IBM Australia’s five-year whole-of-government agreement has crossed $2 billion in value to the vendor, double the initial $1 billion expectation, with nearly a year left on the contract.
The Digital Transformation Agency confirmed an analysis by iTnews, which showed that contracts awarded to IBM Australia since the whole-of-government deal was announced in July 2018 reached almost $2.1 billion by August 16.
The initial value of the whole-of-government agreement was placed at $1 billion, which was touted as the largest value contract negotiated by the Australian government.
Digital Transformation Agency (DTA) general manager of digital investment advice and sourcing Wayne Poels said the initial agreement was established in 2018 based on the spending from participating agencies at the time.
According to Poels, additional contracts have since been signed due to organic growth, environment refreshes, and changes in business requirements over time.
Poels said all government agencies that struck contracts via the arrangement already benefitted from the best possible conditions and terms available to the Australian government from IBM services and products.
The arrangement also offered commercial flexibility to the agencies, which could leverage the contract to support the uplift required to deliver for Australians during the recent pandemic and disaster events.