Summary#
Montréal city council unanimously adopted a position on a proposed three-year framework agreement with Thibault & Associés to supply fire engines. The city council’s decision is an orientation for the agglomeration council, which makes the final decision at a later meeting. City staff say the goal is to renew the fire department’s fleet gradually.
- The agreement would let the City order fire engines as needed, up to a maximum of $44,475,536.18, taxes included.
- The City would also authorize $6,671,330.43, taxes included, for contingencies, bringing the estimated total to $51,146,866.61, taxes included.
- Staff plan for 30 engines over three years—about 10 a year—but the agreement is for supply on request; the materials do not say the City must order all 30.
- The City would evaluate Thibault & Associés’ performance and charge spending to the budgets of the Service du matériel roulant et des ateliers as needs arise.
- The agreement follows a public call for tenders. Two bids were submitted, and Thibault & Associés was the lowest compliant bidder.
What it means for you#
- Residents: The decision does not directly change residents’ taxes, fees, or fire-service rules. It would support the City’s purchase of vehicles for the Service de sécurité incendie.
- City: If the agglomeration council approves the agreement, the City could order 6,000-litre-per-minute fire engines over three years, subject to the agreement’s maximum amount and terms.
- Taxpayers: The authorized agreement and contingency amounts would be paid from City service budgets as purchases are needed. The agreement allows vehicle prices to be adjusted for changes in the exchange rate.
Money#
The estimated agreement amount is $51,146,866.61, taxes included, including contingencies.
- The agreement itself has a maximum of $44,475,536.18, taxes included; $6,671,330.43, taxes included, is authorized for contingencies.
- The contract is for three years. Staff plan for 30 trucks, but orders would be made as needed.
- The contract’s vehicle-price formula links 90% of the price to exchange-rate changes at the time of an order.
- The city staff summary says the winning bid, without contingencies, was 25.42% below the City’s estimate. The next-lowest compliant bid was 26.28% higher than the winning bid.
What is unclear#
- The materials do not say whether the full planned 30 engines will be ordered.
- The final amount spent could depend on order volumes, exchange-rate adjustments, and use of the contingency budget.
- Four of the six suppliers who obtained the tender documents did not bid. Two said the request seemed restrictive and did not reflect current market conditions, according to city staff.
Case for#
- The purchases could replace fire engines gradually, rather than all at once. City staff say this would help maintain the fire department’s operational capacity and plan spending.
- Thibault & Associés submitted the lowest compliant bid, at a price below the City’s estimate.
- The three-year agreement allows the City to order vehicles as needs arise, rather than committing in the resolution to buy all 30.
Case against#
- Only two bids were submitted. Two suppliers who did not bid said the request seemed restrictive, raising a question about whether the tender drew broad competition.
- Exchange-rate adjustments could change vehicle prices when the City places orders.
- The resolution authorizes a substantial contingency budget, but the materials do not explain what specific events would justify using it.