Defence delivers $20M centralised processing deal to Leidos Australia

Defence delivers $20M centralised processing deal to Leidos Australia

Strikes $20.1M contract for the provision of centralised processing services

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The Australian Department of Defence has handed Leidos subsidiary, Abacus Innovations, a $20.1 million, multi-year contract for the provision of centralised processing services for the Department’s Chief Information Officer Group (CIOG).

The contract runs from 28 March to 2 September 2022, and was awarded following an open tender process.

The contract was granted by the Department under a broader centralised processing contract with Leidos, and is aimed at ensuring that the hardware and software delivered by the Department’s End User Computer program is supported and maintained for the duration of the term of the project, a Defence spokesperson told ARN.

The End User Computing Program is part of a broader IT program to upgrade and transform the Department of Defence end user computing platforms to a contemporary desktop operating environment.

Centralised processing comes under Defence’s CIOG entity, which is charged with managing the Department’s IT networks in Australia, with more than 6,000 servers, three primary data centres, and over 100,000 workstations, under its watch.

The CIOG leads the integrated design, delivery, and sustained operation of the Department of Defence’s Single Information Environment (SIE), supporting military and business operations.

The transformation program that Defence is undertaking is set to simplify, standardise, and modernise the Department’s IT capabilities. According to the CIOG, it represents the largest upgrade to the Department’s secret and restricted networks in more than a decade.

The resources supported under the latest procurement agreement with Leidos include 926 items of hardware; 873 pieces of network equipment; 6824 security appliances; 836 servers; 2400 software licences; 11 storage infrastructure devices; and 49 supporting infrastructure items.

Altogether, the arrangement provides for the support of a total of 11,919 items under the terms of the contract.

Leidos Holdings, a US-based multinational military contractor, has won several lucrative contracts with the Department of Defence, through its subsidiary, Abacus Innovations, most of which it has picked up thanks to Lockheed Martin.

The company merged with Lockheed’s Information Systems and Global Solutions (IS&GS) business in a multi-billion dollar Reverse Morris Trust transaction last year, effectively taking over the global defence contractor’s IT services division, which was subsequently entitled Abacus Innovations.

In September, following its acquisition of the IS&GS business, Leidos mopped up the remainder of Lockheed Martin’s $800 million agreement with the Department of Defence to supply centralised processing services until 2022.

In November, the Department of Defence revealed it had signed a $55 million, five-year contract with Abacus Innovations.

The deal, which is worth over $60 million when adjusted for indexation over the course of the contract, includes options to extend for up to an additional five years.

The contract terms see Leidos provide software maintenance and support for an information communications technology-based system that will manage Australian Defence Force (ADF) operations and major Joint and Coalition exercises.

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Tags governmentdepartment of defenceLeidosAbacus Innovationscentalised processing


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