ATO fights cheating in AU$1bn IT contract battle
As the ATO prepares to break up its mammoth AU$1 billion IT outsourcing deal into three, the Tax Office is planning to isolate contract contenders in an effort to prevent sabotage by rival vendors.
Part of the procurement process for the ATO's three major outsourcing contracts -- managed network services, end-user computing and centralised computing -- is an intensive six-month to one-year testing period, the ATO's second commissioner, Greg Farr told ZDNet Australia.
"After we get down to our contenders, we want to spend a lot of time in workshops so they understand the business context we work within and where we see the business of tax administration going, so that they're able to respond in a way that can support our business into the future," said Farr.
The ATO confirmed on Monday that EDS will retain its position as the sole IT outsourcing partner until 2010, during which time likely candidates will be tested before receiving the final go-ahead.
To ensure contenders are able to complete the tests without interference from competitors, Farr said the ATO will develop isolated data rooms.
"They will be separate data rooms that are locked up and secured and we're looking to an alternative supply of IT infrastructure during that time," said Farr.
Only the vendor and the ATO's procurement team will be permitted to enter the rooms during the testing periods.
"[The data rooms are] just for the team that are going to run the procurement processes which will be a very small one or even an in-house team, but it will not be on an EDS administered network," he added.
The ATO will also conduct a probity audit during the process to ensure the integrity of each potential supplier, which its property and legal advisors will contribute to.
On Monday EDS Australia's managing director Chris Mitchell called the latest contract extension -- the third of its kind in the eight years it has held the contract with the ATO -- a "vote of confidence".
However, should EDS fail to retain any of the three contracts -- Farr said it is not precluded from winning them all -- it potentially stands to lose several hundred million dollars of business for each one it misses out on.
Farr said on Friday the ATO will be able to end components of the contract with EDS when testing periods of incoming suppliers has been completed.