IBM Australia and DTA renew vows with $725 million agreement

IBM Australia has reached a five-year, $725 million whole-of-government agreement with the Digital Transformation Agency (DTA), following the first iteration of the arrangement in 2018. 

The agreement aims to give government agencies easier and more cost-effective access to IBM products and services, including hardware, software, cloud services and professional services.

Agencies can request quotes for IBM products and services via government hardware, software, cloud and digital marketplaces.

The agreement covers IBM Security products and services, IBM Watson and IBM Cloud.

IBM will also work with the Australian Government to help grow the digital capability of the APS through providing access to an IBM Digital Skills Program that will bring global learnings to public sector executives.

Government agencies will also gain access to IBM’s sustainability software suite, as part of a pilot program.

The agreement also enables agencies to work with IBM to explore how quantum technology could be applied by government agencies, and to work with IBM on data protection and encryption.

“Through the Commonwealth negotiating as one entity, the contract will continue to give government agencies better value for money and more flexibility when sourcing commonly used IBM products and services with a focus on essential government requirements,” stated DTA CEO Chris Fechner.

Major agencies that partner with IBM include the Australian Taxation Office, Department of Defence, Department of Home Affairs and Services Australia.

Non-corporate Commonwealth entities must contract under this arrangement when purchasing IBM products and services. The agreement is also available to Corporate Commonwealth entities (CCEs), government-owned businesses, state and territory governments, and higher education institutions established by legislation.  

IBM’s 2018 whole- of-government agreement with the DTA, valued at $1 billion, was reported at the time to be the biggest ever negotiated by the Australian government. The value of the IBM-DTA agreement eventually grew to more than $2 billion, iTnews reported.

In 2021, IBM expanded its existing whole-of-government agreement with the New South Wales Government, providing access to tech and co-creation services for the Government’s nine departments and their agencies.