Microsoft and Digital Transformation Agency ink 5 year volume sourcing deal

This new volume sourcing arrangement is to provide agencies with greater certainty.

The Digital Transformation Agency (DTA) has inked a new five year volume sourcing agreement with Microsoft to ensure continuity of services across government and to provide agencies with greater certainty.

According to the DTA, the agreement provides cost certainty through stable pricing, improved discounts and capped price increases for essential ICT products and online services used across the Australian Government.

Simon Quarrell, Deputy CEO, digital investment advice and sourcing division at the DTA told CRN Australia the updated volume sourcing arrangement delivers improved outcomes for government, including stronger legal protections and increased support for emerging technologies.

“Discounted pricing is available across a broad range of Microsoft products, including AI capabilities such as Microsoft 365 Copilot, with pricing mechanisms designed to support cost certainty for agencies,” he said.

“Agencies remain responsible for their own procurement decisions, including whether and how to adopt AI tools available under this arrangement or through other providers, based on their individual operational needs.”

In a blog post, Vivek Puthucode, general manager, public sector at Microsoft Australia said this deal “lays the groundwork” for agencies to increase their use of responsible AI and cloud technologies, increase efficiency and improve the services they provide to Australians.

Puthucode made a note of Microsoft’s “hundreds-strong” partner ecosystem that makes it “easier” to do business with the federal government.

“Many of these businesses are locally owned Australian companies that will be able to grow their operations by offering services to the Government,” he noted.

In addition to supporting critical ICT infrastructure, DTA highlighted that the agreement introduces a standardised contracting framework that introduces better commercial outcomes for government; stronger legal protections; and more support for emerging technologies.

Chris Fechner, CEO of the DTA, said in a statement that the new arrangement will “strengthen the Government’s ability to operate critical ICT infrastructure in the future”.

“We are partnering closely with agencies to deliver a smooth and coordinated transition to the new arrangement,” he said.

The five-year agreement will commence on 1 July 2026.