sita progress report to the portfolio committee on police acting chairperson of board febe...

SITA PROGRESS REPORT TO THE PORTFOLIO COMMITTEE ON

POLICE

Acting Chairperson of Board

Febe Potgieter- Gqubule

20 September 2011

Contents1. 2010- 2014 SEVEN OUTCOMES OF THE TURN-AROUND

STRATEGY

2. PERFORMANCE METRICS IN RAG

3. IMPROVEMENT IN THE QUALITY OF SERVICE - SCM

4. SAPS SPECIFIC SCM IMPACTS

5. IMPROVEMENT IN THE QUALITY OF SERVICE – Proposals and SLA

6. QUALITY OF SERVICE INTERVENTIONS

7. PROFICIENT LEAD AGENCY

8. E- GOVERNMENT

9. SAPS SPECIFI E-GOVERNMENT INITIATIVES

10. IFMS PROJECT

2

Contents (cont)11. ROLE OF SAPS wrt IFMS

12. ICT SUPPLY CHAIN MANAGEMENT

13. SAPS SPECIFIC ICT SCM BENEFITS

14. PRICING

15. STAKEHOLDER RELATIONSHIP MANAGEMENT

16. OUTCOME OF THE SAPS-SITA JOINT STRATEGIC PLANNING SESSION

17. PROGRESS ON THE IMPLEMENTATION OF THE JOINT SESSION RESOLUTION

18. EXPENDITURE AND PROGRESS OF NATIONAL NETWORK UPGRADE PROGRAMME

19. EXPENDITURE AND PROGRESS ON ICDMS

20. PRICING FOR SUPPORT SERVICES

21. QUESTIONS

3

2010- 2014 SEVEN OUTCOMES OF THE TURN-AROUND STRATEGY

1. Quality ICT service delivery to the public sector

2. Proficient lead agency in the public sector ICT

3. Integrated public sector ICT Supply Chain Management

4. Competitive pricing and financial sustainability

5. Effective ICT Regulator

6. Effective governance and monitoring

7. Employer of choice

4

PERFORMANCE METRICS IN RAG

Colour Description Symbol

Red Unsatisfactory performance

Amber Room for improvement

Green Satisfactory performance

5

IMPROVEMENT IN THE QUALITY OF SERVICE

INITIATIVE STATUS AS PRIOR TAS

YEAR 1 (2010/11) TARGETS


PROGRESS TO DATE

Non-Compliance with SCM Processes

Non-rotation of Evaluation teams

Rotation of members with of evaluation teams & representation from client Departments.Shift from procurement to SCM processes

Establish SCM Committee system- Bid Evaluation Committee with Subject Matter & Technical Expertise

SCM Policy due for approval with clarity on roles, responsibilities and requirements specifications for bid committees

Non-disclosure of business interests

Compulsory disclosure of interests by members of evaluation & adjudication panels

Internal controls & procedures defined

SCM Procedure Manual in place

6

IMPROVEMENT IN THE QUALITY OF SERVICE cont.




PROGRESS TO DATE

SCM Turn- Around times (working days)

Requests for Bids (RFBs) = 280 days

RFBs = 208 daysfinalisation = 100 days

RFBs = 78 days from close tender

RFBs (2011) = 119 daysBacklog RFBs= 260 days

Closed Bids (Preferred List) Request for Quotes (RFQs) = 190 days

RFQs = 145 days Preferred List RFQs = 100 days

Preferred List RFQs = 94.9 daysBacklog RFQs =

Ad-hoc RFQs = 100 days



Ad-hoc RFQs = 18. 2 days

Contract finalisation = 2 years

Contract finalisation = 120 days



7

SAPS SPECIFIC SCM IMPACTS

INITIATIVE YEAR 1 (2010/11) TARGETS


PROGRESS TO DATE

SCM Turn- Around times (working days)

