Radical overhaul of Federal ICT procurement
Radical overhaul of Federal ICT procurement 

  • More centralised procurement
  • New approvals and monitoring
  • Increased use of common use contracts
  • Reduced ICT expenditure
  • Shared back office systems
  • Co-operative purchasing

What does it mean for your Federal Government business?   

Federal Government Master Class
Canberra, 19 February 2008       


Issue No: 122
(11 February 2008)

The Medium - Your Channel To Government ICT Information

Significant changes in the Federal Government market are on the cards following Lindsay Tanner's announcement that the Government will adopt a more centralised approach to ICT procurement.  Combined with possible cuts in overall spending, this warrants close examination by anyone interested in the Federal market.


Top 5 Contracts
A 2006 Customs contract with Telstra tops the list of contracts reported this week.  There's also a DVA contract with ASI ($10.9m), two Customs contracts with Cybertrust ($9.8m) and EDS ($7.5m), and a 2006 Centrelink contract with Cybertrust ($5.6m).


Regards

Fleur Bayley
Editor, The Medium
www.intermedium.com.au

 

Government Moves to Centralise Federal ICT Purchasing and Cut Spending
During a speech last week to the National Press Club, the Treasurer and Minister for Deregulation, Lindsay Tanner confirmed the Government's intention to centralise control of its ICT procurement with the express aim of reducing expenditure. 

Announcing an overhaul of procurement, he said, "The Liberals treated departments and agencies as individual private companies with the government as a kind of giant holding company. This radical decentralisation of government has created widespread inefficiency. There is very little centrally shared information about what different agencies are doing in procurement, let alone co-ordinated purchasing. ... rarely if ever making use of the buying power that a coordinated government approach to purchasing could deliver."

While keen to emphasise that there would be no "excessive" centralisation, he pointed out that as the Government was such a huge purchaser, "
even small improvements will deliver substantial dividends."

The Minister (who's also head of the Rudd Government's "Razor Gang") singled out the Government's computing and communications spending as part of this overhaul of procurement.  He announced that a new approval and monitoring process would be introduced for major IT projects in an attempt to reduce costs and introduce "rigour".

A detailed article on Mr Tanner's announcements was published in the Financial Review (written by Emma Connors) on 5 February.

It’s likely that the large agencies will try and resist these new restrictions, but it’s unclear how the proposed changes will affect major projects including those in DIAC, ATO and Centrelink.  Tanner’s comments suggest there will be strong pressure for agencies to share back office systems, and to rationalise other services such as HR and financials.  All this will lead to an enhanced role for AGIMO which in the past has had a largely advisory role in relation to ICT procurement.

According to Kevin Noonan, Intermedium’s Head of Consulting, we can expect a much greater focus on process from the new government and greater use of common use contracts.

Federal Government ICT Master Class
The likely impact of these changes is one of the key issues that we’ll focus on in the forthcoming Master Class in Canberra on 19 February 2008

We’ll also provide detailed information about:

  • New areas of opportunity arising from implementation of Rudd Government policies
  • Changes that have occurred since the election – new programs, departmental re-organisations
  • Introduction of the new government model contracts (SourceIT) and changes to AusTender
  • Trends in Federal tenders including the appearance of risk management, and green issues
This comprehensive one-day course will draw together all the information you need to understand the Federal Government market, and how it operates.  It’s designed to assist participants in all stages of the sales development cycle, particularly those that are relatively new to the Federal Government sector.
 
Amongst the other courses scheduled for the next few months are:

Winning Tenders – Sydney, 21 February – for all involved in preparing tender responses for government
NSW Government Master Class - The nature, culture and structure of the NSW public sector and how it informs procurement decision-making
Winning Business - Effective sales techniques for government (relevant for Federal and state tenders)
Effective Executive Summaries - Tips on how to prepare your key selling document  ** THIS IS A NEW COURSE **

