Item - 2021.IE26.4
Tracking Status
- City Council adopted this item on December 15, 2021 with amendments.
- This item was considered by Infrastructure and Environment Committee on December 2, 2021. It is being forwarded to City Council without recommendations. It will be considered by City Council on December 15, 2021.
IE26.4 - Award of Negotiated Request for Proposals to Various Suppliers for the Provision of Winter Maintenance Services
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
City Council Decision
City Council on December 15, 16 and 17, 2021, adopted the following:
1. City Council, in accordance with Section 195-8.5 of Toronto Municipal Code Chapter 195 (Purchasing), authorize the General Manager, Transportation Services to negotiate, enter into, and execute an agreement based on the terms and conditions set out in Negotiated Request for Proposal Doc2970598171 and on such other terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor with:
a. Infrastructure Maintenance Limited for the provision of Winter Maintenance Services for Contract Area TOA 1-1, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $96,187,111 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation ($97,880,004 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $47,719,300 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($48,559,160 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $143,906,411 net of all applicable taxes and charges ($146,439,164 net of Harmonized Sales Tax recoveries);
b. A&F Di Carlo Construction Incorporated for the provision of Winter Maintenance Services for Contract Areas TOA 1-4 and TOA 1-5, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $119,610,422 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($121,715,565 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $59,339,817 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($60,384,198 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $178,950,239 net of all applicable taxes and charges ($182,099,763 net of Harmonized Sales Tax recoveries);
c. Maple Crete Incorporated for the provision of Winter Maintenance Services for Contract Area TOA 2-2, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $ 81,463,570 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($82,897,329 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $40,414,817 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($41,126,118 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $121,878,387 net of all applicable taxes and charges ($124,023,447 net of Harmonized Sales Tax recoveries); and
d. Emcon Services Incorporated for the provision of Winter Maintenance Services for Contract Area Don Valley/Gardiner Expressway, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $39,425,336 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($40,119,222 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $19,547,361 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($19,891,394 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $58,972,697 net of all applicable taxes and charges ($60,010,616 net of Harmonized Sales Tax recoveries).
2. City Council, in accordance with Section 195-8.5 of Toronto Municipal Code Chapter 195 (Purchasing), authorize to the General Manager, Transportation Services to negotiate, enter into, and execute an agreement with 2868415 Ontario Incorporated (Joint Venture) for the provision of Winter Maintenance Services in Contract Areas TOA 1-2, TOA 1-3, TOA 2-3, TOA 2-4, as defined in Negotiated Request for Proposal Doc3136860258, for a contract term of seven (7) years from date of execution of the agreement in the amount of $381,088,780 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($387,795,942 net of Harmonized Sales Tax recoveries), with the option to renew at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $189,061,607 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($192,389,092 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $570,150,387 net of all applicable taxes and charges ($580,185,033 net of Harmonized Sales Tax recoveries), based on the terms and conditions set out in Negotiated Request for Proposal Doc3136860258 and on such other terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor.
3. City Council authorize the General Manager, Transportation Services to negotiate, enter into and execute a non-competitive agreement with 2868415 Ontario Incorporated (Joint Venture) for the provision of Winter Maintenance Services in Contract Areas TOA 2-1 and TOA 2-5, as defined in Negotiated Request for Proposal Doc3136860258, for a contract term of seven (7) years from date of execution of the agreement in the amount of $265,706,565 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($270,383,000 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $131,819,442 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($134,139,464 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $397,526,007 net of taxes and charges ($404,522,464 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor.
