Icon Water, the ACT’s water and wastewater utility has signed a $15.5 million managed services agreement covering its IT systems and networks for at least the next three years.

The deal with ASX-listed Cirrus Networks will see a new operational IT environment stood up over the next 18 months.

The utility is moving from a shared services arrangement to a “fully managed outsourced solution”, Cirrus said.

Icon Water put its ICT infrastructure and operations services out to tender in August last year and had previously expected to appoint a provider in March this year.

It has been sharing corporate services such as ICT with ActewAGL, under an agreement made in 2012 and which expires in 2023. Icon Water owns 50 percent of ActewAGL.

The terms and cost of the shared services deal were criticized by both sides of politics in 2017-18, and led to the arrangement not being renewed, and new sourcing options being explored.

“Cirrus will be wholly responsible for the build and migration of Icon Water’s complex ICT and network environment, and managing their network, data center, unified communications, ICT, cloud, and associated security services,” the managed services provider said in a financial filing. [pdf]

It added that the shift is part of a “digital transformation agenda” at the utility that is driven by both strategic and sustainability goals.

The utility is also said to have some specific IT-related goals, including “gaining strategic control over the technology environment”; a reduction in complexity, risks and IT costs; and a “rationalization” of its application estate.

Though the initial term is for three years, two additional one-year extensions are possible.

Icon Water is wholly owned by the territory government and owns and operates the water and sewerage assets and business in the ACT.

It was previously known as ACTEW.

About Icon Water Limited

Icon Water Limited is an unlisted public company wholly owned by the ACT Government. Our voting shareholders are the act Chief minister and the Minister for Environment and Heritage. 

We own, manage and operate all water and sewerage services for the ACT and the bulk of Queanbeyan. We’re also major shareholders in ActewAGL Retail and Evoenergy. These investments are joint ventures with Jemena Limited and AGL Energy Limited respectively. 

Our company has corporate reporting and compliance obligations under Corporations Law. We comply with 73 Acts, Regulations and Codes. These include the Water and Sewerage Act 2000, Utilities Act 2000, Water Resources Act 2007, Environment Protection Act 1997 and the Public Health Act 1997.