City approves $2.24M traffic-signal cabinets

Summary#

Montréal city council adopted a decision to award Orange Traffic inc. the lot for traffic-signal cabinets under public call for tenders 25-21121. It creates a 24-month framework agreement, with an option to extend it by 12 months, for supplies ordered as needed; the stated goal is to maintain the city’s supply of equipment for traffic signals.

  • The agreement covers ATCC traffic-signal cabinets, for a maximum of $2,242,011.12, taxes included.
  • City staff estimate the agreement could cover 120 cabinets. The council’s resolution does not require the city to order that number.
  • Orange Traffic was the lowest compliant bidder among three bids. The council also directed the city to evaluate the company’s performance.
  • This decision covers cabinets only; it does not award the separate lot for traffic-signal control units.

What it means for you#

  • City residents and road users: No direct change to your rights, fees or traffic rules. City staff say the equipment is intended to support traffic-signal maintenance and upgrades.
  • City departments and boroughs: The city may order cabinets as needs arise during the agreement. The resolution assigns the spending to budgets for the Direction des projets d’aménagement urbain, corporate services or boroughs.

Money#

The resolution sets a maximum of $2,242,011.12, taxes included; actual spending will depend on orders placed.

  • City staff estimate a need for 120 cabinets over the agreement period.
  • City staff report Orange Traffic’s bid was 26.1% below the city’s estimate and $67,744.65 below the second-lowest compliant bid.
  • Spending is to be charged to the named city budgets as needs arise. The materials do not give a separate estimate of actual spending.

What is unclear#

  • The resolution does not say how much of the maximum the city will actually spend, or when orders will be placed.
  • The start date for the 24-month term and whether the city will use the 12-month extension are not stated.
  • The resolution requires a performance evaluation but does not explain how it will be done or what happens if performance is unsatisfactory.

Case for#

  • A possible argument for the agreement is that the city can order cabinets when needed, rather than make all purchases at once.
  • Three bids were received for this lot, and Orange Traffic was the lowest compliant bidder. Its bid was below the city’s estimate.
  • City staff say splitting cabinets and control units into separate lots was meant to encourage more suppliers to bid.

Case against#

  • The maximum amount is substantial, but the materials do not say how much the city expects to spend in practice.
  • The agreement includes a possible 12-month extension, but the materials do not explain what conditions would guide that choice.