In tender documents posted on the state government's Web site, TransGrid said it would enter an agreement with a single outsourcer based on a master services agreement spanning seven years and individual service agreements of three years with options for extension.
The agreement was structured this way, TransGrid said, because a successful services relationship was dependent on "a long-term commitment by both parties" combined with short-term service-oriented contracts that ensured the services accurately reflected changing business needs.
The deal -- the third generation of an outsourcing arrangement first kicked off in 1995 -- encompasses services in the areas of account management, service desk, desktop, data network, data centre and facilities management, applications, security management and transition. The second generation contracts were awarded in 2001 and are due to expire in October.
Fujitsu secured a lucrative deal five years ago to undertake management of TransGrid's information technology infrastructure, including data centre, network, desktop and account management services. However the vendor today declined to comment for this story.
But outsourcers looking to win the electricity wholesaler's business will need to make sure they are up to scratch.
TransGrid warned that any service providers' failure to perform to agreed levels would attract a penalty, with up to 20 percent of any month's invoice amount for a particular service agreement at risk.
The organisation -- which is responsible for management and development of the AU$2.5 billion NSW electricity network -- said it recognised that its "success and ongoing growth" rested "heavily" on the quality of information technology services.
"These services must meet or exceed customer expectations at all times," the tender documents stated.
TransGrid said a commitment to asset lifecycle management of hardware -- which has seen all network devices, personal computers and the vast majority of servers upgraded since 2001 - had laid the foundation for the delivery of reliable information technology services.
The organisation said it would retain asset ownership and information technology strategy under the new agreement.
In addition, a successful tenderer would have to demonstrate its commitment to the Information Technology Infrastructure Library (ITIL) framework.
All new services should be transitioned over a 12-week period concluding on 31 October, TransGrid said.
A TransGrid spokesperson was unavailable for comment today.