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Subcontracting opportunities up for grabs in AMSPA led Defence IT market

by Paris Cowan •
Free resource

Australian companies, small and large, are finding opportunities in the Defence IT services market, acting as subcontractors to the prime integrators on the Department’s Applications Managed Services Partnership Agreement (AMSPA), rather than directly with the agency itself.

The Department has told Intermediumthat BI specialists Innogence and UXC Limited have both been subcontracted by AMSPA panellists to assist with more than $80 million worth of systems integration work.

Innogence, which employs approximately 80 staff, has partnered with CSC Australia as part of the latter’s $40.3 million contract to provide maintenance services across Defence’s Finance Suite Applications to 2017.

The contract will cover five applications including the Defence SAP suite and a number of bespoke applications.

Intermedium has identified just over $9 million worth of Federal Government contracts that have been won directly by Innogence since 2004, across a number of agencies. However subcontractor roles, such as this role with Defence, are not recorded on Austender and do not contribute to this contract total.

UXC Limited has been subcontracted by Accenture under another $40.3 million contract, this time for Human Resource & Payroll Systems Sustainment Services to 2017.

The contract covers 11 applications including the Defence PeopleSoft/Oracle suite, ADFPAY and a number of bespoke applications.

The AMSPA panel was established in September 2011 after a lengthy process of industry consultation by Defence. It includes Accenture; BAE Systems; CSC; IBM; and HP.

When interviewed by Intermedium, Defence CIO Greg Farr forecast that the AMPSA panel arrangement would not eliminate opportunities for other systems integrators to supply to Defence, saying systems integrators not on the panel would still find ample subcontracting opportunities.

“There are also SMEs that are already partnering with some of the big systems integrators in areas where they have a niche understanding of Defence that has been built over periods of time,” he said.

“This is where a number of the companies that have done business with us over the years have found themselves and I know that a lot of them are already partnering with a number of the systems integrators. Some I think are partnering with all five of them,” he said.

These latest contracts with CSC and Accenture bring the total value of contracts identified on Austender as being signed through the AMSPA to date to just over $91 million. Accenture is leading the panellists, with $48.7 million worth of contracts signed with Defence via the panel.

However, Intermediumis aware that this $91 million may understate the total value of contracting through the panel. Not all contracts published include the associated Standing Offer Notice (SON) information and without this information a contract cannot be linked back to a panel.

The total value of IT services contracts published between Defence and each of the five AMSPA panellists since the AMSPA became effective is $103 million.


Related Articles:

Defence reveals AMSPA domains of expertise

Interview: Defence CIO Greg Farr on new systems integrator panel

Accenture wins $109 million contract to finish LMBR

CSC wins $51 million for upgrade to ADF command system

  • Federal
  • IT Services
  • Defence
  • Accenture
  • csc
  • Department of Defence
  • Greg Farr
  • Innogence
  • SME
  • UXC Limited