Montreal, January 8, 2016
Steel for towersHydro-Québec awards $65M contract, with $55M going to three Québec-based companies
Over the next few years, Hydro-Québec’s steel requirements will be twice as high as average due to major projects being carried out. In 2015, the company launched two separate calls for tenders totalling $65M, with 85% of the contracts going to Québec-based companies.
Initial call for tenders for 5,000 tonnes
The tender analysis indicated that inviting new international suppliers to bid along with Québec companies resulted in a price decrease of roughly 20%. This analysis takes into account the same quality criteria and transportation costs.
For this initial call for tenders, Hydro-Québec retained the Turkish firm Mitas. The contract for the supply of 5,000 tonnes is worth $10 M. The variance between the offers presented was significant enough for the contract to be awarded to a new supplier.
Second call for tenders for 25,000 tonnes
In November 2015, Hydro-Québec launched a second call for tenders for 25,000 tonnes. The decrease in prices noted during the initial call for tenders had continued. Three Québec-based firms tabled the best offers and will share contracts worth a total of $55 M.
Hydro-Québec must reach a balance between economic spin-offs in Québec and the price paid, since purchases have an impact on electricity rates in Québec.
In 2014, Hydro-Québec’s purchases of goods and services reached $3.3 billion, more than 90% of which were from Québec-based companies.
For information at Hydro-Québec: