The Australian Taxation Office has extended its 10 years-extensive managed network expert services megadeal with Optus even though it continues searching for telcos to make up a new multi-sourcing arrangement.

The national revenue agency handed Optus an 18-month extension previously this month at a value of $141.five million that extends the existing deal till 30 December 2021.

It provides the overall worth of the deal – which covers voice and facts carriage, telephony, large and local location networks and get in touch with centre infrastructure – to $1.thirteen billion above eleven a long time.

The deal was set to expire on 30 June 2020 to make way for six new managed network support bundles that the agency approached the market for past December.

Every of the bundles, which will be furnished by a distinct support provider, are meant to be “smaller, much more modularised and better market aligned” than the recent arrangement.

The ATO claimed this will “enable finest of breed and focussed support delivery, in turn offering better worth for money”.

The bundles will protect facts carriage, preset voice, mobile expert services, network administration, unified communications and get in touch with centre expert services.

But with that procurement however incomplete, a spokesperson advised iTnews that the Optus deal experienced been extended for 18 months “to support a profitable transition to a new supplier”.

“During this period, Optus will continue on to deliver expert services, components, and computer software to permit the delivery of expert services … till new supplier preparations choose influence,” the ATO claimed.

“This is a very usual organization apply for running any potential transitioning of expert services.”

The spokesperson claimed the extension involved two perform orders, only one particular of which has been extended for 18 months: BAU expert services through the transition period.

BAU expert services account for the bulk of the deal at $85.3 million, even though the second perform order for the renewal of managed network expert services (MNS) computer software licenses and routine maintenance is valued at $43.3 million.

The renewal of MNS computer software licences and routine maintenance is for 12 months, nevertheless the “Cisco A-Flex business licence agreement and telepresence” contained inside of will stretch for 36 months.

The spokesperson claimed this agreement was extended for 36 months “as it represented better worth for money”.

The spokesperson also pressured that the extension did not indicate there experienced not been any delays to the procurement, including RFT SPC-2896-1 or RFT SPC-2896-two.

“The procurement action is at this time ongoing. We are unable to deliver even further info at this time.”

The agency has beforehand declined to expose regardless of whether any suppliers have been shortlisted, in spite of primary tender files stating that this would materialize by May possibly 2020. 

Optus has held the ATO’s managed network expert services deal because the agency break up up its monolithic IT outsourcing agreement with IT expert services firm EDS (now DXC) in 2009.

The deal, which is one particular of a few IT outsourcing agreements slated for refresh above the next calendar year-and-a-fifty percent, is the initial to be market examined by the ATO.

The other two bundles are held by Leidos (stop user computing), which was extended till November 2021 past calendar year at the value of $87 million, and DXC (centralised computing).