Montreal Transit Corp Case Study

                                Mini-Case Response

Montreal Transit Corporation

The procurement process of 336 new metro cars needs to have a strategic input to award the contract to a vendor to be chosen amongst the three options of sourcing from Alstom Transport, Bombardier or a Consortium keeping in mind the tight delivery timelines with limited availability of funds while fulfilling the CSR obligations.

Issues to consider:

• Evolve the decision of awarding the contract around CSR initiatives of the vendor
• Upliftment of the local economy
• Limited timelines to award the contract
• Vendor should be able to meet the delivery schedule
• Need for energy efficient cards
• Cut down on the increasing maintenance cost of the aging fleet on the limited annual budget

Alternatives

1. Sole Sourcing from Alstom

Pros:

• Shorten the time frame to award the contract
• Have tighter control on execution of contract with ease on managing the conflicts
• Has access to the latest available technology
• Financially stable, high net worth with presence in 63 countries
• Adopts CSR in its decision-making process
• Has a policy to develop business partnerships across globe, investing in existing companies and involving in the life of local community

Cons:

• May implicate STM for not being fair and transparent
• Can harm the reputation of STM
• Can have negative impact on local economy
• May not get the best value for money

1. Sole Sourcing from Bombardier

Pros:

• Help in creating positive impact in the community
• Help in developing local economy
• Have tighter control on monitoring the progress
• Can expedite the procurement process
• Improve local relationships

Cons:

• Declining financial revenues of Bombardier can lead to financial instability
• Has a backlog on deliveries
• May not be able to deliver on schedule
• May not get best value for money

1. Consortium RFQ

Pros:

• Effective utilization of latest available technology