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Optus wins $10.7 million in first DAFF telco deal

by Judy Hurditch •
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Optus has won the internet based network connection (IBNC) tranche of the Department of Agriculture, Fisheries and Forestry’s (DAFF) approach to market (ATM) for outsourced telecommunications services, according to a contract published on AusTender.

The contract was signed by the Department of Finance and Deregulation through the whole-of-government IBNC panel on behalf of DAFF, with a value of $10.7 million contract over 4 years – making it worth around $2.7 million per year. The contract will reach its initial expiry in June 2017, but is likely to have significant permissible extension periods.

DAFF approached the market (ATM) in February 2013 for a range of telecommunications services, with a suggested preference for a single outsourced service provider after a review into DAFF’s ICT needs found that greatest cost-efficiencies were likely to emerge from a single outsourcing deal.

On this basis, Intermedium speculates that Optus will emerge as the winner of the remaining contract(s).

Further announcements on the remaining tranche(s) of the DAFF deal are likely to be made in the coming days.

Intermedium previously estimated the total value of services requested under the approach to be around $5 million per annum, but it may well be higher than this, depending upon what is within scope of the yet to be announced contract(s). 

The required services could only be procured from suppliers on two of the three whole-of-government telecommunications panels; the IBNC and Telecommunications Commodities, Carriage and Associated Services (Mobile) panels.

Optus is on both these panels, as well as the Telecommunications Management (TMAN) panel.

According to the February request for tender, the IBNC component of DAFF’s telecommunications requirements covers:

  • Network Carriage Services;
  • Virtual Connection Management Services;
  • Internet Protocol Connection Services; and
  • Major Internet Connections Services.

Remaining areas of the ATM that are yet to be announced include:

  • Mobile Telephony Services;
  • Service Management;
  • Video Conferencing Services;
  • Contact Centre Services;
  • Cross Functional Services;
  • Transition and Disengagement Services; and
  • Project Services.

Prior to DAFF’s major approach to market this year, AAPT provided the bulk of DAFF’s voice and data services under a $14.2 million agreement expiring in late December 2013, and Optus and Telstra provided mobile telephony services and handsets.

Winning the remainder of the DAFF deal would be significant for Optus. It failed to win the $1.1 billion Department of Defence and the $474 million Department of Human Services telecommunications deals (the two most significant telecommunications opportunities of the last 24 months), both of which were won by Telstra.

Optus does however, continue to supply telecommunications services to the Australian Taxation Office (ATO), with a total contract value currently posted at $312 million over the six years since 2009 (the ATO contract has been extended to March 2015).

View DAFF profile in GovFacts >>>

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DAFF refreshes ICT Strategy and reveals major projects

DAFF opens bidding for $25 million telco opportunity

Caretaker period to impact ICT market

For more information, please contact the Editor (02) 9955 9896.

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