Datacraft, FX to pick up pieces left by GSN

The State Services Commission has selected Datacraft and subcontractor FX Networks as the preferred vendors to provide telco services to government agencies served by the Government Shared Network, according to industry sources.

GSN transition manager Brent Chalmers says the commission is in negotiations with a vendor, but a contract has not been finalised. "We are on track to sign an agreement in early July."

It is understood Datacraft - a subsidiary of London-listed Dimension Data - and FX Networks beat out competition from state-owned enterprise Kordia to secure the work.

The Government announced in February that it would scrap the GSN, abandoning its $28 million investment in the network, which was intended to lower government agencies' telecommunications costs.

State Services Minister Tony Ryall said the GSN was "financially unsustainable".

Eight agencies that use the GSN have signed a memorandum of understanding that they will switch to a new private provider contracted by the commission, rather than make their own individual arrangements. The network could be sold to the provider as part of the transition.

Consultancy Voco, which was contracted to design the GSN, help decide how suppliers would be selected and to set up governance arrangements for the project, earned a further $75,000-$100,000 by providing advice to the commission on its "transition and decommissioning".

Wellington's FX Networks was one of several companies that provided components of the GSN. It was not implicated by any reviews in the commercial failure of the project.

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