ATO extends Leidos end user computing megadeal until 2023

The Australian Taxation Office has extended a major component of its long-running end user computing megadeal with Leidos by another three years and an extra $97.7 million.

Leidos, the IT services business formerly part of Lockheed Martin, revealed the 33-month extension of its end user technology support services (EUTS) contract on Thursday.

The contract, which had been slated to expire at the end of June, will see Leidos continue to deliver end user computing services to the ATO’s 25,000 staff until April 2023.

Leidos said that it will also “deliver a modern digital workspace aligned with the ATO’s 2024 Vision program” through the contract extension.

“The program will improve the reliability and stability of end-user tools and platforms, and enable consumption of more cloud-based services,” it said.

“This will help ensure a highly-available and secure end-user experience for the ATO’s agile and digitally-competent workforce.”

The EUTS contract sits alongside the company’s other major ATO contract for enterprise service management centre (ESMC) services, which was last extended in November.

Both contracts form part of the ATO’s end user computing bundle – one of three megadeals that were signed with suppliers in 2010.

The total combined value of the deals since they were signed in 2010 now sits at $914.5 million, of which the EUTS component represents $556.7 million over 13 years.

Leidos Australia IT services vice president Caroline Dawson said the extension “draws on our deep experience supporting government and business in their cloud adoption journeys”.

“We have a longstanding relationship with the ATO, providing innovative, secure and sustainable industry-leading solutions,” she said.

“We look forward to continuing this journey of delivering quality services and support.”