The Australian Taxation Office will need to swap its mainframe surroundings in time for the commence of tax time in July 2024, with the present IBM z14 process nearing the conclusion of its financial life.

The nationwide profits agency in depth its will need for a new mainframe in request for tender on Wednesday, a single of numerous it has put out in recent weeks as element of its IT strategic sourcing system.

The tenders will replace lengthy-held contracts throughout centralised computing, stop user technology and company services management, ensuing in the greatest shakeup of its IT outsourcing in a ten years.

Centralised computing – the greatest of the existing discounts, which covers the mainframe – has been held by DXC Technological innovation since December 2010 underneath a $2.1 billion contract.

But with the deal because of to expire in June 2023, the ATO is now on the lookout for a expert services provider to exchange the mainframe atmosphere at a time when “capacity prerequisites continue to grow”.

In accordance to tender paperwork, “capacity needs and guidance costs have developed to a issue that the ATO’s z14 mainframe is reaching the conclusion of its financial life”.

“The ATO’s recent IBM z14 mainframe is achieving the stop of its financial daily life and involves alternative prior to tax time 2024,” the ATO reported.

“The ATO seeks a new mainframe to meet it operational necessities and to apply new cost-efficient arrangements to aid this need.”

The ATO is considering two choices, such as a “consumption-dependent services exactly where … suppliers own and deal with the mainframe components and platform expert services in a ‘cloud-like’ delivery model”.

The “mainframe-as-a-service” contract model is most well-liked, making it possible for the ATO to “cater for fluctuating demand without having the require for funds investment”.

It reported the company should be capable to “meet fluctuating capability necessities that boost drastically all through tax time”, but may well decrease about time as apps migrate off the mainframe.

The other selection on the table is closer to the existing experience, the place the ATO “owns or leases the mainframe components and contracts providers from a expert service provider”.

Less than this product, the ATO is inquiring for the latest z system components from IBM beneath lease, for up to five years.

For equally options, the ATO has a preference for the assistance provider to buy the present mainframe hardware under a trade-in arrangement.

Both products also have “separatable portions that will be evaluated, and may possibly be contracted for, separately”.

“The ATO may award just one, quite a few or all separable portions to a single tenderer inside of, or throughout, selections, noting the MFaaS provider company can’t be awarded the separable parts for handle services and augmentation Providers,” the ATO explained.

The ATO will choose tender bids until finally the end of June 2022, with a deal envisioned to get started in March 2023. An industry briefing is prepared for April 27.

The mainframe bundle is just one of 4 – together with company service administration (ESM), company operations and complex enablement, and cyber augmentation expert services – tendered for considering that mid-March.

The ESM service provider will coordinate ITSM with other IT infrastructure suppliers to “deliver a single, crystal clear and concise interface to all ATO authorised end users in support of their IT operational needs”.

The cyber augmentation expert services bundle will, in the meantime, let the ATO to obtain contractors with unique cyber security skillsets to enhance in-house staff.

Other bundles to be launched ahead of the conclude of the year incorporate midrange and details centre, hyperconverged infrastructure and IT services desk.