Summary#
Montréal’s city council unanimously adopted an orientation to conclude a two-year framework agreement with Chartrand Ford (Ventes) inc. for brake parts for the City’s light and medium vehicles. A framework agreement sets terms for orders placed when needed; the agglomeration council makes the final decision at a later meeting. The stated goal is to keep brake parts available for the City’s vehicle fleet.
- The proposed agreement has a maximum base amount of $5,179,356, taxes included, plus $1,035,871.20 for contingencies, for a total of $6,215,227.20, taxes included.
- It includes an option for one 12-month extension. Prices are adjusted annually using an industrial product price index.
- Chartrand Ford was the only firm to submit a compliant bid in a public call for tenders. The City must evaluate the company’s performance.
- The City would order parts as needed. It does not promise to buy all listed quantities.
What it means for you#
- City vehicle service: City staff say the agreement is intended to support a steady supply of brake parts for the Service du matériel roulant et des ateliers (rolling stock and workshops service).
- Supplier: If the agglomeration council approves the agreement, Chartrand Ford would supply parts on request under its terms. The supplier must provide a manufacturer’s warranty for defects in design and manufacture.
- Residents and taxpayers: This decision does not directly change residents’ rights, taxes, fees, or services. The City says the spending would come from the workshops’ operating budget.
Money#
The proposed maximum is $6,215,227.20, taxes included; actual orders would depend on the City’s needs.
- The base agreement is capped at $5,179,356; the separate contingency amount is $1,035,871.20.
- The decision says spending will be charged to the relevant budgets as needs arise. City staff say the expense has no impact on the City’s financial framework; 5.7% would be paid by the agglomeration.
- The bid’s base amount was 10.78% below the City’s estimate, but staff say the supplier could not include some items. After removing those items from the estimate, staff report the bid was $102,943.73, or 2.03%, above the adjusted estimate.
What is unclear#
- The agglomeration council has not yet made the final decision, so it is not yet clear whether the agreement will proceed.
- The materials do not say how much the City will actually order or spend.
- The materials do not explain how the contingency funds would be approved or used in specific cases.
Case for#
- City staff say a framework agreement could help ensure a continuous supply of brake parts needed for vehicle safety and availability.
- Staff say that without an agreement, the City might need to make individual purchases, which could cause delays and increase costs.
- Orders based on actual needs mean the City is not committed to buying every listed quantity.
Case against#
- Only one compliant bid was received, so the materials show no competing compliant offer for comparison.
- The bid did not include some items in the City’s original estimate; after adjusting for that, the bid was above the adjusted estimate.
- Annual price adjustments and the contingency provision mean the final spending may vary from the base agreement amount.