MPI hiring driving instructor for expensive new Nova Crown insurer issues tender for consultant to oversee long-delayed move of Autopac services online By: Danielle Da Silva Posted: 7:00 PM CDT Monday, Mar. 20, 2023

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This article was published 20/03/2023 (936 days ago), so information in it may no longer be current.

Manitoba Public Insurance is hiring a new consultant to oversee its $290 million project to move Autopac services online after the province’s consumer watchdog rapped the Crown corporation for a lack of control over spending.

A request for proposals for program governance and risk advisory services for Project Nova closed Friday.

According to the tender, the consultant will provide “expert advice and coaching that will result in measurable gains” for MPI to successfully deliver the project on time and on budget.

Project Nova will allow customers to make collision claims, process licence renewals and receive other basic services online. It is expected to cost $290 million — up from an initial budget of $100 million and a three-year completion timeline in 2019 — and is now set to be finished in the 2025-26 fiscal year.

“This project is clearly out of control and it’s only getting worse,” New Democratic Party Leader Wab Kinew said in question period Monday. “There’s been no evidence that this government is anywhere close to delivering that, but still they’re going to spend millions more on this coaching.”

The NDP accused the Tory government of continuing to funnel money to out-of-province consultants through Project Nova, which critic Matt Wiebe described as a “boondoggle” that is costing ratepayers.

In January, the Public Utilities Board ordered additional oversight for Nova in its decision on the 2023 general rate application, citing a lack of management control over information technology expenses.

The independent, rate-setting authority said it was concerned expenses will rise as Project Nova is rolled out and noted the addition of dedicated staff to see the project through may not be a prudent decision.

As of last fall, there were 44 consultants working for MPI dedicated to Project Nova and the corporation signalled more would be needed, according to the order.

Global consulting firm McKinsey & Company is one such consultant hired by the corporation; since October 2021, McKinsey was awarded $12 million worth of untendered contracts for Project Nova, the Free Press has reported.

Justice Minister Kelvin Goertzen, who is responsible for MPI, issued a directive last month ordering the auto insurer use a competitive process to source all goods or services and to require ministerial approval for direct awards and sole-source contracts worth more than $50,000.

On Monday, both Goertzen and Premier Heather Stefanson said there will be no additional cost overruns with Project Nova and it will be delivered on time.

Goertzen said MPI has been instructed to stick to the $290 million budget and that government will not cover any additional costs.

“As recently as last week it’s been reiterated that there are no additional funds that are going to be made available for this project,” he said, adding ratepayers should be assured the project will be within budget. “(MPI) reiterated last week that they don’t anticipate needing any additional funds.”

Goertzen said the use of external consultants is important to ensure the project rolls out as expected. In its order, the PUB also recommended MPI continue to use an independent governance consultant to provide oversight and “mitigate the risk of further budget increases and project delays.”

Asked whether he is worried about MPI’s spending on consultants, he said he is concerned about the final price tag.

“They haven’t even heard back from their consultant that they’re now hiring. So they have no basis for saying that there’s no chance that this will continue to increase in cost.”–Matt Wiebe

“Obviously, they’re going to make decisions when it comes to how to manage within that budget and who are the right people to do the work within that,” he said, “but they know what the budget is, they know what government is willing to agree to and they also know it can’t go over that.”

Wiebe said government has mishandled Project Nova and commitments to see it completed within budget can’t be trusted. He noted part of the consultant’s job will be to assess and evaluate the project’s current state, risks and validate action plans.

“They haven’t even heard back from their consultant that they’re now hiring,” Wiebe said. “So they have no basis for saying that there’s no chance that this will continue to increase in cost.”

According to the tender, the contract will be for a 30-month term expected to begin in April. MPI did not return a request for comment Monday.

danielle.dasilva@freepress.mb.ca