CSG a preferred tenderer on significant NT contracts

NT-based integrator, CSG Limited (ASX:CSG), has been named as preferred tenderer on two major contracts with the Northern Territory Government.

Under the proposed contracts, CSG will provide desktop and server services as well as network management. The company will now undertake further negotiations with the Government. According to CSG CEO, Denis Mackenzie, the deals are of significant value and were initially posted in September. It was previously a subcontractor for these services.

The Northern Territory’s official tender website lists a whole-of-government tender closing September 2, 2009 to provide the services described by CSG’s announcement over three years . The tender information includes CSG as one of eight tenderers including Fujitsu, Telstra (ASX:TLS), Corporate Express (ASX:CXP), Dell and Optus.

“There largely replace our existing revenue streams with the Northern Territory Government,” Mackenzie said. “We’ve got a significant pipeline going forward...in the worse of it last year, some of these things might’ve been deferred, but Government goes on.

“We largely deal in the area of non-discretionary IT spending, so we manage people’s IT infrastructure. You can’t just turn those off, people still need to use them.

“That’s why we grew 20 per cent last year and we’ll continue to grow this year…we’ll give evidence of that in our half-year on February 16. It will be significant; we just made a major acquisition in New Zealand that will help but we’ll also have strong organic growth.”

In October 2009, the company opened an office in South Australia after winning a major education contract. This was on the back of a move into recruiting with its subsidiary, CSG People.

In other recent Northern Territory tender news, the State Government awarded Oracle reseller, SDS Group, with a $15.73 million contract in December to provide application support and enhancement services and server management over 36 months.

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