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Status Report on Major Crown Projects

1. Description:

Health Information and Claims Processing Services (HICPS) Major Crown Project.

HICPS is the key delivery mechanism for the payment of pharmacy, medical supplies and equipment, and dental benefits under Health Canada's Non-Insured Health Benefits (NIHB) Program.

The HICPS Project was established to conduct a competitive procurement to replace the existing HICPS contract, to manage the implementation of the new service contract and ensure a smooth transition from the current incumbent to the new contractor.

2. Project Phase:

Project Implementation: The HICPS Major Crown Project entered the project implementation phase with the December 4, 2007 award of the HICPS contract to ESI Canada.

Overview: HICPS supports the delivery of much-needed health benefits for over 790,000 eligible First Nations and Inuit clients. The HICPS Project Implementation phase will terminate in December 2009 with a project evaluation. The new Health Information and Claims Processing Services will be put into production, taking over service provision on December 1, 2009.

3. Leading and Participating Departments and Agencies

Lead Department: Health Canada

Contracting Authority: Public Works and Government Services Canada

Participating Departments: Indian and Northern Affairs Canada

4. Prime and Major Subcontractor

Prime Contractor: ESI Canada, Mississauga, Ontario, Canada

Major Subcontractors: Resolve Corporation, Toronto, Ontario, Canada

5. Major Milestones


Major Milestones Date
Initial meetings with Contractor, coordination of implementation phase project plan Contract Award (December 4, 2007 through January 2008)
Business Requirements Gathering and Design February 2008 to August 2008
HICPS Development September 2008 to April 2009
HICPS Testing and Acceptance May to September 2009
Documentation, Simulations, Validation, Data Conversion and Training September 2009 to November 2009
HICPS Implementation (ESI Canada officially takes over real-time service provision) December 1, 2009
Project Close-Out Phase: Evaluation of the HICPS Project and lessons learned. December 2010 to March 2011

6. Progress Report and Explanations of Variances

The definition phase of the HICPS project (including the RFP process through bid evaluation and ultimately contract award) was concluded on budget and the project implementation phase has been underway as of December 4, 2007. The project is moving effectively towards its objective of ensuring a smooth and seamless transition to an enhanced claims processing system on December 1, 2009.

Currently the project is on budget and on schedule to meet this target. On August 1, 2008 the project achieved its first milestone with the completion of the detailed system requirements and design. The project also completed its second milestone in January 2009, which included development of the new system. As of March 31, 2009 the project was on track to complete the third project milestone related to the hardware and infrastructure requirements for the new system.

The project schedule and budget are consistent with the amount granted by the project authorities.

7. Industrial Benefits

(The Industrial Regional Benefits (IRB) model was modified to focus on benefiting the Aboriginal economic community, rather than a specific industry or region of Canada, resulting in an Aboriginal benefit requirement (ABR) which is unique to the HICPS Project.

The development of the ABR approach for the HICPS Project was informed by industry feedback through two Requests for Information (RFI) consultation processes, and approved by Treasury Board. As HICPS Prime Contractor, ESI Canada will be required.)