Office of the Fair Work Ombudsman (FWO)

Cloud Options and Cost Modelling

Important dates

Opportunity ID
Deadline for asking questions
Wednesday 8 February 2017 at 6PM (in Canberra)
Closing date for applications
Wednesday 15 February 2017 at 6PM (in Canberra)
Wednesday 1 February 2017


Write a summary of your brief

We currently outsource the majority of our ICT from the Shared Services Centre (SSC). Taking a strategic procurement and contract management approach, we require a review of our existing ICT strategy and presentation of options for provision of ICT services that include outsourcing from the cloud.

What is the latest start date?
How long is the contract?

2 months

Where can the work take place?
Australian Capital Territory
Who will the specialist work for?
Office of the Fair Work Ombudsman (FWO)
Budget range

About the work

Why is the work being done?

We currently outsource the majority of our ICT from the Shared Services Centre (SSC).

As part of our strategic procurement and contract management approach, we are seeking to inform ourselves on the best ICT services solution for us. We require a review of our existing ICT strategy and presentation of options around what platforms (e.g. AWS, Azure, other) and stack (SaaS, PaaS, IaaS) would suit us.

What's the key problem you need to solve?

Some aspects of the services we consume from SSC (such as security and governance) are strong, whilst others aspects are not (flexibility, resources). Our experience in consuming cloud based services is limited. All of our most important systems are hosted by SSC.

We require a needs analysis to help us understand what the alternative options are, including advice on how a transition away from SSC to the cloud would work, and estimates of cost.

Describe the users and their needs

Given this is a holistic ICT project user needs for the systems affected are diverse. Some users are external, consuming information on the website and/or seeking clarification about workplace laws. Other users are internal, responding to queries from the public about their workplace rights, running information sessions, or investigating workplaces for breaches as part of a compliance campaign or response to a complaint. Some of these internal users will also be enforcing penalties or decisions where breaches of workplace laws have been discovered.

What work has already been done?

A list of FWO's systems has been compiled, including information such as operating systems, database versions, and platforms.

Who will the work be done with?

Our existing ICT team (within FWO)

Any additional relevant information?

What phase is the work in?

Work setup

Where will the work take place?

SAP House, 224 Bunda Street Canberra, ACT 2600

What are the working arrangements?


Is security clearance required?

Additional information

Additional terms and conditions

Engagement of illegal workers prohibited

You must ensure that all employees, agents, and any other person engaged to carry out the services, including those engaged by any subcontractors are at all times:

(a) Australian citizens; or

(b) in the case of persons who are not Australian citizens, not illegal workers.

You must remove or cause to be removed any illegal worker from any involvement in the carrying out of the services and arrange for their replacement at no cost to the Agency immediately it becomes aware of the involvement of the illegal worker. You must immediately notify the Agency of the involvement of the illegal worker and the removal.

For avoidance of doubt, compliance with Your obligations will not give rise to an entitlement to claim any delay or otherwise excuse the Service Provider from compliance with its obligations under this Contract.

When requested by the Agency, You will provide evidence that You have taken all reasonable steps to ensure You have complied and are complying with Your obligations under this clause, including in relation to any subcontractors.

You must provide the Agency with evidence within 5 working days of receiving the Agency’s request.

For the purposes of this clause an illegal worker is a person who:

(a) has unlawfully entered and remains in Australia;

(b) has lawfully entered Australia, but remains in Australia after his/her visa has expired; or

(c) is working in breach of his/her visa conditions.

Skills and experience

Buyers will use the essential and nice-to-have skills and experience to help them evaluate sellers’ technical competence.

Essential skills and experience
  • Demonstrated knowledge of fit for purpose platforms (e.g. AWS, Azure, other) and stack (SaaS, PaaS, IaaS)
  • Demonstrated experience with risk profiling
  • Demonstrated experience with ICT costing and SWOT analysis
  • Demonstrated experience in developing options for ICT platforms and stack
Nice-to-have skills and experience

How sellers will be evaluated

How many shortlisted sellers will you evaluate?
Proposal criteria
Value for money
Cultural fit criteria
  • Work as a team with FWO and SSC
  • Transparent and collaborative when making decision
  • Have a no-blame culture and encourage people to learn from their mistakes
Payment approach
Fixed price
Assessment methods
  • Written proposal
  • Case study
  • Work history
  • Reference
  • Presentation
Evaluation weighting

