1. Introduction to Central Services Branch 14 FEBRUARY 2008
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 1

2. 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 ?

3. 1. WHAT IS OUTSOURCING?
Outsourcing refers to the practice of turning-over
internal Departmental functions/services to an outside
supplier.

4. 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 …

5. 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.

6. 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)

7. 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 …

8. 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)

9. 4. LEGISLATIVE FRAMEWORK THAT INFORMS OUTSOURCING
Correctional Services Act (Act 111 of 1998)
White Paper on Corrections.
Departmental Policies and Procedures.

10. 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…

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

12. 4. OUTSOURCED SERVICES
Monitoring, analysing and advisory service of daily media for Media Service Unit. 24 Months. R
Appointment of independent accredited service provider (SANAS) to inspect and test textile clothing footwear etc. 24 Months. ± R
Training of personnel in policy development. 8 Months. R

13. 4. OUTSOURCED SERVICES
Training of trainers on facilitation and presentation skills. 72 Days. R
Training of professional nurses and medical practitioners on dispensing course. 6 Weeks. R
Training of junior and middle managers on management development program. 24 Months. R
Development and training of executive and senior managers on leadership development program.
14 months. R

14. 4. OUTSOURCED SERVICES
Rendering of catering and training services at various Management Areas. 48 Months. R
Supply, delivery, installation and commissioning of comprehensive access control and body scanning system (CCTV). 60 Months. R
Maintenance of control room after warranty. 48 Months R

15. 4. OUTSOURCED SERVICES
Supply, delivery, installation and commissioning of security outer perimeter fences and CCTV surveillance cameras. 60 Months. R
Maintenance of above. 48 months. R
Rendering of full facilities management services which include catering services). 60 Months. R
Rendering of cleaning services Head Office. 24 Months. R

16. 4. OUTSOURCED SERVICES
Supply, delivery, installation, commissioning of television system and monitors at all Correctional Centers. 60 Months. R
Maintenance of the above after a warranty of 12 months. 48 months. R
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:

17. 4. OUTSOURCED SERVICES RECRUITMENT AGENCIES
SERVICE PROVIDER
AMOUNT
Pinpoint One R
ITP R
Grey Consulting R
Lumka R
Leadway R
Jobvest R
Human Communications R
TOTAL R

18. 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 Department’s recruitment processes .
The use of Service Providers has significantly contributed to the Department’s establishment growth as indicated hereunder:

19. IMPACT: USE OF EXTERNAL SERVICE PROVIDERS

20. 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.

21. 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

22. 5. IMPROVEMENT PROCUREMENT SYSTEM
Structures (Continue)
- Sub-Bid Adjudication Committee :
Stationed at Head Office and 6 Regional Offices
Handles bids exceeding R 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

23. 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 .

24. 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

25. 5. IMPROVEMENT IN PROCUREMENT SYSTEM
Duties (continue) :
- Ensure that scoring are fair, consistent and correctly calculated
- Ensure that bidder’s 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.

26. 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

27. 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.

28. THANK YOU Renewing our Pledge:
A National Partnership to Correct, Rehabilitate and Reintegrate Offenders for a safer and secure South Africa 28