The Australian Government has signed an extensive procurement deal with Amazon Web Services. Australian Federal, State, and Territory agencies and departments, as well as public universities and government agencies will now have access to AWS through a “simplified procurement model”.

The Government said the deal will mean cheaper and easier access to Amazon’s cloud services, professional services and enterprise support through the whole-of-government deal. 

Government organisations have been using AWS services since 2012 but mostly under individually negotiated contracts using a procurement model that typically took weeks and used a fixed price model.

AWS operates a “pay-as-you-use” model which it argues delivers more value and encourages experimentation but doesn’t work well with traditional procurement models. The new deal facilitates the AWS approach under an agreed set of terms and conditions, and also removes administrative overhead, according to the cloud provider.

AWS received “Protected” certification by the Australian Cyber Security Centre in January, enabling Australian public and private sector organisations to store and process highly sensitive data, paving the way for the new agreement.

“Since all agencies will have the same terms, the smallest and largest agencies alike will be able to access the same benefits, and leverage AWS’s industry-leading security capabilities and highly fault-tolerant infrastructure,” AWS said in a statement announcing the deal.

Led by the Digital Transformation Agency, the Australian Government has similar volume sourcing arrangements with SAP, Microsoft, Concur and IBM, as part of its ongoing effort to simplify technology procurement for the public service.

Government agencies with existing procurement deals with AWS will be transitioned to the new agreement and new contracts must now be made under the new arrangement.

“Government agencies regularly engage AWS services, each with separate contracts. The new arrangement represents an opportunity to provide cost reductions through efficiencies of scale,” said Stuart Robert, Minister for the National Disability Insurance Scheme and minister Minister for Government Services

 “Over a number of years, aggregated procurement has allowed us to leverage the bulk-buying power of the government to negotiate consistent and improved terms and conditions.”

Roberts, was promoted to Minister for Government Services in Scott Morrison’s post election cabinet reshuffle and will now be responsible for the new Service Australia, a reimagining of the Department of Human Services based on the successful NSW model of service delivery.


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