Kaz in $200 million defence win

Kaz’s coffers are around $200 million richer, after winning a new five-year contract with the Department of Defence.

The Telstra-owned services company will supply remote support capabilities to 90,000 desktops across 325 Defence sites.

It will also offer services around office-function infrastructure, 24/7 management of Defence’s restricted and secret networks and oversee the introduction of ITIL [Information Technology Infrastructure Library] processes.

The deal, in the works for more than a year, also offers the integrator an option of up to five two-year supplemental contracts.

Beating 14 national and multinational competitors for the contract validated Telstra’s acquisition of the services company, Kaz CEO Mike Foster said.

“I don’t think Kaz under its previous structure would have had the capacity to undertake a deal of this size,” he said. “Telstra alone probably wouldn’t have been considered either, so the synergies between the two organisations really allow for this type of business.”

According to Foster, the department’s decision to move to an external provider for the services was proof of growing opportunities in the vertical.

“Defence was looking to a third party for continuous improvement in service levels,” he said. “It was also looking at the market’s increasing use of selective outsourcing of non-core capabilities.”

To fulfill the requirements of the new contract, Kaz will partner with Defence and a number of sub-contractors, including Boeing, to gain the 200 necessary staff, Foster said.

Despite so many staff coming from outside the organisation to service the contract, Kaz would still be able to offer value to Defence, Foster said

“There’s the people aspect but also technology, toolset and processes and that’s where Kaz focused in its tender response,” he said. “Defence people have knowledge of the customer and Boeing will continue to work in its specialist areas.”

With the contract win under its belt Kaz would now work to take its security credentials into the broader market, Foster said.

“Having a capability that can manage sensitive information and secure networks is an area where there is more and more demand,” he said. “Managing 90,000 desktops is also a good place to be as more people use their desktops to make telephone calls.”