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Vendors shortlisted for $323 million SA telecommunications panel

by Paris Cowan •
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The South Australian Government has settled on a shortlist of vendors that it will consider for membership of a new whole-of-government Network Services Panel, following an Expressions of Interest (EOI) process commenced in April.

A spokesperson for the Department of Premier and Cabinet (DPC), which is overseeing the new panel’s establishment, said that bids to supply within each of four business segments making up the panel would be evaluated independently.

“Each respondent was assessed separately against each of the segments it bid for and shortlists have been decided for all of the segments. Shortlisted respondents for each segment have been invited to participate in the next stage of the procurement process for that particular segment,” she said.

Respondents were invited to bid for all or any combination of the following:

  1. Network Carriage Services
  2. Network Internet Services
  3. Network Management Services
  4. Messaging and Business Communication Services

The DPC advised that it is Government policy not to disclose the names of any participating vendors until the contracts are finalised.

Suppliers such as Telstra, Optus, AAPT, Dimension Data, Data #3, HP and Internode currently supply to the SA Government through the six whole-of-government procurement panels that the consolidated Network Services arrangement is set to replace.

According to EOI documents released in April, roughly $323 million worth of contracts will be facilitated through these panels over the initial three year term. However these estimates may have changed as the latest procurement update from the Office of the Chief Information Officer reveals that real expenditure in some telecommunications fields has exceeded expectations.

The update shows that the Government’s total spend on voice, data and carriage services, which are currently covered by the Telecommunications Services Panel, will reach $278 million over the six years to March 2014, up $25 million from the July estimate of $253 million for the same term.

The actual spend against the Government’s Managed Network Services deal with Dimension Data also surpassed estimates, at $90.6 million over six years rather than the $80 million originally forecast.

The contract reached its final expiry in July this year and the State will spend another $30.5 million with the company to cover the disengagement period up to March 2014, when the new Network Services contracts are due to come into effect.

Similarly, the SA Government will spend an additional $4.1 million with its whole-of-government Internet Services Provider Internode. Internode’s six year, $7.4 million contract with the State expired in April 2012 but it will continue to supply SA agencies up until March 2014, bringing the full value of the deal to $11.5 million.

The six existing contracts that will be consolidated into the Network Services panel (under what the SA Government has labelled its ‘Tranche 3 Procurement Reforms’) include:

  1. Mobile Carriage Services
  2. Telecommunications Services
  3. ISP Services
  4. Managed Network Services
  5. Active Devices Equipment
  6. Electronic Messaging Services

The OCIO’s latest update also reveals that the Government has extended its Microsoft Licensing Agreement by 12 months to 30 June 2013, and its Ingres Corp Licensing Agreement by three years to 29 September 2015.

The SA Government has also announced that it will open tendering for membership of its $225 million whole-of-government Distributed Computing Support Services (DCSS) panel in January 2013.

Related Articles:

South Australia to launch new ICT Strategy in 2013

EOI released for $323 million Network Services panel

A new generation of South Australian ICT Contracts coming soon


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

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  • Optus
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