IT contract | IQ broke its own rules

Investissement Québec (IQ) contravened its own rules last year when awarding a 2.6 million contract for information technology services to three firms, rules the Public Procurement Authority (AMP) . The financial arm of the Quebec state will now have to report to the contract management watchdog.

In addition, one of the three companies in question, Dempton Solutions Technologies, was able to obtain an agreement for 1.05 million before taxes even though it had still not obtained authorization to do business with the State at the time of submission of its submission, reveals the AMP.

“Moreover, IQ committed a breach of the normative framework by awarding the contract to more than one service provider, contrary to what its policy provides,” adds the policeman of public contracts, in his decision rendered on Friday.

The case concerns a call for tenders issued in March 2023 – when former president and CEO Guy LeBlanc was in office – for professional services specialized in information technology (IT).

At the end of the process, which concluded two months later, three companies shared the agreement. These are Dempton Technological Solutions, Delan ($1.07 million) and Momentum Technologies ($493,200). These companies are not identified by the AMP, but their name appears in the call for tenders, a public document.

Two slaps on the wrist

Dempton ended up obtaining all the necessary approvals, in September 2023. However, this does not respect the rules in place, underlines the AMP. The body underlines, in its decision, that IQ representatives “were unaware” that this firm should have obtained the right to bid on public contracts “at the time of submission of bids”. The Crown corporation was aware that Dempton did not have this authorization at the time of the tender.

The other breach concerns IQ’s internal policy regarding the awarding of contracts. To award the contract scrutinized by the AMP, the state company opted for the “best final offer” mechanism. The public contracts watchdog believes that this way of doing things gives the state company the right to negotiate with several companies at the same time. There can only be one winner.

“The AMP is of the opinion that the provisions of the policy and directive submitted by IQ as part of the review do not allow it to award the contract to more than one service provider when it carries out an acquisition process including an assessment of quality according to the quality/price ratio, as in the present case,” underlines the decision.

Accounts to give back

IQ now has 45 days to explain to the Authority how it intends to correct the situation. The state-owned company will have to take into account the four recommendations made by the public contracts watchdog. This essentially suggests the establishment of “effective procedures” to ensure that companies bidding on calls for tender have the authorizations to try their luck, a tightening of the application of internal policies and training of its staff.

As of Friday morning, IQ had not commented on the AMP’s decision.