Department of Defence officials will negotiate with Unisys on outsourcing regional IT service delivery for 460 Defence bases and sites.
Defence said Unisys presented the best value for money response from six vendors who responded to its request for tender issued in July 2005.
Other vendors to pitch were Australian Base Services, Commander, EDS, Kaz Technology Services, and in-house group Information Communication Excellence.
Defence said it expected to complete negotiations with Unisys for the five year contract by August. Should the negotiations be successful, implementation could begin late this year, according to Defence.
Defence is market-testing its regional ICT service delivery requirements to see if external contractors can deliver them more efficiently and at lower cost than its own staff.
The tender affects about 640 positions -- 470 from the public service and 170 from the Australian Defence Force.