Summary#
Montréal city council unanimously set its position in favour of a framework agreement with Novexco inc. (Hamster) for office supplies, ink cartridges and printing paper. The agreement would last 36 months, with two 12-month extension options, and have a proposed estimated maximum of $8,397,470.02, taxes included. The agglomeration council makes the final decision at a later meeting.
- The proposed agreement would let the City’s business units order supplies as needed; it does not guarantee any purchase quantity.
- Novexco was the lowest compliant bidder in a public call for tenders that received two bids.
- The proposed 36-month amount is $7,302,147.84, taxes included, plus $1,095,322.18 for possible changes in quantities.
- The resolution calls for an evaluation of Novexco’s performance.
What it means for you#
- City departments and boroughs: If the agreement is approved, they could order the listed supplies from Novexco as needs arise. Each purchase order would need credit approval.
- Taxpayers: City staff say spending would be charged to central-city budgets (49%), borough budgets (13%) and agglomeration budgets (38%).
- Residents and businesses: The decision does not directly change taxes, fees, benefits or rules for residents or businesses.
Money#
The proposed agreement is estimated at $8,397,470.02, taxes included; actual spending would depend on orders placed.
- The amount includes $7,302,147.84 for the agreement and a $1,095,322.18 allowance for quantity changes.
- The agreement has no single budget charge in advance; purchases would be made as needed and charged to the relevant budgets.
- City staff say the winning bid, including the quantity allowance, was 13.51% below their latest estimate.
What is unclear#
- The materials do not say whether the $8,397,470.02 estimate includes the two extension options or only the initial 36 months.
- They do not explain the conditions for exercising the extension options.
- The listed quantities are estimates, not commitments; actual order amounts are not known in advance.
Case for#
- City staff say a framework agreement would make ordering more consistent and easier, while allowing the City to buy supplies as needed.
- Novexco was the lowest compliant bidder, and staff’s comparison puts its proposed amount below the latest estimate.
- City staff say combining deliveries could reduce duplicate trips by suppliers.
Case against#
- Only two bids were received. Five other organizations obtained the tender documents but did not bid; the materials do not establish whether more competition could have lowered the price.
- The City could spend up to the proposed amount, but the materials do not provide a firm total for the extension options or show how much will ultimately be ordered.