Montréal approves water infrastructure framework

Summary#

Montréal city council unanimously adopted a position supporting a five-year framework agreement with Simco Technologies inc. for structural engineering services for the City’s water facilities. The agglomeration council makes the final decision at a later meeting. The aim is to assess and help maintain water infrastructure, including structures affected by concrete expansion.

  • The proposed agreement would let Simco provide services to the Service de l’eau (Water Department) on request, for up to $3,216,425.63, taxes included.
  • The work includes structural modelling and analysis, designing reinforcements or repairs, and recommending how to monitor structures. It also includes assessing concrete and steel structures, seismic risks, and retaining-wall capacity and stability.
  • The proposed spending also includes $229,950, taxes included, for related services such as laboratory work and instrumentation, and $160,821.28, taxes included, for incidental work.
  • The five-year term is stated as 2026–2031 or until the funds are used up. There is an option for one additional two-year renewal.
  • The public call for tenders received four bids. After one withdrawal and other bids being found non-compliant, Simco was the only compliant bidder. The City negotiated with the firm.

What it means for you#

  • Water Department: If the agglomeration council approves the agreement, it could request structural engineering services as needed. Individual assignments would require purchase orders.
  • Montréal residents: The decision concerns the City’s water facilities. It does not directly change water rates, residents’ rights, or access to water services.
  • Taxpayers: City staff say the work could help the City understand infrastructure conditions and plan needed interventions. That is an expected benefit, not a guaranteed result.

Money#

Estimated spending for the five-year agreement and related amounts is $3,607,196.91, taxes included, or $3,293,851.58 net of federal and provincial tax rebates.

  • The estimated agreement amount is $3,216,425.63; contingency spending is $229,950; and incidental spending is $160,821.28. The resolution says spending is to come from the Service de l’eau’s budgets as needs arise. Staff say the spending is fully borne by the agglomeration.
  • The optional two-year renewal is estimated at $1,378,550.25, taxes included. It is separate from the five-year term and is an option, not an automatic extension.
  • The only compliant bid was about 19.57% above the City’s latest estimate, according to the staff report.

What is unclear#

  • The agglomeration council’s final decision is not included in these materials.
  • The agreement’s total is a maximum for services requested as needed; the materials do not say how much will ultimately be spent.
  • The materials do not set out which facilities or assignments will be selected first, or the timing and results of the work.
  • The materials do not explain whether or how the two-year renewal option would be exercised.

Case for#

  • City staff say some structures may be affected by alkali-aggregate reaction, which can cause concrete to expand over time. The effects on some structures are not yet known.
  • Specialized analysis could help the City assess structural risks and plan monitoring, repairs, or other interventions.
  • A framework agreement could let the Water Department request a range of related services as needs arise.

Case against#

  • One concern is the limited competition: Simco was the only compliant bidder after the other bids were withdrawn or found non-compliant.
  • The accepted offer was 19.57% above the City’s latest estimate. Staff attribute the gap mainly to higher proposed hourly rates for several types of staff.
  • The agreement sets maximum amounts, but the materials do not show which work will be ordered or what the final spending will be.