City awards IBM software maintenance contract

Summary#

Montréal city council unanimously adopted a position to award a one-year, direct-award contract to Services MaxxCo inc. through its agreement with the Centre d’acquisitions gouvernementales (CAG), for IBM software maintenance under the manufacturer’s “Passeport Avantage” program. City staff say the goal is to keep support, updates and security fixes for software the City uses. The agglomeration council makes the final decision at a later meeting.

  • The proposed contract covers February 1, 2026, to January 31, 2027, for a maximum of $1,088,461.64, taxes included.
  • The program provides access to supported software versions, technical support and security fixes. The City’s IBM Maximo products are covered by a separate agreement.
  • The resolution authorizes the City’s IT infrastructure and operations director to sign documents related to the contract.

What it means for you#

  • Residents: The decision does not directly change a resident’s rights, fees or access to services. City staff say the maintenance supports software used in City operations, including data backup, encryption-key management and data exchanges.
  • City administration: The City’s IT Service would fund the maintenance through its operating budget. The contract is awarded directly through the CAG agreement, not through a call for tenders described in the materials.

Money#

The proposed maximum spending is $1,088,461.64, taxes included.

  • The amount is $993,910.56 net of taxes and is charged to the IT Service operating budget. Required credits were included in calculating mixed general-administration expenses charged to the agglomeration budget.
  • The amount is $79,775.34, or 7.90%, higher than the previous year’s contract. City staff attribute the increase to IBM’s higher prices for equivalent items.

What is unclear#

  • The materials do not give a breakdown of the amount by software product or say how much of the maximum the City expects to use.
  • They do not give the number of authorized resellers considered or details of the price comparison. City staff say MaxxCo offered the best price among authorized CAG resellers.
  • The materials do not assess alternatives to renewing the maintenance or report on the previous year’s service performance.

Case for#

  • City staff say the renewal maintains access to technical support, supported software versions and security fixes for software used in City operations.
  • The program’s support and updates may help keep existing systems working without replacing them as part of this contract.

Case against#

  • The contract costs 7.90% more than the previous year.
  • The direct-award route means the materials do not describe an open call for tenders or provide enough detail to independently assess the price comparison.