Department of Finance and Deregulation inks second data centre contract

Australian government agency, the Department of Finance and Deregulation has signed an $8.6 million contract to use data centre services provided by regional telco TransACT, an iiNet subsidiary, almost four months after inking a larger agreement with Canberra Data Centres (CDC).

This is the Department of Finance and Deregulation’s second agreement under the Australian Government Information Management Office’s (AGIMO) Data Centre Facilities Panel, which was created in March 2011. The existing 10-year deal with Canberra Data Centres is worth $45.6 million.

The Department of Finance and Deregulation joins federal government superannuation administrator ComSuper as the first agencies to sign data centre leasing agreements with TransACT and CDC. It is believed that other agencies are looking to sign contracts soon.

Under the AGIMO panel, the government uses its collective purchasing power to gain access to high quality data centre facilities. Agencies aren’t required to approach the market themselves and benefit from better contract terms and pricing.

Mundi Tomlinson, assistant secretary, strategic sourcing, Australian Government Information Management Office, Department of Finance and Deregulation, wrote in an AGIMO blog entry that the minimum requirements for a data centre lease is 500m² of data centre space and/or 500kw of power supply for a 10-year period.

“These minimums were established as the point where the government is benefitting from its coordinated buying power,” Tomlinson said. “AGIMO is responsible for building consortia for agencies that are unable to meet the minimum requirements.”

Ivan Slavich, TransACT’s chief of federal government and ACT, said that agencies were now able to purchase tailored amount of data centre space through simplified procurement procedures.

“Ten year agreements allow organisations to invest with confidence and this lengthy agreement is proof of the quality of TransACT’s locally-based infrastructure,” Tomlinson said in a prepared statement.

iiNet Group, which acquired TransACT in November 2011, has also invested in a 4.5MVA power and support infrastructure upgrade, increasing the capacity and resilience of its data centre facilities.