EY paid $1.5m per month for ATO data work

Denham Sadler
National Affairs Editor

Ernst & Young will be paid more than $1.5 million per month in the second half of 2021 to provide IT data and analytics services for the tax office, in another lucrative tech contract for the big four consulting firm.

The Australian Taxation Office (ATO) has awarded EY a contract running from June to March next year worth $11.35 million, listed only as for the “provision of ICT professional services”.

When asked for further information about the contract, a spokesperson for the ATO said it relates to “services for IT data and analytics, requiring in-depth experience in big data and cloud services”.

The spokesperson could not say how many people will be working on the contract, which is worth about $1.5 million per month.

“The contract is for the provision of specified services and as such, the decision on the number of personnel required to provide these services is a matter for the supplier,” the spokesperson told InnovationAus.

Other details of the contract will remain secret, with the ATO using a confidential clause due to “commercially sensitive vendor information”.

InnovationAus understands that the $11 million price tag listed on the public contract is an estimate for the work, and the actual cost will be linked to the type and level of resources provided by EY.

The professional services giant won another large contract with the ATO last month, with EY to be paid nearly $4 million over the next two years for “business intelligence and visualisation”.

EY was also recently awarded a $2.5 million contract with Home Affairs for IT consultation services, and another with the department worth $5 million for components for IT or broadcasting or telecommunications.

It is also working on the Digital Transformation Agency’s protected utility blueprint program as part of a contract worth $500,000.

Last year was a bumper one for EY, with the value of the company’s contracts with the federal Health department tripling last year.

The work EY completed for the Commonwealth included the development of a demand model for distribution of aged care services, financial modelling and advice on the onshore manufacturing of vaccines.

These contracts included one worth $1.5 million to conduct an audit of Australia’s medical stockpile, and another for $558,000 to undertake a COVID-19 vaccine system readiness review.

Do you know more? Contact James Riley via Email.

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