NSW DCS creating procurement panel for Microsoft Licensing Solution Providers

The Department of Customer Service (DCS) intends to create a new procurement panel for Microsoft Licensing Solution Providers (LSPs), known as the LSP Panel.

The LSP Panel aims to establish an All of Government (AoG) standing offer arrangement with at least three Microsoft LSP to streamline the use of any AoG Agreement between the DCS and Microsoft.

It is the DCS' intention that, subject to relevant approvals, the Panel will be mandatory for NSW agency use when procuring Microsoft Products under any AoG Agreement between DCS and Microsoft.

Each tenderer selected for admission to the LSP Panel must be authorised by Microsoft as a Licensing Solution Provider under the Microsoft Channel Agreement.

The purchase of Microsoft Services (services provided by Microsoft directly to customers) will be subject to a different contractual arrangement outside of the scope of the LSP Panel.

The term of the proposed panel is for three years, with the potential for two one-year extension options. The panel will be formed using the MICTA/ICTA contract framework.

The establishment of the panel will focus on leveraging AoG consolidated volume to improve overall value for money for buyers; ensuring agencies have access to services that meet agency requirements at market competitive rates and; improved reporting on all of government spend and supplier performance.

DCS has worked with NSW Government agencies to categorise services to be offered under the LSP Panel, which have been classified in four separate panel modules.

These comprise of Basic Microsoft Licencing Fulfilment (BMLF); Value Added Services (VAS); Support Services (SS); and Other Professional Services (OPS).

For the purposes of the Panel establishment, each LSP will be required to offer, as a minimum, BMLF Services to facilitate the purchase, invoicing/payment, resource utilisation, reporting and contract management of Microsoft Products.

The LSPs may also, subject to their specific empanelment status as defined in a resulting MICTA, offer other Services under the other Panel Modules directly to eligible customers.

The close date of the tender is 3:00PM on 27 October 2025.

Earlier this year, the DCS launched an expression of interest to establish a whole-of-government purchasing arrangement for cyber security software and services.