RFBs = 74 days RFBs = 78 days from close tender

RFBs (2011) = none requested

Backlog RFBs= 432 days

Non Requested Preferred List RFQs = 100 days

None requested

RFQs = 81 days RFQs = 30 days None Requested




8

IMPROVEMENT IN THE QUALITY OF SERVICE (QoS)

9




PROGRESS TO DATE

Responses to Request for Proposals

06 – 07 months 03 months 14 days from receipt of request

25 days

Guarantee Service Levels on across the SITA services

Guaranteed 98% service availability on hosting and network services

Service availability for Hosting, Network & Service management centre (SMC) = 98%

98% Service availability on hosting, network & SMC

Hosting = 100%Networks =99.80%SMC = 99.9%

SAPS SPECIFIC QoS IMPACTS

10




PROGRESS TO DATE

Responses to Request for Proposals

3 months 14 days from receipt of request

1 month

Guarantee Service Levels on across the SITA services

Service availability for Hosting, Network & Service management centre (SMC/ARS) = 98%

98% Service availability on hosting, network & SMC/ARS

Hosting = 99.9%Networks =99.95%ARS = 83%

QUALITY OF SERVICE INTERVENTIONS

• Finalising the SITA Service Strategy with performance metrics in all services within the SITA service catalogue

• To improve Contract Management– Instituted Report on contract management to

the Procurement Sub-Committee of the Board

11

PROFICIENT LEAD AGENCY (VALUE ADD TO GOVT IT)

• Established a function dedicated to government solutions under the leadership of an Executive

• Approved that 2% of Operational Expenditure be dedicated to innovation on government solutions

• Commenced the process to partner industry on innovation, e.g. Smart government solutions inclusive of war rooms, smart cities & e-government

12

E-Government• Broad definition of e-government: The use of information technology to

enable government to:– Perform efficiently (government to government –G2G- services)– Render services to citizens at their convenience (government to

citizens -G2C- and government to business –G2C) • G2G initiatives include:

– Integrated Financial Management System– System to assist with the disclosure and verification of business

interests by members of the Senior Management Staff of government : The Minister for the Public Service and Administration will perform a test run of this system during the 2011 Public Service week

• SITA has identified 10 key government services to be made immediately available online to citizens including business upon Cabinet approval

• Together with Home Affairs, SITA is offering connectivity for the banks to verify the identities of bank clients through the National Population Register (NPR) that is hosted by SITA

13

SAPS SPECIFIC E-GOV INITIATIVES

INITIATIVE Description YEAR 2 (2011/12) TARGETS

PROGRESS TO DATE

eForms as part of ICDMS Project

Provides for an electronic statement which can be submitted on line.

end Dec 2011for completion

60% complete in terms of URS

14

IFMS Project • September 2005, Cabinet mandated National Treasury, DPSA and

SITA to proceed with the IFMS project with the following objectives:

– Integrate and renew Financial, Supply Chain and Human Resource Management systems used by National and Provincial Departments

– SITA will use the IFMS as a catalyst to become the Prime Systems Integrator (PSI) for government

– PSI Benefits for government

• Improve quality of service clients

• Reduce the cost of IT to government through partnership with industry in the development and acquisition of government IT goods and services

• Eliminate duplication of information systems and thus reduce wastage of resources

• Lower the prices of IT services

15

Product Scope

16

• Health and Safety Management

• Education Training Development

• Labour Relations

• HR Planning

• Organization Management

• Recruitment Management

• Employee Movement

• Performance Management

• HR Reporting

• Career Management

• Remuneration Management

• Termination of Service

• HR Administration

• Catalogue Management

• Procurement Management

• Inventory Management

(not available now)

• Asset Management

• MTEF Budget Preparation

• Departmental Financial Management

• Treasury Financial Management

• Payroll Management

• Reporting

• Analysis

• Dashboards

• Data mining

Supply Chain

Management

Human Resource

Management

Financial

Management

Business

Intelligence

Product Status

17

Supply Chain

Management

Human Resource

Management

Financial

Management

Business

Intelligence

Core SCMAsset Management, Item Master, Catalogue Mgt , Procurement Mgt, and Integration BAS

