1. TCTA PRESENTATION TO SCOPA DEVIATIONS AND EXPANSIONS DURING THE FINANCIAL YEAR June 2018

2. Outline Purpose of Presentation Deviations on Corporate Tenders
Expansions on Projects
Questions & Clarifications

3. Purpose of Presentation
Report to SCOPA the incidents of corporate tender deviations and project expansions during the financial year 2017/2018.
Report on the deviations and expansions below the threshold of 15% or R15 million or R20% or R20 million.
Provide reasons why deviations and expansions were carried out.

4. Deviations on Corporate Tenders

5. Deviations On Corporate Tenders
Description/
Supplier
Deviation/ Contract Price
Motivation
NT Referral
Service provider for the extension of the Company Secretary
(Banqobi Consulting) R
Extension of the contract of the Company Secretary who was recruited through Banqobi Consulting
Not approved, ex post facto.
Appointment of Service provider to supply Board management solution for a period of two years
(GreatSoft Pty Ltd) R
Board expressed dissatisfaction with the stability and user friendliness of the Boardview which caused disruption during board meetings.
N/A, as under R
Payment towards World Water Day
(The River Club) R
Department of Water and Sanitation requested sponsorship to pay a supplier towards the World Water Day in Cape Town.

6. Deviations On Corporate Tenders, contd.
Description/
Supplier
Deviation/ Contract Price
Motivation
NT Referral
Appointment of a service provider to provide legal opinion regarding the extension of the AMD O&M
(Fluxman Attorneys) R
The open tender process to establish a legal panel was still in progress and urgent advice was required
N/A, as under R
Provision of Employee Engagement and Climate Survey services
(Corporate Executive Board) R
No service providers registered on the National Treasury Central Supplier Database for the required services

7. Deviations On Corporate Tenders, contd.
Description/
Supplier
Deviation/ Contract Price
Motivation
NT Referral
Appointment of catering service providers for Board meetings
(Maribelo Trading and Ma’nthi Catering services) R
The open tender period was still at a tender stage.
N/A, as under R
Appointment of service provider to provide remuneration services
(Zandile Faniso Reward Consultant) R
Quotations were obtained from seven service providers.
Provision of crucial conversation training
(Human Edge) R
Sole license holder for Vital Smarts (for crucial conversation) training for staff.

8. Deviations On Corporate Tenders, contd.
Description/
Supplier
Deviation/ Contract Price
Motivation
NT Referral
Temporary appointment of service provider for rental of Board teleconferencing system
(Conference Communication (Pty) Ltd) R
The appointed supplier to install a new system, experienced problems with the installation of their system. As a result the system could not operate. A temporary rental solution was used during the period on an emergency basis.
N/A, as under R
Procurement of employee award prize.
(Matrix Warehouse) R
Single sourcing following poor response from a 3-quotation RFQ process.

9. Deviations On Corporate Tenders, contd.
Description/
Supplier
Deviation/ Contract Price
Motivation
NT Referral
Provision of Travel Management Services
(Gemini Moon Trading 7 Pty Ltd) R
The tender process for the appointment of Travel management services started and failed due to non-responsiveness of tenders.
So this an extended use on a month-by-month basis.
No, condonation being sought

10. Deviations On Corporate Tenders, contd.
Description/
Supplier
Deviation/ Contract Price
Motivation
NT Referral
Condonation of the Travel management services
(Skoth Travel and Tours) R
The amount of R allocated per supplier was exceeded.
N/A, as under R
(Pretoria Travels) R
(Munlin Travel) R

11. Deviations On Corporate Tenders, contd.
Description/
Supplier
Deviation/ Contract Price
Motivation
NT Referral
Appointment of service provider to represent and advise TCTA on a Board labour matter
(Werksmans Attorneys)
Limited to R
This appointment was as per Board instruction.
N/A, as under R
Appointment of service provider to represent and advise TCTA on Board labour matter
(Bowman Gilfillan Inc)
Limited to R

12. Deviations On Corporate Tenders, contd.
Description/
Supplier
Deviation/ Contract Price
Motivation
NT Referral
Appointment of a service provider to provide ethics risk assessment in TCTA
(Ethics Institute) R
TCTA is a member of Ethics Institute and qualifies for a discount.
N/A, as under R
Expansion of contract – recruitment and placement of the TCTA CEO
(Silana Consulting) R
The adverts that went out were not included in the initial scope of services.

13. Expansions on Projects

14. Project Expansions Context, contd
Project Expansions Context, contd.: Application of National Treasury Instruction (2016)
National Treasury (NT) Instruction Note 3 came into effect on 1 May 2016.
TCTA application of the NT instruction was based on the point of initiation of project variation or claim.
Thus, for such expansions, TCTA was not required to obtain NT approval prior to May 2016.
Beyond May 2016, expansions acquired an ex post facto status, implying that TCTA had to seek condonation.

15. Expansions On Projects: Context
Directive from Minister – Fund & Implement
Develop Project Charter – Board approves
Contract Award – Board approved above R50m
Contract Contingency (15%) – Board approved
Management approved expansions within approved contingencies
Additional Contingencies – Board approved

16. Expansions On Projects (MMTS-2)
Contract
Value
R’million
No of VO’s/Claims
VO/Claims Amount
NT Referral/
Ex Post-Facto
PSP
(AECOM)
235,42 1
0,04
1 ex post-facto
Contractor
(WBHO)
611,06 8
2,88
7 ex post-facto
1 NA
No of VO’s

17. Expansions On Projects (MCWAP 1)
Contract
Value
R’million
No of VO’s/Claims
VO/Claims Amount
NT Referral
PSP
Mokolo Crocodile Consultants
424,05 1
6,00
1 ex post-facto
Contractor
(Aveng,
Grinaker LTA & Umbuntho JV)
639,56
8,00
No of VO’s

18. Expansions On Projects (ORWRDP - 2C)
Contract
Value
R’million
No of VO’s/Claims
VO Claims
Amount
NT Referral/
Ex Post-Facto
Contractor
(Basil Read)
1 398,61 8
66,18
4 ex post-facto
4 N/A
ECO
(Nemai)
2,67 1
2,04
1 ex post-facto
No of VO’s

19. Expansions On Projects (AMD - STI)
Contract
Value
R’million
No of VO’s/Claims
VO/Claims Amount
NT Referral
PSP
(AECOM)
115,15 14
-2,35
14 N/A
Contractor
Eastern Basin
(CMC- PGM)
956,14 4
3,60
1 ex post-facto
3 N/A
No of VO’s

20. Questions & Clarifications
Thank You
Questions & Clarifications 20