Objective 13 — Deliver value for people and businesses by managing costs and risks

Objective status
In progress

We understand that Government always needs up-to-date digital capability and the products and services to support it. One way we are doing this is through digital sourcing panels. These are now simpler, clearer and faster than ever before. They make it easier for sellers, including small-to-medium enterprises (SMEs) and Indigenous enterprises, to work with government. As we improve the way we buy ICT capabilities, our service delivery improves, we manage costs and risks better, and we achieve greater value for money.

We recognise the value of partnerships and engagement between industry and government to design improved ICT sourcing policies. The Digital Marketplace now has an ‘Ask the Market’ feature so these partnerships can deliver innovative solutions to improve services. We are also increasing value for money through whole-of-government arrangements with large suppliers to the Australian Government like Microsoft, IBM, Amazon Web Services, SAP and Concur.

5 large ICT suppliers

We have established arrangements with large ICT suppliers including Microsoft, IBM, Amazon Web Services, SAP and Concur to deliver value for money across government.

700+ new sellers

We have created new panels and expanded others to open access to government business for over 700 new sellers. This keeps us up to date with ongoing opportunities to work with digital experts with the best skills and experience.

$2.1m saved

We have saved an estimated net $2.1 million annually under our Google Analytics for Government arrangement. This applies to 380 websites and applications with over 30 subscribed government agencies.

Two people discuss technology.

Improving how we buy ICT capabilities improves our service delivery, better manages our costs and risks, and achieves greater value for money.

Case studies

Digital Sourcing Framework

We have transformed how the Australian Government buys its digital products and services with the new Digital Sourcing Framework for ICT Procurement. The new Digital Sourcing Framework helps government buyers make the right decisions at the right time. It makes it easier for government to work with SMEs and steers investment away from aging and non-reliable technology.

The framework includes policies to manage the risk of contracts by capping their size and scope. This reduces risks of large-scale contracting arrangements and helps to avoid locking out SMEs. Other policies make sure we include accessibility, data-security, and other important considerations from project design. This means we avoid expensive additions at later stages of projects.

The framework also includes new contract templates. These templates make it simpler, less risky and faster for businesses and government to contract under common terms and conditions for simple purchases. The framework reduces the risks and makes it easier to invest in innovative solutions to meet the challenges of rapidly changing technology.

Digital Transformation Agency

Whole-of-Government Arrangements

We are transforming ICT sourcing in government to deliver greater value for money when we buy ICT equipment and services.

We continue to negotiate whole of government arrangements with large suppliers to the Australian Government like Microsoft, IBM, Amazon Web Services, SAP and Concur. These arrangements deliver better value for money and secure better prices, especially for smaller agencies.

We have also introduced targeted discounts and have set high cybersecurity benchmarks. These arrangements make it easier to keep software up-to-date and improve the security of government services

Digital Transformation Agency

Transformation of Digital Panels

We have transformed digital panels to make it easier for businesses to work with government, while also giving us better access to new technologies. These panels include the Cloud Marketplace, Digital Marketplace, Hardware Marketplace, Software Marketplace, Telecommunications Services Panel and Data Centres Panel.

We’ve built our Digital Sourcing Panels Policy on several important principles. We regularly open our panels to new sellers and service categories. This helps us stay informed and connected with providers of digital products and services. It gives us more exposure and access to the latest technologies and keeps us fit for the digital age. It also allows sellers to join our panels at any time if they want to offer ICT products and services to government. This is a dramatic shift away from the previous situation when we opened panels only every few years and sellers that were not on the panel could not participate until the next time the panel was open.

We are working on other improvements to panels. We have standardised many contract terms, reducing legal fees and made administration arrangements easier. We have increased the number of companies selected as sellers, so more businesses can sell to government.

We have also made finding sellers easier with digital profiles. This helps government buyers find a broader range of sellers, including SMEs and Indigenous enterprises. We’ve also brought on large sellers quickly and efficiently, and spent less time negotiating contracts.

We have expanded and improved our panels to become the place for government buyers looking for digital products and services. Our list of certified digital panels makes it easier and fairer for businesses of any size to find government contracts.

Digital Transformation Agency

SME participation on Panels

The Digital Transformation Agency is developing new marketplace arrangements that focus on greater SME participation, streamlined purchasing and electronic catalogues hosted on digital platforms. These marketplaces consolidate, replace and improve upon expiring ICT procurement arrangements.

More SMEs are represented through these marketplace arrangements. The new Software Marketplace includes more than 100 SMEs (up from fewer than 20 SMEs under the previous software panel) and more than 70 SMEs on the new Hardware Marketplace (up from fewer than 20 SMEs on the previous ICT Hardware panel). This builds on the success of the Digital Marketplace which boasts over 1,185 SME participants.

Digital electronic catalogues make it easier for government buyers to develop and issue contracts through these marketplaces, all on the Digital Transformation Agency’s digital platform.

Digital Transformation Agency