Under the five-year agreement, EDS, an HP company, will provide desktop, server, storage and architecture services.
"This agreement will help the Federal Government meet its business and policy objectives and deliver better return on investment to the Australian people," said David Caspari, managing director EDS A/NZ.
"It builds on existing services we provide to the government and strengthens EDS' position as the No. 1 government supplier in the country."
EDS will manage and provide help and service desk support to approximately 5,000 employees across the department's 300 locations, as well as provide the overall storage and IT architecture and design services in a multivendor agency environment.
The contract was signed in March 2009.