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Public Service Act, 1994 (Act No. 103 of 1994)


Public Service Regulations, 2016

Chapter 3 : Planning, Organisational Arrangements and Service Delivery

Part 2 : Organisational and functional arrangements

33. Feasibility study for establishment of government components and specialised service delivery units


(1) A feasibility study for the establishment of a government component referred to in section 7A(1) of the Act or a specialised service delivery unit referred to in section 7B(1) of the Act shall as a minimum contain the following:
(a) An institutional option assessment to determine whether a government component or specialised service delivery unit is the appropriate organisational form; and
(b) a business case for the preferred organisational form.


(2) An institutional option assessment referred to in subregulation (1)(a) shall contain the following:
(a) Existing service delivery, operational and funding challenges in the department that require a different mode of service delivery, and how these would be overcome;
(b) measures on how service delivery and access to services would be improved;
(c) measures on how government policy and its strategic objectives would be best achieved by the proposed organisational form;
(d) the nature of the functions that would be performed and how the functions would be performed more efficiently and effectively;
(e) potential service delivery, operational and funding risks if the organisational form is not changed; and
(f) whether the establishment of a government component or specialised service delivery unit is the most appropriate organisational form.


(3) A business case referred to in subregulation (1)(b) for the government component or service delivery unit shall contain the following:
(a) Powers and duties that the head of the government component or specialised service delivery unit shall have in order to address service delivery challenges and to implement government policy and achieve the strategic objectives;
(b) information regarding financial accountability arrangements and management decision-making powers, delegations and authorisations that would be required for sharing of resources, including but not limited to supply chain management;
(c) reporting requirements of the head of the government component or the specialised service delivery unit to the executive authority and the head of the relevant department;
(d) participation of the head of the government component or specialised service delivery unit in relevant management or consultative forums of the relevant department;
(e) if an advisory board is required, the role and functions, composition, appointment procedures, remuneration and any other matter for its effective functioning;
(f) measures for funding and for trading activities if required;
(g) measures to ensure the financial viability and sustainability;
(h) the cost and budgetary implications and a proposed budget;
(i) proposed organisational structure;
(j) envisaged service delivery outputs, measurable indicators and targets;
(k) transitional arrangements and an implementation plan;
(l) the draft notice contemplated in section 7A(4) of the Act or the draft protocol contemplated in section 7B(4) of the Act; and
(m) any other matter necessary for its effectiveness and efficiency.