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State Information Technology Agency Act, 1998 (Act No. 88 of 1998)

Regulations

General Regulations

Part 3: Procurement 1

17. Circumstances regarding Procurement not through Agency 12

 

17.1 GENERAL
17.1.1 When a department does not procure information technology goods or services through the Agency in terms of any provision of regulation 17.2 to 17.7, such procurement must take place in accordance with the applicable law referred to in regulation 7.2.
17.1.2 Before a department acquires goods or services in terms of regulation 17.2 or 17.5, the Agency must conduct standard certification in respect of the relevant goods or services.
17.1.3 Standard certification is not required for procurement in terms of regulation 17.3, 17.4 and 17.6.
17.1.4 If a department does not procure through the Agency in terms of any provision of regulation 17.2 to 17.7, the department must, within 30 days, submit a report to the relevant treasury, the Department of Public Service and Administration and the Agency stating the provision of regulation 17.2 in terms of which the Agency is not used as the procurement agency and particulars of the procurement process followed.

 

17.2 NON-COMPLIANCE WITH PROCUREMENT PRESCRIPTS
17.2.1 If, when procuring information technology goods or services for one or more department, the Agency does not comply with—
(a) a procurement schedule referred to in regulation 8.2.1 ; or
(b) any other provision of these Regulations regarding procurement,

the relevant executing authority 13 or authorities may request the Minister to approve that such goods or services be procured directly by the department or departments or through an institution other than the Agency.

17.2.2 The Minister, or an official of the Department of Public Service and Administration authorised by the Minister, may approve the request subject to such conditions as the Minister, or the authorised official, considers appropriate.

 

17.3 FOREIGN PROCUREMENT
17.3.1 If a department requires information technology goods or services for use in a foreign country, such goods or services may be procured outside the Republic in accordance with the procurement procedures determined by the relevant department for acquisitions in a foreign country.
17.3.2 For purposes of operations in a foreign country, the Department of Foreign Affairs or any other department may acquire directly from any fixed-line operator, as defined in section 1 of the Telecommunications Act, 1996 (Act No. 103 of 1996)—
(a) an international telecommunication service, as defined in section 1 of the Telecommunications Act; or
(b) small, software-driven earth stations used for the reliable transmission of data, video, or voice via satellite, known as a VSAT network.

 

17.4 DEPARTMENT OF DEFENCE

When the Department of Defence requires information technology goods or services which constitute defence materiel, as defined in the Armaments Corporation of South Africa, Limited, Act, 2003 (Act No. 51 of 2003), 14 the Department must acquire such goods or services in terms of the provisions of that Act and not through the Agency.

 

17.5 SOUTH AFRICAN POLICE SERVICE

If the National Commissioner of the South African Police Service, with the concurrence of the Director-General: National Treasury and the Director-General: Public Service and Administration, determines it to be in the interest of safety and security, such Service may procure information technology goods or services directly from suppliers or through an institution other than the Agency, whichever is agreed to by the said Commissioner and Directors-General.

 

17.6 EMERGENCY OR URGENT PROCUREMENT
17.6.1 If the compliance with procurement requirements in terms of these Regulations is not possible or practicable because—
(a) immediate action is necessary to avoid a dangerous or risky situation or misery; or
(b) the resumption of interrupted services, or the delivery of goods or services, earlier than in the normal course of procurement is of critical importance not resulting from inadequate planning,

the relevant department may acquire the information technology goods or service in any manner, which is in the best interest of the State.

17.6.2 The accounting authority of the department must approve and record for audit purposes the reasons for procurement in terms of regulation 17.6.1.

 

17.7 PUBLIC PRIVATE PARTNERSHIP
17.7.1 When a department wishes to acquire information technology goods or services by means of a public private partnership, as defined in the applicable regulations made under the Public Finance Management Act, such acquisition must take place in accordance with such regulations.
17.7.2 When a department acquires information technology goods or services in terms of regulation 17.7.1, the applicable regulations made under the Public Finance Management Act prevail over these Regulations, subject to regulations 17.1 and 17.7 of these Regulations.
17.7.3 The Agency must appoint a representative on the relevant public private partnership project task team to arrange standard certification in respect of all informational technology goods or services acquired in terms of regulation 17.7.1.

 

17.8 EFFICIENCY OF PROCUREMENT
17.8.1 If a designated department having complied with regulation 8.1.1, is of the opinion that—
(a) the Agency will not be able to satisfy the department’s requirements; or
(b) the department, in accordance with—
(i) the Public Finance Management Act and its regulations and instructions, and the Preferential Procurement Policy Framework Act and its regulations; or
(ii) on commencement of the Public Procurement Act, 2024 (Act No. 28 of 2024), that Act and its regulations and instructions,

(herein called “the general procurement prescripts”), will be able to do so faster or at a lower cost, the department may give written notice to the Agency.

The notice must set out the business case and the user requirement specifications, and the period within which the department requires the information technology goods or services.

17.8.2 Following the receipt of a notice to the Agency in terms of regulation 17.8.1—
(a) the Agency must respond to the department within 10 working days indicating whether it has the capacity to procure the information technology goods or services required by the department within the period specified by the department, and if so the procurement schedule and the costing, envisaged in regulation 8.2.1;
(b) if the Agency—
(i) does not respond within 10 working days referred to in paragraph (a); or
(ii) responds to indicate that it is unable to meet the department’s requirements within the period specified by the department; or
(iii) responds that it is able to procure the information technology goods or services required by the department within the period specified by the department and provides the procurement schedule for doing so and cost, but the department, is of the opinion that it can nonetheless procure the required information technology goods or services in accordance with the general procurement prescripts faster, or at a lower cost,

the department may proceed to procure the required information technology goods or services in accordance with the general procurement prescripts, after notifying the Agency and the relevant treasury of its decision.

17.8.3 When a department acquires goods or services in terms of regulation 17.8.2 the department must comply with any applicable standards set by the Agency in terms of section 7(6)(a) of the Act and are in force at that time.
17.8.4 If the department receives a notice from the Agency in terms of regulation 17.8.2 that the Agency is able to procure the information technology goods or services required by the department within the period specified by the department and provides the procurement schedule for doing so, and the department does not elect to procure the required information technology goods or services in accordance with the general procurement prescripts, then if the department wishes the Agency to effect the procurement the department must notify the Agency to proceed with the procurement through the Agency, in terms of the applicable provisions of these Regulations.

[Section 17(17.8) inserted by Proclamation Notice 261, GG52720, dated 23 May 2025 - effective 1 June 2025]

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12 See section 23(2)(c) of the Act.
13 The term “executing authority” is defined in section 1 of the Act as an “executing authority as defined in section 1 of the Public Service Act, 1994”.
14 The term "defence material" is defined in section 1 as "any material, equipment, facilities or services used principally for military purposes".