[LINK] DVA back to IBM after one-bid tender
Bernard Robertson-Dunn
brd at iimetro.com.au
Fri Dec 1 12:03:00 AEDT 2006
<brd>
Is anyone surprised at this news?
And I wonder what they got out of hiring ITNewcom to benchmark the IBM
bid. What would they benchmark against?
The trouble using benchmarking to evaluate technology value for money is
that you will never be able to be innovative. Unless someone (and
preferably more than one) has done it before, you can't compare a
solution with anything.
Technology benchmarking and major IT outsourcing go together like
balance scales and jet planes - its measuring the wrong thing in the
wrong way.
Just my opinion.
</brd>
DVA back to IBM after one-bid tender
Ben Woodhead
DECEMBER 01, 2006
The Australian
http://australianit.news.com.au/articles/0,7204,20852685%5E15306%5E%5Enbv%5E,00.html
THE Department of Veterans' Affairs has finalised a $128 million
computer outsourcing contract with IBM Australia following a muted
tender process that solicited just one bid.
The new contract will kick of from April 10 next year and replaces a
long-standing agreement between Veterans' Affairs and IBM that has been
in place since the mid-1990s.
IBM will provide outsourced computer and communications services to
Veterans' Affairs for at least another four years, and the department
holds an option to further extend the contract for two two-year periods.
The department commenced negotiations with IBM in September.
Veterans' Affairs said that the outsourcing contract contained
provisions for IBM to update most of the department's existing IT
infrastructure, improve its disaster recovery capabilities and install
virtualisation technology.
The department has long been recognised as one of Australia's most
adventurous IT users. It was one of the first local organisations to
implement Linux on the mainframe and it was an early mover to voice over
IP telephony.
However, the moves have not been without controversy and a senior
Veterans' Affairs technology executive raised concerns in 2004 that the
implementation of Linux meant the department may have tied itself too
closely to IBM.
IBM installed the Linux operating system on the department's zSeries
mainframes and the company was regarded as having the strongest suite of
enterprise Linux services.
Veterans' Affairs was again in the spotlight earlier this year after
only one company responded to a request for tender for its $128 million
outsourcing contract.
An executive close to the tender process complained at the time that no
other bids were tendered because rivals to IBM had to include transition
costs in their proposals. As the incumbent, IBM did not have to factor
transition costs into its bid giving the company an immediate cost
advantage.
The failure to solicit more than one bid forced Veterans' Affairs to
hire technology services advisor ITNewcom to benchmark the IBM bid.
--
Regards
brd
Bernard Robertson-Dunn
Sydney Australia
brd at iimetro.com.au
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