Montreal Transit Corp Case Study
Essay by Gurpreet Singh • February 1, 2017 • Case Study • 285 Words (2 Pages) • 2,302 Views
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
- 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
- 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
- Consortium RFQ
Pros:
- Effective utilization of latest available technology
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