City extends crushed stone contract for roads

Summary#

Montréal city council approved a 12-month extension of its framework agreement with Amrize Canada inc. (formerly Lafarge Canada inc.) for the supply and delivery of crushed stone. The goal, according to city staff, is to keep supplies available for road and park work while avoiding repeated tender processes.

  • The extension runs from April 24, 2026, through April 23, 2027.
  • Council authorized additional spending of $1,845,015.04, plus $276,752.26 for changes in quantities. Both amounts include taxes, bringing the agreement’s total authorized amount to $7,795,265.44, taxes included.
  • The agreement is available to all City of Montréal business units. The City does not have to buy a minimum or the full estimated quantity; each purchase order needs credit approval.
  • The original agreement followed a public call for tenders that received two bids. The materials do not say whether Amrize’s bid was the lowest compliant bid.
  • Council also recorded the company’s name change. The decision summary says its business registration number and control did not change.

What it means for you#

  • City departments and boroughs: They may order crushed stone under the extended agreement for projects such as road and park work. Purchases are charged to the budgets of the boroughs or services that need the supplies.
  • Residents and businesses: The decision does not directly change residents’ or businesses’ rights, fees, or obligations. It authorizes a continued supply arrangement for City work.
  • Taxpayers: The approved amount is an estimate and spending limit for the extension, not a commitment to buy all the estimated quantities.

Money#

The City authorized up to $2,121,767.30 in additional spending for the 12-month extension, taxes included.

  • The authorization comprises $1,845,015.04 for estimated purchases and $276,752.26 for quantity changes.
  • City staff based the estimate on past use and recent average prices. Product prices may change with municipal royalty fees; transport prices are not to be indexed if the relevant Montréal consumer price index remains below the contract’s 3% minimum.
  • Actual spending depends on orders placed and approved. The decision gives no estimate of what the City will ultimately spend.

What is unclear#

  • The materials do not give the names or prices of the two original bidders, or say whether Amrize’s bid was the lowest compliant one.
  • City staff cite a market analysis and competitive prices, but the materials do not provide its details or compare the extension’s prices with new bids.
  • The final amount spent will depend on demand and any applicable price changes.

Case for#

  • City staff say the supplier’s service has been satisfactory and the prices are competitive.
  • Keeping the agreement in place may let City units order supplies without repeating a tender, while preserving the existing terms for another year.
  • The City is not required to buy a minimum quantity, and each purchase order requires credit approval.

Case against#

  • The City is extending the agreement rather than seeking new bids for this period. The materials do not show how the prices compare with offers the City might receive in a new tender.
  • The authorized amount is an estimate, and the materials do not establish how much will be spent or how much of the quantity-change budget will be needed.