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Montreal Transit Corp Case Study

Essay by   •  February 1, 2017  •  Case Study  •  285 Words (2 Pages)  •  1,088 Views

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                                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

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