IT services firm DMR Consulting has won a tender for the maintenance of Northern Territory Government mainframe systems worth $3.5 million for the first year; and possibly $14.7 million assuming the contract is renewed for five years.
The outsourcing contract was won in conjunction with two smaller Darwin-based consulting and integration firms, Greyline IT Consulting and Millenium Systems Consulting. It covers the maintenance of the Northern Territory Government's 14 core business systems such as the motor vehicle registry system, the power and water authority's customer information and billing systems, and the Government housing Tenancy Management System.
The contract is one of three outsourcing tenders undertaken by the Northern Territory Government, announced in early 2000 and which promised to engage the local industry. According to DMR state manager John Stevenson, the Northern Territory Government had considered such a deal in 1996, but the opportunity had been withdrawn. In 2000 the Government announced three new tenders.
The first tender was won by a panel of around 20 IT companies for the maintenance of non-mainframe work such as web development, IT consulting and Lotus Notes development. The second was for mainframe application support, running IBM's Visual Age Generator software and DB2 databases on IBM mainframes, won by DMR consulting. The third, for Government desktop and LAN maintenance, was short-listed to three providers, IBM GSA, Ipex and CSC. This hotly contested contract was won by CSC. It is believed to be worth between $30-$50 million.
DMR Consulting has worked in various projects with the NT Government over many years, and was involved with the original development of many of the mainframe systems it will now maintain under the outsourcing contract. The initial contract runs for three years, with the option of a two-year extension if all parties wish to continue.
Photograph: DMR state manager John Stevenson.