March 7, 2021


Connecting People

ATO extends $1bn Optus megadeal for another 18 months – Strategy – Telco/ISP

The Australian Taxation Business has prolonged its 10 years-very long managed community products and services megadeal with Optus even though it continues searching for telcos to make up a new multi-sourcing arrangement.

The countrywide revenue company handed Optus an 18-thirty day period extension previously this thirty day period at a expense of $141.five million that extends the present offer right until thirty December 2021.

It provides the overall benefit of the contract – which covers voice and details carriage, telephony, vast and nearby spot networks and call centre infrastructure – to $1.13 billion around eleven yrs.

The contract was established to expire on thirty June 2020 to make way for six new managed community support bundles that the agency approached the market place for final December.

Every single of the bundles, which will be furnished by a diverse support supplier, are meant to be “smaller, additional modularised and far better market place aligned” than the current arrangement.

The ATO claimed this will “enable most effective of breed and focussed support shipping and delivery, in flip delivering far better benefit for money”.

The bundles will cover details carriage, fastened voice, mobile products and services, community administration, unified communications and call centre products and services.

But with that procurement continue to incomplete, a spokesperson explained to iTnews that the Optus contract had been prolonged for 18 months “to assistance a successful transition to a new supplier”.

“During this period of time, Optus will go on to offer products and services, hardware, and computer software to allow the shipping and delivery of products and services … right until new provider arrangements just take impact,” the ATO claimed.

“This is a incredibly typical business exercise for running any likely transitioning of products and services.”

The spokesperson claimed the extension bundled two function orders, only a person of which has been prolonged for 18 months: BAU products and services in the course of the transition period of time.

BAU products and services account for the greater part of the contract at $eighty five.3 million, even though the second function purchase for the renewal of managed community products and services (MNS) computer software licenses and maintenance is valued at $43.3 million.

The renewal of MNS computer software licences and maintenance is for 12 months, though the “Cisco A-Flex enterprise licence arrangement and telepresence” contained in just will stretch for 36 months.

The spokesperson claimed this arrangement was prolonged for 36 months “as it represented far better benefit for money”.

The spokesperson also pressured that the extension did not suggest there had not been any delays to the procurement, including RFT SPC-2896-1 or RFT SPC-2896-2.

“The procurement exercise is now ongoing. We are not able to offer further information at this time.”

The company has earlier declined to expose whether any suppliers have been shortlisted, irrespective of original tender files stating that this would come about by May well 2020. 

Optus has held the ATO’s managed community products and services offer due to the fact the company break up up its monolithic IT outsourcing arrangement with IT products and services enterprise EDS (now DXC) in 2009.

The offer, which is a person of 3 IT outsourcing agreements slated for refresh around the following 12 months-and-a-50 percent, is the initial to be market place examined by the ATO.

The other two bundles are held by Leidos (finish person computing), which was prolonged right until November 2021 final 12 months at the expense of $87 million, and DXC (centralised computing).