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DFAT, ACCC & Innovation finalise data centre leases – so who is left?

by Pallavi Singhal •
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The Department of Foreign Affairs and Trade (DFAT) has become the latest Federal agency to select Canberra Data Centres to host its computing infrastructure, with a transition to the facility set to begin very soon.

“The new facility will provide next-generation technical capabilities for the Department and our many client agencies across government,” said DFAT Chief Information Officer Tuan Dao, who signed the contract on 9 April 2013.

The new data centre will support the development and operation of a new passport system under DFAT’s $100.8 million Passport Development Program, which was contracted to Fujitsu in March 2013, said Mr Dao.

Canberra Data Centres also recently finalised a $4.2 million data centre lease with the Department of Industry, Innovation, Science, Research and Tertiary Education (DIISRTE) for the period March 2013 to 2023, and a $3.9 million lease with the Australian Competition and Consumer Commission (ACCC), expiring in December 2023.

This brings the total value of contracting over the lifetime of the Data Centre Facilities Panel to approximately $311.8 million across 18 individual agreements, excluding the value of the DFAT deal which has not yet been confirmed. Canberra Data Centres, TransAct and Metronode are the only suppliers to have won contracts so far.

Canberra Data Centres is currently the leading provider in terms of contract value, having won $279 million worth of deals or 89 per cent of all services procured through the panel.

These latest contracts bring to 13 the number of Federal agencies to have finalised 10-year leases through the panel. In addition, the Australian Taxation Office (ATO) and the Department of Defence have both been exempted from the panel, and currently have alternative data centre facilities arrangements in place.

In terms of Tier 1 agencies (which Intermedium categorises as agencies with an ongoing contracting value of over $200 million per year), only one has entered into a 10-year lease through the mandatory arrangement.

The Department of Human Services (DHS) signed a $223.7 million data centre lease with Canberra Data Centres for a 10-year term, expiring in November 2021.

However, the Department of Health and Ageing (DoHA), the Department of Immigration and Citizenship (DIAC), Defence and ATO are yet to utilise the panel.

Defence signed a 10-year lease worth over $37 million with Global Switch for a primary data centre, prior to the establishment of the panel.

However it is also working towards reforming its remaining data centre environment through the Centralised Processing Project, which began in 2011. The project aims to consolidate the Department’s 280 data centres into less than 10 facilities, signalling a possible future approach to the panel.

DIAC’s data centre facilities requirements are currently covered by a $5.2 million contract with Canberra Data Centres prior to the establishment of the whole-of-government panel. The three-year deal is due to expire in October 2013, indicating that an upcoming approach through the Data Centre Facilities panel could be on the cards. As Canberra Data Centres is a panellist, DIAC also has the option to extend its existing arrangement.

ATO gained exemption from the mandatory data centre facilities panel, and is currently procuring data centre facilities services from HP Australia as part of a $1 billion eight-year deal for centralised computing services. The arrangement, which is due to expire in June 2018, covers a range of ICT services including hardware management and the provision of secure gateways.

A number of agencies outside Tier 1 have also signed 10-year agreements through the panel, including:

The nature and size of the panel is set to undergo changes in the second half of 2013, with the Department of Finance and Deregulation reviewing the current arrangement in light of changing density and power needs, and the gradual rise of cloud computing and virtualisation in the public sector.

New vendors will be given the chance to apply for a position on the panel, and existing suppliers will automatically retain their positions.

View DFAT profile in GovFacts >>>

View DIISRTE profile in GovFacts >>>

Related Articles:

Federal Data Centre Panel to be refreshed in 2013

Dell and NEC quit Finance’s data centre panel

DEEWR re-assesses its data centre future


For more information, please contact the Editor (02) 9955 9896.

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  • Federal
  • IT Services
  • Industry & Investment
  • Australian Competition and Consumer Comission
  • Canberra Data Centres
  • Centralised Processing
  • data centre
  • Data Centre Facilities Panel
  • Department of Defence
  • Department of Foreign Affairs and Trade (DFAT)
  • Department of Human Services (DHS)
  • Department of Industry
  • Innovation
  • Science
  • Research and Tertiary Education (DIISRTE)
  • DIAC
  • metronode
  • TransACT