OUTSOURCED SERVICES: DEPARTMENT OF CORRECTIONAL SERVICES

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OUTSOURCED SERVICES DEPARTMENT OF CORRECTIONAL
SERVICES
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SCOPE OF PRESENTATION

• WHAT IS OUTSOURCING
• WHY WE OUTSOURCE
• WHICH SERVICES ARE OUTSOURCED
• WHAT ARE THE BENEFITS FOR OUTSOURCING
• IMPROVED PROCUREMENT SYSTEM
• WHERE CAN WE 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. 3
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2. WHY DO WE OUTSOURCE

• Source expertise and skills that is 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
• Allow the Department to refocus on its core
  function
• Improve service delivery of the Department on the
  core services
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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. DCS Act, Act 111
• 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. WHICH SERVICES ARE OUTSOURCED

• Two prisons are outsourced through Public-Private
  Partnerships Mangaung and Khutama Sinthumule
• Other services outsourced through the Procurement
  process such as
• - Part of the function of Internal audit
• - Recruitment of personnel
• - Training of personnel in various fields where
  accreditation of the training is a requirement
• - Manning of control rooms at 66 Correctional
  Centres, including Centres of Excellence
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3. WHICH SERVICES ARE OUTSOURCED

• Other services (continue)
• - Full facilities management which include
  catering services to offenders, training of
  members and offenders in the trade, maintenance
  of kitchen equipment, utensils and facilities,
  and provision of surveillance equipment
• - Rendering of cleaning services at National
  Head Office and various Regional Offices as well
  as offices of some Area Commissioners
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4. 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.
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5. IMPROVEMENT 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, Act 217, PFMA (section 38(iii)) and
  PPPFA.
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5. IMPROVEMENT PROCUREMENT SYSTEM

• Structures are as follows
• - National Bid Adjudication Committee
• Stationed at Head Office
• Handles bids exceeding R5 million Members are
  as follows
• All Executive Members 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 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 PROCUREMENT SYSTEM

• All the members of the National and Sub-Bid
  Adjudication Committees are appointed in writing
  by the Accounting Officer
• All members have signed the Code of Conduct for
  Supply Chain Management Practitioners
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5. IMPROVEMENT 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 PROCUREMENT SYSTEM

• Duties (continue)
• - Ensure that scoring it 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
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5. IMPROVEMENT PROCUREMENT SYSTEM

• Structures (Continue)
• - Bid Evaluation Committee
• Evaluate and make 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 the line with the bid to be evaluated
• This committee 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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5. IMPROVEMENT PROCUREMENT SYSTEM

• Retrospective analysis of bids awarded within the
  Department

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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
• 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 An age of hope, a national
effort for corrections, rehabilitation and social
integration