DEFENCE WORKS FORMATION

DEFENCE WORKS FORMATION RESTRICTED

SCOPE • Aim • Mandate • Vision • Mission • Current Structure • Portfolios • Portfolio 1 • The process followed • Projects under execution by DPW • Planned Projects RESTRICTED

SCOPE • Historical Challenges • Historical challenges on Refurbishment/Capital Works projects • Historical challenges on Leasing and Municipal Services • Historical challenges on Accommodation Charges • Intervention by Sec Def and DG DPW • Progress after the DG meeting of 13 April 2017 • 1 Military Hospital • Portfolio 2 • Own Resource Projects RESTRICTED

SCOPE • Main Strength • Main Weak Points • Question / Comments RESTRICTED

AIM To discuss challenges/progress with regard to maintenance and repair of facilities in the DOD RESTRICTED

MANDATE To provide the Department of Defence with the following capabilities to manage its facilities: • Facility Management. • Real Estate Management. • Maintenance and Repair. • Construction. • Military Integrated Environmental Management. • Facility Integrated Skills Development. • Staff Support Services. RESTRICTED

VISION Defence Works Formation provides Efficient, Effective & Economical Facility Management, supporting the Strategy & Core Objectives of the Department of Defence (DOD) RESTRICTED

MISSION The Defence Works Formation will provide an Appropriate, Ready and Sustained Facility Management Capability to the DOD by means of Integrated Systems for Real Estate Management, Maintenance, Construction, Military Integrated Environmental Management Service and a system for Facility Education, Training and Development. RESTRICTED

CURRENT STRUCTURE DW FMN GOC DW FMN WORKS SKILLS WORKS OPERATIONS DEV ( WSD ) STAFF SUPPORT SERVICES DW FMN PROGRAMME DW RESEARCH INTEGRATION INTEGRATION & DEVELOPMENT SERVICES SERVICES LEVEL 3 DW FMN LOGISTICS FIN SUPPORT INTEGRATION SUPPORT SERVICES DW FMN HR SERV REAL ESTATE FACILITY SERVICES SERVICES MANAGEMENT CONSTRUCTION DW INTEGRATED DW FMN SIGNAL SERVICES MAINTENANCE ENVIRONMENTAL CIMS & REPAIR MANAGEMENT SERVICES WSD WSD STRATEGY & SERVICES PLANNING WSD POLICY & WSD MONITOR PTSR LEGAL CHAPLAIN CORP INSTRUCTIONS & CONTROL SERVICES SERVICES SERVICES COMM WSD WSD PROG WSD WSD CONTRACT DEVELOPMENT LIAISON SUSTAINMENT MNGMNT LEVEL 4 9 x Region 1 x Works 1 x Works Training 1 x Formation Maint & Repair Units Contruction Unit School Headquarters unit

PORTFOLIOS • The DW Fmn is managing two portfolios, viz: Portfolio 1: Management of projects executed by DPW. Portfolio 2: Own Resource Projects executed by DW Fmn. RESTRICTED

PORTFOLIO 1 • In this portfolio the DW Fmn collate information within the DOD, submit it for execution by DPW and monitor progress. RESTRICTED

THE PROCESS FOLLOWED • The process followed to manage projects executed by DPW: • Defence Works Capability undertakes a yearly planning process of updating the User Asset Management Plan (UAMP). • UAMP is a planning document which is informed by the inputs from Services/Divisions in accordance with their Force Support, Force Preparation and Force Employment facility requirements for the MTEF. • Services/Divisions are required to submit the Certificate of Essentiality (COE) to the Defence Works Formation (DW Fmn) for facilities which needs to be either refurbished, demolished, constructed or leased in order of priority. RESTRICTED

THE PROCESS FOLLOWED • DW Fmn uses UAMP to compare the needs and go through a prioritisation process together with Services/Divisions and produce the DOD priority list which is then given to DPW for execution. RESTRICTED

THE PROCESS FOLLOWED • Ordinarily projects registered with DPW are of the magnitude which takes a minimum of 24 months to complete. • To control the projects DW Fmn uses stages to determine whether there is progress or not. • Once the DW Fmn realises that the project is not progressing from one stage to another, DW Fmn will lodge a formal complain at the established forums up to the Director General (DG) level. RESTRICTED

PROJECTS UNDER EXECUTION BY DPW • Registered projects with DPW RESTRICTED

PLANNED PROJECTS • Projects to be registered with DPW RESTRICTED

HISTORICAL CHALLENGES The following are historical challenges which the DOD experienced wrt projects executed by DPW and this has necessitated an intervention by Sec Def and DG DPW : • In identified circumstances the appointment of consultants and contractors by DPW. • No immediate remedial action against contractors on poor workmanship. • Turnaround time on Projects is too long. • At the time DPW has not responded to DOD’s request to allow DOD to execute projects on GIAMA property. RESTRICTED

HISTORICAL CHALLENGES ON REFURBISHMENT/CAPITAL WORKS PROJECTS RESTRICTED

HISTORICAL CHALLENGES ON LEASING AND MUNICIPAL SERVICES • The DOD has elected to have the DPW to administer the Municipal Services and Leases since there was no sufficient structure to render the services in the DOD. • It was found that DPW is processing the municipal accounts and leases for DOD payments without conducting proper verification. RESTRICTED

HISTORICAL CHALLENGES ON ACCOMMODATION CHARGES • Accommodation Charges is a devolved budget from National Treasury. • Annually the DPW is being given up to R1bn. • DPW must use this budget to fund the Day-to-Day Maintenance, Planned Maintenance and Rates and Taxes for the DOD. • DPW has annually underperformed on the Planned Maintenance Programme notwithstanding the budget was prepaid quarterly. • The strategy from the DW Fmn is to ensure the following related to Accommodation Charges: • DPW to make visible what Planned Maintenance Programme they are going to undertake for the MTEF in order to allow DW Fmn to monitor progress. RESTRICTED

