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‘Annualised’ Federal Government contracts data reveals strong trends

by Staff Writers •
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This week’s Market Snapshot provides an annualised view of Federal Government ICT contracts data over the four years 2003-04 to 2007-08 (and leaves readers guessing about 2008-09, as the data for that year is in the process of being finalised).

Intermedium has introduced new analysis of the AusTender-sourced contracts data for the 2008-09 reporting year. This ‘annualised’ analysis provides a per annum measure of agency expenditure against contracts as well as a per annum measure of supplier revenue derived from such contracts. The new analysis assumes that the value of the contract reported is spent in a linear pattern between the contract start date and end date.

The analysis has been introduced because the traditional view (number of contracts and value of contracts) provides indications of agency contractual commitment and supplier sales success in any particular year but does not allow for the insight that the annualised data provides. For example, annualised data offers insights into that part of a supplier’s annual cash flow that is derived from Federal Government contracts. This may be valuable information to competitors or those planning mergers and acquisitions as well as by agencies seeking to establish a supplier’s commitment to the market.

Importantly, this new analysis also provides key insights into the level of agency financial commitment against contracts into future years.

While Intermedium will be reporting extensively with annualised data in its upcoming 2008-09 reporting season, it will continue to present its traditional analysis based on number and value of contracts.

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