Contract Award - Five (5)-Year HVAC Maintenance and Repair Services Program (2026-2031)

A structured Heating, Ventilation and Air Conditioning maintenance agreement ensures that these systems are inspected, maintained, and repaired through a consistent and accountable service model, helping Toronto Parking Authority manage risk, extend the useful life of its assets, and maintain the reliability of its garage network. The purpose of this report is to seek approval from the Board of Directors of the Toronto Parking Authority (TPA) to award and enter into a Heating, Ventilation and Air Conditioning (HVAC) maintenance services agreement with Standard Mechanical Systems Ltd. (Standard Mechanical). The proposed agreement would be for a three-year term, commencing April 1, 2026 and expiring March 31, 2029, with two optional one-year extension terms exercisable at Toronto Parking Authority's discretion. The total contract value, including the optional extension terms, is $960,272, net of all applicable charges and taxes. The recommended agreement is based on the outcome of the City of Toronto's Negotiated Request for Proposal No. Doc5179720264, which was led by Corporate Real Estate Management (CREM) on behalf of participating City divisions, agencies, and corporations. Toronto Parking Authority participated in and is leveraging this City-led competitive procurement process to obtain the same Heating, Ventilation and Air Conditioning maintenance service levels, contractual standards, and competitively established pricing available through the broader City arrangement. This approach avoids the need for a separate Toronto Parking Authority procurement process, supports consistency across the City's facility maintenance portfolio, reduces administrative burden, and provides value for money through a coordinated procurement model. Under the proposed agreement, Standard Mechanical will provide a comprehensive range of Heating, Ventilation and Air Conditioning services, including preventive maintenance, inspections, seasonal startup and shutdown, corrective maintenance, emergency response, repairs, inventory management, lifecycle reporting, and compliance with applicable legislative and industry requirements.

Doc5179720264, in an amount not to exceed $800,227, plus a contingency allowance of $160,045, for a total contract authority of $960,272, net of all applicable charges and taxes, for a three-year term commencing April 1, 2026 and ending March 31, 2029, with two optional one-year extension terms from April 1, 2029 to March 31, 2030, and from April 1, 2030 to March 31, 2031, exercisable at the sole discretion of the Toronto Parking Authority, subject to satisfactory vendor performance and annual budget availability.