Staff Report #10 – Contract Award – Primary Service Provider – Specialized Service

Staff Report #10

March 30, 2026

To All Commissioners

Re: Contract Award – Primary Service Provider – Specialized Service

Recommendation

That the Commission:

1. ACCEPT the bid from TOK Transit to operate as the primary service provider for the delivery of the specialized transit service for the five-year period (August 2027 to July 2032), with an option to extend the contract for a period of two years; and
2. DIRECT the Administration finalize a contract with TOK Transit, the parameters of which are defined by the request for proposal.

Background

The current primary service contract for specialized transit service expires on July 31, 2027, noting the two-year extension was exercised resulting in a seven-year term. A request for proposal for a new contract was issued and processed in accordance with the Commission’s policy and procedures. The timing of the issuance and award is critical in order to provide sufficient lead time for the successful bidder to acquire new vehicles and complete other start-up requirements that may be necessary to begin service effective August 1, 2027.

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) was given the opportunity to provide input and recommendations to the Commission with respect to any provisions they felt needed to be included.

Given the continued demand for the specialized service from both existing and new riders, the vehicle specified in the request for proposal was required to accommodate four wheelchairs and ten ambulatory seats (consistent with current fleet capacity).

The request for proposal terms included an annual price adjustment based on the change in Consumer Price Index over the previous 12-month period as well as a fuel price fluctuation formula, both consistent with the current contract provisions. The fuel price fluctuation formula provides for retroactive payment or credit depending on the average price of fuel over the previous four-month period. This formula provides for protection to both the contractor and the LTC throughout the term of the contract.

The request for proposal closed on January 30, 2026 with a total of five bids being submitted. Submissions were evaluated by Administration based on the following assessment criteria and weighting.

Since London Transit was granted authority for the provision of the specialized service in 1998, there have been numerous primary service contracts awarded, many of which resulted in a transition between service providers. Given the lessons learned during previous transitions, the evaluation matrix and RFP requirements have been developed in consideration of the complexities associated with a transfer between contracts for the service. The manner in which the contracts are awarded requires a transition to occur overnight, with one contract ending at the end of service day July 31, 2027, and the next contract beginning August 1, 2027. As such, significant weight is placed on the understanding of the service and the manner in which a transition to new vehicles and drivers would take place.

Regardless of whether the next contract goes to a new provider or the current provider, detailed transition planning is paramount in order to ensure there are no interruptions to service as the contracts transition noting that a new contract typically results in new vehicles being placed into service given the RFP requirement for all vehicles to be under seven years of age for the entirety of the contract period. This requires detailed planning to ensure that all new vehicles are fully equipped with the required LTC specific hardware including smart card readers and driver tablets, and all equipment has been tested prior to the transition date.

When the contract award results in a transition between service providers, the complexities are far more significant, noting in addition to ensuring vehicles are ready for service, the new provider’s management team needs to be in place and have the required number of drivers trained and ready to begin service on the first day of the contract.

As previously mentioned, a total of five bids were received the scoring of which is set out in the table below. It should be noted that in two cases, the bids did not provide the level of detail required to evaluate a number of the key components (understanding of the purpose and nature of the service, fleet availability, trained driver complement and experience in accessible transportation), which resulted in lower scoring. As per the terms set out in the request for proposal, bids are assessed on the information provided. The following table sets out the points awarded to each of the bids received based on the evaluation criteria set out above.

As set out in the report recommendation, Administration is recommending the award of a contract to TOK Transit for the provision of primary service for the specialized service beginning August 1, 2027, as their bid scored highest in the evaluation. The bid document included a well-articulated transition plan including specifics with respect to how and when vehicles would be procured, where vehicles would be maintained, and how staff would be recruited. Further, the bid included references from numerous transit systems where TOK Transit had undertaken contract transitions that were similar in nature to what will be required in London, all without any service implications or disruption to riders.

The TOK Transit bid included an hourly rate of $79.96 (exclusive of applicable taxes) which will be in place for the first twelve months of the contract, and then subject to an annual escalation based on the CPI provisions in the request for proposal. This rate is in the range of what was anticipated in the multi-year budget, and as such, the contract award will not require any significant operating budget adjustments. The transition between service providers may result in some new capital costs, as some equipment will be required on both fleets for a period leading up to the transition date as the new vehicles and equipment are tested and the current vehicles remain in service. These details will be worked out as the transition plan is confirmed; however, it is anticipated that any incremental capital costs associated with the transition can be funded by the Commission’s Capital Program Reserve.

Subsequent to Commission approval of contract award, Administration will work to finalize the contract and begin discussions relating to the transition plan. Going forward, updates with respect to this process will be provided through the quarterly update cycle.

Recommended by:

Brandon Goldstone, Manager of Service Integration

Mike Gregor, Director of Finance

Shawn Wilson, Director of Operations – Specialized

Concurred in by:

Kelly S. Paleczny, General Manager