A parliamentary question regarding a government IT contract awarded to a single vendor, questioning the rationale, potential impact on the state, and consideration of future needs. The Treasurer's response defends the decision based on value for money and clarifies the scope of the contract.

AnsweredQoN 827Legislative Council
Asked
20 October 2004
Portfolio
minister representing the Treasurer

QuestionView source ↗

I refer to the decision of the Functional Review Implementation Team that was announced in the Treasurer’s press release of 8 October 2004. (1) Why did the Government go to a best and final offer with only one vendor? (2) Is it in the best interests of the State to be tied to one vendor, and was due consideration given to future proofing? (3) What effect will this single vendor contract have on alternative information technology ecosystems in Western Australia? Hon NICK GRIFFITHS

AnswerView source ↗

I thank the member for some notice of this question. The Treasurer provides the following response - (1) The offer from the preferred tender was clearly superior and represented the best value for money for the State. (2) The State is not tied to one vendor. It will continue to seek services from many IT vendors to meet its $300 million annual needs across the breadth of its IT spend. This tender relates only to the purchase of corporate systems software and services by the shared service centres. Future tenders will seek services to integrate the systems with other departmental systems. Together these tenders will be of comparable value to the current tender. It should also be noted that the State does have other business systems solutions in place, given that SAP will be retained by the Western Australia Police Service and PeopleSoft will continue to operate in the department of Education and Training human resources and payroll. (3) See (3).
(1) Why did the Government go to a best and final offer with only one vendor? (2) Is it in the best interests of the State to be tied to one vendor, and was due consideration given to future proofing? (3) What effect will this single vendor contract have on alternative information technology ecosystems in Western Australia? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer provides the following response - (1) The offer from the preferred tender was clearly superior and represented the best value for money for the State. (2) The State is not tied to one vendor. It will continue to seek services from many IT vendors to meet its $300 million annual needs across the breadth of its IT spend. This tender relates only to the purchase of corporate systems software and services by the shared service centres. Future tenders will seek services to integrate the systems with other departmental systems. Together these tenders will be of comparable value to the current tender. It should also be noted that the State does have other business systems solutions in place, given that SAP will be retained by the Western Australia Police Service and PeopleSoft will continue to operate in the department of Education and Training human resources and payroll. (3) See (3).
(2) Is it in the best interests of the State to be tied to one vendor, and was due consideration given to future proofing? (3) What effect will this single vendor contract have on alternative information technology ecosystems in Western Australia? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer provides the following response - (1) The offer from the preferred tender was clearly superior and represented the best value for money for the State. (2) The State is not tied to one vendor. It will continue to seek services from many IT vendors to meet its $300 million annual needs across the breadth of its IT spend. This tender relates only to the purchase of corporate systems software and services by the shared service centres. Future tenders will seek services to integrate the systems with other departmental systems. Together these tenders will be of comparable value to the current tender. It should also be noted that the State does have other business systems solutions in place, given that SAP will be retained by the Western Australia Police Service and PeopleSoft will continue to operate in the department of Education and Training human resources and payroll. (3) See (3).
(3) What effect will this single vendor contract have on alternative information technology ecosystems in Western Australia? Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer provides the following response - (1) The offer from the preferred tender was clearly superior and represented the best value for money for the State. (2) The State is not tied to one vendor. It will continue to seek services from many IT vendors to meet its $300 million annual needs across the breadth of its IT spend. This tender relates only to the purchase of corporate systems software and services by the shared service centres. Future tenders will seek services to integrate the systems with other departmental systems. Together these tenders will be of comparable value to the current tender. It should also be noted that the State does have other business systems solutions in place, given that SAP will be retained by the Western Australia Police Service and PeopleSoft will continue to operate in the department of Education and Training human resources and payroll. (3) See (3).
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Treasurer provides the following response - (1) The offer from the preferred tender was clearly superior and represented the best value for money for the State. (2) The State is not tied to one vendor. It will continue to seek services from many IT vendors to meet its $300 million annual needs across the breadth of its IT spend. This tender relates only to the purchase of corporate systems software and services by the shared service centres. Future tenders will seek services to integrate the systems with other departmental systems. Together these tenders will be of comparable value to the current tender. It should also be noted that the State does have other business systems solutions in place, given that SAP will be retained by the Western Australia Police Service and PeopleSoft will continue to operate in the department of Education and Training human resources and payroll. (3) See (3).
I thank the member for some notice of this question. The Treasurer provides the following response - (1) The offer from the preferred tender was clearly superior and represented the best value for money for the State. (2) The State is not tied to one vendor. It will continue to seek services from many IT vendors to meet its $300 million annual needs across the breadth of its IT spend. This tender relates only to the purchase of corporate systems software and services by the shared service centres. Future tenders will seek services to integrate the systems with other departmental systems. Together these tenders will be of comparable value to the current tender. It should also be noted that the State does have other business systems solutions in place, given that SAP will be retained by the Western Australia Police Service and PeopleSoft will continue to operate in the department of Education and Training human resources and payroll. (3) See (3).
(1) The offer from the preferred tender was clearly superior and represented the best value for money for the State. (2) The State is not tied to one vendor. It will continue to seek services from many IT vendors to meet its $300 million annual needs across the breadth of its IT spend. This tender relates only to the purchase of corporate systems software and services by the shared service centres. Future tenders will seek services to integrate the systems with other departmental systems. Together these tenders will be of comparable value to the current tender. It should also be noted that the State does have other business systems solutions in place, given that SAP will be retained by the Western Australia Police Service and PeopleSoft will continue to operate in the department of Education and Training human resources and payroll. (3) See (3).
(2) The State is not tied to one vendor. It will continue to seek services from many IT vendors to meet its $300 million annual needs across the breadth of its IT spend. This tender relates only to the purchase of corporate systems software and services by the shared service centres. Future tenders will seek services to integrate the systems with other departmental systems. Together these tenders will be of comparable value to the current tender. It should also be noted that the State does have other business systems solutions in place, given that SAP will be retained by the Western Australia Police Service and PeopleSoft will continue to operate in the department of Education and Training human resources and payroll. (3) See (3).
(3) See (3).

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