The dominant Federal agency, Department of Defence, posted no ICT contracts in November. There were only four ICT contracts posted on AusTender by Defence Materiel Organisation (DMO), and together they were valued at less than $200,000. Is this a continuation of lower ICT procurement in Defence, delays caused by the election, or some other issue?
In its 2006-07 Market Highlights Report, Intermedium identified a significant downturn in Defence ICT procurement activity. Defence spending in 2006-07 was down more than $450m on the previous year.
The very low reporting of contracts by Defence/DMO in November could be a continuation of this trend, but it could have been exacerbated by the Federal election (curb on spending during the caretaker period), and possibly even due to delays following the recent appointment of a new CIO at Defence (Greg Farr).
There was a general downturn in the number of contracts reported by all Federal agencies during November, but the total value of contracts was above the three year average for the month. The total value of contracts reported in November was just over $350m, more than double the three year average for the month of $150m. The total value of contracts was bolstered in November by the late reporting of a year 2000 contract worth $80m between Ipex and Department of Environment and Water Resources.
Intermedium will shortly publish a revised Defence Agency Profile,updated to include information from the Annual Report, staff changes (primarily the appointment of a CIO), and ministerial changes following the election.
For more information about the report, contact Fleur Bayley by email, or on 02 9817 5757.