SAP has finalized a government-wide pact via the Digital Transformation Agency (DTA) for an initial duration of three years valued at a minimum of $152 million.
Both parties have confirmed that the pact includes “access to SAP solutions and services” for Commonwealth departments and agencies currently utilizing the vendor’s ERP software.
The agreement, slated to commence on June 29, encompasses software, cloud services, and professional services.
“This arrangement guarantees that Commonwealth agencies retain access to SAP solutions, services, and assistance, giving them adequate time to structure their ERP enhancement initiatives in accordance with the government’s newly unveiled APS [Australian Public Service] ERP strategy, within the secure and mutually accepted conditions of the recent agreement,” remarked DTA CEO Chris Fechner in a blog entry, noted in a blog post.
SAP Australia and New Zealand president and managing director Angela Colantuono remarked that the deal “will also allow step-by-step advancements, including AI.”
The government initially inked an agreement with SAP in 2017 for $42 million; however, similar to most such agreements, its benefit to SAP has surpassed that amount by a significant margin.
The renegotiation of the so-called standing offer agreement initiated last year.
This renegotiation was concurrent with a change in the government’s ERP strategy.
Initially striving to establish a unified SAP system across the federal government,the approach was later revised, and agencies are once again permitted to select their own ERP solutions.
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