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PM&C’s ASG contract the most amended ever

by Pallavi Singhal •
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ASG’s six-year IT managed services contract with the Department of Prime Minister and Cabinet (PM&C) has the distinction of having more contract amendments posted in AusTender than any other contract monitored by Intermedium.

The contract, which was worth $14.3 million at its inception is now worth over $50 million, according to the 65 increases in its value that have been posted to AusTender to date.

ASG provides service desk, desktop, server and network, plus project services for PM&C and its portfolio agencies.  Its contract with PM&C was originally signed as a three-year $14.3 million contract in March 2010.

The contract value was first increased to $18.9 million in 2011 following Machinery of Government changes and an annual price review. By 2013, its value had risen to $27.4 million via a number of relatively incremental increases.

The execution of a three-year extension option in 2013 saw an additional $20 million added to the contract, bringing its value to $47.5 million.

In the year since, 41 amendments have been made to the contract value, with the most recent increase of $50,324 in October 2014 bringing its total value to just over $50 million.

While the ASG contract is currently PM&C’s largest ICT-related agreement, other ongoing contracts signed by the Department include:

  • An $11 million, six-year contract with UXC for the provision of telephone management support services;
  • A $2 million, two-year contract with Telstra for mobile voice and data services; and
  • A $1.5 million, one-year contract with Zallcom for software management services.
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