ASG Group has signed a five-year contract — with a further three-year option — with the Australian Maritime Safety Authority (AMSA) to help move its traditional services model to a cloud-based platform solution.
The AU$17.5 million agreement will see ASG help AMSA deliver what it refers to as its so-called "new world" delivery model, which leverages ASG's cloud-based federal government hosting platform and managed services solution.
ASG CEO Geoff Lewis explained the company's new world model will help AMSA deliver best practice and cost effective business, and support its mission critical search and rescue services.
"This agreement gives AMSA both control over expenditure, as well as flexibility," he said. "It enables them to scale up rapidly during emergencies, without having to pay for that extra capacity on a continuing basis."
Similarly, an AMSA spokesperson said the contract will provide the agency with core IT infrastructure services.
"[The contract] will enable AMSA to transform our IT services and introduce a more reliable and flexible service based delivery model that provides access to specialist IT services across different disciplines at a competitive cost. This model will reduce the risk of AMSA’s critical business operations failing and positions us for leveraging future technology opportunities," the spokesperson said.
The deal with AMSA is part of the AU$100 million pipeline of short-listed opportunities that ASG has previously advised are under negotiation. It previously signed similar deals with the Tax Practitioners Board and Australian Transport and Safety Bureau.
"Increasingly, we are seeing federal government customers like Australian Maritime Safety Authority (AMSA) and Australian Transport and Safety Bureau (ATSB) looking to new world solutions to change the way that technology can deliver value to their business," Lewis said.
According to the ASG Group, the contract is expected to make a "substantial" contribution to its growth in the EBITDA in the second half of the 2015 financial year.