The Department of Resources, Energy and Tourism (DRET) intends to approach the market in the coming weeks to explore its options for the provision of ICT managed services, new Procurement Plans reveal.
DRET will seek responses from vendors in Quarter 1 of 2011-12 (July-September) for ‘Expressions of Interest for Information Communication Technology Managed Services’.
Intermedium understands that the Department will issue the EOI in the next two to three weeks and that the Stage 1 EOI may encompass IT outsourcing, although there is no guarantee the EOI will progress to a second stage.
Intermedium’s Research Manager Helen Flint believes the EOI is intended to encourage vendors to provide information about possible solutions and potentially help to define the IT requirements of the Department.
“The important thing is that the Department is thinking about these things and approaching the market for information.”
“It is advisable for suppliers to involve themselves in Stage 1 of the EOI and aid in defining the requirements, particularly if the EOI is to move on to a second stage,” she said.
DRET’s IT needs are currently met through a $6 million shared services agreement with the Department of Innovation, Industry, Science and Research (DIISR). The arrangement encompasses IT services, financial management and human resources, and was valued at $6,946,206 in 2009-10.
Major elements of DRET were previously a part of the Department of Industry, Tourism and Resources (DITR), which was restructured into DIISR in 2008.
DIISR currently procures its ICT needs through an outsourcing arrangement with UXC Connect (formerly UXC Getronics Australia). According to Intermedium’sFederal Government Infrastructure Management Outsourcing Report, DIISR’s ICT outsourcing arrangements with UXC Connect will have a value of $9.4 million for the period 1 July 2010 to 30 June 2012.
The value of DRET’s ICT contracting has steadily increased since its formation in 2008, up from $3.57 million in 2008-09 to $4.23 million in 2009-10. While the contract total for the last financial year is yet to be finalised, the Department appears to have maintained a similar rate of contracting in 2010-11 at $4.02 million.
The Department’s largest contract to date is a five-year, $1.14 million deal with Technology One for the Provision of Financial Information Management System Software Licences, Maintenance and Support Services, signed in 2009.
Intermedium will hold its annual Federal Government ICT Procurement: The Year Ahead Briefing in Canberra on 4 August 2011. Register now to gain Intermedium’sinsight into the year ahead in Government ICT, generated from our combined analysis of the latest procurement plans, budget allocations and expiring contracts.