IFMS presentation to SCOPA. 29 August 2017

Transcription

1 IFMS presentation to SCOPA 29 August

2 Background The Integrated Financial Management System (IFMS) project was approved by Cabinet during 2005 (Cabinet Memorandum 16 of 2005, dated September 2005) as a joint project between the Project Stakeholders (National Treasury, DPSA and SITA). National Treasury Executive Sponsor Policy Owner o FIN and PAY o SCM o Standards Master Data o SCM o FIN Transversal Legacy Systems IFMS DPSA Policy Owner o HRM Master Data o HRM SITA Provide Mandatory Services (Hosting) Provide Technical Advisory Services Acquisition and Integration of Components Support and Maintenance 2

3 Background Continued IFMS-1 solution required comprehensive integration to ensure success. o Integration between modules of IFMS o Applications external to IFMS Programme complexities resulted in delayed programme delivery. o Difficulty of obtaining sufficient skilled resources o Integration of the various components posed a formidable obstacle to the successful and cost effective implementation of the project. Subsequently, three (3) independent external reviews were commissioned Gartner World Bank Ernst and Young World Bank (Apr 2013) Gartner (Jul 2013) Ernst and Young (Jul 2013) Vanilla COTS HR and Payroll modules be comprised of the same COTS; and FIN and SCM modules be comprised of the same COTS. PMO to be established Vanilla single Tier 1 (leading vendor) COTS approach (as its first choice); or deployment of a combination of no more than two Tier 1 COTS modules across the solution. Proposed (implied) a vanilla single COTS approach, based on cost and timelines, as the most viable option. PMO to be established 3

4 Background Continued Cabinet endorsed the revised approach during November o IFMS Program Management Office (PMO) established within NT o Governance structures was strengthened with the establishment of: IFMS Programme Committee (NT, DPSA and SITA) Sub-committees e.g. Risk Committee and Communications Committee Preferred procurement approach was agreed by the IFMS Steering Committee (Oct 2014 ), which included the procurement and implementation of a tier 1 Single COTS ERP for IFMS in a phased manner: Phase 1 Phase 2 Phase 3 Selection of Tier 1 ERP COTS Software and Licenses, including ongoing upgrades and support RFP and RFP Lead Sites Implementation Define solution architecture Initial design and configuration Testing and Go-Live at selected National and Provincial Lead Sites Support and Maintenance Procurement of Infrastructure Next RFP National Roll-out Roll-out IFMS COTS ERP to National and Provincial Departments Support and Maintenance OSM-Governance and Quality Control Future RFP(s) 4

5 PHASE 1: Request for Proposals (RFPs) BID NUMBER RFP 1182/2013 PUBLICATION DATE 20 March 2014 CLOSING DATE 23 April 2014 COMPULSORY BRIEFING 03 April 2014 BID VALIDITY PERIOD 30 Days The purpose of RFP was to invite competent service providers (Bidders) to submit proposals for the provision of a solution for IFMS, based on a TIER 1 ERP COTS for National and Provincial Government (also referred to as Public Service) and its implementation at Lead Sites as well as the maintenance and support thereof for a period of 12 (twelve) months after go-live at the last Lead Site. 5

6 NT requested SITA to issue a tender - 18 March RFP was published on 20 March 2014 and closed on 23 April On 22 April 2014, Oracle (SA) submitted a formal objection: o Response times o Identified lead sites, and o Partner restrictions NT, SITA, DPSA, ENS (legal), and KPMG (probity services) engaged to identify ways of addressing the objection and determine the way forward. On 10 June 2014, the Chairperson s Committee resolved to approve the extension of the IFMS RFP bid period by three (3) months to address the concerns that had been raised by the Bidders. Office of the Accountant General also consulted the Office of the Chief Procurement Officer and National Treasury Legal Services. National Treasury sought legal council to advise on two potential courses of action. o Proceed with the evaluation of the tender, despite Oracle objection o Re-open the tender process, as requested by Oracle Legal Council advised the RFP be cancelled and started afresh 6

7 SITA requested NT to provide direction on how to proceed with the IFMS bid as there has been a significant time lapse since the bid closed and that the bid validity period (120 days) was due to expire. NT responded on 21 July 2014 indicating the integrity of the procurement process may indeed have been compromised and requested SITA to withdraw the tender and start the procurement process afresh. The bid validity period expired on 25 August 2014 whilst contemplating the responses. SITA Recommendation Committee gave notice that RFP had expired. SITA Supply Chain Management made a submission to the SITA Board regarding the expiry of the bid validity period. SITA Board met on 29 October 2014 and approved that a recommendation be made to NT, to cancel RFP1182/2013 as a result of the expiry of the bid validity period. NT accepted SITA Board recommendation to cancel RFP and requested the notice of cancellation be published in the Government Tender Bulletin. 7

8 PHASE 1: Request for Proposals (RFPs) BID NUMBER RFP 1282/2014 PUBLICATION DATE 30 January 2015 CLOSING DATE 30 January 2015 COMPULSORY BRIEFING 05 December 2014 BID VALIDITY PERIOD 120 Days The purpose of RFP was to invite competent bidders (Original Software Manufacturers- OSMs) to submit proposals for the provision of Tier 1 Enterprise Resource Planning (ERP) Commercial-Off-The-Shelf (COTS) Software, including ongoing upgrades and support for this software, for an Integrated Financial Management System (IFMS), for use in the South African Public Service. 8

9 On 14 November 2014 NT requested SITA to issue a tender NT contracted KPMG (3 Feb 2015) to conduct probity services in respect of the IFMS project and procurement process. RFP was published on 28 November 2014 and closed on 30 January NT required an award be issued by the end of March 2015 due to the urgency of the project and to determine budgetary commitments. Compulsory briefing session was held on 05 December Technical evaluation commenced on 04 February 2015 and was concluded on 10 February BEE and pricing evaluation commenced on 12 February 2015 and was concluded on 13 February A SITA SCM made a submission to the Recommendation Committee. SITA Recommendation Committee recommended an initial award on 13 March 2015, in accordance with SITA procurement processes. Subsequently, NT requested that the recommendation be channeled through to SITA Board for tabling; which was done on 21 May

10 On 09 July 2015, National Treasury issued a conditional award to Oracle Corporation (South Africa) indicating that a final award will be made on successful conclusion of contract negotiation. In August 2016, NT informed SITA that the contract was concluded with Oracle Corporation (South Africa). 10

11 Thank You 11 11