Summary#
Montréal city council adopted a position to award Le Groupe Centco inc. a contract for heating-system and other work at Caserne 25. The agglomeration council makes the final decision at a later meeting. City staff say the project’s goal is to reduce greenhouse-gas emissions and modernize the station’s heating controls.
- The proposed contract is for $733,540.50, taxes included. Centco was the lowest compliant bidder in a public call for tenders with eight bids; all eight were compliant.
- The city council’s position also authorizes $110,031.08 for contingencies and $55,015.54 for incidentals, bringing the total to $898,587.12, taxes included.
- The work includes replacing gas boilers with electric and gas boilers, replacing a gas water heater with electric water heaters, upgrading the electrical connection and controls, and architectural work.
- City staff estimate the work would reduce emissions by about 78 tonnes of CO₂ equivalent. That is an estimate, not a guaranteed result.
What it means for you#
- Agglomeration taxpayers: The decision summary says the agglomeration will pay the full expense, using borrowing bylaw RCG 24-018. A provincial grant is expected to cover 59% of expenses if they are fully committed before March 31, 2026.
- Fire-station users: City staff say the controls upgrade is intended to improve comfort. The work is scheduled to begin in March 2026, with most of it to be completed before the 2026–27 heating season; the contract is scheduled to end in March 2028.
- Residents generally: The decision does not directly change public services, eligibility, taxes or fees. It concerns work at Caserne 25.
Money#
The approved city-council position authorizes a total expense of $898,587.12, taxes included.
- The contract is $733,540.50; contingencies are $110,031.08; and incidentals are $55,015.54. The decision summary gives the total net of tax rebates as $820,529.81.
- The summary estimates that, from 2027, the building’s operating budget will need a 17% increase for energy and technical maintenance costs.
- The expense is planned as 95% in 2026 and 5% in 2027. The provincial grant depends on all expenses being committed by March 31, 2026.
What is unclear#
- The work description includes both electric and gas boilers, while the title describes replacing gas-heating equipment with equipment that has no greenhouse-gas emissions. The materials do not explain how much gas equipment will remain or how the two descriptions fit together.
- The materials do not say how the grant’s 59% share will be affected if the deadline is missed.
- The total includes contingency and incidental budgets, but the materials do not say how much of those amounts will ultimately be spent.
Case for#
- A possible argument for the contract is that it upgrades heating and electrical systems at a municipal fire station while supporting the city’s stated emissions-reduction goal.
- City staff say the lowest bid was 43.6% below the professional estimate and that the bids’ relatively close prices point to active competition and a fair price.
- The grant could cover 59% of expenses if the stated deadline condition is met.
Case against#
- One concern is that the contract bid was substantially below the professional estimate. City staff offer possible market explanations, but the materials do not establish which explanation applies to Centco’s bid.
- The decision summary expects higher energy and technical maintenance costs from 2027, estimated at a 17% increase in the building’s operating budget.
- The grant has a firm commitment deadline, while the planned contract start is March 2026. The materials do not explain what happens to the project’s funding if that deadline is missed.