Montreal Awards IT Modernization Contract

Summary#

Montréal city council adopted a position to award a 24-month contract to Solutions Merkur Ltée for expert HCL Domino and related technology services. The agglomeration council makes the final decision at a later meeting. City staff say the work is intended to modernize and stabilize the systems used to prepare and manage the City’s decision-making process.

  • The contract is for up to $326,712.96, taxes included. It was awarded through public call for tenders 25-21192; one bid was compliant.
  • The contract includes two options to extend it by 24 months each. The options are not part of the $326,712.96 contract amount.
  • The work includes updating the systems, modernizing Java applications, rebuilding integrations, and migrating and processing data.

What it means for you#

  • Residents: No direct change to your rights, taxes, fees, or access to city services is specified. The work concerns systems used by City staff to prepare decision documents, agendas, meetings and minutes.
  • City staff and system users: The work is meant to update the decision-management systems. City staff report that about 6,000 people use them; the contract does not itself change how residents or staff take part in decisions.

Money#

The initial contract amount is $326,712.96, taxes included ($298,332.48 net of taxes).

  • The cost is to be charged to the City’s 2026–2035 capital program and funded through borrowing bylaws for agglomeration and local responsibilities. The expense is allocated 49.6% to the agglomeration.
  • The two 24-month extension options are estimated at $258,329.59 and $271,245.98, taxes included. If used, prices are adjusted under the contract using the consumer price index.
  • The sole bid was 32.79% above the City’s estimate. City staff say the vendor reduced its offer by 4.7% in negotiations and attribute the remaining gap to higher-than-expected prices for scarce specialist skills.

What is unclear#

  • The decision does not say whether the agglomeration council will approve the contract or whether either extension option will be used.
  • The materials do not give a separate estimate of the cost of each part of the technical work or describe how the City will measure whether the modernization succeeds.

Case for#

  • The work addresses aging technology in systems used to prepare and route City decisions, agendas and public meeting records.
  • Updating and testing the systems could help maintain their operation while the City changes underlying technology. City staff say the work is intended to improve stability and reliability; these are goals, not guaranteed results.
  • The only bidder met the pre-set selection criteria, and reduced its offer by 4.7% during negotiations.

Case against#

  • The sole compliant bid was 32.79% above the City’s estimate, leaving a substantial gap even after negotiation.
  • Only one firm bid. The materials say another firm withdrew because the work did not fit its business area, but do not show whether other ways of securing the specialist services were considered.
  • The total cost could rise if the City uses the extension options; the decision does not commit the City to them or set a combined maximum for the initial term and both options.