Montreal approves five 12-month truck repair framework deals

Summary#

Montréal city council adopted an orientation to conclude five framework agreements with T.M.S. Maîtres des Camions ltée for heavy-truck engine and transmission repairs. The agreements would run for 12 months, with an option for one 12-month renewal. The agglomeration council makes the final decision at a later meeting.

  • The agreements cover Cummins, Mercedes, International and Detroit diesel engines, and Allison heavy-truck transmissions.
  • The city would order repairs as needed. The listed quantities are estimates, and the city does not have to order all of them.
  • T.M.S. was the only bidder and submitted a compliant bid. City council also directed the city to evaluate the company’s performance.

What it means for you#

  • City vehicle users and services: The agreements would give the city a supplier for these repairs when needed. City staff say the repairs are intended to support the availability and reliability of city vehicles and equipment.
  • Taxpayers: The approved orientation does not require the city to buy a set amount of repairs. Actual spending would depend on orders placed.

Money#

The maximum amount for the agreements and contingencies is $3,531,470.99, taxes included.

  • Up to $3,070,844.34, taxes included, is for the repair agreements; $460,626.65, taxes included, is authorized for contingencies, such as extra parts or accessories.
  • The city would pay from the operating budget of the Service du matériel roulant et des ateliers (Rolling Stock and Workshops Service). Orders would be authorized through purchase orders as needs arise.
  • Prices are fixed during the initial term. If the city exercises the renewal option, prices may be adjusted using the Montréal consumer price index.
  • City staff say the agreements have no impact on the city’s financial framework. The materials do not estimate actual spending.

What is unclear#

  • How many repairs the city will order, and how much it will ultimately spend, are not stated.
  • It is not known whether the city will exercise the renewal option.
  • The materials do not describe how T.M.S.’s performance evaluation will be carried out or what consequences it could have.

Case for#

  • The city needs repairs for several makes of truck engines and transmissions. One supplier under agreements covering all five lots could provide those services when the city needs them.
  • The agreements do not require the city to order all estimated quantities, limiting the city’s commitment to services it actually needs.

Case against#

  • Only one of five firms that obtained the tender documents submitted a bid. Even though the bid was compliant, there was no competing bid to compare with it.
  • The total authorized amount includes a substantial contingency budget, and actual spending could be lower or could use some of that allowance, depending on repair needs.