Australian agencies are seeking to generate procurement efficiencies by rationalising their numerous software deals into consolidated and easy to manage contracts.
The Department of Defence has moved to roll all of its Commercial of the Shelf (COTS) Oracle software contracts into a single consolidated deal, worth $63 million.
A spokesperson for the Department said that as many as 70 existing agreements have been wrapped up into the three-year deal with Oracle, and that it would cover “capacity growth and capability improvements of existing systems”.
“The contract supports the sustainment of Defence’s existing Human Resources Enterprise Resource Planning system.
“It also supports a number of Defence Information Communications Technology Reform Initiatives, including Data Centre Migration, Data Centre Consolidation, and the Defence Record Management System,” the spokesperson added.
At an average annual value of $21 million, the consolidated Oracle deal exceeds the level of software and software support contracting that Intermedium has observed at Defence over the last two full financial years, possibly due to capacity growth or unpublished contracts, or a combination of the two. In 2009-10 the value of contracting between Defence and Oracle in these categories was $6.9 million. In 2010-11 it was $11.1 million.
Western Australia’s Department of Health has embarked on a very similar journey, taking the first steps to consolidate its IBM software requirements under a single contract with a tender request released on 15 June. The new contract will supersede all past and current IBM software procurement contracts between the Department and its various IBM software suppliers.
Under the new arrangement, a single reseller will be selected to cover the provision and removal of IBM software licenses for 12 months, with options to extend to maximum five-year period. All necessary software maintenance and support will also be covered under the upcoming contract.
The list of IBM software products that will be covered under the contract includes:
- Cognos Business Intelligence;
- SPSS Fixed Term Licenses and Authorised Users;
- System Storage SAN Volume Controllers; and
- Tivoli Storage Manager Suites.
A full list of IBM software products along with the respective quantities needed is available in the tender documents. The Department has suggested that it may need up to of 230TB of Tivoli Storage during the first year of the contract.
It is expected that this consolidated approach to software procurement will reduce the costs associated with the Department’s software purchasing.
Tender responses are due by 13 July 2012.