The Department of Defence has become the first Tier 1* agency to initiate a supply relationship through the whole-of-government Major Office Machines panels established by the Department of Finance and Deregulation in April and June 2011.
It has entered into a standing offer arrangement with Konica Minolta for the supply of office machines and associated maintenance and support.
The standing offer arrangement will continue until April 2014.
Whole-of-government Major Office Machines (MOM) procurement has been broken into two branches – equipment and support; and managed print services. At this stage, however, only procurement through the former category has been visible.
The MOM equipment and support panel was establishedin April 2011, and to date Intermedium has identified $9.6 million worth of contracts related to this panel. There have been another 20 standing offer notices (SONs), including the aforementioned with Defence, published as being initiated through the panel.
The panel follows a unique design where agencies are encouraged to establish subordinate SONs with panellists in order to streamline the procurement of ongoing maintenance and support requirements.
Since the first MOM panel was established, Ricoh and Fuji Xerox have emerged as panel leaders in terms of the number SONs, having signed seven agreements each. However every supplier on the panel has signed at least one contract through the panel.
Sharp has won the most valuable contract published to date, with the Department of Health and Ageing for $3.8 million.
The last two major contracts signed between Defence and Konica Minolta were worth a combined total of nearly $34 million over the five years to 2013. Taking this into account, the newly struck Defence panel deal is also likely to be lucrative for the Konica Minolta over the lifetime of the agreement.
Finance forecasts that the total annual value of procurements through the MOM panels will exceed $50 million.
The NSW Government has also recently approached the market to refresh its own whole-of-government office machinery panel, state contract 2390 for Imaging Devices and Document Solutions.
Tender documents estimate that at current levels, government agencies spend $73 million every year on the deliverables encompassed by the panel. The closing date for the request for tender was 20 December 2011.
*Tier 1 agencies are those agencies identified by Intermedium as procuring $200 million or more worth of ICT per annum.
Please note that this story originally stated, mistakenly, that the MOM panels had been established by the Australian Government Information Management Office (AGIMO) within the Department of Finance and Deregulation. This error has since been corrected.