ATO drops Telstra, CSC from $385m deal

ATO drops Telstra, CSC from $385m deal

Summary: The Australian Taxation Office (ATO) has dropped Telstra and CSC from consideration for its managed network services contract, worth up to $385 million over seven years.


The Australian Taxation Office (ATO) has dropped Telstra and CSC from consideration for its managed network services contract, worth up to $385 million over seven years.

The decision leaves Optus and Dimension Data still in the running. For the next six months, both companies will be negotiating contracts with the ATO, according to a statement published yesterday.

The managed network services contract, worth around $55 million a year for between five and seven years, covers the ATO's data and voice carriage services, telephone, Wide Area Network (WAN), Local Area Network (LAN), call centre infrastructure and components of its security services.

Yesterday's decision brings the ATO a step closer to completing the lengthy process of overhauling its outsourcing contracts. A 2007 review by the Boston Consulting Group resulted in the ATO's decision to break up its $1.8 billion 10-year deal with EDS, which covered its entire IT infrastructure. The contracts were separated into three bundles.

The ATO is yet to narrow the two shortlists of contenders for its "end-user" and "centralised computing" contracts, which were under the same evaluation process. CSC, EDS, Telstra-owned KAZ Group, Lockheed Martin Australia and Unisys in July were selected to workshop proposals for the ATO's end-user computing deal. Meanwhile, Lockheed Martin, CSC, IBM and EDS in September were selected to undertake the same process for the ATO's "centralised computing" contract, worth $160 million per year.

The ATO said it expected to announce the winner of its managed network services deal by mid-2009, however, Telstra and CSC may be thrown a lifeline if its negotiations with the Optus and Dimension Data fail.

Topics: CXO, Government, Government AU, Legal, Outsourcing, Telcos, Optus

Liam Tung

About Liam Tung

Liam Tung is an Australian business technology journalist living a few too many Swedish miles north of Stockholm for his liking. He gained a bachelors degree in economics and arts (cultural studies) at Sydney's Macquarie University, but hacked (without Norse or malicious code for that matter) his way into a career as an enterprise tech, security and telecommunications journalist with ZDNet Australia. These days Liam is a full time freelance technology journalist who writes for several publications.

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  • So Chinas intelligence agency will have all our detail , thanks a lot ATO

    Optus is owned by Singtel who is owned by Chinese Govt via corporations.
    So all out tax and personal details will go off shore, I think I will stop paying taxes........
  • Agreed!

    I think its absolutely disgusting that the ATO even dare consider Optus, this is a matter of national, nay international security!! should optus get this contract rest assured they'll steal all our details to pay off the draconian overlord singaporean security agency! pretty soon singapore will know our every detail, how much money we earn, how much tax we pay, whether we like or dislike the complex, yet simple, yet kinda fair tax evaluation system... They will use all this information when they invade! mark my words! optus is a front! a front to a bunch of foreigners hell bent on invading australia and taking it for their own!

    Luckily for you telstra is fighting the good fight! everyday brave technicians don their hardhats, pick up their tools and run into battle against the evil optus! Mortars whistle through the air, machine gun fire is constant! but telstra fights on for you australia cause its true blue (except for sol, ignore that fact please, out of respect for the fallen techs), Join the Cause Now!!! sign up for a Next G 24 month contract, and homeline Ultimate! and Bigpond 20Mbps liberty!, in fact give telstra your house, join the fight against evil foreigners...TODAY!
  • Conspiracy theories my friend

    Telstra has a foreign CEO. Optus has an Australian CEO. Most of Telstra's senior executive are foreign. Most of Optus' senior executive are Australians.

    Telstra has a foreign shareholding. Optus' parent company is listed on the Australian Stock Exchange as well as in Singapore, so it has an Australian shareholding.

    Whilst Telstra is instructing their servicemen to use drink bottles and plastic bags to weatherproof their pits they are running around the world trying to muscle into other markets. Optus is investing in Australia's communications needs.

