City of Cape Town proposes 12-month extension for data-network services contract - IOL

The City of Cape Town wants to extend the data-network services contract pending the appointment of new service provider.

Cape Town residents had until today to make submissions on plans by the City to extend the contract for data network devices and services after it could not find a replacement service provider.

The City said the extension of the contract will ensure continued network maintenance, support, and critical infrastructure procurement while a replacement tender process is finalised, following delays caused by the cancellation of a new tender that was not awarded.

It now intends to amend the expiry of the existing contract for the supply, delivery, installation, maintenance and commissioning of data network devices and services.

“The contract is required to be extended to ensure the continued maintenance, support, and procurement of critical network infrastructure and services while the replacement tender process is concluded and implemented,” the notice read.

The City blamed the absence of responsive bids for a new tender as unforeseen circumstances that have delayed the appointment of a replacement service provider.

“Notice is further given in accordance with section 21 of the Local Government Municipal Systems Act, No. 32 of 2000, that you can submit comments in respect of the proposed amendments,” said the notice that was published on September 21.

The published addendum for the contract indicates that the City is proposing to amend an existing contract with the two service providers in line with the Municipal Finance Management Act.

It wants City Manager Lungelo Mbandazayo to be authorised to sign the extended contract with representatives of two service providers.

The addendum shows that First Technology Western Cape was appointed as the main supplier, and Altron Systems Integration as the standby supplier for the period between July 2023 and June 2026.

The two service providers were to supply, deliver, install, maintain and commission data network devices and services.

According to the addendum, the Supply Chain Management Bid Adjudication Committee resolved in April this year to extend the tender for a period commencing from July 1, 2026 until December 31, 2026, on a month-to-month basis until a new tender was in place.

The extension of the contract was not to exceed a period of six months, with the same terms and conditions and rates until the new tender is implemented, whichever event occurs first.

However, the City proposes that the month-to-month contract be effective from January 1, 2027.

“The purpose of this addendum is to extend the contract period in respect of Schedule A, for a period of 12 months on a month to month basis, at the same terms and conditions, from 1 January 2027 to 31 December 2027 or until the replacement tender is implemented, whichever occurs first.

“The parties intend to amend the Contract to the extent set out in this Addendum and wish to record the terms and conditions of that amendment in writing,” reads the addendum.