Telstra has secured nearly 80 per cent of contracts signed through the Federal Government’s Internet Based Network Connections (IBNC) Panel to date, at a value totalling over $164 million since the panel’s establishment in July 2011.
The bulk of this figure, however, can be attributed to a $125.9 million six-year deal with the Department of Finance and Deregulation for the supply of IBNC services to the Department of Human Services (DHS), expiring in June 2018.
The IBNC panel covers network carriage services, virtual connection management services, IP carriage services and major internet connection services. All procurements under the mandatory panel are made by Finance on behalf of relevant agencies.
It has accounted for $208.3 million worth of all telecommunications procurement by Federal agencies since its establishment in July 2011. AusTender lists 97 contracts that have been signed against the panel, with an average value of $2.1 million.
Centralised procurement of IBNC services is expected to deliver savings of more than $50 million over four years from 2012 to 2016, according to the Government’s savings data.
This minimum figure is based on Intermedium’s identification of relevant contracts by their Standing Offer Notice (SON) as posted on AusTender. As it is not compulsory for agencies to specify a SON ID on panel contracts, it is highly likely that total value of procurement through the panel is higher, given the mandatory nature of the panel.
Since its establishment, the IBNC panel has accounted for 61 percent of the Data Services market. However, panel use spiked in 2012, and procurements through the panel comprised 81.7 percent of the 2012-13 market at the end of February 2013.
Telstra, the leading panellist, has signed 17 contracts with a total value of around $164.4 million. Other than the major DHS contract, significant deals include a $23.3 million contract for IBNC services to the Department of Parliamentary Services (DPS) and a $9.9 million provision of IBNC services to the Government Network Services Branch of Finance, which is responsible for the Intra-government Communications Network (ICON), an optical fibre network that links all Commonwealth offices throughout Canberra.
Nextgen Networks is the next leading supplier in value terms, with 24 contracts worth around $19.2 million signed through the panel. Its top deal, worth nearly $7 million, is for the provision of IBNC services to the Department of Education, Employment and Workplace Relations (DEEWR).
Optus is ranked third, with a total contract value of $13.5 million across 18 deals under the IBNC panel. Its top contract, for IBNC services to the Department of Immigration and Citizenship, is worth $7.4 million.
Suppliers under the panel as ranked according to total contract value are:
- Telstra - $164,383,954
- Nextgen Networks - $19,185,135
- Optus - $13,530,251
- AAPT - $4,233,563
- Pacnet Services - $2,766,655
- Macquarie Telecom - $2,025,087
- Verizon - $908,220
- Transact Capital - $693,424
- Soul Pattinson - $568,559
Soon-to-expire contracts include the provision of IBNC services to the Department of Infrastructure and Transport, which will reach its first expiry milestone in March 2013, services to the Department of Prime Minister and Cabinet which will expire in May 2013, and to the Department of Sustainability, Environment, Water, Population and Communities which will expire September 2013. Most if not all of these contracts, however, will have extension options remaining.
The panel will reach its initial expiry in July 2014, with two one-year extension options remaining.
Find out more about other telecommunications panels currently operating in Australian states and territories through Intermedium’s Whole-of-Government Panels Database.
For more information, please contact the Editor (02) 9955 9896.