None NoneHRM Generic Template

Del

iver

edT

o D

ate

Fu

ture

Inventory Management Enterprise Asset

Management Full SCM Integration

Capability Service Delivery

Management

Potential Customisation / Configuration at future sites

Fin Core Product DevelopmentIn

P

roce

ss Integration to Master Data

BI Legacy Replacement

Payroll Product Development

Lead Site Implementation Status

18

Supply Chain

Management

Human Resource

Management

National Treasury Asset Management, Catalogue Management, IT

Master, Basic Inventory, Procurement Management, and BAS Integration (SCM Core)

Asset Management (Limpopo) Provincial Treasury, Local Govt and Housing,

Roads and Transport and Agriculture

Department of Public Service and Administration

Imp

lem

ente

d

Free State Department of Education

In

pro

cess

SCM Core

Department of Defense

Limpopo Dept of Health & Social Development

ROLE OF SAPS wrt IFMS

• SAPS is a member of the IFMS Project Steering Committee

• Participate in all IFMS Business Forums and provide inputs towards IFMS user requirements

• All the SAPS ERP-related solutions have been assessed in terms of functionality and business rules

• In 2005, SAPS indicated that they will be the last Department to roll-out IFMS

19

ICT SUPPLY CHAIN MANAGEMENT

• Transforming the organisation from Procurement function to SCM

• Commenced the implementation of the SITA Industry Partnership model, we have engaged with OEMs on:

– Telecommunications

– Network Communications devices

– Desktop and peripheral devices such as printers, scanners etc

– Storage (Data Centres)

– Software development

• Objectives of the industry partnership

– Development of the local & indigenous IT industry

– Improve the quality of service through government friendly product support and maintenance

20

ICT SUPPLY CHAIN MANAGEMENT cont.• Objectives of the industry partnership cont.

– Contribute to the growth of innovative IT solutions for government

– Contribute to the IT skills development within government and country in general

– Reduce the cost of government business through IT

– BEE and SMME development through fostering participation friendly OEM resellers or partners accreditation terms/ requirements

– Lower prices of IT goods through bulk purchasing and preferred discounts for government

• The partnership with industry to be based on risk and revenue sharing models

21

SAPS SPECIFIC ICT SCM BENEFITS

• Benefits from cloud computing (Data centres & storage)• Lower prices for the War Room installation – better

prices & advanced technology options (Network communication devices)

• Lower cost for the National Network Upgrade Programme (Network communication devices)

• More bandwidth, disaster recovery and redundancy on the government network ( dependent on SAPS on SITA Next-Generation Network)

• Reduce the cost of Voice Communication through VoIP (dependent on SAPS on SITA NGN)

22

Pricing• The Cost and Pricing model is due to be finalised with the following

outlook:– Significant reduction in prices of SITA services– Guarantee continuous reduction of prices in certain commodities of

services• Lower cost through industry partnership• Infrastructure investment

– There were no investment in the IT infrastructure of SITA in the last 2 years due to a lack of infrastructure strategy

– The IT Infrastructure Strategy and plan has been finalised to support the Capital Expenditure over the next 5 years

– The infrastructure investment will be done through partnership with industry with the following objectives:o Lower the cost of technology services o Support the enablement of an electronic government (e-

government)o Benefit from continuous innovation

23

STAKEHOLDER RELATIONSHIP MANAGEMENT

• SITA was characterised by non-responsiveness to stakeholders

• We have since embarked on engagements with stakeholders through– Joint Strategic Planning sessions with clients such as

SAPS, DOD, DOJ & Depts of Education– Provincial visits and we have already visited WC, EC, KZN,

