Introduction to Central Services Branch

1
DCS PORTFOLIO COMMITTEE PRESENTATION NEW
CORRECTIONAL CENTRES
Introduction to Central Services Branch Building
a caring correctional system that truly belongs
to all
Date19 February 2008
2
CONTENTS

• General background on building New Facilities
• 8 New Facilities
• Confirming information shared with Portfolio
  Committee
• Value for Money
• Risks transfer
• Managing Risks and Integrity
• Current status and Project Phases
• Status of Kimberley Correctional Centre.

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GENERAL BACKGROUND ON BUILDING NEW FACILITIES

• Department identified the need for building new
  facilities in 2002
• Building was to be undertaken in two phases
  subjected to the Prototype Design (completed in
  2004)
• First phase following 4 sites identified
• Leeuwkop (Sandton).
• Nigel.
• Klerksdorp.
• Kimberley.
• Second phase following 4 sites
• Polokwane.
• Paarl (Allandale).
• Port Shepstone.
• East London.

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CONFIRMING INFORMATION SHARED WITH PORTFOLIO
COMMITTEE

• Leeuwkop Correctional Centre was stopped due to
  Environmental Impact Assessment recommendations.
  The project has been suspended till the outcome
  of the viability study undertaken by Department
  of Public Works is available.
• Polokwane site identified, could not be acquired
  at a reasonable market value, which considerably
  delayed the project and was excluded
  provisionally from the rest of the projects.
• Continue..

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CONFIRMING INFORMATION SHARED WITH PORTFOLIO
COMMITTEE (Continue1)

• A feasibility study report was presented to the
  Portfolio Committee on 6 November 2007
• Report provided for Nigel and Klerksdorp
  Correctional Centres that were added to the
  remaining three which resulted in feasibility
  studies for five centres

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VALUE FOR MONEY

• The Transaction Advisor recommended in the
  feasibility study that the PPP procurement option
  is best value for money. This was determined
  based on the Regulation 16 process that was
  followed
• Feasibility and Options Analysis performed on a
  specified and pre-agreed output specification
  indicated that
• PPP is best option in terms of
• Value for Money
• Risk Transfer and
• Affordability.

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RISKS TRANSFER

• Construction risks transferred to private party.
• (Management of delays and cost overruns by
  private party)
• Facilities management (maintenance of facilities
  and return after 25 years of operation in good
  condition by private party).
• Management of operations
• Security risks
• Health risks
• Provision of programmes risks (education,
  corrections, social skills, etc)

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MANAGING RISKS AND INTEGRITY

• Every participant in the government signs
  Confidentiality Contract, Code of Conduct and
  Declaration of Interests including Transaction
  Advisor.
• Vetting process of all evaluation members.
• Continuous auditing both by internal and external
  auditors.
• Separation of responsibilities of evaluation
  between three tiers of evaluation committees.

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CURRENT STATUS AND PROJECT PHASES

• Scope
• Each Centre providing 3000 beds.
• Category Medium and Maximum offenders.
• Contract Term 2 Year construction 25 years
  opera- tions.
• Compliance with Broad Based Black Economic
  Em-powerment (BBBEE).
• Request For Qualification (RFQ) bids closed on 10
  December 2007 for five new PPP Correctional
  Centres.
• Responses received five bidders for each of the
  project.
• No late submissions for RFQ received.
• Bid Evaluation is in progress.

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CURRENT STATUS AND PROJECT PHASES

• RFQ Evaluations to be completed by end April
  2008.
• Request for Proposal (RFP) documents to be issued
  shortly after RFQ evaluations complete and
  short-list announced.
• RFP submissions expected back September 2008.
• Whole process in terms of PPP regulations,
  Regulation 38 of PFMA and DCS Supply Chain
  Management.
• Process to be verified continuously by DCS
  Internal Audit.

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STATUS OF KIMBERLEY CORRECTIONAL CENTRE

• Aerial photo of the construction of New
  Kimberley Generation Correctional Centre.

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STATUS OF KIMBERLEY CORRECTIONAL CENTRE (Continue
1)

• Background
• Kimberley is the first of the original eight (8)
  to be built with
  a capacity of 3000 offenders.
• Construction information.
• Tender from Grinaker-LTA/Keren Kula R662 343
  119
• Site Hand over date 14 Nov. 2006
• Contract period 24 months
• Original completion date 14 Nov.
  2008
• Extended completion date Feb. 2009
• Percentage work completed 35.00
• (As on the 31 January 2008)

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STATUS OF KIMBERLEY CORRECTIONAL CENTRE (Continue
2)
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STATUS OF KIMBERLEY CORRECTIONAL CENTRE (Continue
3)

• Labour force.
• Total workforce 1172
• Present Local Labour workforce component
  1099
• Present ex-offender workforce
  137
• National Youth Service 90
• Present female workforce component
  91
• Present HDI workforce (14 contractors)
• Contract Participation Goal of total contract
  29.79

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STATUS OF KIMBERLEY CORRECTIONAL CENTRE (Continue
4)

• Detail on cost of project.
• Contract price excluding VAT R 581
  million
• Contract Price Adjustment Provision
• (escalation) R 100
  million
• VAT R 96 million
• Budget allowed for project R 810 million
• (includes 5 allowance for unforeseen costs)

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QUESTIONS? THANK YOU Renewing our Pledge A
National Partnership to Correct, Rehabilitate and
Reintegrate Offenders for a safer and secure
South Africa