4. City Council add the following to the Auditor General's 2022 Work Plan:
a. a review of the City of Toronto's Negotiated Request For Proposal process;
b. a review of the terms of the winter snow maintenance contracts against previously provided winter maintenance Auditor General recommendations; and
c. a review of Transportation Services' contract management process, to ensure internal processes are sufficient to hold winter maintenance contractors accountable to the contract terms.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2021/ie/bgrd/backgroundfile-173608.pdf
Background Information (City Council)
https://www.toronto.ca/legdocs/mmis/2021/cc/bgrd/backgroundfile-174414.pdf
Attachment 1 - Audit of Winter Road Maintenance Program 2022 Procurement Enhancements
https://www.toronto.ca/legdocs/mmis/2021/cc/bgrd/backgroundfile-174415.pdf
Communications (Committee)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-141998.pdf
(December 2, 2021) Letter from Jim Hurst, President, Steed and Evans Limited (IE.New)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-142014.pdf
(December 2, 2021) Letter from Dominic Crupi, D. Crupi & Sons Limited (IE.Supp)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-142094.pdf
(December 2, 2021) Letter from Domenic Passalacqua C.Tech , General Manager, D. Crupi & Sons Limited (IE.New)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-142096.pdf
(December 2, 2021) Letter from Cosimo Crupi, D. Crupi & Sons Limited (IE.New)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-142168.pdf
Motions (City Council)
That
1. City Council add the following to the Auditor General's 2022 Work Plan:
a. a review of the City of Toronto's Negotiated Request For Proposal process;
b. a review of the terms of the winter snow maintenance contracts against previously provided winter maintenance Auditor General recommendations; and
c. a review of Transportation Services' contract management process, to ensure internal processes are sufficient to hold winter maintenance contractors accountable to the contract terms.
Vote (Amend Auditor General Workplan) Dec-16-2021 5:43 PM
| Result: Carried | Two-Thirds full Council Required - IE26.4 - McKelvie - motion 1a |
|---|---|
| Total members that voted Yes: 25 | Members that voted Yes are Paul Ainslie, Ana Bailão, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Mark Grimes, Stephen Holyday, Cynthia Lai, Mike Layton, Nick Mantas, Josh Matlow, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Michael Thompson, John Tory, Kristyn Wong-Tam |
| Total members that voted No: 0 | Members that voted No are |
| Total members that were Absent: 1 | Members that were absent are Jaye Robinson |
That City Council adopt the following recommendations in the report (November 23, 2021) from the General Manager, Transportation Services and the Chief Procurement Officer, Purchasing and Materials Management:
1. City Council, in accordance with Section 195-8.5 of Toronto Municipal Code Chapter 195 (Purchasing), authorize the General Manager, Transportation Services to negotiate, enter into, and execute an agreement based on the terms and conditions set out in Negotiated Request for Proposal Doc2970598171 and on such other terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor with:
a. Infrastructure Maintenance Limited for the provision of Winter Maintenance Services for Contract Area TOA 1-1, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $96,187,111 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation ($97,880,004 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $47,719,300 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($48,559,160 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $143,906,411 net of all applicable taxes and charges ($146,439,164 net of Harmonized Sales Tax recoveries).
b. A&F Di Carlo Construction Incorporated for the provision of Winter Maintenance Services for Contract Areas TOA 1-4 and TOA 1-5, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $119,610,422 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($121,715,565 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $59,339,817 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($60,384,198 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $178,950,239 net of all applicable taxes and charges ($182,099,763 net of Harmonized Sales Tax recoveries).
c. Maple Crete Incorporated for the provision of Winter Maintenance Services for Contract Area TOA 2-2, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $ 81,463,570 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($82,897,329 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $40,414,817 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($41,126,118 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $121,878,387 net of all applicable taxes and charges ($124,023,447 net of Harmonized Sales Tax recoveries).
d. Emcon Services Incorporated for the provision of Winter Maintenance Services for Contract Area Don Valley/Gardiner Expressway, as defined in Negotiated Request for Proposal Doc2970598171, for a contract term of seven (7) years from date of execution of the agreement in the amount of $39,425,336 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($40,119,222 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $19,547,361 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($19,891,394 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $58,972,697 net of all applicable taxes and charges ($60,010,616 net of Harmonized Sales Tax recoveries).
2. City Council, in accordance with Section 195-8.5 of Toronto Municipal Code Chapter 195 (Purchasing), authorize to the General Manager, Transportation Services to negotiate, enter into, and execute an agreement with 2868415 Ontario Incorporated (Joint Venture) for the provision of Winter Maintenance Services in Contract Areas TOA 1-2, TOA 1-3, TOA 2-3, TOA 2-4, as defined in Negotiated Request for Proposal Doc3136860258, for a contract term of seven (7) years from date of execution of the agreement in the amount of $381,088,780 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($387,795,942 net of Harmonized Sales Tax recoveries), with the option to renew at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $189,061,607 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($192,389,092 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $570,150,387 net of all applicable taxes and charges ($580,185,033 net of Harmonized Sales Tax recoveries), based on the terms and conditions set out in Negotiated Request for Proposal Doc3136860258 and on such other terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor.
