The Digital Transformation Agency has signed a $42 million contract with software giant SAP for government-wide software and services.
It is the first and largest contract to be signed under the federal government's recently introduced whole-of-government licensing arrangement with the IT vendor.
The strategic arrangement is aimed at cutting IT procurement cost for commonly used technology by leveraging demand across government.
It is mandatory for agencies that wish to purchase SAP products or services, and operates in the same manner as the Microsoft volume sourcing arrangement.
The new contract, which spans four years, covers whole-of-government SAP software and support services, cloud services, and digital business services.
Exactly which SAP products and services are covered under the contract has not been specified. iTnews has sought further detail from the DTA.
The agency is currently in the process of signing similar co-ordinated procurement arrangements with fellow major suppliers IBM and Oracle.
The three suppliers have secured $2.5 billion from contracts with government since 2005.