Get documents about "TELSTRA WHOLE OF GOVERNMENT AGREEMENT
Description
TELSTRA WHOLE OF GOVERNMENT AGREEMENT
Document Sample
Agenda Item 5.6
COUNCIL REPORT
26 September 2006
TELSTRA WHOLE OF GOVERNMENT AGREEMENT
Committee Finance and Governance
Presenter Cr Shanahan
Purpose
1. To seek Council approval of the Telecommunications Purchasing and Management Strategy
(“TPAMS”) Agreement with Telstra for the provision of data services under the Umbrella TPAMS
agreement between Multimedia Victoria (“MMV”) of the State of Victoria and Telstra.
Recommendation
2. That Council:
2.1. enter into a contract (“Telstra Contract”) for the provision of data services with Telstra, in its
capacity as a Government Approved Telecommunications Supplier under the terms of the
Telecommunications Purchasing and Management Strategy (“TPAMS”) Non-Crown Body
Agreement, for a period of 3 years with a further option to extend of one year;
2.2. enter into the TPAMS Non-Crown Body Agreement (“TPAMS agreement”), agreeing to be
bound by the terms of the TPAMS Head Agreement and Data Service Agreement between
Multimedia Victoria (“MMV”) and Telstra, and to appointing MMV as an agent to act on
behalf of the Council in accordance with the terms;
2.3. by instrument of delegation sealed by the Council under section 98(1) Local Government Act
1989 (“the Act”) delegate to the Chief Executive Officer, or the persons from time to time
acting in that position, the authority to enter into the arrangements referred to in paragraphs
2.1 and 2.2 above including executing all necessary documents and to do all things incidental
and ancillary to the same; and
2.4. under section 98(3) of the Act, authorise the instrument of delegation to the Chief Executive
Officer, or the person from time to time acting in that position, to empower him or her to
delegate any power, duty or function delegated to him or her under the paragraph above, to a
member of Council staff.
Council Report Attachment:
1. Finance and Governance Committee, Agenda Item 5.2, 12 September 2006
Page 1 of 6
FINANCE AND GOVERNAN CE COMMITTEE Agenda Item 5.2
REPORT
12 September 2006
TELSTRA WHOLE OF GOVERNMENT AGREEMENT
Division Finance
Presenter Craig Liddy, Chief Information Officer
Purpose
1. To seek Council approval of the Telecommunications Purchasing and Management Strategy
(“TPAMS”) Agreement with Telstra for the provision of data services under the Umbrella TPAMS
agreement between Multimedia Victoria (“MMV”) of the State of Victoria and Telstra.
Recommendation from Management
2. That the Finance and Governance Committee recommend that Council:
2.1. enter into a contract (“Telstra contract”) for the provision of data services with Telstra, in its
capacity as a Government Approved Telecommunications Supplier under the terms of the
Telecommunications Purchasing and Management Strategy (“TPAMS”) Non-Crown Body
Agreement, for a period of 3 years with a further option to extend of one year;
2.2. enter into the TPAMS Non-Crown Body Agreement (“TPAMS agreement”), agreeing to be
bound by the terms of the TPAMS Head Agreement and Data Service Agreement between
Multimedia Victoria (“MMV”) and Telstra, and to appointing MMV as an agent to act on
behalf of the Council in accordance with the terms;
2.3. by instrument of delegation sealed by the Council under section 98(1) Local Government Act
1989 (“the Act”) delegate to the Chief Executive Officer, or the persons from time to time
acting in that position, the authority to enter into the arrangements referred to in paragraphs
2.1 and 2.2 above including executing all necessary documents and to do all things incidental
and ancillary to the same; and
2.4. under section 98(3) of the Act, authorise the instrument of delegation to the Chief Executive
Officer, or the person from time to time acting in that position, to empower him or her to
delegate any power, duty or function delegated to him or her under the paragraph above, to a
member of Council staff.
Key Issues
3. TPAMS is a State Government initiative aimed at delivering cheaper telecommunications services
across Government through the aggregation of demand for the services. It is the State
Government’s policy for Local Government to be given access to these services.
4. The Minister for Local Government has exercised her discretionary power under the Act and
exempted contracts entered into by Councils under TPAMS from the tendering requirements in
section 186 of the Act.
Page 2 of 6
5. The TPAMS agreement covers Voice, Mobile and Data services being provided by a number of
Government Approved Telecommunication Suppliers.
6. Telstra is a Government Approved Telecommunication Supplier for data services.
7. The City of Melbourne currently requires upgrades to 19 of the 22 network links that operate in its
district. These upgrades are required to support the additional network traffic that is being
demanded as a result of new systems, greater utilisation of existing systems and the continuing
demand for greater access to information.
8. By entering into the Telstra contract for data services under the TPAMS agreement, the City of
Melbourne will be able to upgrade and provide necessary data services for all sites for a
significantly lower price than would otherwise have been achievable without access to the buying
power of the Whole of Victorian Government.
9. Under the existing arrangements the level of service would be insuffic ient to meet the needs of the
organisation and the cost of the services would escalate above the proposed rates under the
TPAMS agreement. It is estimated that the increase in costs would be between $300,000 and
$800,000 per annum.
10. Upgrading the network links is estimated to be $76,000. Under the Telstra contract and the
TPAMS agreement the cost of upgrading is waived.
11. TPAMS is supported by the Municipal Association of Victoria and a number of other local
authorities have already entered into arrangements through the TPAMS agreement including
Boroondara, Yarra Ranges, Brimbank and Whittlesea.