3. City Council authorize the General Manager, Transportation Services to negotiate, enter into and execute a non-competitive agreement with 2868415 Ontario Incorporated (Joint Venture) for the provision of Winter Maintenance Services in Contract Areas TOA 2-1 and TOA 2-5, as defined in Negotiated Request for Proposal Doc3136860258, for a contract term of seven (7) years from date of execution of the agreement in the amount of $265,706,565 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($270,383,000 net of Harmonized Sales Tax recoveries), with the option to renew the agreement at the sole discretion of the General Manager Transportation Services for up to three (3) additional separate one (1) year periods at a total additional amount of $131,819,442 net of all applicable taxes and charges, including contingency and annual escalation adjustment of three (3) percent to account for Consumer Price Index inflation adjustment ($134,139,464 net of Harmonized Sales Tax recoveries) for a total potential maximum contract value of $397,526,007 net of taxes and charges ($404,522,464 net of Harmonized Sales Tax recoveries), on terms and conditions satisfactory to the General Manager, Transportation Services and in a form satisfactory to the City Solicitor.
Vote (Adopt Item as Amended) Dec-16-2021 5:46 PM
| Result: Carried | Majority Required - IE26.4 - McKelvie - motion 1b - Adopt the Item as amended |
|---|---|
| Total members that voted Yes: 20 | Members that voted Yes are Ana Bailão, Brad Bradford, Shelley Carroll, Mike Colle, Gary Crawford, Joe Cressy, Paula Fletcher, Mark Grimes, Stephen Holyday, Cynthia Lai, Mike Layton, Nick Mantas, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), James Pasternak, Gord Perks, Anthony Perruzza, Michael Thompson, John Tory |
| Total members that voted No: 5 | Members that voted No are Paul Ainslie, John Filion, Michael Ford, Josh Matlow, Kristyn Wong-Tam |
| Total members that were Absent: 1 | Members that were absent are Jaye Robinson |
That City Council refer the Item back to the Infrastructure and Environment Committee for further consideration.
Vote (Refer Item) Dec-16-2021 5:39 PM
| Result: Lost | Majority Required - IE26.4 - Ainslie - motion 2 - Refer the Item |
|---|---|
| Total members that voted Yes: 9 | Members that voted Yes are Paul Ainslie, Shelley Carroll, Joe Cressy, John Filion, Paula Fletcher, Michael Ford, Josh Matlow, Gord Perks, Kristyn Wong-Tam |
| Total members that voted No: 15 | Members that voted No are Ana Bailão, Brad Bradford, Mike Colle, Gary Crawford, Mark Grimes, Stephen Holyday, Cynthia Lai, Mike Layton, Nick Mantas, Jennifer McKelvie, Denzil Minnan-Wong, Frances Nunziata (Chair), Anthony Perruzza, Michael Thompson, John Tory |
| Total members that were Absent: 2 | Members that were absent are James Pasternak, Jaye Robinson |
Councillor Holyday, on Point of Order, stated that he would like to add his name to the Speakers list on the Item.
Councillor Wong-Tam, on a Point of Order, stated that Members did not have a lot of time to put their name on the list to Speak.
Mayor Tory, on a Point of Order, stated that he would like the Speaker to advise Members of the housekeeping matters that need to be dealt with as Members may wish to complete the current Item first.
Councillor Holyday, on a Point of Order, stated that he wish to withdraw his name from the list to Speak.
Councillor Holyday, on a Point of Privilege, stated that he should have been allowed to speak on the matter. Councillor Holyday further stated that Councillor Ainslie was unduly criticized when he spoke to the matter and that there appears to be a problem with the process for Member to add their names to the list to Speak.
IE26.4 - Award of Negotiated Request for Proposals to Various Suppliers for the Provision of Winter Maintenance Services
- Decision Type:
- ACTION
- Status:
- Without Recs
- Wards:
- All
Committee Recommendations
The Infrastructure and Environment Committee submits the item to City Council without recommendation.
