The Department of Defence's strategic reform program is picking up speed, with a $151 million contract awarded to Fujitsu this month for the consolidation and provision of Defence’s central information and communications technology support services.
Parliamentary Secretary for Defence Support, Mike Kelly announced the deal as an extension of a contract initially given to former Telstra subsidiary KAZ, and covering Defence’s Central ICT Service Helpdesk services.
The initial contract terms stipulated a period of three years with extension options for up to 20 years, at an approximate cost of $151.3 million for routine operational services.
Dr Kelly said the contract was a part of a supplier consolidation program aimed at decreasing the number of Defence technology providers, while increasing the output of each provider.
"Within a few years Defence aims to have fewer suppliers of ICT services, he said.
"However, those suppliers who are selected as key strategic partners will have increased responsibility and the opportunity to contribute directly to Defence's business outcomes.”
Fujitsu Australia CEO, Rod Vawdrey said the contract augments the companies already strong position in federal government and highlights the strength Fujitsu brings to delivering ICT services to Defence.
Fujitsu will bring in UK-based defence expert Ian Gray to Australia to manage the initiative, now called The Distributed Computing Central Services (DCCS).