and conditions of the contract are beneficial to the City (Toronto Municipal Code, Chapter 195, Procurement, Section 7.1.P.) City Council approval is required in accordance with Municipal Code Chapter 195, Purchasing, where the current request exceeds the Chief Purchasing Officer's authority of the cumulative five year commitment limit 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(A).

A non-competitive contract with Black & McDonald Limited for the provision of Traffic Electrical Maintenance and Emergency Services for Service Area A (Etobicoke, North York, Toronto / East York) in the amount of $16,027,600 net of all taxes and charges ($16,309,686 net of Harmonized Sales Tax recoveries), for the period of August 1, 2026 to July 31, 2027. b. A non-competitive contract with TM3 Inc., for the provision of Traffic Electrical Maintenance and Emergency Services for Service Area B (Scarborough) in the amount of $4,552,388 net of all taxes and charges ($4,632,510 net of Harmonized Sales Tax recoveries), for the period of August 1, 2026 to July 31, 2027. 2. City Council authorize the General Manager, Transportation Services, to negotiate and enter into Traffic Electrical Planned Capital Works Roster non-competitive contracts with the existing suppliers, Black & McDonald Limited, TM3 Inc., Guild Electric Limited, and Beacon Utility, for a period of 12-months from August 1, 2026 to July 31, 2027, under the same terms and conditions as the existing contracts awarded (Negotiated Request for Proposal) Doc2865468161, with no increase to the approved total roster contract values of $19,894,553 of all taxes and charges ($20,244,697 net of Harmonized Sales Tax recoveries) each.