ICT contracts awarded

20 October 2015

The Council has today decided to procure a Local Government Platform ICT solution to support its major customer service, property and revenue functions and to appoint an external Managed Services provider for the support, maintenance and supply of its ICT software and hardware.

This important decision will further transform the way the Council organisation works and our digital customer service capability. It will also progress our ‘Digital City’ agenda that looks at making our lives easier and more connected and businesses more efficient and globally competitive through the use of new technologies.

Today’s decision involved the awarding of two separate contracts, based on a detailed cost/benefit assessment of each investment over a 12 year period.


ICT Managed Services (outsourcing)

The support, maintenance and supply of ICT services will be provided through a Managed Services contract with Fujitsu Australia for five years (plus six months transition time).

The total managed services investment over the contract period of 5.5 years is just under $150 million (including $140 million for the Fujitsu contract) with total financial benefits estimated at almost $180 million.

The non-financial benefits of the managed services contract include:

  • A ‘consumption’ based approach that enables the City to only pay for what it uses (rather than funding ICT assets upfront).
  • Partnering with an international consortium that is flexible and responsive to peaks and troughs in demand.
  • Economic benefits including 100 new city jobs, valued at $38.8 million over 12 years.

Based on the advice of leading experts including Gartner, KMPG and Forrester, the City will again test the market at the end of the 5.5 year contract period. It is extremely confident of realising greater financial benefits beyond the initial contract period; however a conservative approach has been taken in forecasting such benefits in the cost/benefit analysis (over 12 years).

The managed services tender process had four gates at which the tenders were assessed against detailed criteria with six international managed services experts tendering for the contract.

While there has been public comment regarding the complaint made by the Telstra / HP consortium in relation to this process, I formed the view after detailed consideration of the complaint that the tendering process treated all tenderers equally and was completed in accordance with all procurement policies.

In addition, the Fujitsu Australia response was clearly assessed as the most advantageous to Council in terms of both capability and price.


Local Government Platform

A single Local Government Platform (LGP) solution to support the City’s customer service, property and revenue functions (replacing 42 existing systems); will be provided by Infor Global Solutions.

The LGP contract was awarded to Infor Global Solutions for a period of 10 years (plus 18 months design and implementation time).

The total LGP investment during the contract period of 11.5 years will be $82.5 million (including $61.5 million for the Infor contract) which will deliver $75.6 million in financial benefits plus significant non-financial benefits to the City.

Non-financial benefits for the LGP solution include:

  • Mitigating the risk of old systems crashing (up to 26 years old).
  • Vastly improved online services for customers, including a new online portal with increased self-service options and notifications.
  • A fully integrated system - improving data sharing and information accuracy throughout the organisation.
  • Streamlined electronic processes - saving time and money.
  • Mobile access for City officers to complete application approvals, compliance activities and inspections on site – with minimal requirements to return to the office to complete paperwork.
  • The ability for City officers to raise service requests while in the field (as issues are identified).
  • Easily tracked service requests and customer applications from one department to another

The LGP tender process had five gates at which the tenders were assessed against detailed criteria.


Overall funding plan and implementation

The two investments will be funded via existing budgets plus a $17.9 million ‘internal’ loan from the City’s cash reserves, which will be paid back in seven years.

Significant annual savings are forecast to be achieved over time, which are calculated at $28 million at the end of the 12 year investment period.

The transition to our new Managed Services model with Fujitsu Australia will take approximately 6 months and will be operational by around May 2016.

The LGP implementation will take about 18 months to complete. This work will start in November 2015 with a target ‘go-live’ date of May 2017.

Dale Dickson PSM

Chief Executive Officer

The ICT Transformation Program report and presentation from the Governance, Administration and Finance Special Committee meeting of 16 October 2015 are available at:


Birds eye shot of the gold coast beaches and skyline.