In an investigation report submitted to city council on Monday, the Inspector General of the City of Montreal, Mᵉ Brigitte Bishop, accuses the Société de transport de Montréal (STM) of major shortcomings in the awarding of contracts for work at the Bellechasse transport center which is to accommodate next year the 300 new buses promised by Valérie Plante during the 2017 election campaign.
The Office of Inspector General (OIG) describes as “serious and serious” the breaches observed that would have justified the termination of certain contracts awarded by the STM. This was not possible since the work had already been carried out, notes the Inspector General.
Initially, the BIG examined the awarding of a management contract to the Pomerleau company to support the City in the construction of the Bellechasse transport center which should open its doors at the beginning of 2023. This contract of 27, $4 million included a provision set at $4 million for work performed on site if required. By applying a pre-established amount, the STM acted against the very objectives and principles of a public call for tenders, which are aimed at competition between bidders and the obtaining of prices based on the call for tenders documents, notes the BIG.
Unfair process, says OIG
The Inspector General was also interested in the cancellation of a call for tenders for formwork work on the foundation of the transport center in September 2020. The STM waited three months before canceling this call for tenders. offers. As soon as the bids were received, the STM knew that it would probably have to cancel the call for tenders given the high cost of the bids, one of which was 43% higher than the estimates.
However, rather than canceling the call for tenders quickly, it began discussions with Pomerleau, which used a subcontractor, Santco. This company, which had not participated in the call for tenders, carried out the formwork for the stairwells at a cost of $1.7 million.
The STM invoked the urgency of securing the site of the transport center, but after investigation, the OIG is rather of the opinion that it was an “urgent schedule”. Under the Act respecting public transit authorities, to bypass the call for tenders process, the STM would have had to submit a report to its board of directors to demonstrate the urgency of the work, which it did not do for the formwork of the stairwells, underlines the BIG in its report.
The OIG therefore believes that the process related to this work was unfair to the bidders and that it was directed to Santco.
The STM replica
In a press release Monday, the STM claimed to have acted in good faith in this matter. According to her, her decisions have saved more than $2 million in public funds.
It was “as a precautionary measure” and to avoid delays in the work that it provided for a provision of 4 million for ancillary work in the management contract awarded to Pomerleau, which represents 2% of the total value of the 190 million project. Other public bodies have similar provisions in their management and construction contracts, argues the STM.
The STM is of the opinion that entrusting the formwork work to the construction manager complied with the normative framework to which it must comply, in addition to avoiding the postponement of the work or significant costs. “The STM acted in the interest of the project and with the sound management of public funds in mind,” argued Éric Alan Caldwell, Chairman of the STM’s Board of Directors, who nevertheless said he was willing to discuss with the OIG of possible improvements in the contractual processes of the transport company.