The Gauteng Department of Finance (GDF) has extended the contract of the current Gauteng Online service provider by another month, after the department failed to finalise the tender processes for new service providers in time.
Department spokesperson Sithembiso Ndlovu says the GDF decided to extend Cloudseed's contract until the end of July in an effort to keep school computers running.
Ndlovu was unable to confirm the cost of this second extension, but earlier this year the department paid Cloudseed R126 million for a three-month extension.
The GDF announced a few weeks ago that from July, the Gauteng Online project will be no more, as the e-learning solution will be taking its place. The e-learning solution will be a revamp of its predecessor, allowing learners to have their own devices and their e-books and curriculum content readily available.
GDF head of communications John Mgwenya says the department had to embrace the new teaching methodologies that existed globally, and hence had to accommodate the new devices and the dissemination of content currently being introduced into the market.
Cutting it fine
The department issued a closed tender to original equipment manufacturers for the supply of 80 000 end-user devices such as tablets, notebooks, etc, at the beginning of June. Ndlovu says submissions for this tender have already closed, but a winning bidder has not yet been announced.
Shortly afterwards, the department issued an open tender for the supply of connectivity to the schools, which closed on Friday.
MEC for finance Mandla Nkomfe concedes the finalisation of tenders is taking longer than foreseen. "The bidding process is taking longer than we expected; however, we have given strict instructions to the bidding teams to complete it as soon as possible, without compromising their quality assurance processes," says Nkomfe.
"We are appealing to the citizens of Gauteng to bear with us. We are doing the best in our ability to conclude this process."
Cost of poor planning
Mike Moriarty, Democratic Alliance MPL Gauteng spokesperson on finance, says he will ask the department to disclose the cost of the extra month extension of Cloudseed's contract, as he predicts the service will come at an inflated price.
"Quite frankly, they [GDF] should have negotiated a longer period and then they would have gotten away with a lesser monthly charge and saved money in the process," says Moriarty.
He says the department should have realised the tender process is going to take longer than three months, extended the contract accordingly from the start and negotiated a lower monthly rate.
"It appears they've behaved in an irrational and incompetent way, and the citizens of Gauteng are being made to pay the price."
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