Limpopo, N Cape, NW & FS– Re-establishing good working relations with GITOC– Repositioning GOVTECH as an engagement platform with

our stakeholders to advance the government IT Agenda• The engagements with stakeholders have resulted in a

mechanism for stakeholder performance feedback and review of our provincial distribution model

24

OUTCOMES OF THE SAPS –SITA JOINT STRATEGIC PLANNING SESSION

• BA Agreement negotiations to be finalised by end Sept 2011

• SLA negotiations to be finalised by end Sept 2011• All services provided to SAPS to be converted to

“Service-based” as opposed to “Body-shopping”• SAPS to provide User requirements for ICDMS. • SITA to provide Proposal for NGN and VoIP

25

PROGRESS ON THE IMPLEMENTATION OF THE JOINT SESSION RESOLUTIONS

• BA discussions have commenced and due to complete end September as planned

• 5 x SLAs have been negotiated and concluded at a functional level

• 2 x New SLAs requested by SAPS and being drafted for negotiations (SCM & IT Security)

• Proposals for the service conversion underway

• ICDMS demo was presented to SAPS and the ICDMS backbone to complete in December 2011

• Additional ICDMS User Requirements to be submitted by SAPS e-Docket (scanning solution) was developed and deployed at 320

police stations in 8 provinces except for the Eastern Cape. Approximately 1,650 mil dockets having been scanned as at 5th Sept

2011• NGN and VoIP proposals submitted to SAPS

EXPENDITURE & PROGRESS OF NATIONAL NETWORK UPGRADE

PROGRAMME

27

YEAR SAPS Tasked Amounts SITA Contracted

Switching Centres

Sites Upgrades

2005 to 2008 R325,1m 26 386

2008/2009 R248.3m 272

2009/2010 R518.5m 388

2010/2011 R460.0m 314 (Telkom line outstanding in certain

areas)

2011/2012 Not yet tasked

TOTAL R1,551.8m 26 1,360

EXPENDITURE & PROGRESS ON ICDMS

28

YEAR SAPS Tasked Amounts Actual Expenditure

eDocket

Delivered as part of the Applications and Maintenance SLA . Excl network,

hardware and storage component costs R9.9m

2009/10 R 25,2m R 19 .9m

2010/11 R 26,8m R 19.2m

2011/12 R 25,3m

2012/13 R 27,0m

2013/14 R 28,9m

TOTALR 133,3m R 49.0m

Pricing for Support Services

29

Recurring ICT Support Services

Signed SLA Value 2010/2011(VAT Incl)

Proposed SLA Pricing 2011/2012

(VAT Incl)

Growth % Outstanding Billing April to August (VAT Incl)

Monthly Invoice values (Vat Incl)

APPLICATION MAINTENANCE SERVICES: R 191 220 732.00 R 203 617 151.72 6.5% R 99 838 544.17 R 14 810 693.02SPECIALISED CONSULTING SERVICES R 4 783 760.34 R 5 022 935.76 5.0% R 2 092 889.90 R 418 577.98BUREAU SERVICES R 4 316 924.00 R 4 316 924.00 0.0% R 1 804 322.42 R 359 743.67CENTRALISED DATA PROCESSING SERVICES R 242 235 053.71 R 237 892 939.73 -1.8% R 99 122 058.22 R 19 824 411.64NETWORK SUPPORT SERVICES R 321 723 501.66 R 304 134 448.15 -5.5% R 126 722 686.72 R 25 344 537.35DECENTRALISED SUPPORT SERVICES R 472 104 625.56 R 594 285 479.57 25.9% R 247 618 950.10 R 49 523 789.96

GRAND TOTAL R 1 236 384 597.27 R 1 349 269 878.93 9.1% R 577 199 451.27 R 112 439 156.58

Service Description

NOTE: - Monthly invoice values excludes the once off licensing fees-SITA requested Interim Orders based on the SITA proposed pricing

Thank you

• Questions

30

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