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Agriculture-HP contract climbs to $376 million amid service delivery shift

by Justin Hendry •
Free resource

Topics: IT Services; Hardware; Software; Digital Transformation; Data Analytics; Fed.

Hewlett Packard’s IT managed services agreement with the Department of Agriculture and Water Resources has been extended until June 2022, increasing the total value of the contract by $105.7 million.

The five-year extension, which brings the total value of the arrangement to $376 million since the contract was first awarded in June 2009, comes exactly two years after the term of the arrangement was last extended by three years. The contract has two additional one-year extensions remaining beyond 2022.

The contract will continue to cover the provision of hardware, management of servers and core network infrastructure, storage, and help desk services for the 5,384 staff at the department.

65 amendments were also published on AusTender during June 2016, prior to the extension, which increased the total value of the contract by a further $7 million. The scope of these amendments mainly cover new end user devices and other hardware upgrades.

The value of the contract has increased significantly since the department began its four-year Service Delivery Modernisation (SDM) programme in 2013-14, with more than 170 contract amendments since January 2014.

A spokesperson from the department told Intermedium that “SDM has a critical dependency on the introduction of new online systems” and that the arrangement would “continue to support the department’s ICT infrastructure, both from an ongoing maintenance of services perspective as well as from the perspective of providing appropriate computing infrastructure to support SDM and any other new ICT systems for the department.”

The SDM programme intends to improve the department’s “use of technology to move from paper based systems to electronic based systems, which can generate significant efficiencies and do not compromise outcomes in any way”, according to former Secretary Paul Grimes.

A number of projects that fall under the programme have already been completed, including the introduction of the Cargo Online Lodgement System – a national priority-based lodgement and processing system for importation documentation – and a new information architecture.

The department is still working to improve real-time service delivery by deploying 1500 HP ElitePad tablets before the end of December 2016, according to Microsoft, under the Windows 8 Mobility project. It also began refreshing the existing desktop environment with HP Elite desktops in July 2015.

The HP contract will also support improvements to the department’s analytical capability, which received $15.9 million over four years in the 2016-17 budget.

“HP provides the infrastructure support services for the department’s existing analytical ICT infrastructure assets, such as the Teradata Enterprise Data Warehouse and the associated suite of SAS software”, the spokesperson said. “These are the same ICT assets expected to be leveraged by the department’s advanced analytical capability.

The department also received an undisclosed amount in the recent budget to upgrade the agency’s ICT system for biosecurity decision-making.

HP ranked 12th on Intermedium’s Supplier Leader Board from the 2013-14 to 2015-16 financial years, signing 1,042 contracts worth $384.9 million.

Related Articles:

Agriculture’s IT Managed Services to remain with HP for the next three years

Agriculture’s service delivery modernisation program delivers efficiency: Grimes

2016 budget winners: Health, Human Services, AGs

Agriculture moves forward with extensive ICT overhaul

Hewlett Packard Managed Services Contract at Agriculture to extend to 2017

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