If a department or entity is frequently asking to expand contracts, it can be an indication that the procurement function of the department / entity is not planning its procurement adequately and is therefore seeking to prolong the duration and/or value of existing contracts. It can also serve as an indication of possible poor governance practices and service delivery issues.
The quarterly expansions and extension reports report lists the department/entity requesting the extension/expansion, the project description, the supplier, the reason provided for requesting the expansion/extension, the original contract value, the value of the contract extension/expansion, value of previous extensions/expansions, date that the department/entity made the request, whether Treasury supported the request and the contract start and end date. This information can be used to gain a snapshot of the procurement practices of departments/entities. The information can be analysed in conjunction with National Treasury guidelines for managing deviations, contract variations and expansions.