ATO flags intention to source major new IT contracts

The Australian Taxation Office (ATO) has today announced it will be soon be approaching the market for a significant range of IT managed services.

ATO Chief Information Officer Ramez Katf said that the ATO’s IT Strategic Sourcing Program is all about modernising its IT outsourcing portfolio by developing market-aligned and more flexible bundles, building on the successful delivery of six new Managed Network Services contracts in 2020.

“Consistent with the Whole of Government agenda, our aim is to provide greater opportunities for competition, delivering better value for money for the Australian community,” Mr Katf said.

The ATO will soon be approaching the market in relation to the following three managed services, plus any ancillary services:

  • Centralised Computing
  • End User Technology, and
  • Enterprise Service Management Centre.

The ATO’s multi-year IT Strategic Sourcing Program includes market sounding and analysis over 2021, a progressive approach to market in 2022 and then contract execution, transition and service transformation in 2023.

“This is a reshape of how we get these services into the organisation. The technology ecosystem continues to evolve, and our outsourcing model needs to adapt and become future ready,” Mr Katf said.

The ATO anticipates issuing one or more Requests for Information (RFIs) in June 2021. The RFI(s) will seek strategic dialogue with the market to inform bundle structure, scope, commercials, pricing approaches and procurement strategy; with a focus on what the IT ecosystem will look like from 2023.

The ATO’s Annual Procurement Plan is available to view on AusTender.

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