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ARTICLE · 15 OCTOBER 2017

The new caps on Commonwealth IT contracts - drawing lessons from the UK experience

Given the UK experience, Australian government agencies may have to ramp up their IT system integrator skillsets.

AustraliaGovernment, Public Sector

Given the UK experience, it's fair to predict that Agencies will have to ramp up their system integrator skillsets, which means more ongoing management of multiple vendor projects.

For the best part of a decade since Sir Peter Gershon was engaged to review Commonwealth ICT procurement in 2008, the Australian Government has been looking to the United Kingdom for inspiration in IT procurement policy, so it makes sense to look to the UK for lessons on implementation of those policies.

The Australian Government's response to the ICT Procurement Taskforce report released last month continues that trend, by announcing a cap on Commonwealth IT contracts of a maximum value of $100 million or three years duration. Contracts exceeding these thresholds will require approval from the Assistant Minister for Cities and Digital Transformation and the Minister for Finance.

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