A Quebec technology company, CGI, made headlines by submitting a bid significantly lower than its competitors, LGS-IBM, for a major digital transformation project with the Société de l’assurance automobile du Québec (SAAQ). CGI’s bid, which aimed to collaborate with software giant Oracle, stood at approximately $323.5 million, a whopping $135 million less than the $458.4 million contract awarded to LGS-IBM and SAP in 2017.
During the scrutiny of this bid at the Gallant Commission, it was revealed that CGI’s proposal was 29% less costly than the winning bid. The commission’s attorney highlighted the nuances of the bidding process, emphasizing that CGI’s offer was put forward before the competitive dialogue phase, allowing room for adjustments in the bids of the finalist groups.
Despite being disqualified before the bidding process advanced, CGI’s bid was notable for its cost-effectiveness. Francis Mathieu, a key figure in preparing CGI’s proposal, attributed the lower costs to the company’s access to a skilled French-speaking workforce in Quebec City, reducing additional expenses related to transportation and accommodation. Mathieu also suggested that Oracle’s solution might have been more budget-friendly compared to SAP’s offering.
In contrast, LGS-IBM faced challenges due to a reliance on resources from abroad, particularly India, for the SAAQ digital project. The language barriers and translation requirements encountered by the consortium during the project development were discussed at the commission. A former IBM manager explained that the scarcity of French-speaking professionals locally necessitated seeking talent internationally.
Following CGI’s disqualification, Mathieu detailed discussions with SAAQ, where the company’s desire for more control over the project emerged as a key divergence with the SAAQ’s management vision. The company’s emphasis on leveraging its management expertise clashed with the SAAQ’s preference to lead the project internally.
