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Defence Department to shut down storage panel

by Paris Cowan •
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The Department of Defence will close down its enterprise class storage equipment panel when the contract expires at the end of this year, as well closing down its Standing Offer Arrangement with Oracle for Enterprise Class ICT equipment and services.

Now in its seventh year, the storage panel, known as the Enterprise Class Equipment Agreement (ECEA), will reach the end of its term on 11 December 2012. Panellists include EMC, Hewlett-Packard, IBM and Hitachi Data Systems.

The Deed of Standing Offer established with Oracle for Enterprise Class ICT equipment and services has been in place since November 2005. It will expire on 28 May 2012, and will not be continued beyond this point.

A spokesperson for Defence could not confirm at this stage whether the Department intended to replace either arrangement.

“Defence is continually reviewing the mechanisms by which it procures goods and services.

“[It] will consider whether replacement or alternate arrangements are required on a case by case basis,” said the spokesperson.

The standing offer notices (SONs) have only recently emerged on AusTender, as a result of contract publishing remediation works currently underway across Defence. Defence entered into these arrangements before AusTender became operational, and they were not published on AusTender until March 2012. So these arrangements were not assigned an SON ID until March 2012.

For this reason, it is difficult to track the volume of business that has gone through either of these arrangements, as no mechanism has existed to mark contracts facilitated by them.

However, according to Intermedium’s Analyse IT tool, EMC has emerged as the clear leader when it comes to storage contracting with Defence since the commencement date of the ECEA panel.

Since 6 December 2006, when the panel came into effect, EMC has signed $39 million worth of contracts with Defence which have been specifically identified as covering the provision of storage and storage services.

The bulk of this value comes from a $29.8 million contract to ‘Design and Deliver a Tier-1 Storage Environment’ signed in April 2011, and a $6.4 million contract with the same title signed in October 2011.

(Please note that the larger contract has since had its title changed on Austender)

None of the other panellists have signed any significant volume of contracts that can be identified as being related to storage. However Intermedium notes that these services could have at times fallen within the scope of any number of generically titled contracts.

Oracle has entered into $82.5 million worth of contracts with Defence since the commencement of the Deed of Standing Offer on 28 November 2005, but it is impossible to tell what portion of these have been signed through the agreement itself.

In other SON activity at Defence, its Head Agreement with Symantec for the provision of software and services is due to have expired on 30 March 2012, while its Deed of Standing Offer with Cisco for the supply of Network Equipment and Associated Services has recently been extended to 14 April 2013.



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