SAAQclic: Consultants unaware their hourly rate jumped to $350/h

External consultants working on the digital transformation of the Société de l’assurance automobile du Québec (SAAQ) were unaware that their hourly rate billed to the public body had suddenly increased from $82 to $350 per hour, even though their employment contract and duties remained the same.

This is one of the findings presented Thursday before the Gallant Commission, which is attempting to shed light on the SAAQclic fiasco.

Three commission staff members conducted an investigation into the variation in hourly rates among consultants hired by the LGS-IBM-SAP consortium. They met with approximately 20 people as part of their investigation.

Some of these resources were employed in 2017 as “technology specialists,” with an hourly rate of $82 billed by the consortium to the SAAQ. In 2018, this compensation increased to $350 per hour, linked to “leading-edge expertise.” The suppliers’ justification at the time was, in particular, that they were bringing forward a major update.

However, several of the consultants contradicted this version to the Gallant Commission team.

Some claimed to have never worked on this update and not to have a leading expert profile, according to the cases presented by investigator André Laroche.

One of the people interviewed described themselves as “basic,” “something that is not uncommon in the market,” he recounted. The boss of one of the consultants also confirmed to the investigator that she could not be described as an expert and therefore billed her at an hourly rate of $350/h.

Other consultants stated that this version change had no impact on their work and that it was a “standard upgrade.”

The investigation by Laroche, lawyer Imène-Fattouma Lammali, and auditor Marie-Sylvie Le Rouzès also reveals that none of these external consultants were informed of the change in hourly rates. And that they never benefited from it either.

“These people had a contract with an external company, and that contract didn’t change. What changed was the amount LGS billed or charged the SAAQ for their services. They weren’t aware of it. They didn’t know there was a change in rates,” Laroche emphasized.

Among the cases presented Thursday afternoon, several of the rates billed had dropped to levels ranging between $82 and $116/hour during 2018.

The investigation into the variation in hourly rates also highlighted a “rapid overuse” of the hourly rate for “advanced expertise.” The consortium’s bid provided for more than 10,700 hours at a rate of $350/hour for the duration of the contract.

This limit was reached nine months after the contract was signed. It exceeded 60,000 hours by the end of 2024. The investigation estimates that this resulted in a $12 million discrepancy with the initial contract.

Laroche deplored the lack of guidelines surrounding the control of the use of the “peak expertise” hourly rate. According to him, the use of this bank of peak expertise hours was at the consortium’s “discretion.”

–This report by La Presse Canadienne was translated by CityNews