outsourced services: department of correctional services

OUTSOURCED SERVICES: DEPARTMENT OF

CORRECTIONAL SERVICES

SCOPE OF PRESENTATION

1. WHAT IS OUTSOURCING

2. WHY WE OUTSOURCE

3. WHICH SERVICES ARE OUTSOURCED

4. WHAT ARE THE BENEFITS FOR OUTSOURCING

5. IMPROVED PROCUREMENT SYSTEM

6. WHERE CAN WE IMPROVE

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1. WHAT IS OUTSOURCING

Outsourcing refers to the practice of turning-over internal Departmental

functions/services to an outside supplier.

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2. WHY DO WE OUTSOURCE

• Source expertise and skills that is 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;

• Allow the Department to refocus on its core function;

• Improve service delivery of the Department on the core services;

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2. WHY DO WE OUTSOURCE

• Enhance better compliance to statutory requirements linked to the core services of the Department, e.g. DCS Act, Act 111;

• 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.

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• Two prisons are outsourced through Public-Private Partnerships – Mangaung and Khutama Sinthumule;

• Other services outsourced through the Procurement process such as :

- Part of the function of Internal audit;

- Recruitment of personnel;

- Training of personnel in various fields where accreditation of the training is a requirement;

- Manning of control rooms at 66 Correctional Centres, including Centres of Excellence;

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• Other services (continue)

- Full facilities management which include catering services to offenders, training of members and offenders in the trade, maintenance of kitchen equipment, utensils and facilities, and provision of surveillance equipment;

- Rendering of cleaning services at National Head Office and various Regional Offices as well as

offices of some Area Commissioners;

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4. 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.

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5. IMPROVEMENT 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, Act 217, PFMA (section 38(iii)) and PPPFA.

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• Structures are as follows :

- National Bid Adjudication Committee

Stationed at Head Office

Handles bids exceeding R5 million Members are as follows :

* All Executive Members at Head Office

Chairpersonship rotate amongst the CDCs

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• Structures (Continue)

- Sub-Bid Adjudication Committee :Stationed at Head Office and 6 Regional OfficesHandles bids exceeding R200 000 to R5 million

Head Office* Managed by Senior Management at

Supply Chain Management

Regional Offices* Regional Heads Finance and Supply

Chain Management officials11


• All the members of the National and Sub-Bid Adjudication Committees are appointed in writing by the Accounting Officer

• All members have signed the Code of Conduct for Supply Chain Management Practitioners

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• 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

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• Duties (continue) :

- Ensure that scoring it 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

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• Structures (Continue) :

- Bid Evaluation Committee

Evaluate and make 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 the line with the bid to be evaluated

This committee is an ad hoc committee

Members must declare their interest in writing and sign Code of Conduct prior to the commencement of evaluation

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5. IMPROVEMENT PROCUREMENT SYSTEM• Retrospective analysis of bids awarded within the

Department :Financial Year 2006/07Total value of contracts R552 million

(1450 contracts)Value of contracts awarded to black enterprises with more than 50.1% black ownership (including black women)

R461.4 million (921 contracts)

Value of contracts awarded to black women-owned enterprises with more than 50.1% ownership


Value of contracts awarded to white women-owned enterprises with more than 50.1% ownership


Value of premium paid to apply preferences R2.2 million16

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;

• Improve contract management especially by end-users;

• Retain and deploy skills accordingly;

• Build capacity of project officers on project management.

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Thank you

“An age of hope, a national effort for corrections, rehabilitation and social integration”

outsourced services: department of correctional services

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