ITAC Parliamentary Portfolio Committee, 05 June 2002

1. ITAC Parliamentary Portfolio Committee, 05 June 2002

2. Introductions and objectives 1m Background Presentation 5m Process Overview 10m Questions and Answers 10m Close … agenda for the day …

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

4. … background …

5. 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. The recommendations of the PRC informed the establishment of SITA and hence ITAC * ICT – Information and Communications Technology

6. <R100k Departmental responsibility 3 Quotes Procure from lowest quote and in accordance with specification <R750k Departmental responsibility Internal tender Lowest and in accordance with specification Above R750k National Treasury tender Departmental procurement Departmental contract management Up till 31 March 2002, departments could procure ICT for up to R750k without consulting National Treasury

7. <R100k 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) >= R100k Tender process to be followed All tenders done via the ITAC process Consistent and sufficient consultation with clients From 01 April 2002, for all ICT requirements above R100k departments are required to go through ITAC

8. ITAC Process Overview

9. Primarily, Negotiate and manage contracts with vendors in accordance with the needs of government Tender evaluations Exploit government’s 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 government’s initiatives in increasing value-added presence of BEE and SMME in the sector The main objective of ITAC is to facilitate ICT acquisitions through effectively managed contracts and tenders

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

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

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

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

14. A half a day session in each province visited, Presentations ITAC policy document discussed In-depth process ‘walk-through’s 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 7 out of the 9 provinces ITAC was presented to have committed to using (and complying to) the ITAC processes

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

16. Questions / Answers

17. End!