AIIA: ICT contracts to be simplified

ICT contracts are to be simplified by the Australian Information Industry Association (AIIA) and the Australian Government Information Management Office’s (AGIMO).

In a joint partnerhsip with AGIMO, the AIIA plans to develop three draft contracts, designed to offer an alternative to the more complex general information technology and communications contracts.

Rob Durie, AIIA’s retiring CEO said companies doing business across Australia are currently faced with at least nine different contracts and then variations on top of that.

“Clearly, this situation is far from ideal as it introduces additional time, cost and risk for all involved. What’s more, it represents a barrier to doing business in the government market for both local and foreign companies,” he said.

Durie claims the Federal Government alone let about 24,000 ICT contracts in the past year.

“If even five companies bid for each contract, ICT companies were looking at well over 100,000 contracts that have to be reviewed and negotiated each year, he said.

“That’s a lot of time and money that both government and industry could better use focusing on achieving their business objectives through ICT.”

Although the AIIA was looking forward to developing a fair and workable contract, it was disappointed with the Federal Government on cap liabilities, said Durie

“The promise to liability and review intellectual property ownership arrangements, made nearly two years ago, have still not been implemented,” he said.

“This means AGIMO has not been able to reflect these changes in the draft contracts that were released."