    I am neither an Optus or Telstra punter - just calling it how I see it. That said, if Telstra would get rid of their foreign executives and lower their prices I would consider using them - at the moment Hell would freeze over first.
  • O Sullivan is Irish


    As you have been told before by someone else in a previous forum, stupid, Paul O'Sullivan is Irish.

    If not supply, the link to prove he's an Aussie or shut your empty headed big mouth.
  • Paul O'Sullivan

    Yes you are correct he was born in Ireland Brad , however he is an Australian Citizen (,24897,19895006-15306,00.html) . Sol T is American & I can't find a reference to him being an Australian citizen although I think was planning to become one in 2005.

    However lowering yourself to abusive comments against other posters is uncalled for.

    Are you running for CEO of Telstra by any chance Brad?!
  • Call it how you see it Mel?

    You must have some unusual vision problems, you are simply another one of those who will use any excuse under the sun, moon, stars, clouds or smog to attack Telstra.
  • Paul, Mr Anonymous is playing silly buggers

    Paul, unfortunately the individual you replied to is impersonating me by calling himself Brad and trying to associate my name with his brand of filth. If you pressed the abuse button above, thankyou.
  • Attacks on Telstra

    Telstra doesn't need much help in looking like a licence to print money - they manage perfectly well on their own.

    As I've said dozens of times in the past however, I never say never. If Telstra lowers their prices and treats their customers with the respect and courtesy they are due then I would consider using them.

    If you believe my small contributions here have any real effect on Telstra's ability to run their business then I seriously believe you over-estimate the nature of the situation.

    ...and yes, I am calling it like I see it - as a former customer of Telstra and Bigpond.
  • @Conspiracy theories my friend

    "if Telstra would get rid of their foreign executives"

    Did I read this right,? One of Mel Sommersbergs provisos for using Telstra is, they'd have to get rid of their foreign executives?

    How racist is this guy?
  • The abuse button, lmfao

    Now pressing the abuse button, the escape route, and thanking someone else, rather than admitting to your lies and being a man. I guess that's one way to cover it all up.
  • Thanks caped crusader

    Thank you anonymous. At least your cleared that up.

    Unfortunately though, you either live under a rock or can only see one side, which is obvious with your sarcastic comment at the end. But I won't report you, lol.

    What I have done is known as fighting fire, because some 'right here' will attack others but cry foul when it happens to them? They will also blatantly lie to advance their agendas. Mel is one of these and it has been proven.

    But if you are not familiar with the extreme abuse which occurs, please go to any other article with Telstra involved and you will see a gentleman named Sydney Lawrence attacked and attacked with abusive comments.

    Thing is, Sydney doesn't cry about it, doesn't hit the abuse button (rofl), wont't contradict himself to suit the argument or make up stories, he just gets on with what he believes to be right and takes it in his stride. I have to say I don't agree with Sydney a lot, if not most of the time, but I admire his resilience.

    So if it was you who hit the abuse button, and you aren't actually Mel, my we are thin skinned aren't we?

    But please now show your fairness by going to town hitting every abuse button relating to Sydney attacks. You'll be there for a while though, as mine above is very tame and only one, compared to hundreds Sydney has to endure. That is of course, if you are serious?

    I look forward to seeing all of Sydney's abuse reported too. rofl.
  • Pot calling the kettle black

    "What I have done is known as fighting fire, because some 'right here' will attack others but cry foul when it happens to them? They will also blatantly lie to advance their agendas. Mel is one of these and it has been proven."

    The rest of us are sick of reading your lies. If someone has reported you for abuse then that is a shortcoming in your ability to communicate as much as it may be of someone else to wear it.

    You've been asked by at least three other people here to attack debate and not people yet you seem hell bent on trying to prove a point that no-one but yourself is interested in. Even if you are right, who cares? Build a bridge and get over it.
  • Even if I'm right, who cares? Says it all about you doesn't it?

    Talking of the pot and the kettle.

    My lies? Bit hypocritical to accuse me of being offensive and attacking Mel, then offensively attacking me by referring to me as a liar, isn't it? But no I won't sob like you guys do or report you, rofl.

