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ATO Reveals Centralised Computing Costing $160m pa: Seeks Lower Cost from Bidders

by Staff Writers •
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At an industry briefing on 20 June, the ATO provided details of the Centralised Computing Services (CCS) component of its ICT Sourcing Program, worth up to $160m per year, and potentially extending to 2020.

The ATO revealed that the CCS component of the current outsourcing arrangement is currently costing $160m per year (ex GST), and a key objective of this procurement is to reduce the cost.

An open Expression of Interest will be released on the AusTender website on Monday 30th June, with responses due Monday 28th June.

Sourcing Program Director Narelle Dotta stressed the importance of respondents allowing sufficient time to complete an upload of their response via the AusTender web site prior to the lodgement time, and indicated that some respondents to previous EOIs had been eliminated from evaluation due to late lodgement. Even where this is due to slow response by the AusTender site, responses are still classified as late and not considered for evaluation.

The ATO officials also stressed that AusTender and the ATO tender website are the only sources of information on the current procurement process. Copies of slides and a transcript of the briefing will be posted on the ATO site this week.

Highlights of the briefing included:

  • The current annual cost of ATO’s centralised computing is around $160m (ex GST) annually – and they expect to pay less!
  • The current annual cost of all three bundles put to market (Managed Network services, End-User Computing services and Centralised Computing services) is around $275m (ex GST).
  • The contract for Centralised Computing services will commence in 2010, and will include options for extension to 2020, if required.
  • Tasks include managing the shift from the ATO’s current Bruce data centre when the lease expires in 2011. All data centres are in scope and represent a significant requirement, although ATO says it is flexible as to geographic location.
  • ATO emphasised that all data must be processed and stored in Australia.

This is the third and final tranche of the ATO’s current technology refresh program, which commenced in October 2007, ending its single-supplier arrangement with EDS that had been in place since 1999. The first tranche went to the market with a tender for Managed Network Services in January 2008, and a tender for End-user Computing was released in April 2008.

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  • Federal
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  • AusTender
  • CCS
  • EOI
  • ICT Sourcing Program
  • Narelle Dotta