AMENDED Staff Report #1 Re: Contract Award – Primary Service Provider – Specialized Service


Staff Report #1

August 28, 2019

To All Commissioners

Re: Contract Award – Primary Service Provider – Specialized Service


That the Commission:

  1. ACCEPT the bid from Voyago (formerly operated as Voyageur Transportation Services) to operate as the primary service provider for the delivery of the specialized transit service for the five year period (August 2020 to July 2025), with an option to extend the contract for a period of two years; and
  2. DIRECT the administration finalize a contract with Voyago (formerly operated as Voyageur Transportation Services), the parameters of which are defined by the request for proposal.


The current primary service contract for specialized transit service expires on July 31, 2020, 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 policy and procedures. The request for proposal was advertised on the Ontario Public Transit Association Website consistent with past practice. The timing of the issuance and award is critical in order to provide sufficient lead time (eleven months in advance of the expiration of the existing contract) for the successful bidder to acquire new vehicles and complete other start-up requirements that may be necessary to begin service effective August 2020.

Given the continued demand for the specialized service from both existing and new riders (registrant base has now exceeded 10,000) the vehicle specified in the request for proposal was required to accommodate four wheelchairs and ten ambulatory seats (consistent with current fleet capacity). In addition, the requirement to have on-board audio/video surveillance on every vehicle was included as a requirement based on feedback from the Accessible Public Transit Service Advisory Committee, as was the requirement to equip each vehicle with an on-board tablet which interacts with the scheduling system and provides drivers with their trip assignments. 

The request for proposal 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.

One bid was received and assessed, the details of which are set out in the table below, noting the rates are exclusive of applicable taxes. The bid was deemed compliant with all provisions set out in the request for proposal.

Bids Received

Bidder Hourly

Rate (1)

Annual Cost

Based upon

Guaranteed Hrs.


Voyago $ 60.60 $ 6,060,000

(1) The current (July 1, 2019) hourly rate is $52.28 exclusive of taxes,

scheduled to increase by CPI Index August 1, 2019

(2) The current annual primary service hours equal 96,000

Using an estimate of 2% for the CPI increase scheduled to take effect August 1, 2019 the increase in cost per service hour that will take effect August 1, 2020 will be approximately 13.6%. The increased hourly costs have been included in the 2020-2023 Operating Budget projections set out in Staff Report #3 dated August 28, 2019.

In terms of experience, Voyago is the current primary service provider and has met all obligations of the current contract, and provided the service in a professional manner throughout the seven year term of the contract. 

Recommended by:

Christopher Murphy, Supervisor, Brokerage Services

Mike Gregor, Director of Finance

Concurred in by:

Kelly S. Paleczny, General Manager