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

The Australian Taxation Office environment has extended its ten years-very long managed network expert services megadeal with Optus though it continues searching for telcos to make up a new multi-sourcing arrangement.

The countrywide earnings company handed Optus an 18-month extension earlier this month at a charge of $141.five million that extends the existing offer right until thirty December 2021.

It delivers the complete price of the contract – which addresses voice and information carriage, telephony, huge and community place networks and get in touch with centre infrastructure – to $1.thirteen billion around eleven several years.

The contract was established to expire on thirty June 2020 to make way for six new managed network provider bundles that the agency approached the sector for final December.

Every single of the bundles, which will be delivered by a unique provider service provider, are meant to be “smaller, more modularised and much better sector aligned” than the recent arrangement.

The ATO stated this will “enable most effective of breed and focussed provider shipping, in transform supplying much better price for money”.

The bundles will deal with information carriage, mounted voice, cell expert services, network administration, unified communications and get in touch with centre expert services.

But with that procurement nevertheless incomplete, a spokesperson instructed iTnews that the Optus contract experienced been extended for 18 months “to guidance a thriving changeover to a new supplier”.

“During this period of time, Optus will carry on to present expert services, hardware, and software package to permit the shipping of expert services … right until new provider arrangements just take influence,” the ATO stated.

“This is a really usual company observe for taking care of any possible transitioning of expert services.”

The spokesperson stated the extension incorporated two work orders, only a person of which has been extended for 18 months: BAU expert services throughout the changeover period of time.

BAU expert services account for the bulk of the contract at $eighty five.3 million, though the next work purchase for the renewal of managed network expert services (MNS) software package licenses and upkeep is valued at $forty three.3 million.

The renewal of MNS software package licences and upkeep is for twelve months, however the “Cisco A-Flex organization licence agreement and telepresence” contained in just will stretch for 36 months.

The spokesperson stated this agreement was extended for 36 months “as it represented much better price for money”.

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

“The procurement activity is at this time ongoing. We are unable to present even more information at this time.”

The company has previously declined to reveal no matter whether any suppliers have been shortlisted, even with authentic tender files stating that this would come about by May possibly 2020. 

Optus has held the ATO’s managed network expert services offer given that the company break up up its monolithic IT outsourcing agreement with IT expert services corporation EDS (now DXC) in 2009.

The offer, which is a person of a few IT outsourcing agreements slated for refresh around the following calendar year-and-a-half, is the very first to be sector examined by the ATO.

The other two bundles are held by Leidos (finish consumer computing), which was extended right until November 2021 final calendar year at the charge of $87 million, and DXC (centralised computing).