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Expiring contracts: A Great Source of Information About Opportunities

by Staff Writers •
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Each year, Federal Government agencies enter into thousands of individual ICT contracts (more than 15,000 in the 2006-07 financial year). While many are for “one off” requirements (fixed term projects, system implementations, etc), a large number are to meet on-going requirements. Tracking contracts that are due to “expire” is a valuable source of intelligence regarding the likely procurement plans of your clients and prospects.

For example, if an agency enters into a contract for the supply of printers or PCs for a particular period, it is likely that it will have a continuing need for such equipment. It can ensure its future needs are met by either extending the initial contract, or by going to the market with a new tender at the end of the contract period.

Being aware when such contracts are due to expire enables you to approach your clients and prospects at just the right time – when they are actively looking at their options!

Intermedium identified more than 650 Federal Government ICT contracts due to expire in the period January – December 2008.

Almost 400 of these are due to expire in June 2008.

Amongst the contracts due to expire between April and December 2008 are:

  • $5.2m Desktop PCs and Accessories contract at Centrelink (12 month contract)
  • $1.7m Contract Management Software contract with Defence (2 year contract)
  • $45m Call Centre Services contract at the ATO (5 year contract)
  • $6.3m Photocopiers contract at Defence (2.5 year contract)
  • $1.5m Videoconferencing contract at CSIRO (3 year contract)
  • $2m Telecommunications services contract at Austrade (1 year contract)

In Intermedium’s 2006-07 Market Report, only 33% of ICT contracts went to open tender; 26% were allocated on the basis of a restricted tender; and 35% went to sole suppliers (5.5% were procured via 'other' methods).

These results reinforce the importance of tracking existing contracts, and understanding when an agency might be planning to go to the market.

Intermedium tracks ICT contracts reported by Federal Government agencies (published in AusTender), and identifies contracts that are due to expire.

This information is published in scout IT, Intermedium’s comprehensive Federal Government ICT prospecting tool, listing and updating all reported ICT procurement plans, expiring contracts and providing a historical view of the last 12 months of ICT tenders.

Each month, scout IT provides details of significant ICT contracts that are due to expire during the next 12 months. It includes all ICT contracts greater than $80,000 in value with a contract end date (expiry date) falling during the next 12 months. The contract details provided include:

  • contract commencement and end date
  • value of the contract
  • contract description
  • agency name
  • supplier name
  • product/service category and sub-category

scout IT is published in Excel format, and has a simple-to-use search facility.

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