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NEC wins $70 million managed network services deal

by Pallavi Singhal and Chris Huckstepp •
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NEC has continued its winning run, securing a South Australian state-wide Network Management contract worth $69.8 million over three-years. Previously held by Dimension Data, the contract could generate up to $210 million for NEC with the option for two three-year extensions available.

NEC was awarded a $150 million contract less than one month ago as Lockheed Martin’s partner in the Defence Centralised Processing bundle.

The contract with South Australia covers services relating to the management of central and local data networks across all SA Government agencies, including services to manage, maintain and support physical and virtual networking devices including routers, switches and firewalls.

“NEC Australia’s extensive experience in providing managed IT and network services will ensure the government has the best resources, expertise and tools to meet its objectives,” said Acting Minister for the Public Sector Martin Hamilton-Smith.

The services will be delivered from NEC’s new control centre in Adelaide.

NEC is also on the SA Government’s Active Devices Panel that includes the supply of hardware components for public sector networks. On its expiry in July 2015, the panel will be replaced with a Network Devices Panel specifically for the provision of “hardware and components used to connect and manage State Networks (wired or wireless)”, according to the request for tender.

Dimension Data’s Managed Network Services agreement with SA expired on 30 September 2014. It was executed in April 2006 and had an anticipated Customer Agreement value worth almost $110 million up until 30 September 2014.

NEC’s other recent wins include a $4.85 million contract with Western Australian Department of Water for the delivery of its next generation water management platform.

It was also picked as preferred tenderer in July 2014 by Transport for NSW for the End User Computing (EUC), Collaboration & Service Desk bundle associated with its Next Generation Infrastructure Services (NGIS) program.

TfNSW estimates that the NGIS program renewal will require approximately $150 million in up-front expenditure and $100 million in annual operating costs on an ongoing basis, according to an RFP for a Program Director and PMO released by the agency.

NEC’s partnership with Lockheed Martin for the Defence Centralised Processing bundle will involve:  

  • Ensuring the stability of Defence systems during the consolidation;
  • Assisting in re-hosting its applications in the new facilities;
  • Decommissioning legacy data centre equipment; and
  • Assuming responsibility for Business As Usual infrastructure.

UPDATE, 7 October 2014

NEC Australia has been awarded a five-year $7.2 million ICT managed services contract with the South Australia Health Medical Research Institute (SAHMRI). SAHMRI, a health and medical research institute built over 25,000 square-metres, has received $200 million from the Federal Government. In addition to relying on competitive research funding, SAHMRI is awarded $5 million from the SA Government annually.

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