Please contact Fleur Bayley if you need any further information about these courses. 
Details of all Respondents to be Disclosed for all NSW Government Tenders
Under new guidelines for NSW government agencies, the names and addresses of all entities which submit responses for tenders are to be published. The guidelines came into effect on 1 January 2008.  Read more
Melbourne Cup Field of Bids for NSW Information Asset Management System
Competition is strong for the NSW GSAS Information Asset Management Systems contract that closed on 13 November 2007.  23 companies have responded to the tender.  Intermedium understands that a decision on the new panel is expected in February or March, after initially being expected in December.  Read more
Process for Implementing PCs Worth $1b in Schools Still Unclear
The Federal Government seems committed to spending the first $100m of its National Secondary School Computer Fund by June 2008. Whilst the application process for schools appears to be well underway, there is still no word on exactly how the state and territory agencies, as well as non-government school systems, will undertake purchasing of the equipment and services.  Read more
Federal Government ICT Apprenticeship Scheme to Overcome Skills Shortage
The Federal Government has
announced an ICT apprenticeship scheme to overcome the ongoing skills shortage in the public sector.  $15m has been allocated to the scheme that will deliver up to 60 jobs with Government agencies.  Work placements and the academic component of the program (delivered through Canberra Institute of Technology) will begin this month.  Excelior Pty Ltd will deliver and administer the program.
ICT NEWS AT A GLANCE

A weekly round-up of Government ICT news from Australia and the world. Simply click on the headlines listed below to read more!

Hot Topics

IT Security
 
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General

 

EVENTS

INTERMEDIUM EVENTS

Events Calendar

Winning Tenders
Sydney, 21 February 2008

We'll help you understand the tender process in government, and provide you with skills to prepare a winning response.
Click here for more information


Federal Government Master Class
Canberra, 19 February 2008
All the information you need to understand the Federal ICT market
Click here for more information


NSW Government Master Class
Sydney, 11 March 2008
Learn about the nature, culture and structure of the NSW public sector and how it informs procurement decision-making.
Click here for more information


    


 INDUSTRY EVENTS

Tenders Summit
Melbourne, 12-13 May 2008
Intermedium's Judy Hurditch is one of the speakers at this summit.
** All subscribers to The Medium qualify for the Early Bird Discount.

Click here for more information


Your Event Here?

We'd be pleased to include details of events of interest to government ICT people, or representatives of the ICT
vendor community.

Click here to forward details

TENDER SPOT

Tender Spot
is a list of significant Federal and State ICT tenders currently open.  Tender Spot should not be regarded as a substitute for your usual tender notification service/s eg
TenderLink because it is only a weekly update.

Highlighted NEW tenders this week

DBCDE Contact Centre Services
DSG Review of IT Framework
AAD IT Hardware
ATO Development of SBR Whole of Government Authentication Project


Click the following 'read more' icon  for the complete listing and full description of all tenders, including those due to close in the coming week.
 

Read more

Movers and Shakers

In this segment, we report on senior appointments and departures within ICT companies active in Australian government markets, as well as changes within government IT organisations.  We focus on those people responsible for government markets – Canberra Branch Manager, Public Sector Sales Manager, etc. 
Read more

FEDERAL GOVERNMENT CONTRACTS PUBLISHED THIS
WEEK


Each week, Intermedium analyses all ICT contracts as reported by all federal government reporting agencies and as published in AusTender. This contracts data is built into a comprehensive series of reports.

Each month, Intermedium updates the ICT procurement plans released by the federal government agencies in its scout IT spreadsheet analysis. More information. For a sample of scout IT click here.

Each week, the Medium Newsletter gives you access to all government reported contracts valued at more than $250,000 as published in AusTender for the previous week. Click to download file.

The table below lists the five largest contracts reported for the week ending 7 Feburary 2008:

Supplier Name

Contract Value

Agency

Contract Date

Telstra

22,150,000

ACS

8/03/2006

ASI

10,858,474

 DVA

21/12/2007

Cybertrust

9,828,833

ACS

 13/06/2007

EDS

7,485,258

ACS

1/07/2007

Cybertrust

 5,614,351

 Centrelink

1/07/2006

PREPARING WINNING TENDERS

Sydney:  21 February 2008

A practical course to help you prepare successful
responses for government tenders
. 
  

Click for more information
 
Generous discounts for Intermedium clients

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