Summary#
Montréal city council awarded a contract to Distributions Maranda inc. to supply and install telescopic cranes with dump bins on truck chassis supplied by the City. City staff say the equipment is needed for borough operations and to replace outdated equipment.
- The contract is for four crane-and-bin installations: two on regular-cab chassis and two on extended-cab chassis.
- The contract price is $1,219,955.67, taxes included. Council also authorized $243,991.13, taxes included, for contingencies, making the total authorized spending $1,463,946.80.
- The contract went to the lowest compliant bidder in a public call for tenders. Two bids were submitted.
- Prices are fixed for the contract’s duration. Delivery deadlines range from 425 to 635 days; late delivery may bring a penalty of 2% per month on the value of undelivered goods, excluding taxes.
- The City must evaluate Distributions Maranda inc.’s performance.
What it means for you#
- Borough operations: City staff say the equipment will help make trucks available for borough work. Residents do not receive a direct service or benefit under this contract.
- Taxpayers: The spending is financed through borrowing bylaw 25-020 and is to be paid entirely by the central City.
- Residents: The decision does not directly change taxes, fees, or residents’ rights.
Money#
The City authorized total spending of $1,463,946.80, taxes included.
- The contract itself is $1,219,955.67, taxes included. The separate contingency allowance is $243,991.13, taxes included.
- City staff say the contract price is 22.07% below their estimate, before contingencies. The contingency is for extra work or supplies that could not be predicted when the tender documents were prepared.
- The materials do not say how much, if any, of the contingency will be used.
What is unclear#
- The decision materials do not give the contract’s start date or an overall contract term.
- The warranty period varies according to the tender specifications, but its length is not stated in the materials.
- The materials do not say whether the full contingency will be spent.
Case for#
- A possible argument for the contract is that the City needs these installations before the trucks can be put into service.
- The award went to the lowest compliant bidder, whose price was below the City’s estimate.
- Fixed prices, warranty coverage, delivery deadlines and a possible late-delivery penalty set out protections for the City.
Case against#
- Only two bids were submitted. The other bid’s price, including contingencies and taxes, was 62.10% higher than Maranda’s.
- The contingency allowance is 20% of the contract price. The materials do not explain what specific extra work might require using it.
- The warranty’s length and the contract’s overall term are not stated in the available materials.