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Portfolio Committee Presentation

9 February 2010

DCS and NDPW Facilities

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DCS FACILITIES SCOPE OF WORK• Facilities are managed by DCS from Head Office.

• 239 Facilities nationally (2 Closed)

• Over 5 million square meters of buildings

• 165 000 offenders and ± 115 000 beds therefore 50 000 shortfall

• Type of Buildings– Correctional Centres– Offices– Training – Housing for staff– Workshops– Agricultural– Sewerage and Water Works– Security

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CORRECTIONAL CENTRESRegion Female

onlyYouth Development Centre

Male only

Male and female

Temp closed

Total

E Cape 1 3 40 0 1 45

Gauteng 2 3 20 1 0 26

KZN 2 2 32 4 1 41

LMN 1 2 24 12 0 39

N Cape 1 2 25 19 0 47

W Cape 3 5 32 1 2 43

Total 10 17 174 37 4 241

SERVICE LEVEL AGREEMENT (SLA)

• 1 April 2006 National Treasury devolved accommodation-related budget from NPDW to DCS

• Memorandum of Understanding (MOU) was developed and signed. It was agreed by 1 April 2008 that a SLA would replace the MOU.

• DCS has requested SLA includes quarterly cash flow and progress meetings to be attended by Senior Management of NDPW and DCS (Head Office and Regions) to unblock projects.

• NDPW has not been able to supply a draft SLA for consideration of DCS.

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HISTORY ON FACILITIES• NDPW is the Agent for execution of planning,

construction, leases and municipal services

• Since 2002 Kimberley CC will be the first major new facility to have been constructed

• The old designs consist of 11 to 19 bed cells (double bunked to 38 beds for overcrowding) with court yards and limited support buildings. Most are non-compliant.

• During 2006 the lease, accommodation charges and municipal services budget was devolved without posts

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HISTORY ON FACILITIES Continues

• DPW according to Government-wide Immovable Asset Management Act of 2007 are the custodians and DCS as User Department must lease facilities from NDPW.

• The Auditor-General Report highlighting dilapidated status of facilities due to the overcrowding challenges DCS face.

• DCS committed to the AG to:– Improve management of projects and hold Quarterly

Progress and cash flow meeting with DCS Regions and DPW Regions

– Develop Project Management Plans for major projects and programmes

– Apply Project Management to address capacity– SLA to be put in place with DPW

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FUNCTIONS OF FACILITIES

• Support the department in its core functions of security, corrections development and care and social reintegration by providing well-maintained facilities.

• Planning for new facilities, upgrade and replacement of existing facilities

• Coordinate maintenance, repair and renovation of facilities

• New and renewal of leases (±150 office leases)

• Administer accommodation charges, User Asset Management Plan, Immovable Asset Management System/Register

• Municipal Services expenditure and payments.

• Policy, procedures & requirements

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FACILITIES BUDGET 2009/2010

DESCRIPTIONDESCRIPTION ALLOCATIONALLOCATION

CAPITAL WORKS R898m (R108m reallocated to fund OSD)

ACCOMMODATION CHARGES R532m

PRIVATE PROPERTY LEASES R58m

MUNICIPAL SERVICES R413m

TOTAL DCS ALLOCATIONTOTAL DCS ALLOCATION R1,901 BillionR1,901 Billion

NDPW Maintenance Budget for DCS R574m

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762.00

232.00

390.00

0

200

400

600

800

Rand (Million)

CorrectionalServices

Justice Dept. Other Clients

DPW Allocation per Client

CAPITAL BUDGET COMPARATOR- 2008/2009

Note:

Excludes SAPS and DPW own projects.

SAPS procuring own police stations.

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IMPACT OF WHITE PAPER ON FACILITIES

• Correctional Services White Paper of 2003 requires change of design to allow for unit management and a focus on rehabilitation.

• Redesign of 240 bed housing unit with 10 bed cells to enable Unit Management

• Redesign of functions around rehabilitation and access to various buildings

• Improved security systems and higher dependence on technology

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NEW LAYOUT CORRECTIONAL CENTRE

• Mainly consists of: Perimeter security and security buildings

Area visitors may move after screening (visitations, bails and administration building)

Support buildings around street connecting all buildings and allow for movement of personnel and offenders

Housing cell units of 240 beds each

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Typical Layout of a section with 19 bed cell units

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FACILITIES MAJOR PROJECTS• Vanrhynsdorp Correctional Centre (R250m): 66%

• Kimberley Correctional Centre construction completion September 2009 (R830m).

• Tzaneen Correctional Centre (R220m) Site handover to contractor was on 13 January 2010.

• Brandvlei Correctional Centre (R330m): 51%

• Ceres: Warmbokkeveld Correctional Centre (R210m):47%

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NEW DESIGN VANRHYNSDORP• Basic project information:

– Region: Western cape

– Accommodation 530 bed

– Extra bed capacity of 328

– Project tender value R250m

– Construction Percentage complete 66%

– Heritage requirements- retain old prison

– Environmental requirements- solar panels

• Note separate 3D powerpoint for Vanrhynsdorp Correctional Centre

Tzaneen1. Original tender was advertised in 2007 and was

allowed to lapse.

2. 15 May 2009 was readvertised delayed due to coordination challenges between consultants.

3. Project site handover on 13 January 2010.

4. DCS requested on 25 March 2009 for consultant project manager to manage R250 million project. DPW have to date refused to appoint a consultant to coordinate the project and ensure appropriate capacity.

