Staff Report #1
July 21, 2025
To All Commissioners
Re: Primary Service Provider for Specialized Service – Request for Proposal
Recommendation
The report be RECEIVED for information.
Background
Since 1998, the delivery of specialized transit services has been undertaken utilizing a contracted service provider who supplies the vehicles and drivers. Contracts have been issued for an initial five (5) year period, with the option of a two (2) year renewal upon agreement of the parties. The total seven year term of the contract is consistent with the useful life of vehicles utilized to provide the service. The split between the initial five (5) year term and the two year extension provides an incentive for the service provider to ensure satisfactory performance in the initial period in order to have the opportunity for the extension. It also affords either party with the opportunity to opt out after the initial five year period.
The two year renewal on the current contract has been exercised, and will expire on July 31, 2027. Given delivery timeframes for vehicles has been in the eighteen (18) month range from date of order, the next contract needs to be awarded by the end of 2025 in order to ensure adequate time to the successful bidder to procure vehicles and ensure they are ready for service on August 1, 2027. As set out on the Commission’s 2025 Work Program, a request for proposal is scheduled to be released in late summer/early fall, with an anticipated contract award in November.
Consistent with past practice, administration undertakes a review of the current contract in advance of request for proposal issuance, in order to update any provisions that require adjustment based on the experience over the contract term. In addition, the Accessible Public Transit Service Advisory Committee (APTSAC) is provided the opportunity provide input and recommendations to the Commission with respect to any provisions they feel need to be included. This discussion will occur at the August APTSAC meeting.
The following provides an overview of the various provisions in the current contract with reference to any areas that administration is contemplating adjustments to given past experience and/or best practices from peer transit providers who also rely on contracted services for the provision of specialized transit services.
Contract Term
- Length of contract is five (5) years, commencing August 1, 2027, which may be extended by mutual agreement for up to an additional two (2) years.
Service Delivery
Elements included in this section of the Request for Proposal include the following.
- clarification of roles for the parties:
- responsibility for call taking, scheduling, trip assignment and trip allocation rests exclusively with the LTC
- responsibility for drivers and vehicles (including procurement and maintenance) rests exclusively with the bidder
- LTC will adjust shifts based upon service demand (example – during Christmas week, Easter Monday, etc.) and will provide advance notice of same
- identified in-service vehicles are to be used exclusively and at the direction of the LTC for providing LTC Specialized Transit services and the successful Bidder agrees to provide backup vehicles and backup drivers as soon as possible when there is a service interruption
Administration does not have any changes to the nature of service delivery being considered for the 2025 Request for Proposal.
Payment for Service Delivery
- Bid submissions will be stated on a price per service hour which assumes the vehicle remains in service for the entire scheduled time each day. The Bidder is required to ensure replacement vehicles/drivers are available to cover breaks in order to ensure there is no interruption in service noting this is included in the quoted hourly rate.
- Penalties will be applied in the event of a shortage of available vehicles or drivers
- Contract will include annual price adjustment based on change in the Canadian Consumer Price Index (all items).
- Contract will include a fuel price fluctuation provision providing for a potential retrospective adjustment based upon average fuel prices falling outside a predetermined range.
- Invoices will be completed on a monthly basis based on reconciled service hours provided and adjusted for any penalties that may apply.
Administration has undertaken a review of payment provisions in peer transit system contracts and has not identified any provisions that need to be updated for the 2025 request for proposal.
Successful Bidder Obligations
- Bidder must comply with all applicable legislation including but not limited to: Ontario Human Rights Code (OHRC), Accessibility for Ontarians with Disabilities Act, 2005 (AODA), Highway Traffic Act. Employment Standards Act, Occupational Health and Safety Act and their regulations. Bidders are required to comply with all relevant/applicable and any future additions or modification to legislation as they become enacted to Accessibility standards and regulations.
- Bidder agrees to provide and supervise drivers to operate the specified vehicles, including back up drivers. Bidder will ensure that all drivers assigned to work on behalf of LTC maintain a valid driver’s license to operate a specialized transit vehicle.
- Bidder will ensure that all insurance requirements are in place and provide proof of same including saving LTC harmless.
- Drivers will be required to complete training requirements as set out in the Accessibility for Ontarians with Disabilities Act as well as training on the functionality of on-board equipment as prescribed by LTC prior to being assigned work on behalf of the LTC. Bidder will provide LTC with a copy of the driver training program for review prior to the start of the contract.
- Bidder will procure vehicles as prescribed in a manner that will ensure availability on day one of the contract. Bidder will be responsible for maintaining vehicle fleet in a manner that ensures availability of required vehicles consistent with daily schedules.
- Bidder will ensure that LTC is provided timely reports of any instances with problem passengers, medical situations, passenger misconduct, motor vehicle accidents, etc. Bidder will respond to any inquiries made by LTC within 10 days of request.
- Bidder will collect fares as set by LTC and will not charge any other sum to any customer.
Administration is currently reviewing peer transit system contracts for best practices on driver training requirements and how performance against the expectations is measured.
Vehicle Specifications
- LTC will specify the number of vehicles for peak service periods, Bidder will indicate how many vehicles in total they will have available including the appropriate spare fleet. LTC will also indicate anticipated growth in service hours over the initial five (5) year term which will require additional vehicles, noting this number will be confirmed each year subsequent to budget approval.
- The vehicles will be operated and maintained in accordance with the provisions of the Highway Traffic Act of Ontario (e.g., safety inspection program) and the Commercial Vehicle Operating Registration requirements.
- If, in the opinion of the LTC, any vehicle is not in good working order, condition, repair, or clean and is considered unsuitable for the safe and comfortable transportation of passengers, the Bidder will immediately rectify the condition upon receipt of written notice from the LTC. Trip assignment will not be provided until the situation is rectified.
- At no time throughout the term of the contract shall primary vehicles be older than seven (7) model years. Backup vehicles are not to exceed nine (9) model years in age.
- The Bidder is to submit an expected vehicle acquisition/replacement plan to meet the above referenced vehicle requirements.
- Vehicle specifications include auxiliary heavy duty interior air conditioners, fully functioning heating systems, onboard audio/video monitoring, and have appropriate connections to enable on-board tablets for driver manifests and on-board smart card readers as supplied by LTC.
Administration is undertaking an assessment of the utilization of the current vehicle configuration as well as a scan of peer transit providers to determine the optimal configuration for the fleet going forward, which will be built into the specifications in the request for proposal.
Subsequent to input from the Commission and the Accessible Public Transit Service Advisory Committee, the request for proposal will be finalized and released in the fall consistent with the Commission’s 2025 Work Program.
Recommended by:
Brandon Goldstone, Manager of Service Integration
Shawn Wilson, Director of Operations
Concurred in by:
Kelly S. Paleczny, General Manager