Summary#
Montréal city council unanimously approved a position supporting a three-year framework agreement with Loiselle inc. for underground infrastructure inspections, exploratory excavations and preparatory pipe work across the Island of Montréal. The agglomeration council makes the final decision at a later meeting.
- The proposed agreement would be used for work ordered as needed, up to a contract maximum of $10,162,513.78, taxes included. Council also authorized $916,350.75, taxes included, for incidental costs.
- The work would include inspections and measurements of underground infrastructure, and preparatory civil work to bring pipes up to standard before structural lining.
- The City must evaluate Loiselle’s performance. The contract documents also set daily penalties for late work on a street: 0.05% of the contract price, excluding taxes and contingencies, with a minimum of $1,000 per day.
- The public call for tenders received two bids. Loiselle was the lowest compliant bidder.
What it means for you#
- Boroughs, City services and linked municipalities: Their budgets would pay for work as needs arise. The resolution says expenses are to be charged to those budgets at the pace of the needs being met.
- Residents: The decision does not create a new fee or require residents to apply for anything. City staff say the inspections can help identify water connections made of lead or other non-compliant materials, so replacements can be planned if needed. The decision does not itself order those replacements.
- Residents and road users: The work may involve excavation and inspections at different locations across Montréal. The decision does not specify the streets or dates.
Money#
The approved City position authorizes a maximum contract amount of $10,162,513.78, taxes included, plus $916,350.75, taxes included, for incidental costs.
- Together, these amounts match the stated total of $11,078,864.53, taxes included.
- The agreement could last up to three years, or end when its maximum budget is reached, whichever comes first. Work is ordered as needed; the listed work hours are estimates used to compare bids, not guaranteed work.
- Loiselle’s compliant bid was 7.63% above the City’s estimate of $9,441,676.75. The other compliant bid was $11,306,773.72, or 11.26% above Loiselle’s bid.
What is unclear#
- The materials do not give the specific work locations, schedule or amount of work that will actually be ordered.
- The materials do not give a breakdown of how the contract and incidental-cost amounts will be divided among boroughs, City services and linked municipalities.
Case for#
- City staff say better information about underground pipes and structures can improve project plans and reduce surprises, delays and extra costs during construction.
- Staff also say preparatory pipe work can help speed up sewer rehabilitation and avoid some costly extra work.
- Loiselle submitted the lowest compliant bid, and the contract includes late-work penalties and a required performance evaluation.
Case against#
- The two bids were above the City’s estimate; Loiselle’s was 7.63% higher.
- Only two firms submitted bids, though six obtained the tender documents.
- The agreement allows spending up to the stated maximum, but the materials do not say how much work will be ordered or how the costs will be divided among the budgets paying for it.