IT mess: another $33 million more for the government telecommunications network

The Quebec government’s new telecommunications network is starting to look like a surprise box, while the bill to migrate the various ministries to the new system amounts to nearly $33 million, we learned. The Journal.

Originally, the government’s new internet network was supposed to cost $8.2 million. After multiple budget increases, notably due to delays by Bell in carrying out the work, the bill for the “implementation” of this project amounts to $46.9 million, an increase of 472%.

However, this amount does not include the expenses that will be necessary to connect the various departments and organizations to the new network.

Questioned by The Journalthe Ministry of Cybersecurity and Digital (MCN) indicated that this part of the project will cost $32.8 million and that it should be completed on September 30, 2027, i.e. the end date of the $190 million contract with Telus to keep the old network in place.

As of last month, only 12 government agencies had transitioned to the new system. As an indication, there are 23 ministries and 121 organizations in Quebec.

“The MCN is responsible for coordinating migration activities with customers and suppliers. For its part, Bell Canada’s contract provides that it ensures the operationalization of the migration,” specified a spokesperson for the ministry, Émile Boudreau, in an email.

A hidden amount

Surprisingly, the amount of $32.8 million does not appear anywhere on the dashboard which keeps the register of IT projects of the Quebec government.

Called to give explanations, the ministry explained that projects must “meet several criteria” to appear on the dashboard and that the project in question “did not meet these criteria” since it is considered a “project of ‘exploitation’.

For the same reason, the $2.6 million work for “preparation for implementation” does not appear in this public register either.

Budget overruns

Unfortunately, it is not uncommon to see government IT projects cost more than expected.

The Journal revealed a few weeks ago that Santé Québec’s administrative systems will cost $228 million more than expected.

Likewise, Revenu Québec saw the bill for overhauling its withholding tax processing system increase from $14 million to $20 million a little earlier this year.

THE COSTS OF THE NEW NETWORK

Initial project cost estimate (made public in 2017): 8,2 M$

Preparatory work: 2,66 M$

Implementation of the new network: $46.9 million (contract with Bell)

Maintaining the old network during the works: $189.9 million (contract with Telus)

Migrating to the new network: 32,8 M$

Total: 272,26 M$ (+3219,5%)