DTA's latest Microsoft support deal tops $100m

The Digital Transformation Agency will pay Microsoft $101 million over three years for whole-of-government access to the vendor’s unified support.

Unified support covers access to Microsoft’s enterprise support services, including technical support, advisory services, and training.

The latest support contract is associated with the sixth iteration of a volume sourcing arrangement - VSA6 - that the federal government has in place with Microsoft.

The relationship with Microsoft is the oldest of the whole-of-government vendor arrangements negotiated and managed by the Digital Transformation Agency (DTA).

As previously reported by iTnews, VSA6 brings with it changes to government use of Microsoft services.

Notably, the federal government is no longer treated as a single Microsoft 365 customer, with agencies needing their own enterprise enrolments.

Whole-of-government access to unified support has also moved to a three-year arrangement instead of being renewed every year, at what appears to be an increased cost per year.

The DTA has previously reported nearly $17 million in costs for unified support in 2023/24, and $24.5 million in 2025/26.

At $101.7 million over the next three years, that comes out to just under $34 million a year.

DTA digital investment advice and sourcing deputy CEO Simon Quarrell said in a statement to iTnews that the scope of the unified support arrangements remain "largely unchanged between VSA5 and VSA6, except that the current term is three years whereas previous support agreements were 12 months in duration."

“The unified support arrangements remain centralised because it provides the most cost-effective outcome for government," he said.