state information technology agency 2008/9 annual report

State Information Technology Agency

REPORT TO THE PORTFOLIO COMMITTEE FOR

PUBLIC SERVICE AND ADMINISTRATION

2

MATTERS FOR DISCUSSION

SITA’s Mandate (SITA Act 88 of 1998)

MANDATED SERVICES TO GOVERNMENT

MUST” AND “MAY” SERVICES

SITA OFFERINGS EXPLAINED

SERVICE DELIVERY PRESCRIPTS

PROCUREMENT ISSUES RAISED

TENDERS WITH AUDIT FINDINGS (WHOAMI-ONLINE)

TENDERS MENTIONED IN THE MEDIA (SMART CARD)

COMPREHENSIVE CLIENT LISTS & INFORMATION

ALLEGATIONS OF CORRUPTION LEVELLED AGAINST SITA

HIGH RISK AREAS FOR CORRUPTION

WHAT HAS ANALYSIS PROVIDED?

SITA MANDATE

SITA’s Mandate (SITA Act 88 of 1998)

to (a) improve service delivery to the public through the provision of information technology, information systems and related services in a maintained information systems security environment to departments

and public bodies;

and (b) promote the efficiency of departments and public bodies through the use of information technology.

MANDATED SERVICES TO GOVERNMENT

Transversal Systems (Act) – Full Life Cycle

Standards & Certification (Reg 4.2 & 4.3)

IS Convergence Strategy (Reg 4.1.1)

Disaster Recovery Strategy

(Reg 4.1.2)

IS Inventory(Reg 4.6)

ICT ResearchPlan

(Reg 4.4)

… and Services as per BA (Reg 5)

Private Telecoms Network (Act) – Full Life Cycle

Manage ICT Procurement(Reg 7.4, 8.2, 10.2, 10.12, 11.1)

“MUST” AND “MAY” SERVICES

• Provide and maintain a PTN / VAN

• Provide and maintain transversal information systems

• Provide data processing for transversal information systems

• Procure IT for government

• Set standards regarding interoperability

• Set standards regarding information systems security

• Certify all acquisitions for compliance with interoperability and security standards

• Eliminate duplication

• Leverage economies of scale

• Provide training

• Provide application software development

• Maintain software and infrastructure

• Provide data processing for department-specific applications or systems

• Provide technology or business advice for IT

• Carry out research and development

• Provide management services

• Sell authentication products

SITA must: SITA may:

N.B.: MAY services become MUST services after they have been included in a Business Agreement with a Department

SITA OFFERINGS EXPLAINED

THE SITA SERVICE CATALOGUE

• The SITA Service Catalogue provides a detailed explanation of the

services that SITA provides.

- The service provision happens within 7 capability areas.

- The capability areas are then broken down into 56 service groups or sub-

capability areas.

- The sub-capability areas are in turn broken down into 233 services elements.

- The service elements comprise of 1140 service components.

Value Add Services

IT CONSULTING & ADVISORY

INFORMATION MANAGEMENT

Full Outsourcing

MANAGED APPLICATIONS

MANAGED DESKTOP

MANAGED INFRASTRUCTURE

Support & Transaction Services

COMMERCIAL PRINTING

TRAINING

SOURCING

PROJECT MANAGEMENT

Systems Integration & Solution Development

SOLUTION DEVELOPMENT

SYSTEMS INTEGRATION

End-to-end management of IT operations to enable high performing business Predictable delivery and integration of new & existing

systems to transform business processes into industrial solutions

Provisioning of support services that ensures the successful execution of IT initiatives and processes

BUSINESS CONTACT CENTRE

SITA offers a spectrum of additional services to address your professional and business requirements

THE SITA SERVICE CATALOGUE (as made communicated to SITA clients)

SECURITY MANAGEMENT

OUTSOURCING SERVICES

A complete suite of application management services including maintenance and support of an application, groups of applications or the entire application portfolio

Managed desktop services provide a cost effective approach to fully manage specific desktop support requirements including remote and on-site support. Other services include desktop security, software distribution and patch management

