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 MANDATESITA 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 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

Business Service Description Services

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

Business Service Description Services

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

Business Service Description 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

Business Service Description Services

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(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

CLUSTER/ PROVINCE/

CBU

SIGNED SLA’S

UNSIGNED SLA’S

TOTAL BA SIGNED

(Y/N)

DOD 20 0 20 Y

SAPS BA & SLA STATUS

CLUSTER/ PROVINCE/

CBU

SIGNED SLA’S

UNSIGNED SLA’S TOTAL BA SIGNED

(Y/N)

SAPS Application Maintenance

0 1 R189,8m Y

SAPS Centralized DP Services

0 1 R211,4m Y

SAPS Bureau Services 0 1 R5,6m Y

SAPS Network Services 0 1 R210,0m Y

SAPS Distributed Desktop Services

0 1 R382,2m Y

SAPS Specialized Consulting Services

0 1 R5,0m Y

SAPS Development 0 1 R26,0m Y

Total 0 7 R1,030bn

CRIME PREVENTION CLUSTER

  Mandatory SLA’s

Optional SLA’s

  TOTAL

 DEPARTMENT/ORGAN OF STATE

Signed Not Signed

Signed Not Signed

  % Signed

NPA 2   2   4 100%

NIA 2 1     3 100%

ICD 3       3 100%

DCS 3 0 2 1 6 80%

DOJ 2 0 2 0 4 100%

TOTAL 11 2 7   20 96%

ECONOMIC, INVESTMENT AND EMPLOYMENT

  Mandatory SLA’s

Optional SLA’s

 TOTAL 

 DEPARTMENT/AGENCY OF STATE

Signed Not Signed

Signed Not Signed

  % Signed

STATSSA 3 0 0 1 4 85%

SARS 0 1 0 0 1 0%

DTI/CIPRO/SEDA 3 0 1 0 4 100%

Nat. Treasury 8 0 0 0 8 100%

Dept. Of Labour 3 1 2 0 6 80%

Dept. of Public Works 0 1 3 0 4 75%

RD & LR 0 3 0 1 4 0%

Dept. of Public Enterprise 3 0 0 0 3 100%

Dept. of Agriculture 3 0 3 0 6 100%

Dept. of Transport 3 0 0 3 6 100%

Dept. of Communication 3 0 1 0 4 100%

ICASA 0 0 3 0 3 100%

Cyberia 1 0 0 0 1 100%

TOTAL 33 6 13 6 58 79%

GOVERNANCE, ADMINISTRATION& INTERNATIONAL

  Mandatory SLA’s

Optional SLA’s

 TOTAL 

  Signed Not Signed

Signed Not Signed

  % Signed

GCIS 4 0 7 0 11 100%

IEC 1 1 1 0 3 66%

NYC 3 0 0 0 3 100%

DEAT 3 0 1 0 4 100%

DHA 4 1 0 3 8 50%

DFA 0 3 1 0 4 25%

GPW 0 3 0 0 3 0%

PALAMA 0 3 1 0 4 25%

OPSC 3 0 1 0 4 100%

DPSA 3 0 1 2 6 66%

PRESIDENCY 3 0 0 0 3 100%

TOTAL 28 11 13 5 57 72%

DSD & SOUTH AFRICAN SOCIAL SECURITY AGENCY

  Mandatory SLA’s

Optional SLA’s

    TOTAL

  Signed Not Signed

Signed Not Signed

  % Signed

DSD 5 0 1 0 6 100%

SASSA 3 0 4 4 11 64%

TOTAL 8 0 5 4 17 77%

SOCIAL CLUSTER

  Mandatory SLA’s

Optional SLA

 TOTAL 

 DEPARTMENT/STATE AGENCY

Signed Not Signed

Signed Not Signed

  % Signed

DAC 3   3   6 100%

Sports 3       3 100%

Umalusi 1   1   2 100%

SACE     1   1 100%

DoE 3   7   10 100%

DWAF 3 0 2   5 100%

Health 2 1   6 9 66%

Housing 3   32   35 100%

TOTAL 18 4 46 6 74 85%

SERVICE LEVEL AGREEMENTS PER PROVINCE

PROVINCES: SIGNED NOT SIGNED TOTAL

EASTERN CAPE 53 3 56

KWA-ZULU NATAL 42 20 62

WESTERN CAPE 33 3 36

LIMPOPO 51 2 53

FREE STATE 35 8 43

MPUMALANGA 24 3 27

GAUTENG 39 10 49

NORTHERN CAPE 30 0 30

NORTH WEST PROVINCE 8 1 9

TOTALS 315 50 365

As Percentage 86.30% 13.70% 100%

PROCUREMENT ISSUES RAISED

TENDER DEPARTMENT/

PROVINCE

ISSUE ACTION

WHO-AM-I-ONLINE Department of Home Affairs

AG points to failure to comply to tender policies

SITA acknowledge the omissions. Controls tightened

Limpopo Province

(various tenders)

Various Departments Contravention of Delegation of Authority by Provincial Manager

Person Suspended pending outcome of Disciplinary Hearing

Transversal Tenders

385 – Cabling; PC’s and Peripheral Equipment

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

SITA obo Departments Allegations of SME’s Exclusions/Tenders Favour Big Players

Tender Cancelled to Allow for Further Consultation

PROCUREMENT ISSUES RAISED,…

TENDER DEPARTMENT/

PROVINCE

ISSUE ACTION

Next Generation eGovernment Tender (Business Process Re-engineering)

SITA/DPSA Allegations of Tender Influencing

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

Next Generation eGovernment programme

SITA/DPSA Delays in the Award of the Tender

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

Various Tenders

(Exhibit Management

Automatic Vehicle Location

NCIPHER Security Devices for Integration

Detention Management

Integrated Justice System cluster

Delays in Concluding Tenders or Extending Tenders

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

Agreements in Place on how the issues are to be resolved

PROCUREMENT ISSUES RAISED,…

TENDER DEPARTMENT/

PROVINCE

ISSUE ACTION

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

SITA on behalf of Government Departments

Local SME’s and BEE companies feel marginalized

Engagements continue

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

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

PROCUREMENT CHALLENGES

CHALLENGE MITIGATION

1. Dealing with Allegations of Corruption 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

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

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

3. SME and BEE imperatives 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.

4. Procurement Lead Times are “long” Draft Procurement Strategy proposes further Capacitation to improve turnaround times.

PROCUREMENT CHALLENGES,…

CHALLENGE MITIGATION

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

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

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

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

7. Non Compliance to SITA Act prescripts Sensitization and education sessions planned.

Disciplinary measures put in place for non-conformance

8. Leaking of Procurement information 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.

TENDERS WITH AUDIT FINDINGS (WHOAMI-ONLINE)

TENDER AUDITOR GENERAL

FINDING

WHO-AM-I-ONLINE 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.

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

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.

TENDERS WITH AUDIT FINDINGS (WHOAMI-ONLINE),…

TENDER AUDITOR GENERAL

FINDING

WHO-AM-I-ONLINE 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

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

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

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.

TENDERS WITH AUDIT FINDINGS (WHOAMI-ONLINE),…

TENDER AUDITOR GENERAL

FINDING

WHO-AM-I-ONLINE 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.

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.

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!