SAP‘s Path to SAAQ Contract Scrutinized at Gallant Commission
Quebec City, QC – Testimony at the Gallant Commission today revealed efforts by Karl Malenfant to ensure SAP was positioned to compete for the lucrative SAAQclic contract, raising questions about the fairness of the bidding process. Counsel for the Commission presented evidence suggesting Malenfant actively worked to familiarize SAAQ employees with SAP’s software prior to the official call for tenders.
The inquiry centers on the 2017 awarding of the SAAQclic contract to SAP, in partnership with LGS (IBM). The commission is investigating potential irregularities in the procurement process. The SAAQ, Quebec’s automobile insurance board, sought a digital change solution, and the contract represents a critically important investment in modernizing its systems. The outcome impacts Quebec drivers and the province’s public services.
In 2014, Malenfant’s company was heavily involved in providing training to SAAQ employees on various software products as the Crown corporation prepared to evaluate potential solutions. Me Alexandre thériault suggested Malenfant took a proactive role, stating, “You are upstream to plan the meetings, to speak to Louise Savoie, to align your teams.”
Malenfant countered that the training was simply intended to educate SAAQ staff, who lacked familiarity with such software.”It is false,” he responded, explaining the goal was to “make known” the functioning of “software packages” to the SAAQ teams. He emphasized the need for demonstrations, stating, “What are we talking about, can you be trained? For any product, people want demonstrations.”
He further explained that SAP, Oracle, and Microsoft software operate similarly, though he acknowledged the latter two companies were less involved in the pre-tender training. Malenfant also alluded to government timelines, remarking, “people often say that time is elastic.”
Ultimately, SAP secured the contract in 2017 through its partnership with LGS (IBM). Notably, Deloitte, the only other supplier to reach the final stage of the process, also proposed implementing SAP’s software.
