PC assemblers eye massive govt tender

PC makers' views differ on impact of all-of-government tender

Local PC assemblers have widely differing views on the all-of-government PC tender released last week.

The one they have in common is the lack of clarity about whether the tender applies to PC manufacturers bidding directly or to service-oriented companies such as Gen-i and Axon.

Silicon Systems managing director Lorne Simmons says the all-of-government approach could potentially put his company out of business.

---

See also: $30 billion reform kicks off with huge PC tender

---

“The Department of Internal Affairs is all confused about it,” he says. “I’m pretty pissed about it.”

DIA is managing the tender through its Centre of Expertise. The objective is to contract a prime supplier or suppliers to provide a standardised range of desktop and notebook computers and associated services. Prospective suppliers can respond individually or as part of a consortium.

“We don’t partner with the likes of Gen-i or Fujitsu,” Simmons says. “All we do is Intel.

“We hear there is going to be a panel of three suppliers, and DIA has made it quite clear they want pre-imaged machines.

“We’re a wholly owned New Zealand business whose profit is reinvested and spent in New Zealand.

“This could potentially put us out of business.”

Simmons says he is writing to Prime Minister John Key about the need to support New Zealand-owned businesses.

Silicon Systems was founded 22 years ago. It earns about $4 million a year from government contracts, representing around 4 percent of total government department PC procurement.

Cyclone Computers managing director Richard Morgan says his company will be responding to the tender.

“We’re the largest local assembler with around 6 percent of government PC business. I see this as a reasonably significant opportunity, but whether they’re looking for a white box manufacturer remains to be seen.

He says Cyclone currently sells 5500 PCs annually into government departments, mainly into tertiary education.

“I’ve got no concerns about it [the tender] at this stage but it’s unclear whether it’s focused at vendors or agents.

Another who says the model is not clear is Bronwyn Sinclair, general manager distribution for Insite Technology.

“We’ll be replying to the RFP,” she says. “It seems to focus more on product than services but we see it as an opportunity.”

Insite, which is owned by Renaissance, sells Apple computers and its own Insite-branded PCs.

The whole-of-government tender is the first part of Commerce Minister Simon Power’s drive to reform government procurement, worth $30 billion a year.