DEFENCE WORKS FORMATION

DEFENCE WORKS FORMATION RESTRICTED

SCOPE • Aim • Background • Memorandum of Understanding/Service Level Agreement • Service Delivery Standards • Projects • Challenges and Remedial Actions RESTRICTED

AIM To give feedback to the Standing Committee on Appropriations on the issues which were raised during their visit to Bloemfontein. RESTRICTED

BACKGROUND The Standing Committee on Appropriations undertook an oversight visit to Bloemfontein and certain challenges were made visible to them by the visited units. After the visit the Parliamentary Committee invited the DOD to make a presentation in Parliament. RESTRICTED

MEMORANDUM OF AGREEMENT • DOD and DPW entered into two Memorandum of Agreement: • The first MOA clarifies the relationship between the two Departments with regards to provision of services related to Infrastructure Delivery. • The second MOA which is in process intends to transfer the Endowment Property from DPW to DOD. RESTRICTED

SERVICE DELIVERY STANDARDS • The process followed to manage projects executed by DPW: • Defence Works Capability undertakes a yearly planning process of updating the User Asset Management Plan (UAMP). • UAMP is a planning document which is informed by the inputs from Services/Divisions in accordance with their Force Support, Force Preparation and Force Employment facility requirements for the MTEF. • Services/Divisions are required to submit the Certificate of Essentiality (COE) to the DW Fmn for facilities which needs to be either refurbished, demolished, constructed or leased in order of priority. RESTRICTED

SERVICE DELIVERY STANDARDS (cont) • Ordinarily projects registered with DPW are of the magnitude which takes a minimum of 24 months to complete. • To control the projects DW Fmn uses stages to determine whether there is progress or not. • Once the DW Fmn realises that the project is not progressing from one stage to another, DW Fmn will lodge a formal complain at the established forums up to the Director General (DG) level. RESTRICTED

PROJECTS RESTRICTED

PROJECTS UNDER EXECUTION BY DPW IN FREE STATE PROVINCE RESTRICTED

FEEDBACK ON PROJECTS IN BLOEMFONTEIN CAPITAL WORKS PROGRAMME RESTRICTED

REFURBISHMENT PROGRAMME IN BLOEMFONTEIN RESTRICTED

PLANNED MAINTENANCE PROGRAMME IN BLOEMFONTEIN RESTRICTED

ARMY SUPPORT BASE BLOEMFONTEIN UNITS PRIORITY PROJECTS RESTRICTED

SAMHS (3 MIL HOSPITAL) UNITS PRIORITY PROJECTS RESTRICTED

SAAF : AFB BLOEMSPRUIT RESTRICTED

CHALLENGES AND REMEDIAL ACTIONS RESTRICTED

HISTORICAL CHALLENGES BETWEEN DPW AND DOD The following are historical challenges which the DOD experienced wrt projects executed by DPW and this has necessitated an intervention by Sec Def and DG DPW : • In identified circumstances the appointment of consultants and contractors by DPW lead to poor workmanship (poor vetting of consultants/contractors). • No immediate remedial action against contractors on poor workmanship. • Turnaround time on Projects is too long. • At the time DPW has not responded to DOD’s request to allow DOD to execute projects on GIAMA property. • DPW never put Maintenance Contract in place for Hospitals and Strategic Facilities. RESTRICTED

HISTORICAL CHALLENGES ON ACCOMMODATION CHARGES • Accommodation Charges is a devolved budget from National Treasury. • Annually the DPW is being given up to R1bn. • DPW must use this budget to fund the Day-to-Day Maintenance, Planned Maintenance and Rates and Taxes for the DOD. • DPW has annually underperformed on the Planned Maintenance Programme notwithstanding the budget was prepaid quarterly. RESTRICTED

REMEDIAL ACTIONS • On 13 April 2017 Sec Def met DG DPW to advise on the above-mentioned frustrations. • The following decisions were taken: • Establishment of the Strategic Management Task Team led by Maj Gen M.J. Ledwaba (DOD) and Mr S.M. Thobakgale,DPW (now MrMaroga) which will oversee and report progress to the two DGs. • As of the above date, the joint Task Teams meetings are taking place regularly. • Cooperation and liaison between the two Departments has improved. • DPW has allowed the DOD to work on GIAMA properties. • To date the DW Fmn has carried 100 projects in the Free State Province. (see the attached Regional Works Unit Free State Completed Projects) RESTRICTED

REMEDIAL ACTIONS • DPW and DOD have agreed on the following with regards to Accommodation Charges: • DPW to make visible what Planned Maintenance Programme they are going to undertake for the MTEF in order to allow DW Fmn to monitor progress. • DW Fmn will continue to carry out some of the projects in order to assist with the reduction of the backlog. • DPW has agreed to improve vetting of consultants and to act swiftly on defaulting contractors. • DPW and DOD agreed that the Hospitals and other Strategic Facilities like High Security Fences must be refurbished and have Maintenance Contract in place. RESTRICTED

QUESTIONS/COMMENTS QUESTIONS & COMMENTS RESTRICTED

DEFENCE WORKS FORMATION