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ABS finalises suppliers for IT overhaul with $20m Accenture deal

by Justin Hendry •
Free resource

Topics: IT Services; Software; Digital Transformation; Fed.

The Australian Bureau of Statistics has signed a $19.91 million contract with Accenture for new data collection systems – the last of the major IT contracts related to its once-in-a-generation Statistical Business Transformation Project.

The contract, which will run between June 2016 and June 2017, will see Accenture “help the ABS develop the next generation of statistical infrastructure and transform the way the ABS collects, analyses and accesses statistics”, it said in a statement.

“We will be implementing new management tools that will give us a greater capacity for automation, reducing cost and risk through the use of market leading off-the-shelf software rather than bespoke internally developed systems”.

A spokesperson from the agency told Intermedium that the contract was “the last of the major IT procurement projects involved in the Statistical Transformation Program”, and that the solution would utilise software from Pega Systems, Confirmit Australia and Informatica Australia.

The new systems will be installed, configured and tested by December 2017, and the solution in use from 2018.

The contract is Accenture’s first at the agency, and the largest to be signed by the agency since Intermedium began collecting contract data in 2005-06. Its previous largest contract was with IBM for the design, development and implementation of the 2016 eCensus solution.

The ABS approached the market for the solution in December 2015 for an initial period of up to two years, with the possibility of further extending the contract for up to another two years. Tenderers were required to be part of the ABS’s Statistical Production Systems Multi-use List, which currently consists of 32 suppliers.

It is one of a number of market approaches that the agency has performed for its Statistical Business Transformation Programme (SBTP) in the last 15 months. Tenders for an Enterprise Data Management Environment (EDME) and an enterprise integration platform were issued in July 2015 and March 2016, respectively.

ABS has executed a Deed of Standing Offer with ASG Group for the EDME, and has since signed four contracts (CN3383363, CN3383364, CN3383366, CN3383368) worth a combined value of $8.16 million, according to the spokesperson. RXP Services is providing the integration platform and API management under a three-year, $1.5 million contract. KPMG is also involved in the SBTP, according to the spokesperson.

The ABS also recently signed a three-year data centre facilities contract with Canberra Data Centre for $4.26 million.

The ABS received $234.7 million in the 2015-16 budget, including $85.2 million in capital funding, to enhance its capacity. This included $219.6 million over four years to re-engineer business processes, transform ageing IT systems and integrate 500 separate systems into common platforms for data collection, processing and statistical products.

The funding followed an ABS assessment that revealed that its ICT infrastructure was “highly vulnerable to failure and error” and maintenance of system.

While not directly related to Census activities, the ABS has previously stated that the benefits from the overhaul would also include $13 million in regulatory burden savings for the 2021 Census.

Since receiving the SBTP funding in 2015-16, ABS procurement activity has steadily increased. Whereas the agency’s total ICT contract spending averaged $20.72 million between 2010-11 and 2014-15, this climbed above $40 million in 2015-16 for the first time since 2008-09*. 

With the new Accenture contract, the total ICT contract spend by the agency in 2016-17 will grow close to $25 million.

Accenture currently ranks third on Intermedium’s IT Services Supplier Leader Board, behind Hewlett Packard and IBM, with 474 contracts worth $2.14 billion in the last ten years (2006-07 to date).

*The 2014-15 and 2008-09 figure includes the $9.60 million 2016 eCensus and $8.44 million 2011 eCensus contracts with IBM. The 2015-16 excludes the $10 million ASG EDME contracts.

Update 25/10/2016 2:50PM: Additional information from the ABS relating to other SBTP suppliers (ASG Group, RXP Services and KPMG) was added.

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Jurisdiction
  • Federal
Category
  • IT Services
  • Software
Sector
  • Treasury