SAP has secured a whole-of-government agreement with the Digital Transformation Agency (DTA) for an initial three-year period valued at a minimum of $152 million.
This agreement provides access to SAP software and services for Commonwealth departments and agencies that use the vendor’s enterprise resource planning (ERP) software. Effective from June 29, the deal encompasses software, cloud services, and professional services.
According to a blog post by DTA CEO Chris Fechner, this arrangement ensures that Commonwealth agencies will continue to have access to SAP products, services, and support. This will allow agencies the necessary time to plan their ERP uplift programs in accordance with the government’s newly announced Australian Public Service (APS) ERP approach, under the secure terms of the new arrangement.
Angela Colantuono, president and managing director of SAP Australia and New Zealand, noted that the agreement will also facilitate incremental innovations, including artificial intelligence (AI).
The government initially signed an agreement with SAP in 2017 for $42 million, although its value has significantly increased over time. Renegotiations for the standing offer arrangement began last year, coinciding with a shift in the government’s ERP strategy. Initially aiming to establish a common SAP system across federal government, the strategy has since evolved to allow agencies the flexibility to choose their own ERP systems.