HomeMy WebLinkAboutFIN-2025-298 - NSP25-120 Multiyear Non-Standard Procurement SuppliersStaff Report
Financial Services Department www.kitchener.ca
REPORT TO: Council Meeting
DATE OF MEETING: June 23, 2025
SUBMITTED BY: Ryan Scott, Chief Procurement Officer, 519-741-2200 ext. 7214
PREPARED BY: Brad Kowaleski, Procurement Specialist, 519-741-2200 ext. 7063
WARD(S) INVOLVED: N/A
DATE OF REPORT: June 17, 2025
REPORT NO.: FIN -2025-298
SUBJECT: NSP25-120 Multiyear Non -Standard Procurement Suppliers
RECOMMENDATION:
That the City proceed with non-standard procurement and enter into agreements with
the suppliers listed in Attachment 1 for a period of up to five (5) years, as outlined in
Financial Services Department report FIN -2025-298.
REPORT HIGHLIGHTS:
• The purpose of this report is to obtain approval to proceed with non-standard
procurement in accordance with Procurement By-law 2022-109;
• The City has arrangements with the suppliers named in Attachment 1 for many years
and continuing these partnerships will allow the City to continue standardization of
products and delivery of services both internally and externally;
• This report supports the delivery of core services.
:T-,Tld:(r]:Tell] Ll 113
The City has standardized a range of products and services over time to enhance internal
operations and public service delivery. To continue leveraging these efficiencies, staff
recommend longer-term agreements with select suppliers under non-standard procurement
provisions.
These suppliers have been identified based on the following criteria:
• Sole distribution rights in Canada;
• Exclusive availability of specialized equipment or parts;
• Standardization requirements based on previous procurements;
• Proven service compatibility and long-standing partnerships.
These arrangements provide multiple operational benefits, including improved pricing,
reduced procurement lead times, streamlined administration, and enhanced cost control.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
Page 35 of 64
While actual expenditures will vary based on operational activity, the non-standard approach
is consistent with the City's procurement framework.
The actual spend will depend on the level of activity throughout the term of the contracts.
REPORT:
In accordance with the Procurement By-law 2022-109, Section 15 — Non -Standard
Procurement, Council's approval is required as the total value of the deliverables for this
non-standard procurement exceeds the delegated authority.
A non-standard procurement is the acquisition of goods, services or construction through a
process or method other than the process and method normally required for the type and
value of the required deliverables, as identified below:
Requirement
Procurement
Value Excluding
Taxes
Procurement
Process
Approval
Authority
Goods, Services or
$40,001 -
Non -Competitive or
Chief Procurement
Construction under the
$250,000
Limited Competition
Officer
circumstances included in
Schedule "C".
Goods, Services or
$250,001 or more
Non -Competitive or
Council
Construction under the
Limited Competition
circumstances included in
Schedule "C".
In accordance with the Procurement By-law 2022-109, Schedule "C", The City may acquire
goods, services and construction through a non-standard procurement process within
specific circumstances listed. Below are the applicable clauses within Schedule "C" and
additional information providing justification supporting their use:
2. Where only one supplier is able to meet the requirements of a
procurement in order to:
a) ensure compatibility with existing products
The City has partnered with specific suppliers over the past decade and in some instances,
theses partnerships are multiple decades old. To ensure compatibility and standardization
with existing products and services being delivered, only one supplier is able to meet specific
requirements. The City has run open competitive procurement several times, however, only
receive one response from the sole supplier whom can meet the requirements with existing
products and service levels. The costs for these products and services are funded in full by
a third party via the business model that the division is operating at the end user level.
3. Where there is an absence of competition for technical reasons and the
goods or services can only be supplied by one particular supplier and
no alternative or substitute exists.
Page 36 of 64
For Fire and Fleet specialty vehicles, there is often an original equipment manufacturer, and
an authorized distributor of parts and services or repair facility in Ontario only or Canada
wide. For that reason, an absence of competition exists and the product or services can only
be provided by one supplier and the City procures from those suppliers directly.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Funding for these goods and services are available in the approved annual operating and
capital budgets. It is anticipated that the total estimated annual value through these
agreements represent approximately $1,040,000.
COMMUNITY ENGAGEMENT:
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this matter.
APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services
Department
ATTACHMENTS:
Attachment 1 — Listing of Non -Standard Procurement Suppliers
Page 37 of 64
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