DTA kicks off SAP renegotiation

The Digital Transformation Agency has begun renegotiating one of the largest commonwealth tech deals with enterprise resource planning giant SAP.

An agency spokesperson confirmed to iTnews that "pre-negotiation activities with SAP have commenced."

In November, the existing standing offer between the DTA and SAP was extended to June 28, 2023, through which all federal agencies are able to procure access to SAP software and services.

The spokesperson said “it is expected that any future arrangement will have a similar scope" to the DTA’s current arrangement, which covers all commonwealth SAP licensing requirements.

So far, the whole-of-government deal has covered 297 individual contracts under standing offer notice SON3464296, worth a total of nearly $894 million. 

One contract under the deal started as a $42 million purchase, but has since then been revalued upwards nine times and currently stands at nearly $335 million.

So far, 12 agencies have bought SAP services under the offer: the Bureau of Meteorology; the DTA; Services Australia; the departments of Aged Care, Finance, Defence, Home Affairs, Foreign Affairs, and Parliamentary Services; the Australian Federal Police; the Future Fund Management Agency; and IP Australia.