Introduction to Central Services Branch

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OUTSOURCING OF SERVICES AND USE OF CONSULTANTS
DEPARTMENT OF CORRECTIONAL SERVICES
Introduction to Central Services Branch Building
a caring correctional system that truly belongs
to all
14 FEBRUARY 2008
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SCOPE OF PRESENTATION

• WHAT IS OUTSOURCING ?
• WHY DO WE OUTSOURCE ?
• WHAT LEGISLATIVE FRAMEWORK INFORMS OUTSOURCING ?
• WHICH SERVICES ARE OUTSOURCED ?
• WHAT ARE THE BENEFITS OF OUTSOURCING ?
• IMPROVEMENT OF PROCUREMENT SYSTEM
• WHAT ARE THE AREAS TO IMPROVE ?

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1. WHAT IS OUTSOURCING?
Outsourcing refers to the practice of
turning-over internal Departmental
functions/services to an outside supplier.
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2. WHY DO WE OUTSOURCE ?

• To source expertise and skills that are not
  available within the Department
• The high turn-over and the inability to retain
  and match what the private sector is offering in
  terms of salary
• Prolonged process of staffing
• To allow the Department to refocus on its core
  function
• Improve service delivery of the Department on the
  core services
• Cont

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2. WHY DO WE OUTSOURCE ?

• Enhance better compliance to statutory
  requirements linked to the core services of the
  Department, e.g. Correctional Services Act, Act
  111 of 1998
• Give effect to other statutory requirements such
  as PFMA, PPPFA, Health and Safety Act, etc.
• Cost benefits for the Department.
• Enhance effectiveness, efficiency and economical.

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3. METHODS OF OUTSOURCING IN PUBLIC SERVICE

• Public Private Partnership informed by
• PFMA and Treasury Regulations Chapter 16
• Convectional Procurement through the use of
  Treasury Regulations Chapter 16A (Supply Chain
  Management)

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4. LEGISLATIVE FRAMEWORK THAT INFORMS OUTSOURCING

• Both these methods involve the application of the
  following acts
• - South African Constitution (Act 108 of
  1996)
• - Public Finance Management Act (Act 29 of
  1999)
• Cont

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4. LEGISLATIVE FRAMEWORK THAT INFORMS OUTSOURCING

• - Broad Base Black Economic Empowerment Act
  (Act 53 of 2003)
• - Preferential Procurement Policy Framework
  Act (Act 5 of 2000)

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4. LEGISLATIVE FRAMEWORK THAT INFORMS OUTSOURCING

• Correctional Services Act (Act 111 of 1998)
• White Paper on Corrections.
• Departmental Policies and Procedures.

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4. OUTSOURCED SERVICES (PPP)

• Two prisons are outsourced by this method
  Mangaung and Khutama Sinthumule
• What has been outsourced regarding these two
  centres is
• -Design of the centres
• -Building of the centres
• -Financing of the centres
• -Operating of the centres for a maximum period
  of
• 25 years
• Cont

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4. OUTSOURCED SERVICES
Other services outsourced through the Procurement
process are as follows Transaction Advisor
Services for Public Private Partnership. 24
Months R 11 400 000-00 Appointment of a
consultant to assist DCS with Compliance and IT
Audits. 36 Months R 7 897 000-00 Training of
personnel in hygiene related matters. 24 months.
R 1 812 500-00.
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4. OUTSOURCED SERVICES

• Monitoring, analysing and advisory service of
  daily media for Media Service Unit. 24 Months. R1
  881 000-00
• Appointment of independent accredited service
  provider (SANAS) to inspect and test textile
  clothing footwear etc. 24 Months. R 5 720
  000-00
• Training of personnel in policy development. 8
  Months. R645 000-00.

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4. OUTSOURCED SERVICES

• Training of trainers on facilitation and
  presentation skills. 72 Days. R690 429-60.
• Training of professional nurses and medical
  practitioners on dispensing course. 6 Weeks. R 1
  583 000-00.
• Training of junior and middle managers on
  management development program. 24 Months. R4 950
  000-00.
• Development and training of executive and senior
  managers on leadership development program.
• 14 months. R4 632 500-00.

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4. OUTSOURCED SERVICES

• Rendering of catering and training services at
  various Management Areas. 48 Months. R972 450
  345-70.
• Supply, delivery, installation and commissioning
  of comprehensive access control and body scanning
  system (CCTV). 60 Months. R 88 794 800-31.
• Maintenance of control room after warranty. 48
  Months R148 202 584-00.

