D2. SCOPE OF WORK
D2.1 The Work to be done under the Contract shall consist of the supply and delivery of sodium hydroxide for the period from January 1, 2023 until March 31, 2023, with the option of nineteen (19) mutually agreed upon three (3) month extensions.
D2.1.1 The City may negotiate the extension option with the Contractor within forty-five (45) Calendar Days prior to the expiry date of the Contract. The City shall incur no liability to the Contractor as a result of such negotiations.
D2.1.2 Changes resulting from such negotiations shall become effective on the 1st day of the respective month. Changes to the Contract shall not be implemented by the Contractor without written approval by the Contract Administrator.
D2.1.3 Bidders are advised that, in future, the City may be participating in collaborative procurement initiatives with other levels of government. Accordingly, extensions to this Contract may not be exercised.
D2.1.4 The proposed Unit Price for sodium hydroxide from the Contractor for an extension option shall be determined by adjusting the current Unit Price by amount of change in both the CAD/USD exchange rate and IHS USGC-CSLi caustic market index from the previous quarter.
(a) The proposed Unit Price shall be submitted to the Contract Administrator by the second Business Day of the last month in the current Contract and shall be based on the following formula:
(i) UPExtension_X = UPExtension_X-1 x (CADUSDExtension_X/ CADUSD Extension_X-1) x (IndexExtension_X/ IndexExtension_X-1)
Where:
(ii) UPExtension_X means proposed Unit Price of Sodium Hydroxide for the upcoming extension option. X indicates the extension number. For example, for proposed extension one (1), X will be one (1).
(iii) UPExtension_X-1 means Unit Price of Sodium Hydroxide used for the current Contract, preceding the upcoming proposed extension. For example, for proposed extension one (1), UPExtension_X-1 would be the Unit Price for the Contract preceding proposed extension one (1).
(iv) CADUSDExtension_X means the Bank of Canada, Financial Markets Department, Daily Noon Exchange Rate, Canadian dollars per U.S. dollar (Can$/US$) on the first Business Day of the month preceding the proposed upcoming extension. This index is available at http://www.bankofcanada.ca/rates/exchange/.
(v) CADUSD Extension_X-1 means the Bank of Canada, Financial Markets Department, Daily Noon Exchange Rate, Canadian dollars per U.S. dollar (Can$/US$) used for in the previous quarter’s Sodium Hydroxide Unit Price. This index is available at http://www.bankofcanada.ca/rates/exchange/.
(vi) IndexExtension_X means the most recent IHS USGC-CSLi Caustic Market Index value available by the second Business Day of the month preceding the proposed extension option.
(vii) IndexExtension_X-1means IHS USGC-CSLi Caustic Market Index value used in the Unit Price calculation in the current Contract period, preceding the upcoming proposed extension.
D2.1.5 The Contractor shall provide the Contract Administrator in writing with all required documentation regarding any requested extension option, no later than the second Business Day in the month preceding the requested proposed extension. This documentation includes the pricing formula specified in D2.1.4, as well as relevant indices and current market pricing data, satisfactory to the Contract Administrator.
D2.2 The Work shall be done on an "as required" basis during the term of the Contract.
D2.2.1 The type and quantity of Work to be performed under this Contract shall be as authorized from time to time by the Contract Administrator and/or Users.
D2.2.2 Subject to C7, the City shall have no obligation under the Contract to purchase any quantity of any item in excess of its actual operational requirements.
D2.3 Notwithstanding D2.1, in the event that operational changes result in substantial changes to the requirements for Work, the City reserves the right to alter the type or quantity of work performed under this Contract, or to terminate the Contract, upon thirty (30) Calendar Days written notice by the Contract Administrator. In such an event, no claim may be made for damages on the ground of loss of anticipated profit on Work.
