The Department of Finance and Deregulation (Finance) is conducting a review of the whole-of-government Desktop Hardware Panel, ahead of its initial expiry on 9 August 2013. This review suggests that it may not proceed to exercising its permissible extensions, and that changes may be in store.
“A review of the Desktop Hardware and Associated Services Panel is currently underway. The Australian Government Information Management Office (AGIMO) will advise relevant parties of its decision, with respect to any possible changes to the panel arrangements, in due course,” said a Finance spokesperson.
The mandatory panel covers desktop PCs, mobile PCs, monitors and associated services. In the period since its establishment in August 2010 to mid February 2013, the panel has been responsible for a minimum of $112 million in ICT procurement, with around 790 contracts signed through it.
This minimum figure is based on Intermedium’s identification of relevant contracts by their Standing Offer Notice (SON) as posted on AusTender. As it is not compulsory for agencies to specify a SON ID on panel contracts, it is highly likely that total value of procurement through the panel is higher, given the mandatory nature of the panel.
Procurement through the panel has steadily increased since 2010, with 161 contracts totalling $29.6 million signed in 2010-11. These results more than doubled in 2011-12 with 460 contracts worth $71.9 million. However, from 1 July 2012 to 31 December 2012, just 150 contracts totalling $9.8 million were signed, indicating a marked slowdown in panel usage.
The following is an assessment of the panel’s performance from August 2010 to February 2013 – that is, from inception to year to date.
As indicated by their SON, the total value of panel contracts in the period is $170.3 million.
Acer is the highest ranked supplier under the panel, with a total contract value of $44.7 million. Its main provision is to the Department of Human Services (DHS), with 11 deals worth $41.8 million. The largest individual contract signed through the panel is a $15.1 million deal between DHS and Acer for desktop hardware.
Second ranked supplier Dell secured $27.5 million in contracts. Its top ranked buyer is the Australian Federal Police (AFP), procuring a total of $5.9 million. Dell’s largest single provision has been to the Department of Parliamentary Services (DPS), in a $1.9 million contract for the supply of computer equipment and accessories.
Hewlett-Packard is ranked third, with a total contracting value of $27 million. Its largest contract has been with DHS for computer equipment and accessories worth $2.3 million. Its biggest buyer is the Department of Defence, purchasing a total of $12 million worth of desktop hardware contracts.
Top ranked buyer off the panel is DHS, which has signed a total of $49.7 million in contracts since 2010. It accounts for the six highest value contracts, four of which have been with Acer and two with Hewlett-Packard. Defence ranked second, with $17.6 million worth of. AFP, ranked third, signed $6.4 million in contracts.
Along with the increased agency use of the panel, the overall value of Federal desktop hardware market has also shown a steady increase over the past three financial years:
- $66.6 million in 2009-10; (panel did not exist)
- $69 million in 2010-11; ($29.6 million identified as going through the panel) and
- $78.3 million in 2011-12; ($71.9 million identified as going through the panel).
However, in the first half of 2012-13 (1 July 2012 to 31 December 2012) the Federal desktop hardware market (ie all desktop hardware contracts – with or without SON ID) was worth a total of only $23.1 million, representing 29.5 per cent of the value of the 2011-12 market at a point where it should have been closer to 50 per cent, a drop of 20 per cent.
This significantly reduced spend is a strong pointer to the impact of the Government’s 2011-12 Mid Year Economic Financial Outlook requirement to reduce Cap Ex expenditure by 20 per cent in the three years from 2012-13 to 2013-14.
Find out more about other desktop hardware panels currently in place in Australian states and territories through Intermedium’sWhole-of-Government Panels Database.
For more information, please contact the Editor (02) 9955 9896.