Agglomeration approves direct award for sewer system upgrade

Summary#

Montréal city council unanimously set its position in favour of a contract for Tetra Tech QI inc. to integrate the Saint-Jacques and Courcelles retention facilities into the city’s integrated interceptor control system (CIDI). The agglomeration council makes the final decision at a later meeting. The goal, as described by city staff, is to help use the facilities’ storage capacity and reduce sewage overflows.

  • The proposed direct-award contract is for $687,320.55, taxes included, plus a $103,098.08 contingency budget, for a total of $790,418.63, taxes included.
  • Tetra Tech QI inc. would carry out functional analysis, model the facilities, assess expected performance, reconfigure CIDI software and data exchanges, commission the updated system, provide training, and update performance dashboards and system documents.
  • The city proposes a direct award because Tetra Tech has exclusive rights to develop and maintain CIDI’s software; the software’s source code and intellectual property remain its property. The materials describe a request for a price from Tetra Tech and one offer, not a competitive call for tenders.
  • The proposed contract would run from May 2026 to December 2028. The decision would charge the cost to the agglomeration’s taxpayers through borrowing under bylaw RCG-22-007.

What it means for you#

  • Agglomeration taxpayers: The project would be financed by borrowing charged to agglomeration taxpayers.
  • Residents: The decision does not directly change household water or sewer services, fees, or obligations. It concerns city infrastructure and its control system.
  • City and water operations: The work would add two retention facilities to CIDI. City staff say this could help reduce the frequency and volume of overflows, but the contract does not guarantee a particular reduction.

Money#

The proposed total is $790,418.63, taxes included, or $721,757.57 after federal and provincial tax rebates.

  • The contract amount is $687,320.55; the $103,098.08 contingency is 15% of that amount.
  • The total is to be funded from the agglomeration’s investment budget and borrowing under RCG-22-007, with expenses planned for 2026, 2027, and 2028.

What is unclear#

  • The materials do not explain how the contingency will be used or what happens to any unused amount.
  • The contract is paid at hourly rates, but the materials do not give the rates or describe how the work’s progress and quality will be checked.
  • City staff cite a broader strategy goal of reducing sewage overflows by 12% over the next decade. The materials do not say how much of that reduction this contract itself is expected to deliver.

Case for#

  • City staff say adding the two facilities to CIDI could help use their storage capacity more effectively and reduce the frequency and volume of overflows.
  • Tetra Tech holds exclusive rights to the CIDI software. Using the company that controls that software may make integration more workable than hiring a different supplier.

Case against#

  • A direct award means the materials provide no comparison with competing offers or prices.
  • The contingency is a substantial additional amount, and the materials do not explain how it will be controlled.
  • The stated 12% reduction target applies to the city’s broader strategy, not specifically to this contract; its contribution is not quantified.