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Outsourcing of government information technology infrastructure: announcement of Cluster 3

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Minister for Finance THE HON JOHN FAHEY, MP


Outsourcing of Government Information Technology Infrastructure: Announcement of Cluster 3 I am pleased to announce the first group of agencies to go to the market as part of the Commonwealth Government's Information Technology Infrastructure Initiative.

This first group, known as Cluster 3, comprises the following agencies:

Department of Administrative Services Department of Immigration and Multicultural Affairs The Australian Securities Commission The Australian Electoral Commission The Australian Industrial Property Organisation

Cluster 3 is the first cluster ready to be market tested and it is conservatively valued at around $250 million over a 5 year period.

Through this Outsourcing Initiative, the Government is committed to achieving the best value for its information technology dollar, to support the delivery of services at the lowest cost to the taxpayer.

This Initiative creates substantial opportunities for small to medium sized Australian IT companies, regional development and employment growth. The ability to ensure these objectives are realised will be a major component in the competitive process for this cluster and future clusters.

The Government expects vendors for this cluster to provide firm commitments in these areas. They will also be required to demonstrate how they can capture a greater share of expanding business opportunities in the Asia/Pacific region.

Cluster 3 will be seeking mainframe, mid-range and desktop services together with managed voice and data communications services. This will represent around 400 MIPS of mainframe capacity, 23 Mid-range systems, 7,500 desktop units, 90 local and wide area networks and 17,000 telephone services.

The best business and technical solution for the Cluster will be achieved through a rigorous competitive process, with the first step being the release of an Invitation to Register Interest.

An Invitation to Register Interest has been advertised nationally today.

A draft Request for Tender, in accordance with the Commonwealth Procurement Guidelines will be released in early September 1997. The draft Request for Tender will provide a vehicle for industry to provide constructive comment on the infrastructure services the Government is seeking to obtain. This will be followed five weeks later by a final Request for Tender document. It is expected that the process will be finalised by around April next year.

Selection of a preferred vendor will take place only after all material business, financial, legal and industry development terms are resolved and vendor due diligence complete.

The competitive tendering process for the Cluster is being co-ordinated by the Project Directorate for the Information Technology Infrastructure Initiative within the Office of Government Information Technology. An independent Probity Auditor will be appointed to oversee the process.

The release of the first step of the clustering process is in accordance with the Government's timetable in which agencies are required to have subjected their IT infrastructure to market testing within 2 years. 

Canberra 24th July 1997