Technical competence

Cultural fit


Seller questions

Seller questions
Seller question Buyer answer
1. Is the FWO looking for a single person to be embedded in their team to perform the work, or for a vendor to deliver the outcome (with full or partly on-site presence)? • FWO is looking for a vendor to deliver the outcome in the timeframe stipulated. • The work could be completed offsite or onsite. • However at least some onsite consultation will be necessary. • Preferably that would be in Canberra given this is where most of the team are based. • Sydney could be an alternative location given that is where the remainder of the team are based. • All FWO personnel have access to Virtual Conference capabilities in all of its offices that are provisioned by SSC as part of the IT Memorandum of Understanding (MoU).
2. Are you able to provide the list of FWO's systems that has been compiled, to give suppliers an overview of the systems and platforms that are currently supported? • FWO is compiling a detailed list of systems hosted by SSC. • The list will be completed prior to commencing this engagement and provided to the successful vendor. • The applications are: - Microsoft based, including:  COTs: • CRM v4 or better • Sharepoint 2013  Or in-house developed applications in - are all using one of the following:  Windows Server 2003  Windows Server 2003 standard  Windows Server 2008 Enterprise  Windows Server 2008 R2 Enterprise  Windows Server 2008 R2 Standard  Windows Server 2008 Standard or  Windows Server 2012 R2. Standard
3. What is the FWO's current annual expenditure with SSC? • FWO’s annual expenditure with the SSC for services consumed under the IT MoU last FY was around $6 million. • Services consumed under the IT MoU are essentially Business as Usual (BAU)/operational expenditure. • Project work is invoiced separately and is effectively capital expenditure. • Last financial year FWO’s expenditure with the SSC for capital works was around $2 million. • FWO is not expecting a significant deviation for its expenditure with SSC to change this financial year.
4. The assignment includes a review of the existing ICT Strategy. Can FWO advise when their current ICT Strategy was established? The assignment requires both a review of the existing ICT Strategy and a Needs Analysis. Are these the main two deliverables? Can FWO advise what they foresee the deliverables to be, timing of delivery and either the acceptance criteria or what is expected for these? FWO’s current strategy has essentially remained unchanged since the Workplace Authority was moved into FWO in 2010. The deliverables are an options paper and presentation that: -Considers FWO’s strategic position and business services; -Examines FWO’s application portfolio and consider integration and application maturity; -Examines FWO's Risk profile; -Includes a basic costing and SWOT analysis; -Develops options around platforms (e.g. AWS, Azure, other) and stack (SaaS, Paas, IaaS). The deliverable is due at the end of the engagement and is to contain sufficient detail to enable FWO to develop a new IT strategy around hosting/cloud and brief its executive.
5. Are FWO’s critical business systems shared with other organisations within the SSC or are they hosted as dedicated systems? FWO’s critical business systems that: -it manages but are hosted by SSC are not shared with SSC or any of SSC’s other client agencies; -are hosted and managed by SSC are shared with SSC and other client agencies. The systems in scope for the options paper are the systems FWO manages.
6. Are FWO’s ICT assets owned outright or does FWO pay a fee for the consumption of the assets used to deliver services? In what capacity does FWO foresee that their existing ICT team will contribute to the assignment? Will these resources be available only to provide information or will they be assigned to assist the contractor undertake the assignment? If the latter, how many individuals and in what capacity will they be available to assist? Noting that this assignment is to be undertaken as a ‘Fixed Price’, can the work be undertaken both ‘on’ and ‘off’ site? All physical assets are SSC’s (other than the desktop and mobile devices which are owned by FWO). However software and data for those systems managed by FWO are owned by FWO. FWO pays a fee for consumption of services provided by SSC. The recent ANAO audit of SSC ( provides more information about the terms services are consumed by agencies from SSC. FWO’s existing ICT team for this project would: -be participating with the vendor as subject matter experts and facilitators. -not be directly responsible for producing the deliverable. FWO’s Question 2 response discusses the work location.
7. Is there a security clearance required and if so at what designation and level? Is the commercial arrangement to make one payment on completion of the assignment or will there be part payments undertaken linked to deliverables during the assignment? Vendor personnel are not required to hold a security clearance. FWO does not intend for there to be partial payments linked to deliverables during the engagement given the deliverable is an options paper. FWO intends to finalise the details of payment (including the schedule) immediately prior to the commencement of the engagement with the vendor.
8. What type of existing costing information do you have? Do you have the current costs of services (including Applications) and the activities that they comprise? BAU costs from SSC are itemised against service towers as FWO is obliged to report its ICT costs annually to the department of Finance against service towers. The BAU costs for FWO’s systems/applications are spread across two or more of the service towers. Capital costs from SSC are itemised against projects. It is possible but unusual for capital costs for FWO’s systems/applications to be spread across two or more projects.
