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

The Australian Taxation Office has prolonged its decade-very long managed community providers megadeal with Optus although it continues searching for telcos to make up a new multi-sourcing arrangement.

The countrywide income agency handed Optus an eighteen-month extension previously this month at a price tag of $141.5 million that extends the current deal until thirty December 2021.

It brings the total price of the deal – which covers voice and info carriage, telephony, large and neighborhood space networks and call centre infrastructure – to $1.thirteen billion over 11 decades.

The deal was established to expire on thirty June 2020 to make way for 6 new managed community company bundles that the agency approached the current market for last December.

Every of the bundles, which will be delivered by a distinct company company, are meant to be “smaller, far more modularised and far better current market aligned” than the present-day arrangement.

The ATO claimed this will “enable most effective of breed and focussed company delivery, in convert delivering far better price for money”.

The bundles will cover info carriage, fixed voice, cell providers, community management, unified communications and call centre providers.

But with that procurement even now incomplete, a spokesperson explained to iTnews that the Optus deal experienced been prolonged for eighteen months “to assistance a productive changeover to a new supplier”.

“During this time period, Optus will keep on to supply providers, hardware, and software to enable the delivery of providers … until new supplier preparations consider result,” the ATO claimed.

“This is a quite ordinary business practice for taking care of any likely transitioning of providers.”

The spokesperson claimed the extension incorporated two perform orders, only just one of which has been prolonged for eighteen months: BAU providers in the course of the changeover time period.

BAU providers account for the vast majority of the deal at $85.3 million, although the second perform get for the renewal of managed community providers (MNS) software licenses and servicing is valued at $43.3 million.

The renewal of MNS software licences and servicing is for 12 months, however the “Cisco A-Flex organization licence arrangement and telepresence” contained inside will stretch for 36 months.

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

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

“The procurement activity is currently ongoing. We are not able to supply more details at this time.”

The agency has formerly declined to reveal whether or not any suppliers have been shortlisted, even with authentic tender documents stating that this would take place by May 2020. 

Optus has held the ATO’s managed community providers deal because the agency split up its monolithic IT outsourcing arrangement with IT providers company EDS (now DXC) in 2009.

The deal, which is just one of three IT outsourcing agreements slated for refresh over the future year-and-a-fifty percent, is the to start with to be current market analyzed by the ATO.

The other two bundles are held by Leidos (conclude user computing), which was prolonged until November 2021 last year at the price tag of $87 million, and DXC (centralised computing).