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Signs of recovery in Federal market, but where will the opportunities arise?

by Staff Writers •
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After a quiet last 18 months, there seem to be "green shoots" appearing in the Federal ICT market. As mentioned in last week’s issue of the medium, Intermedium’s analysis of 2009-10 Federal agency procurement plans identified a 7% increase in the number of ICT projects compared with initial plans published for 2008-09.

At this stage in the electoral cycle, we’d expect the market to pick up as the “rubber hits to road” on a number of Government programs.

Eighteen months after its election, the Rudd Government's focus on reviews, reports and enquiries has drawn a lot of media and opposition comment.  With less than 18 months until the next poll, it’s time for the Government to implement its election promises, and get some runs on the board before the next election.

While there’s potential for upturn in a number of agencies, this is not uniform across all agencies, or across product/service areas.

Following the 2007 election we said (the medium, 10 December 2007) Kevin Rudd’s key message was the new Government would be laser focused on successfully implementing several election policies.  Those areas that were priorities during the election are still priorities for the Government – Broadband, Health, and Climate Change.

In addition, new priorities have emerged as a result of the economic downturn, with agencies such as the ATO and Centrelink allocated additional resources to handle increased workload, and to augment their enforcement activities.

Defence is also an ongoing priority for the Government, and the downturn in Defence ICT spending in recent years (pending the outcomes of several reviews) is likely to lead to an increase in procurement in the near future. The 2009-10 procurement plans are an important view of the ICT procurement intentions of Federal agencies.  They are a valuable procurement tool, and combined with other sources (such as budget information); give a comprehensive view of agency procurement.

Intermedium’s analysis of the 2009-10 plans shows that more than 150 Federal Government ICT procurements are expected to go to the market before end September 2009.  An analysis of the plans also shows:

  • Six Managed Services items are expected to be open during the next three months
  • Centrelink plans to buy Ultra Mobile PCs before the end of 2009
  • One agency plans a large video conferencing implementation
  • Bureau of Meteorology plans 34 ICT procurements during 2009-10
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  • Federal
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  • ATO
  • Centrelink
  • Defence ICT
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  • Kevin Rudd
  • Procurement