Victorian Government Purchasing Board
Achieving Excellence in Government Procurement


The enterprise licence agreement (ELA) with IBM Australia Limited is for the provision of software support services and technical support. 

It also includes a discounted price structure for the purchase of IBM software.

The ELA was initially established for a three year term, expiring on 30 September 2008. It has been subsequently extended by mutual agreement on several occasions, and was extended from 1 October 2017 until 30 September 2019.

Key SPC benefits

The contract aligns to the government’s better financial management strategies and supports stronger industry policies.  This is achieved by:

  • delivering discounted pricing benefits to government;
  • streamlined processes in the procurement of IBM software and services; and
  • providing the opportunity for any level of government to access the contract.
Lead Agency
Department of Premier and Cabinet
Conditions of Use
Reference Number
Sole supplier
Start Date
End Date
Primary Contact
Andy Simpson
Senior Adviser, Procurement Branch
Department of Premier and Cabinet
Phone: +61 3 7017 3280
Secondary Contact
Not applicable

Who can access this SPC?

Mandated Departments

Not applicable

Mandated Agencies

Not applicable

Departments and agencies may procure from this contract.

Departments and agencies who are participants in the EA may procure from this contract.

Agencies who are not participants in the EA may consult the category manager to confirm eligibility.

Departmental Contract Managers

During the life of the contract the category manager will be responsible for performance and compliance within the following areas:

  • reviewing compliance to key performance indicators;
  • assessing and monitoring industry and benchmark data and trends;
  • tracking and reporting spend and savings;
  • monitoring utilisation of the agreement;
  • ensuring compliance to the terms of the EA;
  • analysing consumption patterns and  evaluating demand profiles;
  • validating discount compliance;
  • identifying and managing risks;
  • resolving matters of dispute between vendors and participants, and
  • assessing and containing contract leakage.

Supplier Details

The ELA is a sole supplier arrangement.

IBM Australiaexternal-link.gif 
79 000 024 733 60 City Road
Byron Holder
Client Executive
M: +61 410 533 080

What you can buy from this SPC

The scope of supply is the provision of software support for government’s fleet of IBM perpetual licences.

Discounts have been established as part of the ELA, and apply equally to the procurement of software support for existing licence assets and to the purchase of new licences.

For products specified in the ELA, a higher discount applies.

For products NOT specified in the ELA (that is, every IBM software product not specifically listed in the ELA), a substantial but lower discount applies.

Each department and agency participating in the ELA has a passport advantage Account (PPA). This account is a password controlled section of an IBM website, where the licence entitlements are recorded. Once a procurement of licences has occurred, these products are included in the agency’s PPA. The PPA is accessible by two or three nominated employees of each department or agency.

2015 ELA Extension – New Product

As part of the 2015 ELA renewal, IBM has made an allocation of a product called IBM Verse, plus a higher-specification version called Connections S1. These allocations are treated as entitlements, and will be included in each agency’s PPA. They are allocated basically on a one-for-one basis with CEO Comms licences currently held by agencies. The product is represented by IBM as a new generation of the CEO Comms with additional features, such as:

  • email and calendar for web, desktop, and mobile with spam and anti-virus protection;
  • includes IBM Verse and SmartCloud Notes mail experiences;
  • collaboration tools including profiles & file sharing
  • 30GB File storage, 50 GB Verse & SmartCloud Notes mailbox storage
  • IBM Traveler (Mobile Capabilities)

Verse or Connections are capable of being implemented in either an on-premise, or from early 2016, in an online environment, hosted in Australia. These products are considered as subscription products. If not implemented during the ELA term they will expire, and as subscription, will need an annual renewal. It should be noted that the lead department has made no assessment of the extent to which IBM’s online terms of use for Verse or Connections comply with the State’s Privacy and Data Protection Act 2014 (Vic). 

The lead department has no particular expectation that this product will be implemented by agencies, but as these products will appear as entitlements in each agency’s PPA, agencies should be aware of the origin of these entitlements; that the products are therefore able to be implemented if required; and that they have substantially more capability than the existing IBM Notes being used by agencies. IBM has also made an allocation of no-cost consulting services to assist with implementation of the product, should an agency decide to proceed to implementation.

IBM may independently contact agencies to assess their interest in implementing these new products. More information about Verse which is now part of agencies’ entitlements can be found at the following sites.

RULES OF USE: How to use this SPC

IBM Software Support

Participating agencies define the products and volumes of IBM licences for which they require subscription and support (known as S&S). These products are listed in the ELA.

Subscription and Support includes the right to upgrade software to the latest versions, as well as full access to IBM’s technical support, and IBM’s deployment assistance as and when required.

Agencies are invoiced annually for the S&S at the discounted rates agreed in the ELA between DPC and IBM.  

For products not listed in the ELA, IBM should apply the standard non-ELA discount to the renewal invoice for those products. Agencies should validate the discount has been applied.

Sub-Capacity Licensing Rights

In addition, eligible software may be used in a sub-capacity licenSing environment, which substantially improves the efficiency of use and therefore reduces volumes required, costs of S&S and may reduce or avoid the need to purchase new licences.

Agencies interested in using sub-capacity licensing are advised to contact the IBM representative for guidance, as implementing sub-capacity licensing requires the involvement of IBM, and the implementation of an IBM licensing management tool, commonly known as ILMT. The ILMT scans the host servers and produces usage reporting, which is a requirement under the sub-capacity licensing terms.

Software Transfers

Software licences held by one agency may be transferred to another agency provided both agencies agree and follow a protocol, using IBM’s Passport Advantage processes.

Software Purchases

Departments and agencies should follow normal acquisition processes for software. Identifying the right IBM software solution generally requires specialist knowledge. Determining IBM licensing requirements and terms of use, environment and management is also complex. Unless the purchaser is highly skilled in these areas, it is recommended that they consult IBM for advice prior to proceeding to purchase and implement a software solution.

IBM also has a responsibility under the ELA to ensure that agencies do not inadvertently purchase software that may already be owned by the State and which may be available for deployment.

Confidential information

Contractual information is available to approved users. 

A new confidential information system external-link.gif has been established and users are to complete an online registration form. A step-by-step process is provided to interested users.  These instructions are detailed in the word.gif State Purchase Contracts Registration Guide (126 KB).

Please note confidential information may only be accessed and used for the purpose of joining the SPC and procuring under the SPC.

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