The Australian Government has signed a new whole-of-government agreement with Amazon Web Services (AWS), extending its cloud services partnership for another three years. 

The Digital Transformation Agency (DTA) says the renewed deal will enhance contract performance, vendor accountability, and maximise value for public sector entities.

This arrangement, which builds on the original 2019 deal, extends benefits across Commonwealth, state, and local government agencies. 

Over 140 public sector bodies already rely on AWS for critical services spanning transport, health, education, and taxation. 

“This new whole-of-government arrangement improves the value, reliability, and security of cloud services in government,” said DTA Chief Executive Officer Chris Fechner, adding that it will “drive better contract performance [and] vendor accountability”.

However, the deal raises questions about the government’s increasing dependence on a single cloud provider. 

The initial 2019 contract valued at $39 million surged to $390.8 million within three years. A subsequent renewal in 2022 was worth $174.1 million. 

While AWS emphasises its investment in Australian infrastructure and workforce upskilling, critics argue that such large-scale outsourcing risks diminishing local technology ecosystems and data sovereignty. 

The government maintains that agencies will still conduct competitive procurement processes, but the reliance on pre-negotiated frameworks may limit genuine market competition.

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