IBM dodge procurement guidelines

Australia’s Department of Health and Ageing has directly re-signed IBM to provide its IT services for at least another four years.

The $109 million deal comes despite the DOHA never releasing an open tender for the provision of IT services in accordance with the Commonwealth Procurement Guidelines which specifically require contracts to be tested.

However DOHA officials have successfully sought permission from the Minister of Finance to allow a contract to be signed untested via the use of clause 8.33(e) of the Guidelines.

DOHA officials released a press statement to defend its decision to source its IT services directly for a third time in a row.

“The Department, together with its IT sourcing consultant, considered the procurement options available under the Commonwealth Procurement Guidelines,” the statement said.

The department claimed it had undertaken a “detailed analysis” to conclude that failing to market test the contract would reduce risk at a time of “major IT change” stemming from the Federal Government’s Health Reform program.

Sourcing directly would also provide “minimal disruption to departmental operations through avoiding complex and lengthy transition arrangements,” DOHA said.

It also claimed in the release that direct sourcing with IBM would provide “opportunity to maximise the leverage from Whole-of-Government procurement initiatives”, however did not elaborate on exactly how this would be achievable.

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