Categories: Business

LGS Faces Significant Risks in SAAQclic Contract

LGS Faces Significant Risks in SAAQclic Contract

Understanding the SAAQclic Project

The Société de l’assurance automobile du Québec (SAAQ) is undergoing a significant digital transformation with its SAAQclic platform. This project, valued at approximately 458 million dollars, aims to streamline various services offered by the SAAQ through a robust digital interface. However, insights from former LGS vice-president Michel Dumas have unveiled considerable challenges and risks associated with this endeavor.

Risks Highlighted by Michel Dumas

During his testimony before the Gallant Commission, Dumas pointed out that the agreement posed “gros risques” for LGS, primarily because the firm had limited control over the project execution. According to him, all major decisions required approval from SAAQ, indicating that LGS was not in a position to manage the project effectively. This lack of control has raised concerns about deliveries and timelines, particularly the crucial “delivery 2” phase, which revolves around the development of the SAAQclic platform.

Challenges in Collaboration

As the relationship between SAAQ and its partners—LGS, IBM, and SAP—began to fray, the project’s success was increasingly jeopardized. Dumas mentioned that at the project’s inception in early 2019, he noticed a marked dysfunction among the teams. His extensive background in public service, including a vice-presidency at the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST), led him to recognize the scale of the project as unprecedented. “C’est gros, c’est énorme,” he remarked, drawing parallels to another digital transformation project that was ultimately abandoned by the CNESST.

Financial Implications and Control Issues

In Dumas’s view, all risks associated with the project were borne by LGS, which raises critical questions about the viability of such contracts. He questioned the decision-making process at IBM Canada, stating, “Vous n’êtes pas maître d’œuvre, vous n’êtes pas maître d’ouvrage, c’est le client qui décide des ressources. Pourquoi avez-vous signé ce contrat ?” Such statements highlight the precarious nature of contractual obligations when clients hold all the power.

Mediation and Future Steps

The mounting tensions eventually led both parties to seek mediation, resulting in a new agreement signed in September 2020. This mediated resolution involved significant amendments to the initial project scope, with several components being withdrawn from the original contract. As the parties aim to move forward, the lessons learned from this situation will likely shape future contracts and collaborations in the public sector.

Conclusion: A Cautionary Tale

The saga surrounding the SAAQclic project serves as a cautionary tale for firms engaging in large-scale contracts with governmental agencies. As Michel Dumas continues his testimony, it becomes increasingly clear that understanding the dynamics of power, risk management, and collaborative frameworks is essential for successfully navigating such complex projects. The journey of SAAQclic and its partners will undoubtedly provide valuable insights into best practices and pitfalls in future technological transformations.