9. Are there any contractual constraints you are aware of that might hinder plans to transition services to the cloud? FWO has not been able to identify any contractual obligations affecting any transition to the cloud. However any transition to the cloud will need to comply with Commonwealth legislation and comply with Whole of Australian Government (WoAG) policies such as the Protective Security Policy Framework (PSPF) and Information Security Manual (ISM) .
10. How recent and complete is your existing IT Strategy, in defining objectives, current and target operating models, resourcing and sourcing strategy? FWO’s existing IT strategy has been in place since 2010. A review was done in 2013. FWO’s corporate strategy and risk registers were updated in 2016.
11. Have you obtained performance information on your IT services through either performance benchmarking, client feedback/net promoter scores etc. SSC are obliged to provide its client agencies with some information about performance of its systems. SSC measure performance against targets consistent with the terms of the MoU. FWO IT obtain feedback from users regarding performance among other things. FWO IT have sought to reconcile user feedback against performance data provided by SSC.
12. Have you recently undertaken a market scan regarding Cloud services, if so when and how comprehensive? If not, can you confirm if we can undertake an Early Market Engagement on your behalf to confirm opportunities and costs? FWO conducted some limited market research (as described in the Commonwealth Procurement Rules (CPRs)) towards the end of 2016. Any market research conducted by the successful vendor on FWO’s behalf must -not cause FWO to be in breach of CPRs and -be of direct relevance to the purposes of this engagement.
13. How much is known about the business and technical condition/quality of current services? FWO believes it has sufficient information about the systems in scope for this engagement available to share with the successful vendor. A review of core applications is currently underway and is expected to be completed before this engagement commences.
14. Would you be seeking to retain some existing SSC Services i.e. Security, Governance etc.? Because the scope of this engagement is limited to applications managed by FWO and hosted by SSC, other services FWO consumes from SSC such as security, desktop and eMail would need to be continued to be sourced from SSC. FWO also envisions one option the successful vendor will need to consider is a phased transition of these systems into the cloud.
15. Do you have a detailed contract register, defining services provided, costs and exit arrangements? FWO publishes details about contracts it has entered into on AusTender in accordance with Commonwealth Procurement Rules.
16. What is your confidence level on this and how detailed is it? FWO requires more information to be able to respond to this question.
17. What capability exists within FWO to manage a services model or would you expect SSC to assume a Cloud Services Broker role? FWO believes it has the capability to manage a services model with or without SSC assuming a Cloud Services Broker role. The lower environment virtual servers for a number of systems in scope for review in this engagement are hosted in AWS, are managed by FWO, but brokered via SSC.
18. I will not be able to hook in to the online Q&A session to be held on the 08/02/2017 @2pm AEDT for an hour via Goto meeting. Will you post the questions and answers from that session for other suppliers to access? All questions asked and answers provided at the Q and A session will be posted
19. Has there been any assessment of cloud readiness of current applications? FWO has not done a detailed cloud readiness assessment on its existing applications.
20. How well developed is your existing business and technology architecture? Enterprise Architecture including Business and Technology architectures is a maturing capability at FWO. The degree to which the architecture is documented varies both across the business capability as well as the technology and applications. FWO has a mix of legacy applications and more modern and better document solutions that will all need to be considered.
21. There seems to be a need for business/needs analysis and strategy development, yet these skills are not covered in the application form. Could you clarify? This engagement is focused on the hosting arrangements and movement of FWO’s applications. The FWO has a dev/ops shop that maintains FWO’s core applications & these are the ones in scope for this engagement. FWO may consider a wider engagement in a future approach to the market. E.g. this engagement does not include services such as desktop which is managed by SSC. This engagement is focuses on the ICT managed by FWO.
22. Maybe as an example: when evaluating the options, how would you envisage evaluation criteria to be determined? FWO assumes the question pertains to how the options paper would be considered. When deciding the merits of moving a system, FWO would consider: • Improvements to services to our business customers • Improved flexibility • Cost • Transparency and control mechanisms, including whether Saas or Paas. FWO wants the vendor to come in and have a look at our core applications and tell us in their professional opinion which ones make sense to move to Saas/Paas or not, and which provider would make the most sense. This isn’t a cost reduction exercise only, but rather a holistic consideration.
23. Is the 2 month timeframe set by a specific milestone, or an indicative time? FWO does have a specific time frame in mind. Need to go back to our steering committee in their May 2017 sitting. We figure 2 months is sufficient, 1 month may not be sufficient.

Interested in this opportunity?

Before you can apply for this opportunity, you need to:

  1. Register to join the Marketplace.
  2. Submit a case study and pricing and check your documents are up-to-date.
  3. Request an assessment of your chosen case study.