David La Rose, chief executive of IBM Australia, said the deal reflected the growing importance of technology in the government`s transformation agenda. All government authorities will have access to certain technologies under the agreement and agencies currently working with IBM, including the Department of Human Services, ATO, Department of Home Affairs and Defence, will see an improvement in their current contractual agreements, according to the government. In addition to the IBM agreement, the DBA has entered into a number of government-wide purchase and volume acquisition agreements. A new comprehensive administration agreement has been reached, which will make it easier for public authorities to purchase IBM products and services. IBM has been awarded a $14 million contract with the Department of Defense through its $1 billion comprehensive government agreement with the Digital Transformation Agency (DTA). “Entire government agreements are consistent with the findings of the 2017 ICTment Supply Task Force report, which recommended mandating a coordinated process for meaningful IT procurement and IT provider relationships,” Keenan`s announcement said. “This agreement is proof of our 40-year partnership with the Australian government. It demonstrates confidence and confidence in our ability to transform and deliver world-leading skills using our investments in AI, blockchain, quantum and cloud. We look forward to helping the Australian government redefine the digital experience for the benefit of all Australians. In addition, volume sourcing agreements have also been concluded with SAP, Microsoft and Concur.
“In addition to reduced prices, the new agreement includes other benefits such as access to software upgrades during the duration of the contract and other innovations developed by IBM,” Keenan said. A new contract brings the ongoing acquisition of IBM services under the sale agreement with dBA under the entire government sales contract of the Australian Tax Office (ATO) up to $158.3 million from the Digital Transformation Agency (DTA) sale contract concluded in 2018 for $1 billion. The contract with Defence is the latest in IBM`s agreement and follows the acquisition of an additional $158.3 million contract in June from the service support and maintenance agreement for its existing IBM software. In a report, ANAO stated that DTA was unable to demonstrate that the agreements showed cheap value for money. The DBA has been in talks for a few months with software giant SAP on the creation of a licensing agreement, much like the volume-sourcing agreement with Microsoft. During the announcement of the agreement, Michael Keenan, then Minister of Human Services, said the sales contract was designed to offer the “best possible prices” to all departments and agencies, regardless of their size or expense. The agreement, the largest ever negotiated by the Australian government, includes multi-brand solutions with IBM hardware-based solutions, software and cloud solutions, and includes innovation programs in cybersecurity research and quantum computing. The five-year blockbuster contract is expected to save taxpayers more than $100 million in benefits, with the chain`s partners also benefiting from an agreement that will allow suppliers to work with Big Blue throughout the process. The full indefinite licensing, assistance and maintenance contract for government authorities is expected to be renewed until June 2024 and would be part of a restricted tendering process that would enshrine the agreement between DBA and IBM.
The terms of the agreement provide that the technology giant provides services such as software solutions and IT support, cloud services, and the construction and maintenance of computer systems.