Kaz secures $200m defence contract

Kaz has claimed its $200 million deal with the Australian Department of Defence is the largest win in the company's history.

Under the five-year contract, the Telstra subsidiary will provide remote support services to 90,000 desktops across 325 Defence sites in Australia. These will include 24x7 support of DOD's restricted and secret IP-based wide area networks, ICT management across central office functions, the introduction of ITIL processes, and assisting with enhanced support during peak periods.

These services had previously been provided in-house by internal staff and contractors, Kaz media and public relations manager, Dawn Willis, said.

The pair had been negotiating the deal since January. DOD also has the option of extending the contract for a further 10 years in two-year intervals. Kaz also planned to hire an additional 200 people to service the DOD requirements.

Kaz had maintained a relationship with DOD since its inception in 1988, Willis said. Previous contracts ranged from the Joint Intelligence and Air Command Support Systems, through to Fleet information system support and training services.

According to a Department of Defence statement, Kaz was chosen because it had the necessary capabilities and track record to assure reliable and cost-effective delivery of critical management services. Kaz was one of 14 companies to be shortlisted for the contract. Other competitors included IBM, HP, Unisys, EDS, CSC, Ipex (now Volante), Telstra and Optus.

However, Willis said Kaz, Optus and the in-house option were the only respondents to the tender in March 2004.

The latest deal is the biggest win ever recorded by Kaz. Its next largest contract had been with Westpac, which had originally been won by Telstra, she said. Kaz was acquired by Telstra in July 2004 for $333 million.

The Kaz contract came into effect on November 11. The integrator would have further opportunities to pick up additional services when more were introduced in August next year, Willis said.

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