Managed infrastructure services refers to the provision or management of an organisation’s entire IT infrastructure to enable the streamlining of IT operations while increasing flexibility, scalability, predictability and security

• Application Problem Resolution and Application Service Support• Application Deployment

– Full Application Rollout, Migration Preparations• Application Security

– Encryption• Application Maintenance

– Application Monitoring, Application Optimisation, Performance Reporting, Database Maintenance and Support

• Desktop Management– Desktop Backup, Image Management, Patch Management and Software

Distribution• Device Lifecycle Management • Field Support

– Hardware Maintenance & Support and Software Maintenance & Support• File and Print Services

– Print Management and File Management

• Hosting and Storage Services• Network Connectivity

– Wide Area Networks, Local Area Networks, Internet Connectivity, Remote Access

• Telephony– IP Telephony, Voice / Video Conferencing

• Unified Messaging – Email, Fax, Voicemail, SMS and IM Integration

• Collaboration Services– Web Conferencing, Collaboration Workspace

Business Service Description Services

MANAGED APPLICATIONS

MANAGED DESKTOP

MANAGED INFRASTRUCTURE

VALUE ADD SERVICES

Consulting and advisory service focuses on providing high value consulting services in the key areas of IT strategy, security, governance and enterprise architecture. These services assist in defining how organisation’s IT capabilities operate and ensure that the solutions developed adhere to the government wide architectural, interoperability and security standards

The ability to access, share and use timely information is critically important to business efficiency. SITA Information Management services has a deep understanding of the business and technology dimensions of the information challenge to help organisations improve decision making, financial management, regulatory compliance and customer service

• Business Intelligence• Data management & Architecture• Information Management Diagnosis• Portals and Content Management


SOURCING

IT CONSULTING & ADVISORY

INFORMATION MANAGEMENT

Through the identification of synergies in government acquisitions, the scale of consolidated government spend can be leveraged to cost-effectively procure IT on behalf of government clients. End-to-end sourcing services includes strategic sourcing to address similar cross government requirements as well as singular procurement request fulfillment for specific requests

• Strategic Sourcing• Tactical Sourcing• Vendor Management• Contract Management and Maintenance• Requisition and Fulfillment• Supply and Demand Management• Procurement Reporting

• Enterprise Architecture• Technology Research• IT Governance Maturity Assessment• IT Governance Design• IT Strategy Development• IT Strategy Execution• Security Advisory• Certifications

VALUE ADD SERVICES, continued


SECURITY MANAGEMENT

Security management encompasses the entire lifecycle of security solutions from execution of initial security assessments, certifications and strategies to the design, implementation and operation of security solutions. Security management services provide security solutions that ensure compliance to information security standards

• Security Strategy Development • Security Policy Development • Business Continuity Planning • Risk Management • Compliance Assessment and Certification • Security solution blueprint / architecture

development • Threat Management (Infrastructure,

Applications)• Vulnerability Management • Identity and Access Management • Security solution maintenance and support • Security Awareness and Training Programmes • Physical Infrastructure Security

SYSTEM INTEGRATION SERVICES


System development brings together under one umbrella the full scope of the solution development lifecycle, from the project inception through to the deployment of solutions into the operational environment

By fulfilling the role of prime systems integrator, the full scope of SITA’s systems integration expertise can be leveraged to streamline and integrate business processes and IT systems across the enterprise to address business requirements within every function. The IFMS project is example of an SI initiative that is currently underway to transform Governments transversal applications

• Application Planning– High level requirements definition– Current capability assessments– Solution Blueprint

• Application Design• Application Development• Application Testing• Application Deployment

• Design integration architecture• Integration component design• Integration component build• Application integration• Functional Testing• Technical Testing• Network Transport – LAN & WAN• Application Hosting

SOLUTION DEVELOPMENT

SYSTEM INTEGRATION

• Application Hosting• Application Security• Hosting Advisory• Network Advisory• Disaster Recovery

