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Telstra scores $41 million Transport for NSW NGIS contract

by Justin Hendry •
Free resource

Telstra has emerged as Transport for New South Wales’s (TfNSW’s) preferred supplier for the Fixed Voice Services component of the Next Generation Infrastructure Services Program (NGIS), in an agreement worth $41.3 million over five years.

As TfNSW released a single restricted tender for both Fixed Voice and Mobile Services components in October 2014, it was expected that a single supplier would be contracted to deliver both components under a single contract. TfNSW has instead initiated two contracts for Mobile – with Telstra and Optus – without designating a contract value on either.   

Telstra will therefore vie with Optus to secure Mobile Services contracts worth an estimated $22.1 million over five years.  

With NGIS, TfNSW is transforming its IT infrastructure and sourcing and delivery arrangements, using the expiry of a number of infrastructure services contracts as a catalyst for the program.  Rationalising infrastructure services across the Transport cluster including a “complex web of data centres, networks and help desks” is expected to facilitate efficiency and service gains, according to TfNSW’s 2013-14 Annual Report.

Tendering across all service bundles has now ended with contracts awarded for the majority of the three technology domains, including:

  • Centralised Computing (Data Centres);
  • End User Computing (EUC), Collaboration & Service Desk; and
  • Networks.

NEC has been designated TfNSW’s EUC partner in a deal worth $134.3 million over five years, with the option to extend the term by a further four years. This will involve the design, build and deployment of a single next generation EUC and Collaboration platform to replace a legacy environment that serves 30,000 employees over 500 sites with 25,000 desktop and laptop devices and 10,000 mobile devices.

IBM has been selected to supply the Centralised Computing (Data Centres) domain in a $99 million agreement over five years. The contract will see IBM responsible for the migration of TfNSW’s 3000 servers and 20 existing data centres into the NSW Government’s GovDC Silverwater and Unanderra facilities.

IBM has also recently secured a contract for the supply of the underpinning data voice, multimedia network equipment or platform hardware worth $20.9 million over four years.

The supplier of the program’s final component – managed network services – is yet to be selected, 10 months after TfNSW initiated the procurement process.

The total upfront cost of the program has been estimated at $150 million, with an additional $100 million required to cover the ongoing annual operation costs.

Related Articles:

TfNSW finalising NGIS Project procurement

TfNSW preferred suppliers likely notified

TfNSW issues restricted tender for NGIS network services

TfNSW: IBM and NEC track records evident


  • NSW
  • Hardware
  • IT Services
  • Telecommunications
  • Transport