5. Existing cash flow projections received for the project appear to be unrealistic for 2010/11 similarly project expenditure has been nearly double the estimate.

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BRANDVLEI CC• Basic project information:

– Region: Western cape: Worcester: Brandvlei farm

– Accommodation 1000 bed

– Extra bed capacity of 346

– Project tender value R287m

– Construction Percentage complete 51%

– Heritage requirements- none

– Environmental requirements- sensitive to Brandvlei dam and existing ecosystem

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KIMBERLEY CORRECTIONAL CENTRE• Basic project information:

– Region: Free State & Northern Cape

– Town: Kimberley

– Accommodation 3000 bed

– Extra bed capacity of 3000

– Project construction completion value R869m

– Construction Percentage complete 100%

– Heritage requirements- none

– Environmental requirements- none

• Note separate 3D powerpoint of Kimberley Correctional Centre

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CERES: WARMBOKKEVELD CC

• Basic project information:– Region: Western cape

– Accommodation 500 bed

– Extra bed capacity of 262

– Project tender value R182m

– Construction Percentage complete 47%

– Heritage requirements- retain old prison

– Environmental requirements- none

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Parole Boards: Current Status• Tender Stage (Planning) - 4 Facilities

(Durban x 2, Pietermaritzburg, Zonderwater)

• Construction stage - 15 Facilities

(Baviaanspoort, JHB x 2, PTA, Groenpunt, Lusikisiki, Mthata, Allandale, Drakenstein, George, Helderstroom, Malmesbury, Pollsmoor, Voorberg, Worchester)

• Practical Completion taken - 34 Facilities

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Completion dates

• 2007/2008 – 12 Facilities

• 2008/2009 – 12 Facilities

• 2009/2010 – 23 Facilities

• 2010/2011 – 6 Facilities

(Durban x2, Empangeni, PMB, Odi, Zonderwater, Goodwood).

Parole Boards: Current Status (cont.)

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FOR NEW PROJECTS

• Building Project Advisory Procurement process Committee has been approved by the Commissioner.

• Committee to arrange first sitting and prioritize national needs.

• Prioritized projects to be included in the Building Programme and registered with DPW for implementation when funding is available on MTEF

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MAINTENANCE PROJECTS PROCESS

• Planned Maintenance budget is allocated to NDPW.

• Regions send their priorities to Facilities.

• Head Office reflect priorities to NDPW.

• Final prioritization and approval for project funding is with NDPW.

• DCS Facilities monitors NDPW progress on maintenance projects.

• DCS allocation of NDPW maintenance budget over 2 years have doubled to R630m

• Challenges with maintenance experienced by Regions require intense coordination and monitoring by facilities.

• Limited maintenance funds of NDPW are available to address the backlog maintenance.

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MAINTENANCE PROJECTS PROCESS

• Abuse of excessive replacement of parts by consultants needs to be monitored

• The doubling of the budget also requires additional posts to ensure monitoring of appropriate expenditure.

• Eroding of capital budget by funding required for dilapidation of buildings which then fall in the capital budget funded category and not in the maintenance budget of DPW anymore.

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IMMOVABLE ASSETS MANAGEMENT

• Government-wide Immovable Asset Management Act (GIAMA) of 2007 has been promulgated

• User Asset Management Plan (UAMP) informs Treasury of the infrastructural needs of the department

• Immovable Asset Management System (IAMS) is the system required to manage all DCS assets as per GIAMA.

• Dedicated capacity and appropriate skills is required for the annual UAMP to be prepared for submission to Treasury

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LEASING

• Regions instructs DPW to renew or conclude new lease contracts.

• DPW negotiates with landlords and pays leases, on invoicing DCS pay DPW

• Budget allows for office and residential leases

• Split of lease budget to allow the management of the residential lease by HR separately.

• DCS in process of auditing of leases and contractual records.

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MUNICIPAL SERVICES

• DPW pays the municipalities and claim back from DCS.

• The current budget of R412m appears to be around R70 to 80m short of the expected increase costs for 2009/10 as Treasury’s increase of 9% is not market related to increase of municipal services anticipated.

• Improved monitoring of consumption targets per area will be implemented to reduce municipal costs.

• Additional funding need to be allocated to address expected over-expenditure and to accommodate electricity increases..

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CHALLENGES• Service Level Agreement to be finalised with NDPW, draft to made

available to DCS for consideration.

• DPW execution and service delivery to be improved. NDPW to prioritise cash flow and progress meetings to ensure attendance of Regional Managers

• Long delivery periods for projects (service delivery standards) to be addressed and appropriate responsiveness on emergency projects.

• Audit and delivery of emergency generators to be addressed

• Site clearance delivery times have delayed delivery of projects

• Sufficient funding for new and maintenance projects. Seamless replacement of maintenance projects with new projects. Should avoid long periods day to day maintenance must be used as deterioration of facilities accelerates during these periods, as inexperienced contractors are used to maintain complex installation.

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CHALLENGES Continue • NDPW are still developing a new immovable asset management system as

custodian. DCS needs have not been addressed and records of the function have not been supplied for detail assessment.

• Appointment of consultant project managers to coordinate consultant teams to ensure delivery and detailed reports on major projects

• Challenges are faced with short lease contracts being entered into by NDPW that results in landlords not wanting to extend lease

• NDPW lack of control and incentive on value engineering to ensure value for money on projects. Savings can be extensive if appropriately skilled and experienced consultants are appointed for sophisticated installation for sophisticated installation

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Thank You

Business Unusual: all hands on deck to detain, rehabilitate and

reintegrate offenders for a safer South Africa