ITAC

1
ITAC Parliamentary Portfolio Committee, 05 June
2002
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agenda for the day

• Introductions and objectives 1m
• Background Presentation 5m
• Process Overview 10m
• Questions and Answers 10m
• Close

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The objective of today is to update the committee
on the progress made in implementing ITAC

• Covered in the presentation,
• The ITAC Policy Document
• SITA Procurement Policy and Procedures (SPPP)
• The processes to be implemented in ITAC
• 01 April 2002 deadline
• Implementation readiness
• Current capacity
• Communication
• Way Forward

4
background
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The recommendations of the PRC informed the
establishment of SITA and hence ITAC

• PRC Recommendations suggest ICT procurement
  reform as a prime consideration
• Legal framework mandates SITA with this task
• SITA in mutual agreement with National Treasury
  to address ICT component of procurement reform.

ICT Information and Communications Technology
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Up till 31 March 2002, departments could procure
ICT for up to R750k without consulting National
Treasury

• ltR100k
• Departmental responsibility
• 3 Quotes
• Procure from lowest quote and in accordance with
  specification
• ltR750k
• Departmental responsibility
• Internal tender
• Lowest and in accordance with specification
• Above R750k
• National Treasury tender
• Departmental procurement
• Departmental contract management

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From 01 April 2002, for all ICT requirements
above R100k departments are required to go
through ITAC

• ltR100k
• Client responsibility
• 3 Quotes process
• Procure from lowest quote and in accordance with
  specification
• Utilise the ITAC Supplier Database (will include
  suppliers from provincial databases)
• gt R100k
• Tender process to be followed
• All tenders done via the ITAC process
• Consistent and sufficient consultation with
  clients

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ITAC Process Overview
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The main objective of ITAC is to facilitate ICT
acquisitions through effectively managed
contracts and tenders

• Primarily,
• Negotiate and manage contracts with vendors in
  accordance with the needs of government
• Tender evaluations
• Exploit governments advantage on ICT spend
  (approx. R9bn a year) to negotiate better value
  for money in the contracts
• Consolidated procurement
• Use other resources available within SITA, to add
  considerable value to managing the contracts and
  the tenders
• Research, Certification, eSolutions and
  Enterprise Programme Management
• But also,
• Further the governments initiatives in
  increasing value-added presence of BEE and SMME
  in the sector

10
Government expectations from SITA (ITAC) were to
deliver a working model by 01 April 2002

• Develop a process that will be operational by 01
  April 2002 so departments can procure ICT from
  SITA (ITAC)
• Develop and communicate a policy document that
  the process will be based on and sign it off with
  relevant stakeholders
• GITO Council
• National Treasury
• Deploy sufficient capacity in ITAC to manage all
  the anticipated volume of work from government
• At least 100 contracts from National Treasury to
  manage
• Conducting tender evaluations on behalf of
  government for requirements that cannot be
  satisfied by existing contracts
• Extend the implementation of ITAC to include
  provinces and local government

11
The ITAC process has been developed with
sufficient depth of detail in order to deploy a
working model by 01 April 2002

• The process is aligned to the ITAC policy
  document
• The process has been defined to the level of
• detailed activities to be performed
• decision points in the process
• clear responsibilities and accountabilities for
  each activity and decision point in the process
• Both the policy document and the brochure refer
  to the process as well
• The process also informs the organisation
  structure which in turn speeds up the recruitment
  processes of the required resources

12
The ITAC policy document is in its third month of
circulation across government for critical
scrutiny

• Currently close to 200 pages, planning to reduce
  it to a manageable readable number of pages
• Available to be downloaded from the SITA/itac
  website by government employees
• Communication channels open to all
• Email itac_at_sita.co.za
• Tel 0800 33 itac (0800 33 4822)
• Face-to-face communication through road shows
• Planning for a sign off with the GITO Council by
  31 July 2002
• Two other signatures are National Treasury and
  SITA COO
• The brochure also helps to capture the essence of
  ITAC

13
Though ITAC is not sufficiently resourced,
current capacity of requirements is manageable
with the team at hand

• Current capacity
• Managing a 100 contracts ceded from National
  Treasury
• At any point in time, in excess of 25 tenders
  managed by the team
• A staff of 10 contract managers, 3 administrators
  and 3 managers in the tender office
• At any point in time, an average of 10 contracts
  and 3 tenders per contract manager
• Planned capacity
• With an expected increase in contracts and
  tenders from government and a reduced number of
  contracts managed by a contract manager (for
  quality purposes), the number of contract
  managers is going to increase
• 10 to 40 by the end the financial year

14
7 out of the 9 provinces ITAC was presented to
have committed to using (and complying to) the
ITAC processes

• A half a day session in each province visited,
• Presentations
• ITAC policy document discussed
• In-depth process walk-throughs
• Questions / Answers sessions
• Provincial heads of departments invited to the
  sessions
• Only KZN and Gauteng provinces presentations are
  outstanding
• Over a hundred people attended the provincial
  presentations

15
Going forward, key areas of focus will be growing
the ITAC division whilst managing the
expectations of our clients

• Complete outstanding road shows for KZN and
  Gauteng
• 30 June 2002
• Speed up the recruitment processes for more staff
• 31 March 2003
• Cede more ICT contracts dispersed in government
  to be managed centrally in ITAC
• 30 November 2002
• ICT definition guidelines for use by government
  and SITA
• 31 July 2002
• Official launching ITAC to government and to the
  private sector

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Questions / Answers
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End!