12. The option of tendering either in the City of Melbourne’s name or under Strategic Purchasing was
rejected based on the volume discounts obtained under the TPAMS agreement.
Coverage of Services
13. Data services for all City of Melbourne sites are covered by this agreement, including:
o Artplay o Melbourne City Child Care Centre
o North Melbourne Meat Market o North Melbourne Children’s Centre
o Council House o North Melbourne MCHS
o Melbourne City Baths o Powlett Reserve MCHS
o North Melbourne Town Hall o Fawkner Park MCHS
o Sinclair’s Cottage o Docklands Hub
o Archives Repository o Lost Dogs Home
o Carlton Family Resource Centre o Cooks Cottage
o Central Carlton Children’s Centre o Fish Market
o Kensington MCHS o Building Maintenance Office
o Lady Huntingfield Children’s Centre o Melbourne Visitor Booth
2
Page 3 of 6
Time Frame
14. Upon approval from Council and execution of the Telstra contract and TPAMS agreement, Telstra
will immediately schedule works to upgrade the links.
15. The term of the Telstra contract and TPAMS agreement will require Council to commit to the
arrangement until 2010.
Relation to Council Policy
16. Council aims to deliver quality services that are responsive to business and community expectations,
demonstrably cost-effective and subject to public accountability. Council is committed to delivering
its services equitably and in a way that meets customer needs, minimises costs and recognises
Council accountability.
Government Relations
17. The TPAMS agreement appoints MMV to act exclusively on behalf of the City of Melbourne for
the purpose of acquiring TPAMS Products and Services including:
17.1. representing the City of Melbourne in negotiating and preparing the Telstra contract and
providing any notice or instruction required under the Telstra contract;
17.2. resolving any disputes with Telstra; and
17.3. representing the City of Melbourne if any dispute arose between the City of Melbourne and
Telstra.
18. Being part of the Whole of Government approach to telecommunications provides an opportunity to
benefit from economies of scale, aggregate services and strengthened bargaining power. Working
together will achieve significant price reductions in telecommunications. A minimum of 5,000 sites
will be covered by the arrangements with Telstra, including all State Government departments.
Finance
19. The estimated cost of data services is $400,000 over the 4 year life of the Telstra contract, or
$100,000 per annum.
20. Whilst the majority of City of Melbourne network connections will increase in size, annual costs are
expected to remain the same as current network charges paid by City of Melbourne.
21. Under the arrangements, Telstra prices are expected to decrease by 5% per annum after an initial
18 month period.
Legal
22. The Minister for Local Government has exercised her discretionary power under section 186 of the
Act, allowing the Council to enter into the arrangement without being first required to give public
notice and invite tenders. Legal advice has and will continue to be provided as required in respect to
the subject matter of the report.
3
Page 4 of 6
Comments
23. The MMV have gone to tender for the TPAMS services and have received exemption from the
Minister for Local Government by demonstrating that appropriate procurement procedures were
followed and that significant value has been achieved.
Background
Current Arrangements
24. All data services are currently provided by Telstra, at Local Government rates, on a month by
month basis.
Proposed Arrangements
25. Under the proposed arrangements:
25.1. all data services will be provided by Telstra;
25.2. these services will be upgraded based on the needs of the business areas; and
25.3. the City of Melbourne will receive the advantage of the Whole of Government rates for data
services as negotiated with Telstra under the TPAMS agreement for up to the next four
years.
Rationale for entering into this arrangement
26. To continue to build the City of Melbourne relationship with the State Government in relation to
Information Technology and Communications.
27. The upgrades will facilitate increased productivity to remote sites linking to Council House such as
Artplay, City Baths, North Melbourne Town Hall, Sinclair’s Cottage, Docklands and Carlton Family
Resource Centre. If the upgrades do not occur then these services will eventually slow to
unacceptable levels.
28. The upgrades will reduce the complexity of our network structure and our network routers will be
replaced by Telstra owned and managed routers. This will reduce the reliance on internally
maintained equipment and the technical expertise of staff required to maintain the network.
29. There is no incremental cost to upgrade the data services.
30. The proposed arrangements will provide access for the City of Melbourne to reduced monthly
charge rates for the data services required than otherwise would be available to it. Overall the
State Government tender provides access to significant savings for the City’s data requirements.
4
Page 5 of 6
Agenda Item 5.2
Finance and Governance Committee
12 September 2006
FINANCE ATTACHMENT
TELSTRA WHOLE OF GOVERNMENT AGREEMENT
The financial implications are contained in the body of the report.
Joe Grohe r
Manager Financial Services
Page 6 of 6
Agenda Item 5.2
Finance and Governance Committee
12 September 2006
LEGAL ATTACHMENT
TELSTRA WHOLE OF GOVERNMENT AGREEMENT
Legal advice has and will continue to be provided as required in respect to the subject matter of the
report.
Section 186 of the Local Government Act 1989 (“the Act”) provides that before a Council enters
into a contract for the purchase of goods or services, or for the carrying out of works, to the value of
$100,000 or more it must give public notice of the purpose of the contract and either invite
expressions of interest or tenders from any person wishing to undertake the contract.
However, section 186 provides for exemptions from the above requirements in certain circumstances
including if:
“the contract is entered into in accordance with arrangements approved by the
Minister for the purposes of this sub-section;”
The Minister for Local Government has exercised her discretionary power under section 186 of the
Act, issuing an exemption from tendering for contracts entered into under the TPAMS arrangement.
Kim Wood
Manager Legal Services