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4. OUTSOURCED SERVICES

• Supply, delivery, installation and commissioning
  of security outer perimeter fences and CCTV
  surveillance cameras. 60 Months. R436 185 110.35
• Maintenance of above. 48 months. R50 752 800-00.
• Rendering of full facilities management services
  which include catering services). 60 Months. R123
  253 955-65.
• Rendering of cleaning services Head Office. 24
  Months. R2 496 216-24.

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4. OUTSOURCED SERVICES

• Supply, delivery, installation, commissioning of
  television system and monitors at all
  Correctional Centers. 60 Months. R159 000 000-00
• Maintenance of the above after a warranty of 12
  months. 48 months. R65 364 480-00
• Emanating from recommendations of the Public
  Service Commission and Jali Commission, credible
  systems for HR Provisioning (Recruitment,
  Selection and Appointments) needed to be
  formulated which resulted in the use of External
  Service Providers, Named below

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4. OUTSOURCED SERVICES RECRUITMENT AGENCIES
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5. BENEFITS OF OUTSOURCING

• Capacity building during the running of the
  contract
• Focus more on the core business of the
  Department
• Risk transfer
• Enhancement of the quality of service delivery
• Value-for-money
• Penalty clause can be effected on non-performance
  and poor services.
• A significant reduction on corruption-related
  allegations in the Departments recruitment
  processes .
• The use of Service Providers has significantly
  contributed to the Departments establishment
  growth as indicated hereunder

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IMPACT USE OF EXTERNAL SERVICE PROVIDERS
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5. IMPROVEMENT IN PROCUREMENT SYSTEM

• Effective from March 2004, Supply Chain
  Management was implemented within the Department.
• Structures were put into place to ensure that
  procurement is operated in the manner which is
  fair, equitable, transparent, competitive and
  cost effective in compliance with the
  Constitution, Section 217, PFMA (section 38(iii))
  and PPPFA.

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5. IMPROVEMENT IN PROCUREMENT SYSTEM

• Structures are as follows
• - National Bid Adjudication Committee
• Stationed at Head Office
• Handles bids exceeding R5 million to infinity
• Members are as follows
• All Executive Managers at Head Office
• Chairpersonship rotate amongst the CDCs

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5. IMPROVEMENT PROCUREMENT SYSTEM

• Structures (Continue)
• - Sub-Bid Adjudication Committee
• Stationed at Head Office and 6 Regional Offices
• Handles bids exceeding R200 000 to a limit of
  R5 million.
• Head Office
• Managed by Senior Management at Supply
  Chain Management
• Regional Offices
• Regional Heads Finance and Supply Chain
  Management officials

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5. IMPROVEMENT IN PROCUREMENT SYSTEM

• All the members of the National and Sub-Bid
  Adjudication Committees are appointed in writing
  by the Accounting Officer.
• All Bid Adjudication members have signed the Code
  of Conduct .

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5. IMPROVEMENT IN PROCUREMENT SYSTEM

• Duties of Bid Adjudication Committees
• - Give final award based on the recommendation
  of Bid Evaluation Committees
• - All necessary bid documents are submitted
• - Ensure that disqualification of service
  providers are justifiable and that valid and
  accountable reasons are furnished for passing
  over of bids

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5. IMPROVEMENT IN PROCUREMENT SYSTEM

• Duties (continue)
• - Ensure that scoring are fair, consistent and
  correctly calculated
• - Ensure that bidders Declaration of Interest
  has been taken into consideration
• - Ensure that members themselves declare their
  interest in writing before commencing with the
  adjudication of bids
• - These committees can extend the period of the
  existing contract and can also extend the scope
  of work according to the delegated powers.

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5. IMPROVEMENT IN PROCUREMENT SYSTEM

• Structures (Continue)
• - Bid Evaluation Committee
• Evaluate and recommends bids/proposals to
  relevant Bid Adjudication Committee
• Members are appointed in writing by the
  Accounting Officer
• Members differ from case to case based on the
  nature of the bid and the competency of the
  members in line with the bid to be evaluated
• This is an ad hoc committee
• Members must declare their interest in writing
  and sign Code of Conduct prior to the
  commencement of evaluation

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6. WHERE CAN WE IMPROVE

• Conducting of stakeholder analysis
• Comprehensive feasibility must be conducted
  before outsourcing any services
• Promote the advantages of a proper procurement
  plan linked to strategic plan, operational plan,
  MTEF and budget
• Maintain the gains and achievements
• Improve contract management especially by
  end-users
• Retain and deploy skills accordingly
• Build capacity of project officers on project
  management.

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THANK YOU Renewing our Pledge A National
Partnership to Correct, Rehabilitate and
Reintegrate Offenders for a safer and secure
South Africa