ICT Category Management Plan Synopsis

Published 31 August 2013

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Category Vision

$20M in savings within 5 yearsBest Practice ICT Procurement Facilitation for NSW Government Agencies

Key Service Capabilities

• Financial and performance management

• Focus on facilitating solutions for strategic outcomes

• Best practice vendor management mechanisms

• Proactive industry engagement

NSW Procurement Commitments

• Value for money, strategic and agile procurement practices to support innovative, quality government service delivery

• Elimination of red tape and provision of a level playing field to ensure small, medium and large enterprises can do business with government

• Streamlined, responsive procurement arrangements that enable and support agencies to access innovative, fit-for-purpose solutions to meet their business needs

• Collaboration with agencies to provide financial and performance data to enhance purchasing decisions (benefits, costs and risks)

Strategic Framework

• ‘Cultural change’ to strategic, agile procurement

• Minimise complexity to reduce red tape and maximise competition to deliver best value for money

• Transition to outcome-focussed category management to align agency business needs with contemporary business practices

• Co-ordinated devolution of category and scheme management, empowering agencies to use specialist knowledge to improve procurement outcomes

• Work on outsourced scheme management proof of concept for potential expansion

• Industry engagement to continue building on procurement opportunities, particularly for small and medium enterprises

• Ongoing consultation to develop standard terms and conditions under the Procure IT Framework that support innovative and effective ICT procurement

• Effective engagement with suppliers to encourage provision of innovative solutions that result in quality government services

• Development of Hardware, Software and Telecommunications agreements that support transition to “As a Service" arrangements under the ICT Services Scheme

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Category Plan Overview

Outcome

This program aims to ensure value for money, alignment to broader NSW Government strategy (eg ICT Strategy, Small to Medium Enterprise Policy and the NSWP reform program), business continuity and seamless transition for agencies from traditional acquisitions to “As a Service” offerings.

Background

The ICT Benchmark Survey indicates that total NSW Government ICT expenditure in recent years has averaged c.$2 billion annually, an element of which can be influenced by procurement strategies.

The NSW Government ICT Strategy 2012 envisages the replacement within 2-3 years of legacy ICT contracts with solution-focussed “As a Service” offerings.

While all stakeholders support this strategy, agencies have interim requirements for all types of ICT assets and services.

Strategy Overview

NSWP ICT Procurement has, with DFS Strategic Policy and the Procurement and Technical Standards Working Group and its sub-groups, developed a strategic program for the progressive retirement of whole of government contracts.

The legacy contracts are being replaced with standardised best practice agreements for ICT Hardware, Telecommunications and Software and a tiered ICT Services Scheme, utilising the Procure IT Version 3.1 contractual framework to streamline the transition to “As a Service” offerings.

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Category Plan Overview ICT Strategy and Procurement Transformation

� NSW Government ICT Strategy, Public Sector Employment and Management Amendment (Procurement of Goods and Services) Act 2012, NSW Procurement Board directives December 2012:

• NSW Government Cloud Services Policy• Government Data Centre Reform• Software rationalisation• Enhanced ICT Service Catalogue• Solution focus• Flexible, open market engagement processes– Agile and streamlined procurement “Cut Red Tape”– Improve competition and create level playing field for SMEs to compete for NSW Government ICT business– Devolved procurement - agencies drive specialised requirements

• ICT Investment Principles:– Comply with relevant whole-of-government ICT policies and standards, including Information Management, Data Centre Reform, Corporate and Shared Services Reform and Information Security

– Consider a service orientation, including “as-a-service” sourcing models– Consider online access and support the sharing of data, as appropriate– Focus on collaboration and re-use by demonstrating that there are no existing ICT solutions that can be leveraged– Demonstrate standardisation and interoperability of technologies and solutions– Demonstrate better value to government and citizens over the life of the investment

� Collaborative and inclusive “single face of Government”• ICT Board single policy and direction comprising NSW Directors-General from operational agencies• Citizen/customer focus, agencies working together to develop standards and technical policies• Formalised and inclusive industry liaison processes, committees and engagement

� Strategically focussed ICT Category Management

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Category Overview

In-Scope

• All ICT Services• ICT Software• ICT Hardware• Telecommunications

Current status

� ICT Procurement now directly aligned with Procurement and Technical Standards Working Group sub-groups, which form the steering committees for all ICT Procurement transformation and Category governance plans

�Consolidation of all Government Telecommunication Agreements (GTA)

� ICT Services Scheme replaced 20-20 Panel

• Simplified T&C and commercial mechanisms to lower cost of business

� New ICT Hardware Scheme and New ICT Software Agreement progressing

• Agreements will replace legacy contracts as they retire

• Always open and in time will consolidate not only all ICT Hardware and ICT Software legacy Panels but also new strategic hardware/software requirements as nominated via the Procurement and Technical Standards Working Group

• Flexible, agile and outcome-focussed commercial mechanisms

• Standards and specifications collaboratively audited and refreshed via Procurement and Technical Standards Working Group

• New reporting requirements on use of SMEs

� New Telecommunication, two-way radio and RF Scheme C2573 completed from 01 May 2013

Out of Scope

• Strategic consultancy• Short-term contractor placement of ICT specialists