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Nine Victorian whole-of-government ICT contracts expiring in 2012

by Paris Cowan •
Free resource

With nine whole-of government ICT contracts in Victoria now expired or set to expire in 2012, the agency overseeing this procurement, the Department of Treasury and Finance (DTF), has a busy year ahead.

A spokesperson for the DTF advised Intermedium that it is usual procedure for the Department’s procurement authorities to review each expiring State Purchase Contract before deciding whether to renew or extend.

As recently reported by Intermedium, the State’s $461 million suite of telecommunications contracts are currently under such a review, prior to a decision being made about a fresh approach to market. The suite is made up of three ‘evergreen’ contracts, which will continue to operate in their current forms until the review is complete.

Also under review is the panel for VMWare Server Virtualisation software products and services. Its evaluation has been underway since June 2011, and the DTF spokesperson says that current contract arrangements will continue to apply during the review process. It still has two one-year extension options remaining.

The whole-of-government panel for Servers and Storage Equipment also reaches its expiry on 30 June 2012, after being extended for one year already. It has one 12 month extension remaining. If both extensions are deployed, the panel is expected to be worth $89.9 million over its five years of operation.

Similarly, the panel for Networking Equipment Related Products and Services expires on 30 June 2012, following the deployment of its initial extension. The agreement is estimated to be worth $53.8 million if the final option to extend to June 2013 is taken.

Even if the Victorian Government does elect to extend these arrangements to June 2013, it will very soon need to commence preparations for what is likely to be a lengthy market approach if it is to have new arrangements in place before the contract’s full exhaustion.

While it is not compulsory for Victorian agencies to use either of these two panels, the Government would have the option of changing this condition upon a contract renewal, as it did for the latest renewal of the eServices Panel which started in 2011.

The whole-of-government panel for Document Output Devices – which is mandatory for use by Victorian agencies – will expire on 30 June 2012, leaving it up to the Government to decide whether to deploy its two options to extend by 12 months. Konica Minolta, Ricoh, Sharp, Fuji-Xerox, Lexmark and Toshiba are all panellists.

The panel’s estimated value is $30 million.

Two software State Purchase Contracts will also expire this year:

  1. The State Purchase Contract signed with Oracle is set to expire on 30 September 2012, with one 12 month extension still available.
  2. The State Purchase Contract signed with Novell will expire on 14 December 2012, but the Government has two options to extend by 12 months remaining. The contract is estimated to be worth $50.4 million.

The DTF spokesperson could not confirm what the State Government has in store for any of the expiring State Purchase Contract for ICT as these reviews are still underway.

It is estimated that the Victorian Government spends $1.65 billion on ICT each year.


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