Inland Revenue discloses key ICT supplier contracts
- 11 June, 2018 05:45
A who's who of ICT firms are delivering technology and services to IRD inside and outside of its $1.8 billion transformation programme
Inland Revenue last week disclosed its key ICT contracts, shedding light on the major vendor winners as it pursues a $1.8 billion transformation.
Reporting to Parliament's Finance and Expenditure Committee, IRD said as the 2018 year is not yet complete, the data provided shows a ten month period to the end of April 2018.
"The level of spend relating to some contracts are higher than normal as a result of the ongoing Business Transformation Programme," the department told MPs.
"Note that the contract value is the initial value of the contract. It may traverse a number of financial years and excludes any financial impacts if the contract is extended past the initial contract term."
The company supplying IRD's new core tax platform for instance, US-based Fast Enterprise, was awarded a $211.6 million multi-year contract in 2016 and has since been awarded $1.6 million more.
The numbers reported (see chart below) shed light on the vendors winning key parts of the transformation work and on others supplying technology and services to outside of the transformation project.
The chart is sorted according to total contract value over the three year period of the transformation so far.
Apart from Fast, Accenture is IRD's major partner, delivering consulting to the transformation and other work to the value of $189.5 million over the three years.
Meanwhile Vodafone, like the other major network operators, is a major supplier on the All of Government telecommunications-as-a-service (TaaS) panel - it has won $34.4 million of contracts over the last two years after not appearing in the 2016 report.
Spark and its data centre subsidiary Revera are also winning significant business from the transformation programme while Datacom appears to have faded in the latest year, which as stated above, only includes the 10 months to the end of April.
Spark Digital won $10.5 million in contracts over the last two years and subsidiary Revera $15.1 million over the same period, but neither appeared in IRD's 2016 disclosure.
A July 2017 transformation update from IRD reported that in February 2016, Spark and Revera secured one of the biggest transformation contracts to date, worth $45-$60 million over 10 years.
"The contract is to provide IaaS data centres and associated services," IRD said. "Tenderers were sought from the All of Government infrastructure-as-a-service (IaaS) panel."
IRD cited other contract winners as Assurity Consulting, Deloitte and Deloitte Asparona, all of which appear in the latest disclosure.
Assurity, which provides software quality services, has won $19.5 million of IRD business over the last three years while Deloitte won $18.6 million and Deloitte's Team Asparona an additional $9.7 million.
Unisys has been a long term supplier of IRD's legacy FIRST core tax system which is now being replaced by Fast Enterprise developed START. In a six-year deal inked in 2013, and reportedly worth up to $130 million, it became a direct supplier to IRD rather than a subcontractor via HP.
In addition, Unisys has won $27.6 million of contracts over the last three years in the latest departmental disclosure.
The report also outlines three major ICT projects planned for 2019, a $10.5 million IT infrastructure project, a $5.3 million "Business Systems Imperatives Programme", and a $2.2 million refresh of the department's Oracle databases.
"In addition to the major information technology projects listed, Inland Revenue has underway a number of business-led legislative projects and programmes that also have implications for their technology environment (for example, work arising from the Budget)," IRD said.
The Infrastructure Programme comprises a number of projects to ensure that IRD’s technology services remain current against an agreed risk profile, to sustain "service excellence and to support Business Transformation".
Specifically, this includes "End-of-life Remediation", the replacement of aging systems and infrastructure where a risk of failure or non-support will impact business services, while also including the "alignment of heritage systems" to meet the requirements of transformation.
The Business System Imperatives Programme is also a number of technology projects, this time to deliver system changes driven by legislation and ministerial commitments as well as to support transformation, respond to incidents or reduce risk.
The Oracle Refresh Project will remediate obsolescent technology hardware and upgrade Oracle databases to a supported versions.
"The benefits associated with the project are that Inland Revenue’s Oracle databases will be on supported hardware and software resulting in less business interruption for critical business services," IRD said.
"The project addresses the risk of end-of-life hardware and software thereby minimising outages where a failure or non-support will significantly impact Inland Revenue’s business services."
IRD also revealed its spending, as opposed to contracts, on consulting and contractors in the 10 months to April 2018, with Fast Enterprise receiving $35.2 million and Accenture $36.7 million.
Datacom appears in these tables receiving just under $1 million during the period.