City council approves UV lamp deal

Summary#

Montréal city council unanimously adopted its position on an agreement with Mabarex inc., titled Conclure une entente-cadre avec Mabarex inc. (enter a framework agreement with Mabarex inc.). It asks the agglomeration council to approve a direct-award agreement for UV lamps used at the Atwater and Charles-J.-Des Baillets drinking-water plants. City staff say the goal is to secure the lamps needed for water treatment; the agglomeration council makes the final decision at a later meeting.

  • The proposed agreement runs for 36 months, with up to two 12-month extensions. The city’s drinking-water director may extend it only if the budget funds have not been exhausted.
  • Mabarex would supply and deliver the lamps on request, at the prices in its bid. The total estimated amount is $1,831,254.25, including taxes.
  • The resolution requires the city to evaluate Mabarex’s performance.

What it means for you#

  • Residents: No direct change to residents’ services or obligations is set out. City staff say the purchase is intended to help keep the two plants’ UV treatment systems operating.
  • City and agglomeration: The agreement would cover up to five years of planned purchases. The staff summary estimates 375 lamps: 225 over the first three years and 150 during the possible extensions.
  • Mabarex: The company would supply lamps when requested. Staff describe it as the exclusive Québec distributor for these lamps. The city published a 15-day notice of intent; no other company expressed interest. This was a direct award, not a call for tenders.

Money#

The estimated agreement amount is $1,831,254.25, including taxes.

  • The staff summary gives the amount net of tax rebates as $1,672,179.22.
  • The agglomeration would pay 100% of the expense. Staff say the budget is available through the drinking-water directorate’s capital program and borrowing bylaw 58026.

What is unclear#

  • The materials do not give a per-lamp price or explain how prices compare with other suppliers or past purchases.
  • The actual number of lamps ordered and whether either extension is used will depend on needs and available budget.
  • The materials do not give a separate estimate of the costs of evaluating Mabarex’s performance.

Case for#

  • City staff say the lamps are needed for specialized UV reactors at the two plants. They report that lamps generally last two to five years, or about 5,000 operating hours.
  • A public notice found no other company interested in supplying the required lamps. A direct agreement with the identified exclusive distributor could secure the planned supply.

Case against#

  • A direct award does not provide competing bids for price comparison. The notice found no interested alternative supplier, but the materials do not show an independent price benchmark.
  • The agreement could last up to five years, while the actual orders and use of extensions depend on needs and remaining budget.