The City of Cape Town is seeking to extend its data-network services contract for an additional 12 months as it struggles to appoint a new service provider. The existing contract, which was set to expire in June 2026, will be extended on a month-to-month basis until December 31, 2027, or until a new tender is implemented. This move aims to ensure continued network maintenance, support, and critical infrastructure procurement.
The decision to extend the contract was made due to unforeseen circumstances that have delayed the appointment of a replacement service provider. The City had previously cancelled a new tender that was not awarded, citing the absence of responsive bids. As a result, the City is now amending the expiry of the existing contract to ensure continuity of services. The contract extension will be implemented in line with the Municipal Finance Management Act.
The existing contract was awarded to First Technology Western Cape 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 responsible for supplying, delivering, installing, maintaining, and commissioning data network devices and services. The City Manager, Lungelo Mbandazayo, is authorised to sign the extended contract with representatives of the two service providers.
The extension of the contract is in accordance with section 21 of the Local Government Municipal Systems Act, No. 32 of 2000. The City has published a notice, allowing residents to make submissions on the proposed amendments until September 21. The notice states that the contract extension is necessary to ensure the continued maintenance, support, and procurement of critical network infrastructure and services.
The proposed 12-month extension will be implemented on a month-to-month basis, with the same terms and conditions and rates as the existing contract. The Supply Chain Management Bid Adjudication Committee had previously resolved to extend the tender for a period commencing from July 1, 2026, until December 31, 2026. However, the City now proposes that the month-to-month contract be effective from January 1, 2027.
The City of Cape Town's decision to extend the contract has been made to avoid any disruptions to its network services. The extension will ensure that the City's critical infrastructure and services continue to operate smoothly while a new tender is being implemented. The City is committed to following due process and has made the necessary provisions for the contract extension.
Residents and stakeholders have been given the opportunity to make submissions on the proposed amendments. The City's decision to extend the contract will be implemented in a transparent and accountable manner, in line with relevant legislation and regulations. The contract extension is a necessary measure to ensure continuity of services while a new tender is being implemented.
Key points
- The City of Cape Town is extending its data-network services contract by 12 months due to delays in appointing a new service provider.
- The contract extension aims to ensure continued network maintenance, support, and critical infrastructure procurement.
- Residents and stakeholders had until September 21 to make submissions on the proposed amendments.
