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National Treasury calls for local cellular device manufacturers

Kimberly Guest
By Kimberly Guest, ITWeb contributor
Johannesburg, 23 Jun 2021

National Treasury's Office of the Chief Procurement Officer is inviting companies that are manufacturing cellular phones within SA to submit information as it looks to expand its transversal contract for mobile communication services.

In the tender document, National Treasure explains the objective of the request for information is to establish the availability of local manufacturers of mobile cellular phones as it hopes to stimulate the sector through the RT15-2021 transversal contract that National Treasury has recently concluded with various mobile network operators. This contract will run to 31 March 2026.

National Treasury has set out three “phases” of companies that are eligible to participate in the request for information.

The first phase focuses on companies that locally design smartphones, but get other countries to manufacture their cellular phones. “These are companies that can customise the smartphones for state institutions with an aim to start assembling the smartphones in SA. The companies must have started the process of operation,” it says.

Companies that design and assemble smartphones in SA, while procuring some components of the smartphone from other countries, form phase two of the invitation. These manufacturers are required to disclose where they are operationally in terms of their mobile cellular phone offering.

Phase three encompasses those manufacturers where the design, manufacture and assembly of smartphones takes place in SA.

Tweaking transversal contracts

The original 2016 transversal tender for mobile communication services was awarded solely to Vodacom and was supposed to come to an end on 31 August 2020.

Nevertheless, in light of the lockdown brought about by the COVID-19 pandemic, National Treasury and Vodacom came to an agreement whereby the network operator would assist by offering up to 100% additional data consumption to those government employees who were already participants on the transversal contract. This would enable government employees to better perform their daily tasks and functions remotely where feasible, said National Treasury. This amendment would only be applicable during the lockdown period, and may be extended as the lockdown continues, it added.

In March this year, National Treasury released the details for its new multibillion-rand mobile communications transversal tender. The new contract saw Vodacom lose its exclusivity as it joined MTN, Cell C and Telkom in the list of approved suppliers. Moreover, the public sector is compelled to consider all available options.

“Participant will NOT approach any one of the service providers based on preference but ALL the service providers for the participant to understand the mobile packages offered for optimal procurement of mobile communication services,” said National Treasury.

The big four will provide telecoms services to government, supplying tailored mobile bundles for voice, data and SMS to all departments and agencies. The deal also includes the supply of mobile devices and the provision of accessories such as power storage units, charging cables, Bluetooth devices, earphones and pouches. Value-added services, such as international roaming and helpdesk services, are also included in the contract.

The new contract is aimed at keeping government’s communications expenses under control as it capped mobile spend per civil servant to a maximum of R500/month.

The transversal contract ,as it stands, already requires preference for the participation of local device manufacturers. However, National Treasury stated at the time that the engagement model of this preference would be updated soon.

Information required

All companies that fall in to one of the stipulated three phases are asked to submit the following documents:

  1. Company profile.
  2. Company brochure of the local manufactured cellular phones.
  3. Stages at which the company is at operationally.
  4. ICASA approval certification.
  5. Android devices should have the GMS licence from Google – the GMS licence, also known as MADA, is the permit granted by Google to an OEM brand to use its GMS suite of applications and services on the devices that OEMs manufacture. The GMS licence is a non-transferable and non-exclusive permit.

The information must be submitted to transversal.contracting2@treasury.gov.za for the attention of Kwanele Mtembu. The deadline for participation in this request is 11am, 28 June.


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