Ministry of Transportation Enters into Public-Private Partnership with Serco

On February 24, 2003, the Ministry of Transportation of Ontario entered into a public-private partnership agreement with the Serco Group providing for the grant of a 10-year authority and licence to deliver driver examination services in Ontario. Following a transition process, Serco Group’s new subsidiary, Serco DES Inc., will provide driver examination services, such as vision tests, knowledge tests, road tests and booking road test appointments. Alberta, Michigan and Virginia have also partnered with the private sector to provide driver examination services.

The private sector contractor was selected following a competitive selection process, including requests for qualifications and requests for proposals phases. Serco will pay $114 million to the province for the 10-year agreement. It will also pay $200,000 per month to fund comprehensive audit and compliance functions by a third party, which the ministry will direct.

The ministry was represented by Murray Forbes, senior counsel, and Colin Douglas and William Keel, counsel, Ministry of the Attorney General, and by Fasken Martineau DuMoulin LLP in Toronto with a team that included David Doubilet and Tom Barlow (public-private partnerships), Bruce Salvatore and Dan Law (real property), John Beardwood (information technology), Donald Milner (creditors’ rights), Don Short (alternative dispute resolution), Anthony Baldanza and Douglas New (competition), David Robertson (tax) and Peter Downard and Gideon Forrest (administrative).

Serco was represented by Osler, Hoskin & Harcourt LLP in Toronto, with a team that included Rocco Sebastiano and Andrew Wong (public-private partnership), Trevor Ingram and Jean Fraser (corporate and finance), Rob Antenore and Adrian Hartog (real property), David Tetreault, Manjit Singh and Sean Aylward (tax), Jason Hanson and Bruce Godden (labour) and Dan Logan (information technology).