Gershon brings home the bacon: Purchasing changes

James Riley
Thursday, 08 October 2009 13:26

IT Policy - Government Tech Policy

Finance Minister Lindsay Tanner has unveiled Gershon-inspired government purchasing arrangements for desktop computers and communications services that could save more than $250 million over five years.

The arrangements are among the first for ICT products, bringing whole-of-government aggregated buying power to what is now effectively commodity product categories.

"The current arrangements for the procurement of desktop computing equipment and telecommunications products and services are completely devolved," Mr Tanner said.

"Recent scoping studies undertaken by the Rudd Government have shown that greater coordination in the purchasing of these goods and services has the potential to achieve significant savings."

Government would create new whole-of-Government panels and contracts for the desktops and communications through the Department of Finance’ Australian Government Information Management Office (AGIMO.)

Government agencies with immediate desktop needs have been directed to use in the interim a Defence department panel for desktop equipment for which an RFP was recently issued.

New arrangements for other telecommunications products and services – including managed services and commodities like mobile phone handsets – would be put in place next financial year.

A spokesman for AGIMO told iTWire the Australian Government spend about $130 million annually on desktop computing equipment, although the spend fluctuated depending on lifecycle – but the agency expects the new measures would produce savings of 5 per cent to 15 per cent.

The estimated total annual spend on telecommunications products and services by Australian Government agencies is about $370 million, AGIMO said.

The new procurement arrangements would address three areas of this spend – internet-based network connections, commodities such as mobile phone handsets, and the reconciliation of telecommunications invoices.

The Government expects to reduce the cost of internet-based network connections by 5 per cent to 11 per cent annually; commodities by between 2 per cent and 10 per cent annually; and to utilise invoice reconciliation services to reduce the cost of invoiced services by 10 per cent to 15 per cent annually.