DTA launches a new Microsoft licensing panel

The Digital Transformation Agency has announced the establishment of a new panel for purchasing under the Microsoft Volume Sourcing Arrangement (VSA6), known as the Microsoft License Solution Provider.

On 26 September 2025, License Solution Providers (LSPs) were invited to apply for a new DTA panel to provide support services to agencies looking to procure under VSA6. The DTA has completed the evaluation and value for money assessment, and the panel is now available to use by agencies.

The arrangement introduces a streamlined purchasing and licence management model, designed to mitigate operational and support risks.

The new licence management model offers:

• improved data and reporting, to enable informed decision-making for agencies
• improved visibility and control of licences, to enhance governance and security
• improved access to new technologies.
   

“The arrangement will continue to support agencies to procure their Microsoft licensing requirements. However, this new arrangement will give agencies a much clearer view of their entitlements against their consumption,” explained Nicole Bain, Branch Head of Whole-of-Government Contracts at the DTA.

An LSP provides purchasing, transaction and support services between Microsoft and the government. Although the Microsoft VSA6 establishes a contracting framework that government agencies can use when engaging Microsoft, Microsoft does not sell its licensing directly. Instead, it sells through a limited number of Microsoft-authorised channel partners.

Once an agency has conducted a procurement and determined that Microsoft is the productivity software that offers the best value for money, the agency will go through an LSP to contract with Microsoft under VSA6.

Under the VSA6, agencies can access:

• discounted rates for subscriptions
• a training fund for tailored learning and support services
• additional legal protections.
   

The new panel will run for an initial 5-year term and has another 1-year extension option. Currently, the panel includes one provider: Data#3, an Australian owned business.

Agencies currently using the existing LSP arrangement will be contacted by the DTA to ensure a smooth transition.

Image credit: iStock.com/wundervisuals