Defence extends Fujitsu contract one last time

Japanese technology giant Fujitsu has secured a 12 month extension on its core IT services contract with the Department of Defence, while the department reportedly looks to go to market in 2014.

Japanese technology giant Fujitsu will keep its core IT services contract that it has held with the Department of Defence in one form or another since 2005, until 2014, when it is reported that the department will go to market.

The Distributed Computing Central Services (DCCS) contract extension will be worth AU$40 million to Fujitsu, as the organisation continues to provide IT service desk, service and desktop operations, network watch function, email and groupware operations, applications and IT service management up until June 2014.

But the contract will not be extended beyond that date, according to a report from The Australian Financial Review. According to the newspaper, Defence will go to market before the end of 2013 for both the DCCS services currently handled by Fujitsu and the IT support services contract held by Unisys since 2008 in a deal worth AU$240 million .

A Department of Defence spokesperson confirmed to ZDNet that the tender will be released in the 4th quarter of 2013, and would consolidate a number of existing contracts including the DCCS and the regional ICT support services contract with Unisys.

As part of the contract, Fujitsu provides over 450 staff to the department's Chief Information Officers Group.