Existing contracts for Amazon Web Services such one with the Australian Musuem will be transitioned to the new deal © Getty Images
Existing contracts for Amazon Web Services such one with the Australian Musuem will be transitioned to the new deal © Getty Images

Government strikes $39m deal to simplify IT procurement

The Commonwealth government has signed a $39m deal with Amazon Web Services (AWS) to streamline IT procurement processes across the public sector.

Under the agreement, federal, state and territory government agencies and departments including state-owned universities will be able to access AWS cloud services without negotiating separate contracts through a “simplified procurement model”. 

The deal was brokered as part of government efforts to transform IT procurement to “make it simpler, clearer and faster for agencies and industry to transact services”, according to the federal government’s Digital Transformation Agency (DTA).

It said the three-year deal would give government agencies better value for money and increased flexibility when sourcing commonly used cloud and professional services. 

“This coordinated approach to digital sourcing will make it simpler, faster and easier for agencies to buy technology, drive innovation and get more value out of their investments,” the DTA said. 

Minister for government services Stuart Robert said: “Government agencies regularly engage AWS services, each with separate contracts. The new arrangement represents an opportunity to provide cost reductions through efficiencies of scale. 

“Over a number of years, aggregated procurement has allowed us to leverage the bulk-buying power of the government to negotiate consistent and improved terms and conditions.”

Existing contracts with AWS will be transitioned while all new contracts for AWS services will be made under the whole-of-government agreement. 

Agreements are already in place with organisations such as the Australian Museum, the Australian Taxation Office and the Australian Bureau of Statistics. 

Peter Moore, Asia Pacific regional managing director for public sector, AWS, said: “This paves the way for greater innovation by enabling agencies to build and deploy digital services to serve Australians more effectively, transform legacy operations, and accelerate scientific breakthroughs. 

“By eliminating barriers that have traditionally bogged down government technology procurement, the whole-of-government agreement enables agencies to invest more time and resources on their core missions, rather than on negotiating contracts.” 

Earlier this year, the Australian Information Industry Association said the government must simplify its IT procurement processes or risk hampering innovation.

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