Montreal eyes winter abrasives deal

Summary#

Montréal city council unanimously set its position on a proposed supply agreement with Granulat Provincial. It recommends a 24-month framework agreement, with two optional 12-month extensions, for winter abrasives; the agglomeration council makes the final decision at a later meeting. City staff say the goal is to keep abrasives available for winter road and sidewalk maintenance.

  • The proposed agreement would let participating Montréal boroughs and linked municipalities order abrasives as needed. The resolution sets a maximum of $2,720,166.91, taxes included, plus $408,025.04 for possible quantity changes, for a total estimated amount of $3,128,191.95, taxes included.
  • Granulat Provincial would supply and deliver aggregate and aggregate-and-salt mixtures on request. The quantities listed are estimates, not a promise that the city or participants will buy those amounts.
  • The agreement would be available to all Montréal business units and the participating linked municipalities of Kirkland, Westmount, Beaconsfield and Senneville.
  • The city would evaluate Granulat Provincial’s performance. The proposed award follows a public call for tenders: all four bidders were compliant, and Granulat Provincial was the lowest compliant bidder.

What it means for you#

  • Residents: The agreement is for materials used in winter road and sidewalk maintenance. It does not guarantee a particular level or timing of service.
  • Participating boroughs and linked municipalities: They could order abrasives as operational needs arise and would pay from their existing budgets. The resolution does not require them to buy a set quantity.
  • Taxpayers: The city council’s vote sets a position, not a final contract award. The proposed contract would not create a new benefit, fee or tax.

Money#

The proposed agreement has an estimated total of $3,128,191.95, taxes included; this is not a guaranteed purchase amount.

  • The resolution sets $2,720,166.91 for the agreement and $408,025.04 for possible quantity changes.
  • City staff estimate the two optional 12-month extensions at $1,257,195.64 and $1,320,055.42. The materials do not say whether those option estimates include taxes.
  • Staff say actual orders would be paid from participants’ existing budgets, with an estimated 88.83% charged to boroughs and 11.17% to the agglomeration.

What is unclear#

  • The agreement’s start date is not given.
  • The materials do not say how much each participant is expected to order.
  • The resolution gives the base agreement amount as $2,720,166.91, while the staff summary’s detailed tax calculation gives $2,720,166.92—a one-cent difference.
  • The materials do not explain how the agreement’s option amounts relate to each participant’s budget or whether the options will be exercised.

Case for#

  • City staff say a framework agreement would make supply more consistent and procurement easier.
  • Winter abrasives are used in road and sidewalk maintenance. Having them available may support safer winter travel, as staff state.
  • Granulat Provincial was the lowest compliant bidder, at 1.2% below the city’s estimate.

Case against#

  • The lowest compliant bid was 32.17% below the second-lowest bid. Staff attribute the gap partly to Granulat Provincial’s low profit margins and nearby facilities; the materials do not show whether those prices can be maintained over the agreement.
  • Staff say submitted prices average 7.25% above the prices Montréal is currently paying.
  • The estimated contract amount is not a firm spending cap on all possible orders over the full term: the two extension options have separate estimates, and the materials do not say whether they will be used.