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Acer takes lion’s share of desktop hardware panel contracting

by David Shi •
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Acer has secured a 43 per cent share of all contracts awarded through the Federal Government’s Desktop Hardware Panel since it was established; nearly double the value of panel contracts won by its nearest competitor.

Intermedium’s analysis of the Federal ICT market identified 565 contracts collectively worth $97 million that have been signed under the whole-of-government Desktop Hardware Panel since its inception on 9 August 2010. The mandatory panel covers the provision of desktop PCs, thin clients, monitors, laptops, tablets and associated services to all FMA Act agencies.

Identified contracting through the Desktop Hardware panel accounted for 69 per cent of the total Federal Hardware market since its commencement, to date. The total Desktop Hardware market value for this term was $141.6 million.

Intermedium tracks business conducted through Federal Government panels using Standing Offer Notice (SON) IDs listed against contracts published on AusTender. The true value of procurement through the panel is likely to exceed the identified value as it is not compulsory for agencies to specify a Standing Offer Notice ID on panel contracts.

Acer’s dominance over panel contracting can largely be attributed to its supply to the Department of Human Services (DHS). Much of the $42 million awarded to the company throughout the Desktop Panel’s lifetime was from the DHS, including a $15 million deal described as desktop hardware and a $9.7 million computer hardware maintenance contract.

According to available contract data, the DHS has exclusively purchased desktops and monitors from Acer throughout the term of the panel, dealing with other panellists only for the provision of laptops, tablets and computer services.

Hewlett-Packard came in as the second highest ranked supplier on the panel, securing 201 contracts for a total value of $23.8 million since inception of the panel to date. 134 of these contracts were signed with the Department of Defence.

Contract data shows that Hewlett-Packard is Defence’s dominant desktop hardware panel supplier. The Department’s second highest supplier, Dell, secured 32 contracts whilst Acer and Ethan Group secured 10 Defence contracts each.

Dell was ranked third on the panel leader board, securing $22.9 million worth of business. The company entered into 213 contracts via the panel - the highest number of all suppliers. It signed 60 of these contracts with the Australian Federal Police for a total of $5.7 million.

The ranked values of contracting through the panel to date are as follows:

  1.  Acer - $42,002,050
  2.  Hewlett-Packard - $23,824,468
  3.  Dell - $22,864,955
  4.  Ethan Group - $3,967,418
  5.  Data #3 - $1,386,357
  6.  Corporate Express - $1,211,102
  7.  UXC Connect - $844,227
  8.  Lenovo - $596,950
  9.  CSG - $206,569
  10. 10.  Datacom - $79,338
  11. 11.  Greenbox Systems - $10,000
  12. 12.  APCD - $0

Despite Acer’s position at the top of Desktop Hardware panel procurement, the top supplier across the whole Federal Government Desktop Hardware market in 2011-12 was Hewlett-Packard.

The Desktop Hardware market has increased steadily over the past several years, reaching $75.1 million in 2011-12 according to Intermedium’s Analyse IT tool. The market was valued at $68.5 million in 2010-11 and $66.6 million in 2009-10.

The Federal Government anticipates that the Desktop Hardware Panel will save agencies $16.3 million from 2010-11 to 2013-14. The panel reaches its initial expiry on 9 August 2013.

Related Articles:

AGIMO’s John Sheridan on panels, BAFOs and the telco market

AGIMO to decide winner in Desktop Panel price wars

Queensland Government approaches the market to renew dramatically expanded hardware panel

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