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The Digital Transformation Agency (DTA) is set to review its arrangements with SAP, Oracle, Microsoft, IBM, Amazon Web Services (AWS) and Rimini Street.
This review will provide advice and inform the government of the opportunities to strengthen and continually improve these arrangements, ensuring they deliver value.
According to the DTA, it is committed to initiatives like Digital Marketplace Panel 2, as well as other ongoing efforts, to provide panels and arrangements that meet the needs of the Australian economy.
The agency wants to ensure whole-of-government digital sourcing arrangements that support the government in its digital agenda.
“We will commission an independent strategic review into our whole-of-government arrangements,” said Nicole Bain, branch head for whole of government contract negotiations branch at DTA.
“The work forms part of our efforts to ensure that our sourcing arrangements between buyers and sellers of digital products and services continue to support the government into the future.”
Bain said the move was due to a “significant shift” in digital products and services.
“It is natural that we also evaluate the marketplaces, panels, and agreements that support the procurements that underpin the government’s digital transformation investments,” she said.
DTA’s whole-of-government arrangements were introduced in 2009 with the aim of providing significant benefits and savings to the Australian public service based on economies of scale and by establishing consistent contract terms and conditions.
These arrangements have traditionally provided the government with volume sourcing benefits and discounts, streamlined contracting and better terms for security and privacy.
However, in the last few months, the agency has faced criticism over its Copilot trial within government agencies.
During the Senate Select Committee on Adopting Artificial Intelligence, held at Parliament House in Canberra on 16 August, Senator David Pocock questioned the agency on the federal government’s six-month trial of generative artificial intelligence (genAI) through Microsoft 365 Copilot via the DTA, which started in November 2023.
While he acknowledged Copilot is a Microsoft product, Pocock said “it’s not like having Word and then adding Excel to your bundle”.
“This is about the public service trialing artificial intelligence in terms of efficiency gains and whatever else,” he said. “Maybe part of that is you didn’t feel the need to actually go to market and see what may be there.”
Earlier this month, the agency faced a Joint Committee of Public Accounts and Audit’s inquiry over procurements and contracts, particularly around artificial intelligence (AI) for public sector use.
During the hearing, DTA chief executive Chris Fechner said “what we’re seeing is digital providers are now rapidly evolving into AI providers by augmenting their products or bringing new products to market”.
“Many of the legal conditions that we have around where data is managed and hosted, the controls, the liability caps, the indemnity obligations associated with them,” he said.
The review is in its early stages, with an approach to the market seeking an independent third party to assist in the review on 8 November, with applications closing on 16 December 2024.
The completion of the review is set for mid-2025 and will involve an independent industry partner to ensure strategic breadth and depth across the ICT ecosystem.