Meeting Date: April 18, 2007

Subject: Procurement Authorization - Design And Supply Of Srt Thrust Lever And Manual Control Panel


It is recommended that the Commission authorize:

1)  the acceptance of the proposal submitted by PHW Inc. and award a contract in the amount of $778,733.64 for the design and supply of Thrust Lever and Manual Control Panels for 28 Scarborough Rapid Transit (SRT) vehicles; and 

2)  funds in the amount of $109,022.71 that will be paid directly by the Commission for self assessed GST and PST bringing the total authorization to $887,756.35.


Sufficient funds are included in project 4.14 SRT Car Overhaul under 20-Year SRT Car Overhaul (Work Order 6236) as set out on pages 1047-1050 in the State of Good Repair/ Safety category of the TTC 2007-2011 Capital Program, as approved by City Council on March 7, 2007.


The Toronto Transit Commission intends to replace the existing Operator’s Control consoles on the existing fleet of the (SRT) vehicles. There are two operator’s consoles on the SRT trains, namely Thrust Lever/Brake Panel and Manual Control Panel assemblies. The assemblies are located in the operator’s cab of the SRT vehicles and provide the interface between the train operator and the remainder of the Vehicle on Board Controller (VOBC) equipment for the purpose of driving the train.

The existing thrust levers and manual panels have become unreliable, accounting for about one third of all SRT vehicle failures contributing to line delays.  In order to maintain the 28 SRT vehicles in a state of good repair the replacement of these components has been included as part of the scope of the SRT 20-Year Overhaul Program.


Specifications and drawings were prepared and a Request for Proposal (RFP) No. P32PZ06913 was posted on the Commission’s website as of December 8, 2006. Five Companies were issued copies of the proposal documents out of which three submitted a proposal on February 6, 2007. All three proposals submitted were commercially unacceptable, therefore, the RFP was cancelled.

On March 6, 2007 approval was obtained from the Interim Chief General Manager to negotiate directly with PHW Inc., the company who had submitted the lowest priced proposal. PHW’s initial proposal was considered unacceptable because their submission was missing the Specified Option List–Document 00461, which was a mandatory submission. 

A new RFP No. P32PZ07754 was issued to PHW Inc. on March 9, 2007.

On March 13, 2007, PHW Inc. submitted a new proposal. This proposal retains the same technical submittal and pricing of $778,733.64 (all taxes excluded) of their original proposal and includes the Specified Option List–Document 00461. This new proposal is considered acceptable. The Commission will self-assess both the GST and Ontario Retail Sales taxes in the amount of $109,022.71, for a total authorization amount of $887,756.35.

PHW Inc. has performed work for the Commission in the past and reference checks were previously conducted indicating that they have satisfactorily performed work of a similar size and nature in the past.


Replacement of the Thrust Levers and Manual Panels is required to improve the SRT reliability and to maintain the vehicles in a state of good repair to provide reliable revenue service.

March 23, 2007