A former senior executive at SAP expressed his frustration over the Quebec Auditor General’s findings regarding the alleged preferential treatment given to the German software giant before the call for bids for the digital overhaul of the Quebec auto insurance board.
Guy Cossette, the former head of business development at SAP, shared his thoughts during his testimony at the Gallant Commission, which is investigating the modernization of the Société de l’assurance automobile du Québec (SAAQ).
Back in 2014, Cossette was involved in proposing an all-encompassing management software package (ERP) to the government agency, eventually leading to the creation of the SAAQclic platform. The objective was to evaluate the SAAQ’s requirements and the financial implications of implementing an ERP system.
As part of their initiative, SAP conducted workshops for numerous SAAQ staff members to showcase the ERP model, with auditors monitoring to ensure fairness. Cossette expressed his bewilderment at the Auditor General’s insinuation of a conflict of interest involving SAP.
In a report released in February, the former Auditor General highlighted the significant involvement of only one ERP provider in the assessment process. While not explicitly stating a conflict of interest, the Auditor General emphasized the advantage gained by the provider due to its involvement in setting the system requirements before the bid deadline.
Despite SAP’s existing contractual ties with SAAQ, including a smaller project, Cossette defended the practice of presenting the product to potential clients, considering it a standard industry practice.
He emphasized that if SAP had not taken the initiative, competitors would have engaged in similar pre-sales activities. Reflecting on SAP’s previous misses in securing public contracts, Cossette noted the company’s eagerness to secure lucrative opportunities.
In 2017, SAP clinched a substantial framework agreement worth $458 million with LGS-IBM for integration services, a significant development in its public sector portfolio.
The overall budget for the SAAQ’s IT modernization could escalate to over $1.1 billion, doubling the initial estimate, as per the Auditor General’s assessment.
