New Government telecommunications agreements will deliver $50 million annual savings.

The NSW Department of Commerce has signed new government telecommunications agreements, which will save $50 million a year and improve frontline service delivery. 

The Government Telecommunications Agreements (GTAs) replace the existing Telecommunications Services Agreements (TSAs) DITM 2000-01.   

The Agreements include two panels. The Authorised Supply Panel includes AAPT, Macquarie Telecom, Optus and Telstra and is for the delivery of fixed line and mobile services for government agencies.  

The Enterprise Development Supply Panel provides the same services, but has some limitations associated with the Agreements.  Suppliers on the second panel are MessageStick, Soul and PowerTel. Contracts have also been finalised with two additional suppliers.                        

On 3 August 2007 a tender was issued for broadband data services, which includes a wide range of service types.  This tender closes in late September 2007 and evaluations are expected to commence shortly thereafter.  Click here to view the tender. 

A tender for other telecommunications categories, including PABX systems, conference phone services, phone handsets, and managed services, is currently being developed and will be issued later this year. 

In total the telecommunications arrangements will cut the State’s annual telecommunications bill by more than $50 million a year from 2007/08 onwards.  

The Government has used its purchasing power to achieve the best possible prices and level of service for all government agencies – regardless of their size or location.  

Many agencies will benefit from savings of more than 30 per cent on the cost of a standard fixed line call. 

For example, a school in Wagga Wagga with five phone lines can pay the same call rate as a Sydney based hospital that operates hundreds of phone lines. 

The new approach is part of the Government’s People First – NSW Government ICT Plan and it provides a new way of procuring telecommunications services to optimise the Government purchasing power and deliver better savings for all of government.

People First redirects money from back-end costs such as telecommunications to frontline services such as patient care, police operations, emergency services and community services.  

The new arrangements significantly reduce red tape and tender costs for suppliers because they will no longer have to negotiate separately with individual government agencies.   

Purchasing transactions will use Smartbuy, the Government’s on-line marketplace, with agencies able to view and sign up for pricing structures on-line, saving time and resources for both agencies and vendors.  

The new tender process has increased competition among carriers bidding for government business and provides improved terms and conditions for government agencies. 

The telecommunications contracts are a major step in implementing the Premier’s Economic and Financial Statement commitment to reduce the $260 million a year spent by Government on voice and data communications. 

FOR MORE INFORMATION CONTACT: Ben McCarthy, 9372 8158, or email: ben.mccarthy@commerce.nsw.gov.au