Skip to main content

DIAC renews Enterprise Licence Agreement for $46 million

by Paris Cowan •
Subscriber preview

The Department of Immigration and Citizenship (DIAC) has signed up for another four year supply of IBM software, through an Enterprise Licence Agreement (ELA) worth $46 million.

The new ELA follows the expiry of the previous agreement in September 2011, with all extension options exhausted. The previous contract was worth $34.8 million over three years, with one 12 month extension added at a value of $5.3 million.

This means that the annual licence fee under the new contract will be marginally higher than it was under the previous ELA, to include an expansion of the IBM products covered by the agreement. Under the previous ELA, including the one-year extension, the DIAC was paying an average of $10 million per annum, and they will now be paying $11.4 million per annum.

A spokesperson for the department has told Intermedium that the revised ELA covers licensing and annual maintenance of products across the IBM, Websphere, Infosphere, Rational and Tivoli brand lines, as well as all deployed IBM software products supporting the Global Visa Program. It will also cover any products required for the delivery of the DIAC’s funded capital plan projects due for implementation during the contract term.

“In addition, the new IBM enterprise license agreement introduces new governance measures to ensure effective management of the enterprise license agreement and reduce the overall software management workload,” he said.

Intermedium’s data shows that IBM enjoys a dominant position in the Federal Government’s enterprise licence market, especially amongst Tier 1 agencies (those procuring more than $100 million worth of ICT in a year).

IBM’s Enterprise Licensing Agreement with Centrelink (now part of the Department of Human Services) passed the $1 billion mark at the beginning of 2011. The contract, which commenced in 2005, includes Centrelink’s mainframe environment. It is due to expire in 2016.

IBM also has a $12 million software licence agreement in place with Medicare, which is also now part of the DHS and its new internal shared infrastructure management arrangements.

IBM’s ELA with the Department of Defence has a contract value of $269 million across its five year lifetime. It is due to expire in 2013.

The DIAC/IBM ELA was originally signed under the large Systems for People standing offer arrangement (SOA), which expired in September 2011.  The SOA was set up to support the program, which was originally budgeted at $659 million.

The ELA was transitioned out of the Systems for People contract in 2009, upon the expiry of the initial term of this SOA. It will continue for the time being despite the dissolution of the latter.


Related Articles:

IBM offers Health stability in a time of change

IBM Contract with Centrelink Passes $1 Billion Mark Following Further Extension

DoHA to seek hardware and software from the market

Already a subscriber? Sign in here to keep reading

Want more content like this? Contact our team today for subscription options!

  • Stay up-to-date on hot topics in government
  • Navigate your business with executive level horizon outlooks
  • Get deep public sector ICT insights on our Market Watch series
  • Federal
  • Software
  • Justice
  • Centrelink
  • Defence
  • DHS
  • DIAC
  • Enterprise Licence Agreement
  • IBM
  • Medicare