ASG signs $41m government contract

IT services provider ASG Group (ASX: ASZ) has secured a multi million dollar contract with the Department of Prime Minister and Cabinet (PM&C)

The deal is worth $41 million and spans nine years. Under the terms of the contract, ASG Group will deliver a range of services including, service desk, desktop, server/network services and project services.

The contract extends across a broader range of PM&C portfolio agencies, including the Department of Climate Change and Energy Efficiency, Old Parliament House, Australia Parliament House and the National Water Commission.

ASG Group chief officer of sales and strategic operations Murray Rosa said the contract represents a "significant broadening of our relationship with PM&C".

"ASG has been providing IT services to PM&C since 2004 and we are very pleased to have the opportunity to continue and improve this relationship," he said.

ASG has secured $112 million in new contracts in 2010 including a $13 million contract with the Department of Broadband, Communications and the Digital Economy, a $23 million contract with the WA Department of Education and a $35 million contract with Western Power.

ASG Group also recently announced the acquisition of Melbourne-based IT consulting firm Dowling Consulting and continues to assess a number of acquisition opportunities, according to the firm.