Transport and Public Works

1. Yes. 

(1)(a) 59 Employees are permanently employed by the Department in the Supply Chain Management Chief Directorate.  The breakdown per directorate is as follows:

2. No, the company is not affiliated to the Department.  

            However, despite this response, the information requested in b) and (c) has been provided below.

1. Not applicable, as the company is not affiliated to the department.

         (b)  The directors of the company are:

              Mr E Naude

 Mr PC de Villiers

 Mr MMG Mofokeng

 Ms EC Singh

 Ms SM de Villiers

Other owners: The Tusk Employee Share Incentive Trust

(c) The company was appointed by the Department on the programme “Construction and Implementation Support and Related Services: Term Contract 2018-2021.”  This was a pilot programme to try to address:

• Alternative delivery strategies annually reported on in our Annual Report;
• DTPW capacity; and the
• Cost of infrastructure consultants.

This programme consists of the following: 

1. A Management Programme in terms of which the company implements Departmental Infrastructure projects and follows a pre-determined SCM and procurement policy.
2. Providing professional consultant support, not different from the current DTPW model to appoint independent PSPs (Professional Service Providers) at lower rates.
3. A Facility Condition Assessment (FCA) programme in terms of which the company utilizes its own internal resources (as well as external resources as and when the need arises) and where the company takes responsibility for the end-result of these assessments.

3. No, the Department has not outsourced it procurement function between 2020 and 2021.  As explained in the response to question 2 above, the company was appointed for Construction and Implementation Support and Related Services, to address: Alternative delivery strategies annually reported on in our Annual Report; DTPW capacity; as well as the cost of infrastructure consultants.

      However, despite this response, the information requested in b) and (c) has been provided below:

(b)  The Department followed a limited bidding process as catered for by the Provincial Treasury Instructions.

(c)(i) The Department and the Provincial Treasury had numerous engagements on both formal and informal platforms to deal with the matter of enabling DTPW as Custodian and Implementer through various mechanisms and considering various models. 

These platforms included but is not limited to the official Accounting Officers Letter submitted to the Provincial Treasury early in 2017 specifically considering the following mechanisms:

1. Filling of vacancies in terms of current provision for DTPW in respect of Cost of Employees.
2. Procurement of Facilities management contractors through an open bidding process.
3. Procurement of framework agreements for all classes of work across all three Works components
4. Procurement of management contractor for DTPW
5. Utilization of a Project Implementation Unit. (PIU)
6. Insourcing and outsourced models of Engineering Services
7. Procurement of Implementation Agent or support services,
8. Alternative technology

Research and development services

10. Reviewing Norms and Standards, etc.
11. Addressing efficiencies in design, implementation, catering for drought, climate change, energy related service requirements in the built sector environment.

50. Project and Programme management services

1000. Research into insuring construction works

 This model consolidates a number of the intended models and mechanisms highlighted above and therefore presents a convincing value-added service model without the administrative and contract intensive requirements of contracting multiple companies to give effect to each one of the models.

  The Department also consulted with the Western Cape Department of Health with regard to this proposal.

(c)(ii) N/a - no external counsel was received. However, the model employed is provided for in the Cabinet approved Western Cape IDMS which in turn is based on the National Treasury issued IDMS at the time, the CIDB practice notes and best practices and the CIDB designed IDMS.  To note that infrastructure in government is regulated by the Construction Industry Development Board, empowered to issue practice notes, best practices and standards applicable to both private and public infrastructure delivery.

(d) The Provincial Treasury deliberated and considered various aspects such as mandate, rationale, service delivery, governance, sustainability, stakeholder engagement, change management.  The PT concluded that from a procurement perspective they consider the innovative concept proposed demonstrates and establishes a prima facie case for efficiency gains and value for money as well as transformation requirements from a local economic empowerment, job creation and enablement perspective and sees no reason why the department may not proceed with the proposal as envisaged.

         The only condition that the PT had is that each Department, i.e DOH and DTPW respectively, must manage and utilise the contract only as far as each one’s individual mandate is concerned.  That mandate is also captured in the Provincial Treasury Instructions.