• Network Advisory• Hosting Advisory• VPN and Tunneling

SUPPORT AND TRANSACTIONAL SERVICES

Commercial printing services include the preparation of media for printing and delivery of print jobs. Finishing tasks such as binding and laminating are also included within the commercial printing service

Training services offered by include end-to-end training components - from the development of IT training curricula through to the delivery of courses and the assessments and certification of personnel

The established contact centre infrastructure is leveraged to execute routine and repeatable transaction-based processes on behalf of organisation allowing them to focus on their core business

• Pre-processing– Document composition, scanning,

form generation, and data conversion

• Printing– Laser and line printing

• 3rd Party Training Management–Course identification, evaluation,

selection • Training Assessment

–Candidate evaluation, scoring and communication

• Contact Centre Agent Setup• Customer Interaction Management• Manage & Plan Contact Services• Manage Customer Interaction Supply &

Demand• Plan Delivery of Customer Interactions

Project management services ensures that projects, driven by clients or SITA, are planned appropriately and executed in controlled way according to a defined project plan

• Project Planning & Mobilisation– Establish Plan and Governance

• Project Monitoring & Controlling– Manage work plan, costs, resource,

quality etc.• Project Sign-off & Closure


COMMERCIAL PRINTING

TRAINING

BUSINESS CONTACT CENTRE

PROJECT MANAGEMENT

• Agent Performance Management• Agent Training and Communication• Call Centre Application• Call Centre Reporting• Customer Application Integration

• Post-processing– Print quality control, bookbinding,

laminating, packaging and delivery

• Training Delivery– Managing training venue, resources,

and delivery • Training Development

– Design, Development and improvement of training curricula

SERVICE DELIVERY PRESCRIPTS(BUSINESS AGREEMENT AND SERVICE LEVEL AGREEMENTS)

SERVICE DELIVERY PRESCRIPTS AS PER THE SITA ACT CH6. (20)

The Act prescribed that a Business Agreement be entered into between SITA and participating departments:

• A business agreement to regulate the relationship between individual participating departments or organs of state and the Agency must be concluded.

• The business agreement must be supported by service level agreements negotiated between individual participating departments or organs of state and the Agency.

• Contracts, rights and obligations existing at the time of transfer of assets from participating departments or organs of state must be ceded to the Agency.

DEPARTMENT OF DEFENCE – SERVICE LEVEL AGREEMENTS STATUS

Y20020DOD

BA SIGNED

(Y/N)

TOTALUNSIGNED SLA’S

SIGNED SLA’S

CLUSTER/ PROVINCE/

CBU

SAPS BA & SLA STATUS

YR26,0m10SAPS Development

R1,030bn7 0Total

YR5,0m10SAPS Specialized Consulting Services

YR382,2m10SAPS Distributed Desktop Services

YR210,0m10SAPS Network Services

YR5,6m10SAPS Bureau Services

YR211,4m10SAPS Centralized DP Services

YR189,8m10SAPS Application Maintenance

BA SIGNED

(Y/N)

