Transport for NSW (TfNSW) has selected IBM and NEC as preferred tenderers for two of the three service bundles associated with its Next Generation Infrastructure Services (NGIS) program.
The deals represent significant NSW public sector market breakthroughs for both IBM and NEC, with TfNSW estimating that the NGIS program renewal will require approximately $150 million in up-front expenditure and $100 million in annual operating costs on an ongoing basis, according to an RFP for a Program Director and PMO released by the agency last week.
The names of the preferred suppliers, reported by ITNews, follows an article last week in which Intermedium stated that it was likely that TfNSW had approached its preferred suppliers.
IBM has been selected for the Centralised Computing (Data Centres) service tower while NEC has been selected for the End User Computing (EUC), Collaboration & Service Desk bundle.
If formally selected for the Data Centre bundle, IBM will be required to oversee the migration of TfNSW’s 3000 servers and 20 existing data centres into the WofG Data Centres at Silverwater and Unanderra. The estimated pre-transition signing dates for the Data Centre service tower is 26 September 2014, according to the RFP documents.
IBM’s most recent large contract in NSW was the provision of wireless connectivity support to the 220,000 laptops that made up the laptops for schools program, worth $70 million.
However, in the Federal Government, IBM’s experience with centralised computing is both extensive and lengthy, with managed services contracts at the Australian Customs and Border Protection Services (due to expire in 2016) and the Department of Health (due to expire in June 2015 – procurement already underway). Previously it had supplied such services to the Department of Veterans’ Affairs, as well as to Medicare. Both DVA and Medicare now have such services provide by the Department of Human Services (DHS). IBM also has major mainframe hardware, software and related services contracts with both DHS and the Department of Defence which are routinely renewed.
NEC will be tasked with designing, building and deploying a single next generation EUC and Collaboration platform to replace the legacy environment that serves 30,000 employees over 500 sites with 25,000 desktop and laptop devices and 10,000 mobile devices. The estimated pre transition signing date for the arrangement is 19 December 2014.
NEC IT Services had its genesis in the May 2012 acquisition of CSG, the Northern Territory IT services supplier which was a sub-contractor to Lockheed Martin in its delivery of a $300 million end user computing arrangement at the ATO.
CSG also had a long history of Managed Services delivery to the whole of NT Government. Following its acquisition of CSG, in October 2013, the firm signed a $34.6 million 5-year managed services agreement with the Northern Territory Department of Education, encompassing approximately 250 servers and 13,000 desktops, many of them in remote locations. NEC also gained responsibility (briefly) for managing the $64.6 Ultranet Master Agreement with the Victorian Department of Education, Employment and Early Childhood Development, which it ran until the system was scrapped in June 2013.
NEC also currently holds the Whole of Government (WofG) contract for Victorian Office Telephony Services in Victoria, the arrangements for which are likely to be altered once the VicConnect arrangements are put in place.
Prior to this TfNSW win in NSW the global giant had been mainly active in the supply telephony and PABX maintenance services.
TfNSW is still evaluating tenders for the Networks bundle, which will require the chosen supplier to design build and deploy a Next Generation telecommunications and data network replacing a number of legacy networks across the Transport agencies.
It is understood that both IBM and NEC were shortlisted for this last bundle.
TfNSW initiated the NGIS program following the expiry of key agency IT infrastructure services outsourcing contracts, previously held by Fujitsu, giving the Transport cluster the opportunity to consolidate onto shared state-of-the-art IT infrastructure services platforms and leverage the scale of the cluster to reduce costs.
Of the 25 suppliers who responded to the initial Expression of Interest (EOI), seven were invited into a restricted Request For Proposal (RFP). The original respondents included: CSC; Fujitsu; Hewlett Packard; IBM; Lockheed Martin; Logica CGI; Unisys; Optus; Telstra; Dimension Data; NextGen Group; NEC IT Services; NetApp; UXC Connect; Tata Consulting Services; Tech Mahindra; Wipro; HCL and Infosys.