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Second Group 8 Agency Goes to Market for Outsourced IT

by Staff Writers •
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The second of the Group 8 outsourcing cluster has commenced market testing with the release today by Department of the Environment, Water, Heritage and the Arts (DEWHA) of briefing material about its IT outsourcing requirements.

DEWHA today issued a Pre-Release Industry Briefing paper in advance of an RFT expected early next month with a closing date in mid-September.

The Group 8 cluster comprised DAFF, DEWHA, Civil Aviation Safety Authority, Australian Public Service Commission and Australian Communications and Media Authority.In July 2000, DEWHA and other members of the Group 8 cluster outsourced their IT services to IPEX, now Commander Communications. The five year term was extended during 2005 for a further four years, and is now due to expire in June 2009. It is estimated that the value of the contract over nine years was about $360 million.

Continuing the trend amongst other outsourcing clusters, members of the Group 8 cluster will go to the market independently to meet their IT outsourcing requirements. Department of Agriculture, Fisheries and Forestry (DAFF) was the first to hit the streets when it released an RFT on 4 July. The DAFF RFT closes on 29 August.

The DEWHA industry briefing paper alerts potential suppliers that this contract may be impacted by decisions in relation to a “coordinated procurement contracting environment”. It warns that potential whole-of-government procurement designed to drive efficiency and cost savings may impact aspects of this contract. As a result, DEWHA reserves the right to cancel its RFT if the Government moves to a new centralised buying strategy before mid-2009.

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