Staff Report #3 – Contract Award – Primary Service Provider – Specialized Service

Staff Report #3

April 7, 2026

To All Members of the Accessible Public Transit Service Advisory Committee

Re: Contract Award – Primary Service Provider – Specialized Service

Recommendation

That the report be RECEIVED for information.

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 was 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. At the March 30, 2026 meeting, the Commission accepted 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 directed Administration to finalize a contract with TOK Transit, the parameters of which are defined by the request for proposal.

TOC Transit currently employs over 800 employees across Canada, and maintains a fleet of over 600 vehicles. They have 20 years experience providing accessible transportation across the country. They are currently the contracted service providers for specialized transit in the City of Orillia, York Region and City of St. John’s Newfoundland. In addition to specialized transit, TOK also holds contracts for the delivery of conventional transit service in York Region.

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. The transition to a new contractor will require detailed planning to ensure that all new vehicles are fully equipped with the required LTC specific hardware, 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. Administration has begun the work associated with finalizing a contract and discussion the transition plan with the new contractor. 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