Government keeps mum on Microsoft supply deal

By RICHARD WOOD

The Government has signed a multimillion-dollar bulk-buying deal to provide Microsoft software to 150 Government departments, agencies and state-owned enterprises, but is keeping pricing details secret.

The long-awaited G2003 deal, providing a framework for pricing, terms and conditions for software purchase, was signed last week by Department of Internal Affairs general manager of information and facilities, Alison Fleming, who led a team of eight negotiators.

The Herald understands the confidentiality requirements of G2003 have been tightened over the previous G2000 deal.

Fleming said Microsoft required confidentiality and the negotiating team didn't see any problem with that.

She speculated that some of the options in the agreement "are things that Microsoft doesn't offer to everybody".

It was a good deal and "if Microsoft want to keep that quiet from other jurisdictions that's no harm to the Government", she said.

"We didn't see [the confidentiality] was going to be particularly harmful. What were we supposed to do - say 'charge us more so that the public can know'?"

Fleming said that journalists might want to know about Government expenditure on software but "no member of the public ever seems to ask".

A Microsoft spokeswoman said the company suggested the confidentiality requirements during the negotiations.

She said that was consistent with similar negotiations Microsoft had with governments and corporates around the world.

Fleming said information on how much the Government would spend would not be available anyway, as it would depend what each department did under the agreement.

While the umbrella agreement is signed on behalf of all departments, each department chooses its specific software and licensing arrangement on top of that.

The agreement is not binding, with individual departments and agencies free to pursue their own negotiations with Microsoft or other suppliers.

The agreement was negotiated over a nine-month period and lasts for up to three years.