City transfers truck contracts to supplier

Summary#

Montréal city council unanimously adopted a position in favour of transferring two existing framework agreements from Fortier Auto (Montréal) ltée to 13665216 Canada inc. The transfer covers the supply of fully hybrid and regular-motorized pickup trucks, on the same terms and conditions. The agglomeration council makes the final decision at a later meeting.

  • The agreements came from a 2022 public call for tenders and were originally awarded for five years.
  • If the transfer is authorized, 13665216 Canada inc. takes over the agreements’ rights and obligations; Fortier Auto will stop operating, according to the decision summary.
  • The agreements allow the city to place orders for trucks. They do not commit the city to buy a set amount: each purchase order needs credit approval.

What it means for you#

  • City departments and boroughs: The supplier would change, but the agreements’ terms would stay the same. City staff say this would help maintain supply and avoid having to negotiate each purchase separately.
  • Residents: The decision does not directly change residents’ rights, fees, or services. It concerns the city’s supplier agreements for vehicles.
  • Supplier: 13665216 Canada inc. would become responsible for carrying out the agreements’ obligations if the transfer is approved.

Money#

The decision summary gives an estimated remaining value of $16,332,116.12, including taxes; it does not provide a separate cost estimate for the transfer.

  • The summary says the agreements have no budget allocation; purchases are made as needed, with credit approval for each order.
  • The summary gives the agreements’ total estimated value as $25,212,695.22, including taxes. It also cites the 2022 award as $25,539,046.33, including taxes, including 20% contingencies.
  • The original public call for tenders received three bids. The materials do not say whether the successful bid was the lowest compliant bid.

What is unclear#

  • The summary gives two different total estimated values for the agreements: $25,212,695.22 and $25,539,046.33. It does not explain the difference.
  • The materials do not state how much of the remaining value the city will actually spend.
  • The materials do not say whether the new supplier’s prices or delivery arrangements have been independently reassessed; they say the agreements’ existing terms and conditions remain unchanged.

Case for#

  • City staff say the transfer would help keep truck supply stable and avoid the added work of negotiating each purchase separately.
  • The original tender documents allowed a transfer if the city agreed, and the new supplier would take on the existing obligations.

Case against#

  • The city would be transferring agreements with an estimated remaining value of about $16.3 million, but the materials do not explain the difference between the two total-value figures.
  • The materials do not say whether the city compared the transfer with other supply options or checked whether the new supplier could meet delivery needs.