PURPOSE

1. SECURITY FENCING PROGRAMMEBRIEFING TO THE DEPARTMENT OF CORRECTIONAL SERVICES PORTFOLIO COMMITTEE17 September 2013

2. PURPOSE At the request of the Parliamentary Portfolio Committee on Correctional Services, the Department of Correctional Services (DCS), in association with the Independent Development Trust (IDT), have prepared a presentation to address the concerns raised by the Committee: • The Role of the IDT • Management of the Programme • Programme Budgets

3. THE IDT BACKGROUND • The 1997 Cabinet mandate is still in place: “The IDT must be transformed into a government development agency that will implement projects which are commissioned by government departments.” • Integrated into the public service delivery system in 1999 with the promulgation of the PFMA and listed as a Schedule 2 Major Public Entity. Achieved 10 successive years unqualified audit reports • Reports to Parliament through the Minister of Public Works, the Shareholder Representative and Executive Authority. Thus the IDT seeks to contribute towards the mandate, vision and strategic objectives of Department of Public Works (DPW) • Is a special purpose vehicle which has since 2000/01 directed over R14.5bn of government’s development investment. • Supports all spheres of government with the delivery of its mandate through programme implementation agreements. • Does not have a funded mandate. Charges a management fee in addition to recovering programme overhead costs.

4. PROGRAMME EXPENDITUREPERFORMANCE TREND: 2009-10 TO 2012/13

5. PROGRAMME DISTRIBUTION: 2012-2013 • Please note that the Criminal Justice Systems Facilities expenditure value above is a combination between DCS and DoJ&CD • All of the above departments have signed agreements governing their relationship with the IDT

6. THE IDT AND DEPARTMENTAL FUNDS TRANSFER • Please note that the above extracts are from a letter from National Treasury tin response to the IDT dated 12 May 2009 and signed off by the then Chief Director: Governance Monitoring and Compliance, Jayce Nair highlighting the various departments concerns around “advance payments”

7. DEPARTMENTAL FUNDS TRANSFER TO IDT • Please note that the above extracts are from a letter from National Treasury tin response to the IDT dated 12 May 2009 and signed off by the then Chief Director: Governance Monitoring and Compliance, Jayce Nair highlighting the various departments concerns around “advance payments”

8. DCSSF02 PROGRAMME DCSSF02

9. IDT APPROACH TO DCS REQUIREMENTS • The DCS and the IDT entered into a Memorandum of Agreement in October 2011 whereby the IDT would serve as an implementation agent. • The Scope Statement compiled at the joint approach planning session between DCS and IDT is hereunder: • To reposition and transform the Department of Correctional Services in the Criminal Justice system through the implementation of quick and long term infrastructure delivery interventions. Ensure effective and efficient integrated service delivery informed by the White Paper on Correctional Services. • Approach adopted that 90% security is “no security at all”. • DCS required a comprehensive security solution.

10. PORTFOLIO GOVERNANCE STRUCTURE

11. MOA GOVERNANCE REQUIREMENTS MEETINGS: • Site Meetings (SM) (Level 4): • Fortnightly • IDT Regional, DCS Local and Regional, Engineers, Contractor • Monitor site progress, challenges, compliance. • Programme Progress Meeting (PPM) (Level 3): • Monthly • IDT National and DCS National, Engineers, Contractor • National progress, operational issues, Contractor requests and submissions

12. MOA GOVERNANCE REQUIREMENTS MEETINGS: • Programmes Steering Committee (PSC) (Level 2) • Monthly • IDT National, DCS National and invited Service Providers • Responsible for oversight of all DCS/IDT Projects • Client Meeting (CM) (Level 1) • Monthly • IDT National, DCS National • Responsible for oversight of all DCS/IDT Projects

13. PSC RESPONSIBILITIES • Oversight • Time • Cost (Scope Management) • Quality • Budgetary Control • Monthly meetings and co-ordination • Programme Delivery • Liaison with respect to local and regional issues • Ensure Compliance with the MOA

14. SCOPE OF WORKS 1 of 2 (External) Sallyports and Guardhouses Earthworks and Civils Electrical Infrastructure Generators Detection Systems • High Security Fences • Agricultural and Perimeter Fences • Fibre and Copper Network • Closed Circuit Television • External Lighting along fences • Gates

15. SCOPE OF WORKS 2 of 2 (Internal) Software systems: Integrated Security Management System Prison management System Graphic User Interfaces General: Cabling and Wi-Fi network Cell Phone Detection Prison Doors • Access Control Points: • X-Ray machines • Metal detectors • Biometric readers • Turnstiles • Closed Circuit Television • Workstations • Intercoms • Uninterrupted Power Supplies

16. TENDER PROCESS-PSP AND CONTRACTOR • Open Tender process undertaken to procure a Professional Service Provider and Contractor. • The Professional Consultant and Contractor were appointed by February 2012 for the “Installation of high security of 27 Prisons (Correctional Centres) on 13 Facilities as well as associated integrated security systems and sallyports that go with the fencing” for a tender value of R476m.

17. PROJECT EXECUTION PLAN • Contractor was advised to begin procurement immediately to accelerate delivery. • This instruction was imperative due to the fact that the grade of steel used for the fencing needed to be fabricated by the local steel foundries. • The fence manufacturer also had to switch over their factory to manufacture the customised fencing for DCSSF02. • At the beginning of the programme, an assessment was conducted to confirm the scope of works meets the operational requirements. This process is called the Project Execution Plan (PrEP). This led to a mitigation of scope variance at a very early stage. • PrEP reports were produced which considered the operational needs of each facility. This had resulted in quantity fluctuations as opposed to rate fluctuations. Only the original tendered rates were used.

18. PROJECT EXECUTION PLAN

19. IMPLEMENTATION PrEP Results • 15 Correctional Centres on 8 Facilities within the Tender amount.

20. IMPLEMENTATION PreP Results cont. • Balance of 12 Correctional Centres on 5 Facilities : Access on hold until further funds allocation from DCS.

21. PROGRESS AS AT 15 JULY 2013 • Preliminary & General (P&G’s) are defined as those expenses which include overhead costs and site establishment. • A “bond store” system was implemented where material was procured and stored at a central warehouse for distribution to various sites.

22. BOND STORE • The bond store principle was initiated at the beginning of the DCSSF02 contract due to the large amounts of fencing material that needed to be manufactured and stored on location at the fence manufacturers on site warehouse. • Due to the need to finalise the PrEP process which led to a variance in final quantities this storage method was used as an interim point of transfer. • Cognisance must be taken of the fact that the fencing panels range between 6-8 metres in length and have a standard width of 3 metres, hence this led to the panels being transferred across the country by road from the Cape using abnormal vehicles. • The bond store has ceased to exist in the course of 2012 as the final quantities had been agreed by the PrEP process and dispatched from the suppliers “bond store” in the Cape directly to the respective fencing sites nationally.

23. PROJECTED COMPLETION DATES

24. PROGRESS PHOTOS Pietermaritzburg Pietermaritzburg Umzinto Harrismith Harrismith

25. PROGRESS PHOTOS Pretoria Goodwood Mthatha Johannesburg Pollsmoor

26. PROGRAMMES CHALLENGES • Excessive Rainfall hampered the implementation process • Existing services, no records exist • Poor soil conditions hamper progress on most of the sites • Inconvenience caused due to the new security measures e.g. parking for staff affected • Construction in a “live” facility, requires that the facility is fully secure at all times.

27. Thank You