Contract approved to decarbonize police heating system

Summary#

Montréal city council unanimously adopted a position to award a contract to Mécanique Northerm inc. for heating-system decarbonization work at the Service de police de la Ville de Montréal’s cavalry building, 1515, chemin Remembrance. The agglomeration council makes the final decision at a later meeting. The project’s stated goal is to replace oil heating and reduce greenhouse-gas emissions.

  • The proposed contract is for $935,681.50, taxes included. Northerm was the lowest compliant bidder in a public call for tenders; all seven bids received were compliant.
  • The resolution also authorizes $187,136.30 for construction contingencies and $187,136.30 for related costs, bringing the approved total to $1,309,954.10, taxes included.
  • Work includes replacing the oil boiler with an electric boiler, installing a heat pump, replacing heating units and hot-water pipes, and removing oil and diesel tanks.
  • Northerm must have its performance evaluated. The planned contract period is April 28, 2026, to September 30, 2027.

What it means for you#

  • Police service and building users: The work would change the building’s heating system. The decision does not create a new public service or directly change residents’ rights or benefits.
  • Taxpayers: The agglomeration would bear the expense. City staff say the project benefits from a Québec government grant program covering 80% of the amount.
  • General public: City staff describe the project as part of a wider plan for 32 municipal buildings. The stated target of reducing emissions by about 7,000 tonnes of CO₂ equivalent applies to that wider plan, not this building alone.

Money#

The authorized total is $1,309,954.10, taxes included; city staff report that the agglomeration will pay the expense.

  • The amount comprises the base contract, two 20% budgets for contingencies and related costs, and is scheduled to be paid out 83% in 2026 and 17% in 2027.
  • City staff say the project benefits from a government grant at 80% of the amount. The materials do not state the grant’s dollar value.
  • The listed amounts net of tax rebates are $854,401.93 for the base contract and $170,880.39 for each additional budget.

What is unclear#

  • The bid table lists Northerm’s total, including “other” costs, as $1,313,717.80. The resolution authorizes $1,309,954.10; the materials do not explain the $3,763.70 difference.
  • The materials do not explain how the 80% grant is calculated, or what conditions apply to receiving it.
  • They do not specify how the contingency and related-cost budgets will be used in practice.

Case for#

  • The work would replace the building’s oil heating with electric equipment, matching the stated goal of eliminating oil use in buildings.
  • Northerm’s bid was the lowest of seven compliant bids. City staff report it was 33% below the project estimate.
  • The decision includes budgets for unexpected construction needs and related services, and requires an evaluation of the contractor’s performance.

Case against#

  • The bid’s reported price was substantially below the estimate. Although it was compliant and 9% below the next-lowest bid, that gap may warrant close attention during delivery.
  • The two additional budgets total $374,272.60, about 40% of the base contract. The materials do not set out how those funds will be released or tracked.
  • The unexplained difference between the bid-table total and the authorized total makes the full cost comparison harder to follow.