The Financial Services Commission of Ontario (FSCO) is seeking help from up to four private dispute resolution companies to help eliminate a backlog of files, estimated to be more than nine months as of May 2011.
FSCO posted a Request for Proposals (RFP) on MERX, Ontario's electronic tendering system, on Jan. 16, 2012. "The RFP is seeking up to four dispute resolution companies to provide high volume services in order to eliminate the backlog of files," FSCO says in a post on its website.
The service providers would handle the backlog of files, while FSCO's existing dispute resolution staff would receive files as usual. FSCO added that as mediation files move through the system, it anticipates an increased demand will develop in arbitration.
"As a result, in addition to mediation services, the RFP is seeking service providers to provide arbitration services in order to respond to the expected increase in demand," FSCO said. "These companies will be used to supplement FSCO's existing resources and address the files in the backlog.
"FSCO expects to have contracts in place with qualified service providers by May 2012."
FSCO has retained an independent Fairness Commissioner to monitor the procurement process. Responses to the proposals are due by Feb. 24, 2012.
Furthermore, Ontario's insurance regulator has put the industry on notice that its efforts to reduce and eliminate the backlog might affect the resources of insurance companies, law firms and paralegal firms.
"It is expected that insurance companies, law firms and paralegal firms begin planning now to ensure adequate staffing levels, so that there are no scheduling delays due to unavailability of the parties," FSCO says.