City awards five-year vehicle service contracts

Summary#

Montréal city council unanimously adopted an orientation to conclude five framework agreements with Trois Diamants Autos (1987) Ltée for light-vehicle maintenance and repairs. The proposed agreements would run for five years, with two one-year renewal options. The agglomeration council makes the final decision at a later meeting. City staff say the goal is to meet needs the city cannot handle internally and reduce reliance on agreements made without a call for tenders.

  • The agreements cover five lots: Centre, Est, Sud, Ouest and Parc de réserve. Trois Diamants Autos was the lowest compliant bidder for each.
  • The city would order services as needed; it does not promise to buy all the estimated quantities.
  • The orientation also includes a required performance evaluation of the supplier.
  • The proposed maximum lot amounts total $13,582,137.04, taxes included, plus $2,716,427.40 in contingency funds, taxes included.

What it means for you#

  • City departments and boroughs: They could request repairs and maintenance for light vehicles through these agreements. The supplier must provide pickup and delivery across Montréal at no charge, according to the staff summary.
  • The city: The proposed agreements set firm prices for the initial five-year term. The city would pay from the budgets of the Service du matériel roulant et des ateliers (rolling stock and workshops service), as needs arise.
  • Residents: The decision does not directly change residents’ rights, taxes, or access to city services.

Money#

The proposed maximum is $16,298,564.44, including taxes and contingency funds.

  • The five lot amounts total $13,582,137.04; the separate contingency budget is $2,716,427.40.
  • Actual spending depends on services ordered. The city does not guarantee it will buy all estimated quantities.
  • No amount is stated for the two possible one-year renewals.

What is unclear#

  • The materials do not say how much the city expects to order in practice or how often it might use the contingency funds.
  • The cost and terms of any renewal are not stated.
  • The start date depends on the agreement taking effect after authorization; the materials do not give a calendar date.
  • The resolution requires a performance evaluation but does not set out its criteria or consequences.

Case for#

  • City staff say the agreements would cover repairs the city cannot do internally and reduce reliance on agreements made without a call for tenders.
  • A public call for tenders drew five bids. Trois Diamants Autos was the lowest compliant bidder for every lot, and its bid was below the city’s estimate for each.
  • Staff say the supplier’s prices were reviewed and considered realistic, despite a substantial gap between the lowest and next-lowest compliant bid for one lot.

Case against#

  • One supplier would receive all five lots, concentrating the work with one company.
  • The city does not have to order the estimated quantities, so the total value is a ceiling rather than a guaranteed purchase; actual spending could vary.
  • Staff note the supplier’s hourly rate was much lower than the city’s estimate and suggest its pricing may rely in part on revenue from parts. The materials do not show how that balance will affect costs over time.