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Usage of top ICT panels increases across NSW Government

by Pallavi Singhal and Paris Cowan •
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The three most valuable ICT State Contracts in the NSW Government collectively facilitated $606 million worth of procurement in the 2011-12 financial year. The same three State Contracts were worth just $564 million in 2010-11, reflecting a boost in the usage of the top panels in spite of plans to radically transform them as their terms expire.

The top State Contracts, or whole-of-government panels, covered the procurement of telecommunications, ICT services and desktop hardware, in that order.

The total value of procurements through all NSW State Contracts was $3.87 billion in the 2011-12 financial year. This was made up of 61 panels and 55 client-specific contracts, according to the latest NSW Department of Finance and Services (DFS) Annual Report.

This figure marks a slight increase from the $3.72 billion procured through State Contracts in 2010-11.

Once again the combined Government Telecommunications Agreements (GTAs) were the most valuable ICT State Contract, and the third most valuable overall, with $372.2 million worth of procurements.

The GTA cluster has been subject to significant changes throughout the year with more to come. GTA 3 for fixed voice services and GTA 4 for mobile satellite and paging products and services were terminated in March 2012.

Of the remaining categories, GTA Category 5 for telecommunications systems and services is due to expire on 31 March 2013, with one 12 month extension option left, and Category 1A for data services ends on 31 December 2012.

The DFS has hinted in the past that a new telecommunications procurement arrangement could well be established in the place of the two remaining categories.

State Contract 2020 for ICT Services was the second most valuable ICT State Contract in 2011-12, as it was in 2010-11.

The total value of contracts signed under State Contract 2020 increased to $142.3 million from $112.5 million in the previous financial year, and its overall ranking in terms of total expenditure remained at seventh place. The contract was extended for up to 12 months in February 2012.

2020 is set to become the first panel to be converted into an open pre-qualification scheme under the Government’s procurement reforms.

The third most valuable ICT State Contract was 2007 for the supply of PCs, notebooks, servers and associated services. It dropped from ninth to eleventh place in the overall rankings, with a fall in contract value to $92 million from $105.8 million last year. This contract is due to expire on 30 April 2013.

The top panel overall was State Contract 100 for contingent workforce, which includes ICT labour hire, followed by Contract 653 for the acquisition of motor vehicles.

Missing from the top 15 state contracts was State Contract 2390 for imaging devices and document solutions, which was ranked twelfth with $58.9 million in contracts signed the previous year. The panel was refreshed earlier this year, and is due to expire on 30 June 2015, with two one-year extension options.

Upon announcing the new panellists in August 2012, Finance and Services Minister Greg Pearce said that the NSW Government has spent roughly $40 million on the goods and services included under the new contract in the 12 months prior.

As part of the Government’s ongoing procurement reforms, the NSW Procurement Board replaced the State Contracts Control Board in July 2012, and is responsible for overseeing procurement activity across all government agencies, and setting and implementing policy. According to the report, departments will have greater responsibility over the procurement of goods and services within a single policy and regulatory framework.

A revised Agency Accreditation Scheme was implemented in August 2011, with agencies already accredited including NSW Procurement, Department of Finance and Services, NSW Ministry of Health and NSW Police Force. The scheme aims to simplify the procurement process for agency-specific needs by enabling accredited agencies to independently sign contracts up to a maximum value, for requirements not covered by State Contracts.

The DFS, the ICT Board, the ICT Leadership Group and the independent ICT advisory panel will continue to oversee the implementation of the NSW ICT Strategy 2012, which outlines a new whole-of-government approach to ICT, including procurement, managed services, open data and information sharing between agencies.

According to the report, $72 million in savings were achieved through whole-of-government procurement activity, keeping the government on track in its commitment to save $1 billion over four years through a range of procurement reforms.

Related Articles:

The end of whole-of-government panels in NSW

NSW ICT panels worth more than $670 million in 2010-11

NSW Government hangs up the phone on telecommunications panels


For more information, please contact the Editor (02) 9955 9896.

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  • NSW
  • Finance & Services
  • DFS
  • Greg Pearce
  • GTA 1A
  • GTA 5
  • Panels
  • State Contract 2007
  • State Contract 2020