The Australian Government has kicked off 2026 with significant contract activity, awarding 114 contracts valued at $510 million in the first week of January. This robust start to the year signals continued investment across key government priorities, from international development to digital health infrastructure.
International Development Takes Centre Stage
The week's standout award was a massive $136.3 million contract to TETRA TECH INTERNATIONAL DEVELOPMENT for the Australia Awards program in Indonesia (CN3862173). Awarded by the Department of Foreign Affairs and Trade's Australian Aid Program, this contract underscores Australia's commitment to educational and development partnerships in the Indo-Pacific region.
This single contract represents 27% of the week's total contract value, highlighting the significant scale of Australia's international development investments as we enter 2026.
Major Infrastructure and Construction Awards
Construction activity featured prominently, led by Kane Constructions Pty Ltd securing a $116.6 million contract for the Australian War Memorial's redevelopment (CN3919234). The contract covers Main Works Package 1 (Southern Entrance) and Main Works Package 4 (Main Building South), representing critical components of the Memorial's major expansion project.
This award continues the momentum of significant cultural infrastructure investments, positioning the project as one of Australia's major construction undertakings in early 2026.
Digital Health Infrastructure Expansion
The technology sector saw substantial investment, with the Australian Digital Health Agency awarding two major contracts:
- $95.9 million to DXC Technology Australia Pty Limited for Application Implementation Services (CN3843536)
- $3.8 million to eHealth NSW for Health Administration Services (CN3887895)
These awards signal a significant digital transformation push within Australia's health system, with nearly $100 million committed to technology implementation and administrative support services.
Health Sector Investment Continues
The Australian Centre for Disease Control made two substantial awards focused on community health and immunisation:
| Contract | Supplier | Value | Purpose |
|---|---|---|---|
| CN3788901 | National Aboriginal Community Controlled Health Organisation (NACCHO) | $58.5M | Coordination and Support for Enhanced Response |
| CN3988660 | The Sydney Children's Hospital Network | $31.5M | Immunisation Research, Support and Surveillance |
These contracts, totaling $90 million, demonstrate continued government focus on strengthening Australia's health response capabilities and supporting Indigenous-led health initiatives.
NDIS and Social Services Investment
The NDIS Quality and Safeguards Commission awarded a significant $19.4 million fee-for-service contract to Slalom Australia Pty Ltd (CN4148780). This substantial consulting engagement reflects the ongoing complexity and scale of NDIS operations as the scheme continues to mature.
Regional Development Focus
International development extended beyond Indonesia, with ABT ASSOCIATES PTY LTD securing a $5.3 million contract for the Disaster Resilience Program in Fiji (CN4164256). This award reinforces Australia's commitment to building climate resilience across Pacific island nations.
Technology and Security Infrastructure
The Australian Institute of Health and Welfare invested $2.3 million in cybersecurity infrastructure, awarding Verizon Australia Pty Ltd a contract for Secure Internet Gateway services (CN4027800). This investment reflects the critical importance of secure communications infrastructure for sensitive health data operations.
Key Observations
Sector Distribution: The week's contracts spanned diverse sectors, with international development (27%), construction (23%), and technology services (19%) dominating by value.
Agency Activity: The Department of Foreign Affairs and Trade's Australian Aid Program led procurement activity with two major international development contracts totaling $141.6 million.
Supplier Concentration: Unlike typical weeks where contract value spreads across many suppliers, this week saw significant concentration, with the top three contracts representing 68% of total value.
Looking Ahead
This strong start to 2026 suggests government agencies are moving quickly to execute their annual procurement plans. The mix of long-term strategic investments in international relationships, critical infrastructure, and digital transformation indicates a year focused on both immediate operational needs and longer-term capability building.
The significant international development spending, particularly in Indonesia and Fiji, signals Australia's continued commitment to regional engagement as a cornerstone of foreign policy. Meanwhile, substantial investments in digital health infrastructure and NDIS support services reflect domestic priorities around service delivery improvement.
As government departments settle into their FY26 procurement cycles, we can expect continued strong contract activity across these priority areas throughout January and beyond.