Tramway contract valued at $ 22M paid $ 30M by the City

Only one provider offered its services for a major engineering and architecture contract awarded under the Capital Transit System Project. The city valued the job at $ 22.6 million. The consortium was asking for $ 30.6 million. The city nevertheless chose it.
At the heart of the summer, the elected officials of the Qu├ębec City Executive Committee authorized the expenditure after a renegotiation with the winner who has slightly reduced the bill. “The contract is awarded to the only supplier who has submitted a bid and has filed,” reads in a document posted online. “The sole supplier responding to the solicitation has agreed to revise the bid price submitted in the amount of $ 30,608,443.10 down to $ 30,367,707.08 following the negotiations. with the Supply Department. “This is still 34.4% more than the estimate, plus the addition of” applicable taxes “.

Which company is chosen? In fact, several companies have decided to come together to present the exclusive proposal: WSP Canada; CIMA +; HATCH; St-Gelais Montminy & Associates Architects; DAOUST LESTAGE. They named their Team Tram-Innov consortium.

What will be their mandate? “Complete the preliminary realization of the Quebec City tramway, allowing for the subsequent phase of detailed design and implementation,” we learn in tender documents. They will have to produce, by 2021, the documents that will be used later to hire contractors to build the structuring public transit network.

For this, they will receive $ 14.69 million.

In a second step, Team Tram-Innov will participate notably in the supervision of the possible works. This task should take place between 2021 and 2026, if the time frame is up to that point. This time, she will receive the balance, about $ 15.67 million.

Respect the schedule

The question remains: why did you give the contract if only one group raised their hand? Among other things, to respect the schedule. City spokesman David O’Brien also said that the City has agreed to pay more than expected “considering that at this planning stage, it is important to invest the money required to ensure a quality project at the time of its realization. The decision was [therefore] to award the contract and not to downgrade the criteria or requirements of the specifications considering the quality and performance objectives of the project. ”

But why the other companies did not submit a bid? The city council contacted suppliers to ask them. What did she retain? Since the winner of the $ 30 million contract will not be able to get construction contracts for the streetcar – he would then oversee his own work – some would have decided to pass their turn, argues David O’Brien. It lists a number of additional reasons: the complexity of the mandate; the requirements for the skills of the experts assigned to the project; penalties imposed if the schedule is not respected; the large number of public transit projects underway in Canada, reducing competition …

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