The Digital Transformation Agency (DTA) has entered into a five-year agreement with IBM which will see government agencies access IBM products and services.

The $725 million arrangement will follow the first iteration of the IBM agreement from 2018 and will offer “greater flexibility for agencies to transfer assets and enable reuse opportunities across government, and streamlines contracting to reduce the time, effort and resources required throughout the procurement process”.

According to DTA’s chief executive, Chris Fechner, the arrangement was “the right fit for the current context” and would offer important continuity for the business systems that support critical government services.

It will also facilitate uplifting of digital capabilities across government through training and certifications, with potential further opportunities to explore emerging technologies such as quantum computing and artificial intelligence.

“Under this arrangement, IBM Australia will continue supporting the Australian Government in their work to drive accelerated adoption of innovative technology to modernise government services,” Nicholas Flood, managing director IBM Australia & Vice President IBM Technology, said.

“We will continue to work with government agencies to explore how emerging technologies could help transform service delivery to create a more secure, sustainable, innovative and skilled Australia.”

The arrangement was negotiated and signed jointly by the DTA, Australian Taxation Office (ATO), Department of Defence, Department of Home Affairs and Services Australia.

The new deal will replace the original arrangement that was signed in 2018 while maintaining the benefits of the original arrangement including:

• improved pricing
• better terms and conditions
• flexibility in managing and transferring assets

It will be mandatory for non-corporate Commonwealth entities to contract under this arrangement when purchasing IBM products and services. It also available to be used by:

• Corporate Commonwealth entities (CCEs)
• government-owned businesses
• state and territory governments
• higher education institutions established by legislation

“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,” Fechner said.