Montreal approves water pipe and road contract

Summary#

Montréal city council approved a contract with Services d'infrastructures Vortex inc. for water-pipe and street rehabilitation in Lachine, Le Sud-Ouest, Outremont and Verdun. The council also authorized related contingency and incidental budgets, and ordered an evaluation of the contractor’s performance.

  • The work includes about 1.56 kilometres of water-pipe rehabilitation, replacement of about 146 public and 59 private lead water connections, about 12,115 m² of roadway rehabilitation and minor sidewalk repairs.
  • The maximum authorized total is $8,809,453.61, taxes included: $7,830,000 for the contract, $783,000 for contingencies and $196,453.61 for incidental costs.
  • Vortex was the lowest compliant bidder, with an experience clause in the tender. Three firms submitted bids after a public call for tenders.
  • The contract terms allow the city to impose daily penalties for certain delays or failures, and council directed the city to evaluate Vortex’s performance.

What it means for you#

  • Residents in the four boroughs: Water pipes, roads and some sidewalks will be worked on. The exact streets are not listed in the materials provided.
  • Owners whose private lead water connections are replaced: The contract includes about 59 replacements on private sections. The materials do not say whether or how owners will be charged for this work.
  • Vortex: It must carry out the contracted work. The contract provides for penalties, including $1,000 to $3,500 per day for some street-work delays, and $1,000 per day for certain missed deadlines for schedules, street cleaning or correcting deficiencies.
  • Taxpayers: The city authorized the total spending. The resolution does not state the final cost or how much of the authorized contingency and incidental budgets will be used.

Money#

The city authorized a maximum expenditure of $8,809,453.61, taxes included.

  • The contract amount is $7,830,000, taxes included. The city also authorized $783,000 for contingencies and $196,453.61 for incidental costs.
  • Vortex’s bid was 0.27% above the city’s estimate. It was 20% below the second-lowest compliant bid.
  • The supplied material does not identify the funding source or say whether costs for private-section replacements will be reimbursed by owners.

What is unclear#

  • The exact streets and construction schedule are not included in the supplied material. No publicly available information.
  • It is unclear whether the earlier arrangement requiring owners to repay the city for some private-section lead-pipe replacements applies to the 59 replacements in this contract.
  • The materials give a maximum authorized amount, not the final amount the city will spend.

Case for#

  • City staff say trenchless pipe lining can be faster than excavation, reduce disruption to nearby infrastructure and reduce excavation waste.
  • The contract combines pipe work with road and sidewalk repairs on some of the same streets.
  • Vortex submitted the lowest compliant bid. Its price was close to the city’s estimate, which staff considered acceptable.

Case against#

  • The authorized maximum is substantial, and the materials do not identify its funding source or the final cost.
  • Vortex’s bid was 20% below the next-lowest compliant bid. That gap does not show a problem, but it is a notable difference; the city ordered a performance evaluation.
  • The materials do not explain whether owners will pay for work on private water connections.