The IBM contract announced on 11 March 2016 provides for a range hardware, software, and IT support services to be provided to the Department. Under the contract these services are being provided to the Department as a whole, not to a specific project or initiative.
Contrary to recent media reporting, the cost of the previous contract with IBM over the past five years was $484 million. This is equal to $96.8 million per year.
The value of the new contract with IBM over five years is $484 million.
The new agreement provides greater flexibility over how contract funds are used to ensure value over the life of the contract term.