Engineering contract for wastewater substation

Summary#

Montréal city council unanimously set its position in favour of awarding AtkinsRéalis Canada inc. a contract for engineering services for Phase II of the 315-kilovolt electrical substation at the Jean-R.-Marcotte wastewater treatment plant. The agglomeration council makes the final decision at a later meeting. City staff say the project is needed to supply power for planned sludge-treatment facilities and maintain the plant’s reliable operation.

  • The proposed contract covers technical documents for the construction tender, help during that tender, and technical support and site supervision during construction.
  • The contract is for seven years, with two optional 12-month extensions. The city’s major-projects director may extend it without additional spending; the contractor’s consent is required.
  • The contract price is $3,955,484.93, taxes included, plus $197,774.25 for quantity variations: $4,153,259.18 total, taxes included.
  • The public call for tenders received one bid. AtkinsRéalis was the only compliant bidder and passed the selection criteria. The city also required an evaluation of the firm’s performance.

What it means for you#

  • Residents: City staff say no direct effects on residents are expected because work will take place within the treatment plant site.
  • Montréal’s agglomeration: It would pay the full expense through borrowing bylaw RCG-22-007. The services would support the design and construction tender for the substation, not build the substation itself.
  • AtkinsRéalis: If the agglomeration council approves the award, the firm would provide the contracted services. The contract includes late penalties, capped in total at 5% of the contract amount before taxes.

Money#

The proposed total expense is $4,153,259.18, taxes included; the decision summary gives a cost of $3,792,479.22 net of tax rebates.

  • The agglomeration would pay the full expense through borrowing bylaw RCG-22-007.
  • The base contract is $3,955,484.93, taxes included. The quantity-variation budget is $197,774.25, taxes included.
  • The revised bid was $5,748.75 below the firm’s original bid and $93,078.01 below the city’s estimate.

What is unclear#

  • The contract’s services are to be assigned through separate mandates as the city needs them, but the materials do not detail which mandates will be issued or when.
  • The materials do not give the cost of constructing the substation itself.

Case for#

  • City staff say the substation is needed to supply power for new sludge-treatment processes and support reliable operation of the wastewater plant.
  • The sole bid passed the selection criteria and was below the city’s estimate.
  • The contract covers engineering support from preparation of the construction tender through construction work.

Case against#

  • One bid was received, so the city had no competing compliant bid to compare with AtkinsRéalis’s price.
  • The total contract cost is substantial, and the materials do not specify how much of the available service budget will be used for each mandate.