IT hardware giants Dell and Lenovo are the first two companies to sign up to the lucrative New South Wales government IT hardware panel, as part of an agreement the government has said it has signed worth AU$93 million.
The panel will initially cover desktops, laptops and tablets but will be extended to servers, storage, virtualisation, and imaging devices.
According to the contract website, Dell and Lenovo were signed up late last month, with the NSW government currently in negotiations with other suppliers. Dell and Lenovo will be on the panel until April 30, 2015, but there are three 12-month extensions on offer.
NSW Minister for Finance and Services Greg Pearce said that the AU$93 million contract for the panel will result in reduced administration costs and IT savings.
"The new agreement simplifies the government tender process and removes the management fee previously levied on the supplier, cutting red tape and expense associated with doing business with government," he said in a statement.
"Under the old system many suppliers were locked out of projects until the end of the contract whereas this new agreement allows suppliers to be selected and included at any time during the contract. This increased participation leads to increased competition and that’s good news for government and the taxpayer."
The government has advised that next month prices for hardware may rise under the contract as it adjusts for the current value of the US dollar, which has caused the Australian dollar to slip below parity over the last month and a half.