In a recent Senate Estimates Hearing, Department of Finance representatives explained Capgemini has been awarded a contract by Department of Finance and Deregulation to undertake a scoping study into a cooperative procurement arrangement for the whole-of-government arrangement for purchase of desktop equipment.
This is the second such contract secured by Capgemini, as the company is already undertaking a scoping study on whole-of-government office machines and printers.
In response to Senate Estimates questions, Simon Lewis of Finance said, “They are being done as separate scoping studies, but given the close potential linkages between the two, we have arranged for the same advisers to work on the two studies".
The industry is eagerly awaiting the outcome of these scoping studies, as sales have been very lean for the last year. Agencies have been slow to replace ageing equipment while long term arrangements were still evolving. Vendors have found it difficult to offer competitive deals while only short term contracts have been on offer.
The Federal government is actively pursing the implementation of cooperative agency procurement in response to Gershon Report recommendations. In particular, Gershon recommended agencies should work cooperatively to procure necessary ICT services by utilising existing contractual arrangements (piggybacking). This approach, Gershon claims, would yield substantial dividends for the government.
Intermedium estimates this external ICT expenditure reduction could be around $450 million per annum by 2010-2011.
According to the Department of Finance and Deregulation’s Cooperative Agency Procurement paper agencies joining on to an existing contractual or a standing offer arrangement must ensure that value for money is delivered, the procured service is standardised within the contract or standing offer and that the scope of the contract or standing offer is not altered.
Moves toward cooperative agency procurement are expected to have a significant influence on how prospective ICT suppliers position themselves in the market for future government business.
Intermedium has a range of services to assist clients to better position themselves in this environment, including access to Intermedium’s Senior Associates who have experience in specific agencies. Click here to contact Kevin Noonan, Intermedium’s Head of Consulting.