DTA deal with SAP has grown to $315m

Denham Sadler
National Affairs Editor

The Digital Transformation Agency has renewed its whole-of-government deal with German tech giant SAP, which is now worth $315 million.

Last week the Digital Transformation Agency (DTA) confirmed it would extend its arrangement with German software giant SAP – first signed in 2017 – for a further 12 months, meaning it will run until at least September 2022.

The DTA said it would hold a roundtable on the deal to discuss “potential improvements and options for negotiations” this month.

Canberra Parliament
Big Ticket: German supplier SAP gets another jersey from the Commonweath. Photo: Linda_K/Shutterstock.com

“The decision to take advantage of the extension option was based on direct feedback from agencies, who told us that the whole-of-government agreement makes the process of sourcing SAP products simpler and faster,” the DTA said.

“Agencies were also concerned that not extending the whole-of-government agreement would result in insufficient time to put alternative arrangements in place prior to September 2021.”

The SAP deal covers its software and support services, cloud services and digital business services.

An updated tender posted publicly this week revealed that this deal with SAP is now worth nearly $315 million over five years, after it was initially valued at just $42 million when first signed in September 2017.

The contract has since seen nine value increases in the last four years to take it to its current worth.

The DTA has also inked deals with SAP outside of the whole-of-government contract for subscriptions for various government agencies. In the 2020 calendar year, the DTA’s contracts with SAP in addition to the whole of government arrangement totalling a further $37.65 million.

The federal government also has a whole-of-government purchasing agreement with expense management company Concur, wholly-owned by SAP, meaning the German multinational now effectively has two purchasing agreements with the Commonwealth.

There are seven whole-of-government purchasing agreements in total, and none are with any Australian companies.

The deals make it easier for government customers to purchase from these global tech companies.

Other companies with purchasing agreements with the government include Oracle, AWS, IBM, Microsoft and Rimini Street.

The most recent deal was with Oracle and was signed in December last year.

In July last year the New South Wales government signed a whole-of-government purchasing agreement with local firm Vault Cloud, the first of its kind with an Australian company by any government in the country.

Do you know more? Contact James Riley via Email.

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