The much anticipated RFT for DAFF outsourcing finally hit the streets late on Friday afternoon. DAFF is the first of the old Group 8 outsourcing cluster to go to the market.
Until June 2000, DAFF delivered IT services in-house, but from the July 2000 it outsourced IT services to IPEX as part of the Group 8 outsourcing cluster. The contract is now held by Commander Communications following a series of acquisitions that included the takeover of Ipex by Volante Group in 2004 and the takeover of Volante by Commander last year.
The five year term was extended during 2005 for a further four years, and is now due to expire in June 2009. It is estimated that the value of the contract over nine years was about $360 million.
The current RFT is for an initial term of five years with possible annual extensions for an additional ten years.
Other members of the Group 8 cluster were the Department of Environment and Heritage, the Civil Aviation Safety Authority, Australian Public Service Commission and Australian Communications and Media Authority.