Each year, Federal Government agencies enter into thousands of individual ICT contracts (17,713 in the 2005-06 financial year). While many are to meet “one off” requirements (fixed term projects, system implementations, etc), many are to meet an on-going requirement. Tracking contracts that are due to “expire” is a valuable source of intelligence regarding the likely procurement plans of your clients and prospects.
For example, if an agency enters into a contract for the supply of printers or PCs for a particular period, it is likely that it will have a continuing need for such equipment. It can ensure its future needs are met by either extending the initial contract, or by going to the market with a new tender at the end of the contract period.
Being aware when such contracts are due to expire enables you to approach your clients and prospects at just the right time – when they are actively looking at their options!
Intermedium has identified almost 900 Federal Government ICT contracts that are due to expire in the period June 2007 – February 2008. These include:
- $5.5m Helpdesk and Desktop Support contract at DFAT (3 year contract)
- $13.5m Fax Equipment contract with Centrelink (3 year contract)
- $182,000 Mobile Phone contract at Defence (12 month contract)
- $980,000 Photocopiers and Network Printers at FaCSIA (3 year contract)
- $1.4m PCs and Notebooks for DPP (12 month contract)
Intermedium’s research shows that in 2005-06, only 33.1% of ICT contracts went to open tender. 24.2% were allocated on the basis of a restricted tender, and 38.2% went to sole suppliers (4.5% were procured via 'other' methods).
These results reinforce the importance of tracking existing contracts, and understanding when an agency might be planning to go to the market.
Intermedium tracks ICT contracts reported by Federal Government agencies (published in AusTender), and identifies contracts that are due to expire.
This information is published in scout IT, Intermedium’s comprehensive Federal Government ICT prospecting tool, listing and updating all reported ICT procurement plans, expiring contracts and providing a historical view of the last 12 months of ICT tenders.