TOTALUNSIGNED SLA’SSIGNED SLA’S

CLUSTER/ PROVINCE/

CBU

CRIME PREVENTION CLUSTER

96%20 7211TOTAL

100%40202DOJ

80%61203DCS

100%3 3ICD

100%3 12NIA

100%4 2 2NPA

% Signed Not Signed

SignedNot Signed

Signed DEPARTMENT/ORGAN OF STATE

TOTAL

Optional SLA’s

Mandatory SLA’s

ECONOMIC, INVESTMENT AND EMPLOYMENT

79%58613633TOTAL

100%10001Cyberia

100%30300ICASA

100%40103Dept. of Communication

100%63003Dept. of Transport

100%60303Dept. of Agriculture

100%30003Dept. of Public Enterprise

0%41030RD & LR

75%40310Dept. of Public Works

80%60213Dept. Of Labour

100%80008Nat. Treasury

100%40103DTI/CIPRO/SEDA

0%10010SARS

85%41003STATSSA

% Signed Not Signed

SignedNot Signed

Signed DEPARTMENT/AGENCY OF STATE

TOTAL

Optional SLA’s

Mandatory SLA’s

GOVERNANCE, ADMINISTRATION& INTERNATIONAL

72%575131128TOTAL

100%30003PRESIDENCY

66%62103DPSA

100%40103OPSC

25%40130PALAMA

0%30030GPW

25%40130DFA

50%83014DHA

100%40103DEAT

100%30003NYC

66%30111IEC

100%110704GCIS

% Signed Not Signed

SignedNot Signed

Signed

TOTAL

Optional SLA’s

Mandatory SLA’s

DSD & SOUTH AFRICAN SOCIAL SECURITY AGENCY

100%60105DSD

77%174508TOTAL

64%114403SASSA

% Signed

Not Signed

SignedNot Signed

Signed

TOTAL

Optional SLA’s

Mandatory SLA’s

SOCIAL CLUSTER

85%74646418TOTAL

100%35 32 3Housing

66%96 12Health

100%5 203DWAF

100%10 7 3DoE

100%1 1 SACE

100%2 1 1Umalusi

100%3 3Sports

100%6 3 3DAC

% Signed

Not Signed

SignedNot Signed

Signed DEPARTMENT/STATE AGENCY

TOTAL

Optional SLA

Mandatory SLA’s

SERVICE LEVEL AGREEMENTS PER PROVINCE

365 50 315 TOTALS

918NORTH WEST PROVINCE

491039GAUTENG

53251LIMPOPO

36333WESTERN CAPE

622042KWA-ZULU NATAL

56353EASTERN CAPE

100%13.70%86.30%As Percentage

30030NORTHERN CAPE

27324MPUMALANGA

43835FREE STATE

TOTAL NOT SIGNED SIGNED PROVINCES:

PROCUREMENT ISSUES RAISED

Tender Cancelled to Allow for Further Consultation

Allegations of SME’s Exclusions/Tenders Favour Big Players

SITA obo DepartmentsTransversal Tenders

385 – Cabling; PC’s and Peripheral Equipment

433 and 439 (Server and Router Gear and Maintenance Services)

Person Suspended pending outcome of Disciplinary Hearing

Contravention of Delegation of Authority by Provincial Manager

Various DepartmentsLimpopo Province

(various tenders)

SITA acknowledge the omissions. Controls tightened

AG points to failure to comply to tender policies

Department of Home Affairs

WHO-AM-I-ONLINE

ACTIONISSUEDEPARTMENT/

PROVINCE

TENDER

PROCUREMENT ISSUES RAISED,…

Engagements held with IJS Board as Facilitated by the DG:DoJ and CD.

Agreements in Place on how the issues are to be resolved

Delays in Concluding Tenders or Extending Tenders

Integrated Justice System cluster

Various Tenders

(Exhibit Management

Automatic Vehicle Location

NCIPHER Security Devices for Integration

Detention Management

Auditor General to issue a Report in terms of “Agreed Upon Procedures”

Delays in the Award of the Tender

SITA/DPSANext Generation eGovernment programme

Auditor General Dealt with the Matter – conclusion is that there was no merit in the allegations

Allegations of Tender Influencing

SITA/DPSANext Generation eGovernment Tender (Business Process Re-engineering)


PROVINCE

TENDER

PROCUREMENT ISSUES RAISED,…

SITA Draft Procurement Strategy seeks to address Decentralization of Procurement to Support Local Economic Development.

SITA Tenders Not Supporting Local Economic Development and Support Eradication of Unemployment

SITAVarious Tenders

Engagements continueLocal SME’s and BEE companies feel marginalized

SITA on behalf of Government Departments

Tender 285 (Seat Management Service tender – Leasing of Computer Equipment)


PROVINCE

TENDER

PROCUREMENT CHALLENGES

Draft Procurement Strategy proposes further Capacitation to improve turnaround times.

