Summary#
Montréal city council unanimously approved its position on a proposed five-year framework agreement with Services de mécanique mobile B.L. inc. for genuine Freightliner parts. The agglomeration council makes the final decision at a later meeting; this city-council decision does not itself conclude the agreement. City staff say the agreement is meant to ensure parts are available for municipal vehicle repairs.
- The proposed agreement covers parts supplied on demand to all City of Montréal mechanical workshops. It includes two possible 12-month extensions, each requiring agreement between the parties.
- The proposed maximum for the parts is $1,379,700, taxes included. Council’s position also authorizes $275,940, taxes included, for contingencies.
- Services de mécanique mobile B.L. inc. was the sole compliant bidder. Two bids were submitted; one was rejected because the bidder had not obtained the tender documents through SEAO.
- The proposed agreement provides a 40% discount from the manufacturer’s retail prices. The manufacturer adjusts those prices monthly.
What it means for you#
- Municipal workshops: If the agglomeration council approves the agreement, workshops could order genuine Freightliner parts as needed under its terms.
- City and agglomeration budgets: Purchases would be charged to operating budgets as needs arise. The materials say costs may be charged to the City or the agglomeration, depending on which is responsible for the work.
- Residents: The decision does not directly change residents’ rights, taxes, or access to services.
Money#
The estimated maximum agreement value is $1,655,640, taxes included.
- That total combines $1,379,700 for parts and $275,940 for contingencies.
- The agreement has no budget allocation in advance; purchases would be made as needed and charged to operating budgets.
- City staff’s estimate was $1,876,392, taxes included. The sole compliant bid was 11.75% below that estimate.
What is unclear#
- The materials do not state how much the City expects to spend in practice over the agreement’s term.
- They do not explain how spending will be divided between the City and the agglomeration.
- The agreement allows price changes when the manufacturer updates its prices; the materials do not estimate how those changes could affect total spending.
Case for#
- City staff say the parts are needed to maintain and repair municipal heavy vehicles, and that the existing agreement is due to end.
- A framework agreement would let workshops order parts as needed rather than arrange each purchase separately.
- The only compliant bid was below the staff estimate, and the proposed 40% discount applies across the Freightliner product range.
Case against#
- Only one of the two bidders was compliant, so the materials show limited competition among bids that could be considered.
- The total includes a contingency and purchases depend on future needs, so actual spending is uncertain.
- Manufacturer prices can change monthly. The fixed discount may reduce those prices, but does not fix the final cost of parts.