Summary#
Montréal city council unanimously adopted a position on awarding two framework agreements (agreements for services ordered as needed) to Pneus Métropolitains inc. for tire and wheel services at mechanical workshops in the Centre and South sectors. The agglomeration council makes the final decision at a later meeting.
- The proposed agreements run for two years, with an option to extend each by 12 months. The amounts are $509,714.64 for Lot 3 and $459,945.78 for Lot 4, taxes included.
- The city’s position also includes $193,932.09 in contingencies (an amount set aside for extra costs), bringing the total to $1,163,592.51, taxes included.
- The services include tire and wheel repair and replacement, tire mounting and removal, wheel repair and refinishing, tire transport, vehicle transport, 24/7 roadside service, and disposal and recovery of used tires at no charge. The scope also includes new tire delivery through a separate city purchasing agreement and supply of new tires excluded from that agreement.
- The resolution calls Pneus Métropolitains the lowest compliant bidder for each lot. The tender received four bids for Lot 3 and five for Lot 4.
What it means for you#
- City vehicle workshops: If the agglomeration council approves the position, the Service du matériel roulant et des ateliers can order the listed services for workshops in the Centre and South sectors as needed.
- Other workshops: This decision does not move all city workshops to the contractor. The summary says service will remain in-house at the SIM, St-Laurent, St-Léonard, Pierrefonds-Roxboro, Outremont, Verdun, and Mercier-Hochelaga-Maisonneuve workshops.
- The city: It must evaluate Pneus Métropolitains’ performance and charge the costs to the service’s budgets as needs arise. The city does not promise to order all the estimated quantities. The contract terms also allow some services to be removed during the agreement.
Money#
The proposed two-year agreements total $1,163,592.51, taxes included, including contingencies.
- The two lot amounts total $969,660.42; the separate contingency amount is $193,932.09.
- Prices may be adjusted each year using the Montréal consumer price index; the city may benefit from a price decrease if the index falls.
- The summary says the contracts can be renewed for 12 months, but does not give a separate cost for that option.
What is unclear#
- The materials do not say whether the stated total includes any spending if the renewal options are used.
- Actual spending will depend on orders. The city does not promise to order the listed quantities.
- The supplied summary does not detail when or how the contingency budget may be used.
Case for#
- A competitive tender resulted in four bids for Lot 3 and five for Lot 4, and the resolution identifies the selected firm as the lowest compliant bidder for each lot.
- A possible argument for the arrangement is that it lets the city order specialized tire services as needed while keeping some workshop services in-house.
Case against#
- One concern is that the total cost may change with orders, contingency use, annual price adjustments, or a renewal; the materials do not give a combined cost under those possibilities.
- The city’s position authorizes a substantial contingency budget, but the supplied summary does not explain the circumstances for using it.