Decision Advice and Other Information
The Infrastructure and Environment Committee:
1. Requested the General Manager, Transportation Services to consult with the Auditor General on this contract award process, and to report to directly to the December 15 and 16, 2021 City Council meeting on their findings.
Origin
Summary
The purpose of this report is to advise on the results of the Negotiated Request for Proposals Doc2970598171 and Doc3136860258, as well as a non-competitive procurement for the provision of winter maintenance services, for all roads, sidewalks and cycling infrastructure types including anti-icing, de-icing, plowing and snow removal, and to request authority for the General Manager, Transportation Services to enter into agreements commencing October 2022 to April 2029, with three (3) additional separate option years to April 2032, with the recommended Suppliers meeting the requirements set out in the Negotiated Request for Proposals.
Transportation Services currently provides annual winter maintenance services on approximately 5,600 km of roads, 6,960 km of sidewalks, and 940 km of bike lanes/trails/routes, which makes up the transportation network. The majority of winter maintenance is delivered by private contractors. Presently, there are 47 contracts under a 7-year term, which the City manages on a seasonal basis and are due to expire at the end of the 2021/2022 season (April 2022). Winter maintenance contracts are expected to maintain a safe transportation network that is efficient for all road users during the winter months and ensure that the City meets its legislative requirements under the Provincial Maintenance Standards, in addition to City Council's mandated Level of Service.
Transportation Services embarked on a process to review the existing winter services contracts with an aim to consolidate, adjust and provide specific and measureable performance measures with enhancements. On October 27, 2020, City Council adopted the Auditor General's Report of the Winter Road Maintenance Program along with a set of recommendations focused on improving the design, management and adherence to service levels. These City Council approved directions informed this procurement for winter services contracts.
This procurement is intended to set the foundation for partnerships that leverage the industry and best practices, while increasing performance and quality of work delivered by winter service suppliers.
This Negotiated Request for Proposals was developed as a strategic sourcing initiative led by the Purchasing and Materials Management Division's Category Management and Strategic Sourcing unit working with Transportation Services staff and external consultant support.
As a result of this sourcing initiative, the City will benefit from better contract controls around Global Positioning System and key performance metrics to hold Suppliers accountable in terms of contract requirements. Other potential benefits include value added services provided by Suppliers such as access to dash camera footage to respond to claims, an insurance rebate, volume discounts, LiDAR (Light detection and ranging) technology to weigh salt quantities, leasing revenue in the off season to store equipment on site, and a pilot to reduce the number of vehicles required for plow teams on expressways.
Background Information
https://www.toronto.ca/legdocs/mmis/2021/ie/bgrd/backgroundfile-173608.pdf
Communications
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-141998.pdf
(December 2, 2021) Letter from Jim Hurst, President, Steed and Evans Limited (IE.New)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-142014.pdf
(December 2, 2021) Letter from Dominic Crupi, D. Crupi & Sons Limited (IE.Supp)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-142094.pdf
(December 2, 2021) Letter from Domenic Passalacqua C.Tech , General Manager, D. Crupi & Sons Limited (IE.New)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-142096.pdf
(December 2, 2021) Letter from Cosimo Crupi, D. Crupi & Sons Limited (IE.New)
https://www.toronto.ca/legdocs/mmis/2021/ie/comm/communicationfile-142168.pdf
Speakers
Dominic Crupi, D. Crupi & Sons Limited
Cosimo Crupi, D. Crupi & Sons Limited
Jim Hurst, Steed and Evans Limited
Anthony Rossi, Coco Paving Inc.
Rick Logozzo, Coco Paving Inc.
Motions
That Infrastructure and Environment Committee request the General Manager, Transportation Services to consult with the Auditor General on this contract award process, and to report to directly to the December 15 and 16, 2021 City Council meeting on their findings.
That the item be forwarded to City Council without recommendation.
Deputy Mayor Minnan-Wong, on a Point of Order, asked the Chair why the Committee couldn't vote on the motion now. Chair McKelvie accepted the Point of Order and asked the Clerk to respond.
The Clerk advised the Chair that Motion 1 by Chair McKelvie may be a request to add to the Auditor General's workplan, which would have to be requested by City Council, and the Clerk advised that they had asked for advice on how best the Committee could make that request.