Montreal approves extra ERP cloud work

Summary#

Montréal city council unanimously adopted an orientation to authorize an additional $1,709,506.94, taxes included, for Oracle ERP Cloud implementation services. The addition would raise the total authorized spending on the contracts to $13,106,219.86, taxes included. The agglomeration council makes the final decision at a later meeting.

  • The additional services would go to Société Conseil LGS inc. (Lot 1) and Conseillers en Gestion et Informatique CGI inc. (Lot 2), under existing contracts.
  • The contracts cover implementation of purchasing, finance and administration modules, and integration with other systems.
  • The city’s decision summary says the extra amount is a 15% increase, for services from April 24, 2026, to January 24, 2027.

What it means for you#

  • City staff and the project: If the agglomeration council approves the orientation, the city could use the extra contracted hours to continue work on testing, integrations and other project deliverables.
  • Residents: This decision does not directly change a resident’s rights, services, fees or taxes. It concerns professional services for the city’s internal systems.
  • The two firms: They would be eligible to provide the additional services under their existing contracts; the decision does not describe a new tender for this added amount.

Money#

The proposed additional spending is up to $1,709,506.94, taxes included ($1,561,007.70 net of tax rebates).

  • LGS: $1,568,415.37; CGI: $141,091.57.
  • The spending would be charged to the Information Technology Service’s budget and used as needs arise. The decision summary says the related expense sharing would be calculated under an existing rule using a rate applied to agglomeration expenses.
  • The original contracts were awarded after a public call for tenders, with one bidder for each lot. The materials do not say whether the winning bids were the lowest compliant bids.

What is unclear#

  • The materials do not give a breakdown of the added hours or the services each firm will provide.
  • They do not say how much of the authorized maximum will actually be spent.
  • No publicly available information is provided on the total project cost or whether further contract increases will be needed.

Case for#

  • City staff say the project needs more specialized services to complete integration and testing before the existing contracts expire in January 2027.
  • Staff identify quarterly software updates, complex data work, corrections to functional problems and additional system integrations as reasons for the extra work.
  • The additional authorization could allow work to continue under the current contracts rather than pause while the city waits for the next contract period.

Case against#

  • The increase is substantial: 15% more than the existing contract amounts, according to the city’s decision summary.
  • The materials explain why more work is needed but do not provide a detailed breakdown of the added hours or show how the extra work will be tracked against the maximum.
  • Because the extra services would be added to existing contracts, the materials do not describe a new competition for this additional spending.