How SAAQclic Became a $1.1 Billion Failure
A visual breakdown of the procurement process that led to Quebec's costliest IT scandal
In 2017, Quebec's Ministry of Health signed a contract with SAP for a new health information system. The initial budget was $458 million. By 2023, the final cost exceeded $1.1 billion—a 140% increase. This flowchart maps the critical decision points where competitive oversight was bypassed.
Flowchart 1: The Procurement Decision Path
Where Did the Procurement Process Fail?
2017: Ministry of Health (MSSS)
Needs new IT system for health data
Needs new IT system for health data
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Will there be competitive bidding?
REGULATORY REQUIREMENT
Public call for tenders
Required by Quebec procurement law
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Multiple suppliers submit bids
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Independent evaluation committee
Scores based on criteria
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Best value contract awarded
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Competitive market pricing
WHAT ACTUALLY HAPPENED
Direct negotiation with SAP only
No public tender
↓
Sole-source exemption claimed
Justification: "System integration critical"
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No competitive bids received
No price comparison possible
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SAP contract signed: $458M
October 2017
↓
No cost controls
Final bill: $1.1 billion (+140%)
Final bill: $1.1 billion (+140%)
Flowchart 2: Timeline of Failures
October 2017
Contract signed with SAP ($458M)
Contract signed with SAP ($458M)
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2018-2019
Early cost escalation begins Project scope expands
Early cost escalation begins Project scope expands
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2020
Budget revision: $650M +42% increase, limited public disclosure
Budget revision: $650M +42% increase, limited public disclosure
↓
2021
Internal auditors flag cost overruns Warnings not acted upon by senior officials
Internal auditors flag cost overruns Warnings not acted upon by senior officials
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2022
Project delays mount Revised budget: $890M
Project delays mount Revised budget: $890M
↓
2023
System finally delivered Final cost: $1.1 billion
System finally delivered Final cost: $1.1 billion
↓
2024-2025
Public outcry, investigation launched
Public outcry, investigation launched
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2026: Auditor General Report
586 pages documenting failures 75 days of hearings, 120+ witnesses
586 pages documenting failures 75 days of hearings, 120+ witnesses
Flowchart 3: Oversight and Accountability
Who Should Have Intervened?
Cost overruns detected (2020-2021)
↓
Who had oversight authority?
Internal
Internal Auditors
↓
Did they act?
↓
YES
Raised concerns in 2021 But warnings ignored by management
Raised concerns in 2021 But warnings ignored by management
Ministry
MSSS Senior Officials
↓
Did they act?
↓
NO
Did not halt the contract Continued payments despite escalation
Did not halt the contract Continued payments despite escalation
Legislative
Treasury Board
↓
Were they informed?
↓
UNCLEAR
Limited documentation Evidence suggests partial disclosure
Limited documentation Evidence suggests partial disclosure
Result: Accountability Failure
No intervention until project completion
No intervention until project completion
Flowchart 4: Simple Cause and Effect
Single-source contract (no competition)
↓
Enabled by
No market pressure on pricing
↓
Combined with
Inadequate internal oversight
↓
Led to
Unchecked cost escalation
↓
Resulted in
$642 Million Cost Overrun
$458M → $1.1B (+140%)
$458M → $1.1B (+140%)