4. Procurement Lead Times are “long”

On big tenders requirements are for up to 30% subcontracting to SME’s. There is a requirement to closely manage the sub contracting models as there are concerns raised with excesses by some of the big players.

3. SME and BEE imperatives

Strategy to Devolve Procurement to Regions with proper Capacitation on the table for discussion and approval.

2. Dealing with Local Economic Development requirements in Provinces and Local Government

Involvement of Auditors right through the Procurement process being implemented.

Collaboration with SIU

Anti- Corruption and Anti- Fraud drive and pronouncements and Actions

Protocols will be developed to regulate the development of Specifications being used to solicit bids

1. Dealing with Allegations of Corruption

MITIGATIONCHALLENGE

PROCUREMENT CHALLENGES,…

Proof of Concepts undertaken to test Toolsets to manage and mitigate against information leaks.

Re-emphasized the use of the Corporate Communication function for any communications with media.

8. Leaking of Procurement information

Sensitization and education sessions planned.

Disciplinary measures put in place for non-conformance

7. Non Compliance to SITA Act prescripts

Issues raised in numerous forums to sensitize stakeholders of a need for long term planning to achieve the “Leverage Economies of Scale” principle.

6. SITA has no access to government long term ICT Master Systems Plans for procurement planning

Procurement is now viewed as a core function

Competency assessments and skills gap closure mechanisms will be implemented.

Business case submitted to fill vacancies – Budgetary constrains in the FY09/10

5. Capacity Challenges (e.g. Strategic Sourcing Capability)

MITIGATIONCHALLENGE

TENDERS WITH AUDIT FINDINGS (WHOAMI-ONLINE)

SITA did not open the bids in public as per the invitation to bid which was in line with their procurement policy and procedure, but contrary to the Regulations.

Project Documentation was not approved by the then Director General (DG) Mr. M J Maqetuka as required. This included a Business Case, project charter and plan

Procurement Process

a) No business agreement existed to clarify the roles and responsibilities of both SITA and the Department of Home Affairs (DHA) during the procurement process which started in April 2006.

WHO-AM-I-ONLINE

AUDITOR GENERAL

FINDING

TENDER

TENDERS WITH AUDIT FINDINGS (WHOAMI-ONLINE),…

The respective reports signed off by BEC members as approval of their recommendation to the Recommendation Committee could not be provided.

The Chairperson of the BEC did not meet the criteria to be appointed as such as prescribed in the SITA Regulations.

Individual score sheets could not be submitted and the BEC had not compiled a formal risk report.

The bid by Gijima AST Consortium was not rejected for submitting an invalid tax clearance certificate by one of the sub-contractors

Each member of the Bid Evaluation Committee (BEC) is required to sign a declaration of confidentiality relating to the evaluation, three members of the BEC did not complete the declaration form

WHO-AM-I-ONLINE

AUDITOR GENERAL

FINDING

TENDER

TENDERS WITH AUDIT FINDINGS (WHOAMI-ONLINE),…

The R1,9 billion tender price was likely to be understated at the time of submission to the RC due to outstanding pricing information for certain items not being submitted despite being requested from the bidder.

No evidence was found that the award was published in the Government Tender Bulletin and on the SITA website.

Although Ideco scored the highest points for Part A, they were not recommended by the BEC due to, inter alia, that the pricing for certain components was incomplete such as pricing for formal training was excluded and hardware maintenance and spares did not include costing. GijimaAST, the successful bidder, also submitted pricing that was incomplete, for example the pricing for foreign language support as well as international supply and shipping cost was not included in the proposal. Furthermore, installation costs and plans for the foreign sites were not priced and the Bills of Material for part B were not provided.

WHO-AM-I-ONLINE

AUDITOR GENERAL

FINDING

TENDER

COMPREHENSIVE CLIENT LISTS & INFORMATION

In terms of SITA engagement model with government departments

The direct client contact person for SITA is the Government Information Technology Officer (GITO)

The Comprehensive List of the GITO’s is Attached As Annexure A

THANK YOU!