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WA superannuation agency approaches the market to outsource IT

by Paris Cowan •
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Western Australia’s Government Employee Superannuation Board (GESB) is calling for tenders to replace its seven-year IT outsourcing deal with Fujitsu, which is set to expire in July 2013.

GESB signed the deal in March 2006 with outsourcing specialist Kaz Group, which was subsequently acquired by Fujitsu. The original contract was for three years at a value of approximately $6 million according to news coverage at the time of the signing.

A subsequent contract listing from Tenders WA shows that the deal has since been extended to March 2011, bringing its five year value to $12.6 million. The GESB had not yet confirmed a full seven year contract value at the time of publishing.

Tender documents released on Monday reveal that the GESB will once again look to appoint a single contractor to cover its broad IT needs, which include a Tier III primary data centre and a secondary data centre, as well as:

  • Contract Management;
  • Facilities Management;
  • Server Management;
  • Desktop Management;
  • Storage Management;
  • Network Management;
  • Server Infrastructure;
  • Security Management;
  • Database Management;
  • Service Desk;
  • Business continuity with regards to network and desktop management to the primary data centre; and
  • Project works such as server consolidation and desktop refreshes.

The GESB will retain responsibility for all policy decisions and application software development under the deal.

The Board has also outlined a specific set of performance outcomes to be met by the selected outsourcer, but adds that it is open alternative suggestions from respondents due to the unusual circumstances that it presently finds itself in.

In March 2012 the WA Government introduced reforms allowing the State’s public servants to choose their own super fund, a decision that is expected to see the operations of the GESB decrease. In May Treasurer Christian Porter called for Expressions of Interest for the outsourcing of all administrative services of the GESB to take advantage of this reduction in activity, meaning that a major transformation is likely to face the agency in the near future.

The Board says that “in light of this possibility and the flexibility that it will demand” it will consider “alternative approaches to meeting the requirements” of the managed services contract, even dropping hints it would be open to an as-a-service approach or other options which “gain the benefit of changes in technology or processes”.

The GESB is the superannuation provider for current and former employees of Western Australian Government departments, authorities and enterprises, with 320,000 members and an investment portfolio of over $13.9 billion making it the largest WA based superannuation fund provider.

According to its latest annual report, the Board’s IT expenses for the 2011-12 financial year reached $6.4 million, $736,000 inside its $7.1 million budget.

All prospective tenders are required to attend an industry briefing on 17 December in Perth, and tenders close on Friday, 25 January 2013.

Related Articles:

Local ICT suppliers maintain their grip on WA Government market

DIAC approaches market to renew IT outsourcing contracts estimated at $750 million

ATO Centralised Computing deal with HP passes $1 billion mark


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

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  • WA
  • IT Services
  • Treasury
  • Christian Porter
  • Fujitsu
  • ICT Outsourcing
  • WA Government Employee Superannuation Board
  • Data Centres