Item - 2022.GL29.20

The General Government and Licensing Committee recommends that:

1. City Council receive the report (March 4, 2022) from the General Manager, Toronto Water and the Chief Procurement Officer, Purchasing and Materials Management for information.

The purpose of this report is to advise Toronto City Council, pursuant to Chapter 195 of the Toronto Municipal Code (Purchasing By-law, Section 195-7.4), of a non-competitive contract with AECOM Canada Limited (AECOM) for engineering design services and contract administration related to emergency repairs to the East Don Sanitary Trunk Sewer and the Highland Creek Sanitary Trunk Sewer in the amount of $650,000 inclusive of contingency and net of all applicable taxes and charges ($661,440 net of Harmonized Sales Tax recoveries).

In addition, the issuance of an amendment to Purchase Order Number 6045596 issued to Capital Sewer Services Incorporated for the provision of the Full Length Trenchless Rehabilitation of Existing Gravity Sewers - Various Locations within Toronto (Citywide), for unanticipated additional emergency construction services (Purchase Order Amendment) required beyond the existing base scope under the City's contract with Capital Sewer Services Incorporated (Capital Sewer Services Incorporated Contract), by an additional amount of $3,000,000 net of all applicable taxes and charges ($3,052,800 net of Harmonized Sales Tax recoveries).

The issuance of this AECOM Contract and the Purchase Order Amendment under the Capital Sewer Services Incorporated Contract was a matter of urgency.  The damage to the trunk sewers indicated a high probability of complete failure potentially resulting in sewage spilling into the Don River (16 million litres per day) and Highland Creek (43 million litres per day). To avoid risk of a health and safety hazard to the public and to maintain the City's sewers in accordance with legislative requirements, these critical repairs are necessary to maintain the integrity of these vital sewers without delay.

Both damaged trunk sewers were deemed emergencies by the General Manager of Toronto Water, under Chapter 195-7.1(G) of the Municipal Code. In consultation with the Purchasing and Materials Management Division, this emergency procurement could not be reported to the General Government and Licensing Committee and Council in the required timeframe.  Reporting back to City Council is required in accordance with Municipal Code Chapter 195, Purchasing, where the potential value of the non-competitive contract exceeds $500,000 as per Article 7, Section 195-7.4(B) of the Purchasing By-law.