HISTORICAL CHALLENGES ON ACCOMMODATION CHARGES • DPW failed to adhere to their promise to fix the leaking roof at 1 Mil Hospital using accommodation charges before the rainy season of 2017. • DPW has failed to consistently maintain boilers, chillers, ventilators in theatres etc. at 1 Mil Hospital resulting in outsourcing of services to private sector. • DPW must ensure that the budget that is provided to DPW as Accommodation Charges are fully utilized to address the facilities. RESTRICTED

INTERVENTION BY SEC DEF & DG DPW • On 13 April 2017 Sec Def met DG DPW to advise on the above-mentioned frustrations. • The following decisions were taken: Establishment of the Strategic Management Task Team led by Maj Gen M.J. Ledwaba (DOD) and Mr M.S. Thobakgale (DPW) which will oversee and report progress to the two DGs RESTRICTED

PROGRESS AFTER THE DG MEETING OF 13 APRIL 2017 RESTRICTED

PROGRESS AFTER THE DG MEETING OF 13 APRIL 2017 • The DW Fmn has conducted a pilot project to conduct verification on accounts received from DPW and currently Rm460 (Municipal) and Rm53 (Leases) are disputed with DPW. (NB: DW Fmn has proposed that a section be created within its structure to take over this function). (DOD concurs) • A Pilot project is established to finalize verification and method of reimbursing the DOD. DPW have in principle agreed to provide DOD with credit note once they have finalized their internal processes. RESTRICTED

1 MILITARY HOSPITAL MAINTENANCE CHALLENGES • Letter from GOC 1 Military Hospital dated 15 December 2016: • Appointed electrical contractor was not qualified to work on medium voltage installations and a second electrical contractor was appointed. • Contractors were appointed for a period of six months only. • Under-payment by DPW limited the maintenance work conducted by maintenance contractors. • Routine maintenance work is currently not performed. DPW only approves emergency repairs. • Regional Office of DPW confirmed during a meeting on 4 Nov 16 that they experience a shortage of funds. • Procedure to get approval for any maintenance need is a very lengthy process resulting sometimes in more damage – water overflow into adjacent rooms. RESTRICTED

1 MILITARY HOSPITAL • MAINTENANCE CHALLENGES (cont) • Maintenance challenges experienced on the following: • Passenger Lifts. • Boilers. • Main Steam Line. • Air Conditioning system. • Electrical Installations. • Fire Detection & Suppression Systems. • Medical Air Plant. • General Building maintenance. RESTRICTED

1 MILITARY HOSPITAL • MAINTENANCE CHALLENGES (cont) • Members at 1 Military Hospital sign off job cards presented by the maintenance contractors. Hours to perform maintenance are excessive: • 13 Hours to repair a leaking toilet. • 6 Hours for unblocking a blocked toilet – only drain cleaner used to unblock the drain. • 90 Hours claimed to replace a pneumatic valve that was actually replaced by a specialists sub-contractor in half a day. RESTRICTED

1 MILITARY HOSPITAL • CURRENT MAINTENANCE STRATEGY • DPW follows a re-active day-to-day maintenance strategy and recently only repair what they consider to be emergency maintenance: • Risk of collapse of systems. • Safety risks to patients. Condition Deterioration Emergency Maintenance Current Time

1 MILITARY HOSPITAL • AGREED UPON MAINTENANCE STRATEGY • Systems need to be refurbished to comply with new medical and technology requirements. • A pro-active maintenance strategy to be implemented after systems have been refurbished. Condition Deterioration Refurbishment Maintenance Current To Be Time

PORTFOLIO 2 PROJECTS EXCECUTED BY DW FMN • The Defence Works Formation has carried out a number of projects in the past Financial Years and it has planned a number of projects for this Financial Year and beyond. • Although a lot of progress has been made there are persistent challenges which are hampering progress. • The DOD remain seized with this problem and it is getting attention at the highest possible level. RESTRICTED

OWN RESOURCE PROJECTS RESTRICTED

MAIN STRENGTHS • Artisan Training Capability – Capacity Building Program. • 988 Qualified Artisans & 670 Artisans under training in various constructions disciplines plus 461 Factotum. • Mentoring and coaching for Artisans – practical skills development. • Signed MOA for the devolvement of endowment property from DPW to the DOD – position for take over & skills transfer. • Ability to execute maintenance & repair projects utilising own capability – own resource projects. RESTRICTED

MAIN WEAK POINTS • Slow procurement process for construction materials – This delays completion of projects. • Inadequate structures to support DW Mandate : This result in the following: • No construction Professionals such as Architects, Quantity Surveyors, Civil Engineers, Artisan Aids, OHS Practitioners etc. • Lack of Artisan Aids– Which leads to Artisans having to work without support. • Lack of HR Practitioners– Which leads to inefficient HR management. RESTRICTED

MAIN WEAK POINTS • Lack of Log Support– Which leads to poor stock account capabilities. • Lack of Legal Officerto manage projects. • Lack of Artisans Career Dispensation - Career Management System & Remuneration System. • Slow progress with migration from manual to automated systems, eg Facility Management. System, CALMIS, etc – compromised data integrity, poor accounting & discrepancies on records. • Non-availability of ready DOD facilities - office space, storage, warehousing & workshop/training areas. • Non-compliance to OHS regulations. RESTRICTED

QUESTIONS/COMMENTS QUESTIONS & COMMENTS RESTRICTED

DEFENCE WORKS FORMATION