OIG report | “Serious and serious” breaches in the awarding of contracts to the STM

The Inspector General of Montreal claims to have discovered “serious and serious” shortcomings in the awarding of contracts for the construction of the new Bellechasse transport center of the Société de transport de Montréal (STM), an underground construction intended to accommodate 300 buses in Rosemont–La Petite-Patrie.

Posted at 2:49 p.m.
Updated at 4:56 p.m.

Vincent Larouche

Vincent Larouche
The Press

Henri Ouellette-Vezina

Henri Ouellette-Vezina
The Press

The irregularities would have justified a termination of the contracts in this case, according to the inspector, Ms.and Bridget Bishop. But it’s too late to do that, because the work has already been done.

The Office of Inspector General (OIG) points out that an unusual contract was awarded to the firm Pomerleau to act as construction manager on this project, at a cost of $27.5 million. Pomerleau was to help prepare calls for tenders for the various contractors interested in carrying out construction work on the new centre. However, the call for tenders provided that a fixed amount of $4 million was to be reserved for unforeseen work carried out by the construction manager himself during the project.

This envelope for works of 4 million undefined “does not allow any competition between the bidders as to the price, which goes against the very objective of public calls for tenders”, specifies the report of the BIG.


PHOTO DAVID BOILY, LA PRESSE ARCHIVES

The Inspector General of Montreal, Mr.and Brigitte Bishop

When the BIG investigators questioned the STM on this subject, the organization’s response demonstrated “a profound ignorance of the normative framework that applies to it”, denounces Mr.and Bishop. No criticism is made of Pomerleau as such in the report.

Injured contractors

The Inspector General also criticizes the STM for “not having shown good faith” towards contractors who tendered to carry out formwork. During the bidding process, the organization had already decided to have the work carried out by Pomerleau, from the budget of 4 million reserved for unforeseen work. But she still let entrepreneurs build their case, prepare their proposals, pay their deposits, reserve their staff.

These tenders required significant investments in time and money, the inspector points out, in particular for the purchase of a bond, on the part of the contractors, and potentially prevented them from pursuing other projects, while the party was lost in advance for them, without their knowing it.

Mme Bishop submitted his report to city council on Monday, and recommends a series of measures to ensure that the awarding of contracts by the transportation company is done in careful compliance with the rules of healthy competition. Work on the new Bellechasse transport center should be completed by next fall, according to the operator.


PHOTO ROBERT SKINNER, THE PRESS

Construction of the new Bellechasse transit center in Rosemont–La Petite-Patrie

“In the interest of the project”

The STM was quick to react to the report on Monday. The chairman of its board of directors, Eric Alan Caldwell, says the organization has “acted in the interest of the project and with the sound management of public funds in mind” as well as “the fair treatment of bidders”. .


PHOTO ALAIN ROBERGE, LA PRESSE ARCHIVES

Chairman of the STM Board of Directors, Éric Alan Caldwell

Mr. Caldwell maintains that the company “entrusted, in good faith, certain works to the manager and builder, which saved more than two million”, especially since a postponement of the works would have had “impacts major financial and operational issues”, particularly in terms of security.

“This is the first time that we have tested this type of contract at the STM, so it is certain that there will be work to do with the BIG to agree on the actions to be taken for the next projects to be to come. If we have to adjust, we will,” he concedes, however, in an interview with The Press.

It remains that “this embodiment has served the project well”, assures Mr. Caldwell. “Construction management is a type of contract that allows you to be agile and act quickly, in this case to have a garage that can accommodate more buses and, above all, [autobus] electricity”, he justifies, recalling that these practices are used in other projects such as the Metropolitan Express Network (REM) and the construction sites of the Société québécoise des infrastructures (SQI).

As for the provision of 4 million, the STM affirms that it was used for “the execution by the construction manager of any ancillary work under controlled management, which represented 2% of the total projected value of the work, i.e. 190 million “. “The fact of providing for the performance of ancillary work under controlled management allowed rigorous monitoring of the schedule and costs during the execution of the work, while preserving fairness between the bidders”, explained the company. .


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