    Nice, but unsuccessful, attempted turnaround though. If you aren't you know who, you certainly sound just like him. Seems doing a simple copy & paste from previous comments makes me a liar, in the eyes of those who do not wish to see or vainly attempt to cover up.

    Also whilst claiming the moral high ground on personal attacks, I bet you are also one the first to harass poor old Sydney?

    (((((Even if I am right who cares you ask?)))))

    This is obviously the motto you guys live by. We don't care about what's right or truthful, we just spread gossip which will help our wallets bulge, truthful or not. Thanks for finally admitting it.

    However, there are actually people who want the truth and do care. Those who and are sick of your lies (see I can say your lies too - start and please report me, lmfao) and want to know who this Mel is, who keeps jamming his biased, selfish always anti Telstra gibberish down everyone's throats and dragging the conversation down. Don't forget I am just responding to the same crap from the same person, nothing more.

    Friendly suggestion for you though. Stop reading my comments and mind your own business, if the truth upsets you so much.
  • Paul?

    Who's Paul?
  • Yes, your lies.

    As I said before, I don't give a damn who is right or wrong. The only one here that seems to be dragging the conversation down as you put it is you.

    Mel, Joe and a few of the others who have been caught up in the argument between you and Mr Sommersberg have made an attempt to move on and as you will notice they've been commenting in other threads, including on subjects that are not related to Internet Service Providers.

    You on the other hand want to strike while the iron is hot for personal satisfaction and are doing this by following the other users around accusing them of being Mel under cover and using Mel's name under false pretences. Those things make you a deceitful liar - the very thing you accuse Mel of.

    I'll say it only once more - I don't care who is right and who is wrong and I am not going to buy into the tiff between you and other users suffice to say that you need to wake up to yourself and participate in these forums for the right reasons and not for the sole reason of belittling others. And again, no-one else seems to give a damn about your persistent attacks either. You've had your say, your opposing numbers have had theirs - leave it at that and get over it.

    Lastly, if you want me to stop reading your comments and mind my own business I suggest that you start doing the same.
  • Blah

    Well put, however I think you are wasting your time trying to reason with him. I'll lead by example and no longer reply to his comments because not one of them has ever been relevant to any OPs on this site.

    Tomorrow == 2009. I am looking forward to reading more interesting articles here.
  • @Blah

    Lead by example and stop replying to your own comments in future, would be a start.

    Here's a motto for you too. Mel won't lie in 2009.

    Bit much to ask I know, but here's hoping.
  • You are so lamely obvious.

    Look there are only 2 people interested in Mel vs. me and that's well, Mel and me.

    Why would anyone else care about me, someone who is a game fisherman, currently with a big dopey one hooked well and truly, rofl. Someone who is only here for laughs and to antagonize big mouthed, bedroom experts and very successful at it too, looking at my clientele.

    Or Mel the bedroom expert/actor, who plays the game by using multiple names, lying/contradicting himself and answering/supporting his own comments as someone else/anonymous etc, lmfao.

    Anyone else who enters the fray, to support Mel as you have done, is obviously either Mel, Mels's husband, Mel's mummy or a complete simpleton (or maybe all of the above, lol).

    The fact that you commented at 3:49 and at 4:20 Mel answers is what, coincidence, lmfao. Mr Anonymous just happens to comment and within minutes Mel answers?

    How lame are you Mel, really. Again answering your own lies and bull**it and sticking up for yourself as Mr (or Mrs) Anonymous.

    Mel, please get a life or get a job at Telstra (or did you already have a job at Telstra)?

    I look forward to continuing landing this monumental catch, roflmfao.
  • Racist comments of any kind aren't kosher

    I don't care about this dumb spat and name calling these two idiots are having, as long as they keep it between themselves. But without taking sides, racist comments like those from Mel Sommersberg, disgust me.
  • @Racist comments

    Careful there Ricky, one of us two idiots will report you for such abusive comments. Guess which one? lmao.