DEFENCE WORKS FORMATION Department of Defence Infrastructure Portfolio Presentation to Standing Committee on Appropriations by General Officer Commanding Defence Works Formation RESTRICTED

SCOPE Aim Background Memorandum of Understanding/Service Level Agreement Service Delivery Standards Projects Challenges and Remedial Actions RESTRICTED

AIM To give feedback to the Standing Committee on Appropriations on the issues which were raised during their visit to Bloemfontein. RESTRICTED

BACKGROUND The Standing Committee on Appropriations undertook an oversight visit to Bloemfontein and certain challenges were made visible to them by the visited units. After the visit the Parliamentary Committee invited the DOD to make a presentation in Parliament. RESTRICTED

MEMORANDUM OF AGREEMENT DOD and DPW entered into two Memorandum of Agreement: The first MOA clarifies the relationship between the two Departments with regards to provision of services related to Infrastructure Delivery. The second MOA which is in process intends to transfer the Endowment Property from DPW to DOD. RESTRICTED

SERVICE DELIVERY STANDARDS 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 DW Fmn for facilities which needs to be either refurbished, demolished, constructed or leased in order of priority. RESTRICTED

SERVICE DELIVERY STANDARDS (cont) 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 RESTRICTED

PROJECTS UNDER EXECUTION BY DPW IN FREE STATE PROVINCE S/NO STAGE STAGE DESCRIPTION PROGRAMMES CAPITAL WORKS PROGRAMME REFURBISHMENT PROGRAMME PLANNED MAINTENNANCE   a b c d e 1 3 Pre-design Stage  0 2 3A Pre-design Planning 3B Planning Instruction issued 4 Design Stage 5 4A Funds Approved Stage: Preparation of tender documents 6 4B Tender Stage 7 Tender Recommendation Stage 8 5B Construction Stage 9 6A First delivery 10 Final delivery TOTAL RESTRICTED

FEEDBACK ON PROJECTS IN BLOEMFONTEIN CAPITAL WORKS PROGRAMME S/No Description Registration Status Explanation by Department of Public Works 1 Upgrading of Buildings at Mobilisation Centre 1175,1176,1178,1179,1182,1184&1185 2016/12/19 5B First Delivery inspection was conducted on four buildings in February 2018 and the others were inspected by end March 2018 and were found vandalised. Mora letter was issued to the contractor on the 09 May 2018. 2 Bloemspruit Air Force Base, upgrade and Refurbishment of Sick Bay Complex 2015/06/01 The project is on construction stage. 3 Air Force, upgrading of Water Reservoir in Bloemspruit 2018/06/01 4A Preparation of documents in process. 4 Tempe, 1 SA Tank Regiment: Upgrading of Infrastructure/Facility and Replacement of Kitchen Equipment 2018/09/21 Consultants busy with design documents. Structural Engineer appointment pending. Adjudication Stage RESTRICTED

FEEDBACK ON PROJECTS IN BLOEMFONTEIN CAPITAL WORKS PROGRAMME S/No Description Registration Status Explanation by Department of Public Works 4 Mobilisation Centre, Erection of Protection Walls and Extended Roofing 2011/12/21 7 Final Delivery Stage. This project was delayed for too long. 5 Tempe,1 SA Tank Regiment Upgrading of Infrastructure/Facility and Replacement of Kitchen Equipment 2018/09/21 OHS and Structural Engineer were re-advertised on 05 March 2018. The document for tender was approved and the closing date was 15 May 2018. 6 De Brug, Mobilisation Centre, Area Support Base: Upgrading of Infrastructure/Facility and Replacement of Kitchen Equipment RESTRICTED

PROGRAMME IN BLOEMFONTEIN Explanation by Department of Public Works REFURBISHMENT PROGRAMME IN BLOEMFONTEIN S/No Description Registration Status Explanation by Department of Public Works 1 Tempe,1 Parachute Battalion, Major Refurbishment of Facilities and Civil Services 2015/03/30 6A Project completed. Final delivery was on June 2018. 2 Special Service Battalion, Major Refurbishment of Facilities and Civil Services 2014/09/22 The project completed. It is in the retention phase ending in August 2018. 3 Tempe, School of Armour, Major Refurbishment of Training Facilities: Building No 1030 and 1045(Replacement of Main Auditorium Chiller), Lecture Rooms 1-4 and Sahara Lecture Room) 2016/10/18 Practical completion was taken on the 18 September 2017. RESTRICTED

PROGRAMME IN BLOEMFONTEIN Explanation by Department of Public Works REFURBISHMENT PROGRAMME IN BLOEMFONTEIN S/No Description Registration Status Explanation by Department of Public Works 4 Bloemspruit Air Force Base ,Major Refurbishment of Facilities and Civil Services 2018/06/27 Design stage. RESTRICTED

PROGRAMME IN BLOEMFONTEIN Explanation by Department of Public Works PLANNED MAINTENANCE PROGRAMME IN BLOEMFONTEIN S/No Description Registration Status Explanation by Department of Public Works 1 Repair to Tar Road: Furstenburg, Pappa Britz and Shorty van Der Merwe Streets 7 Final Stage of Delivery. 2 Repair and Maintenance of various Substations, Street Lights in and Around the Base: Group 6 6A In retention phase. PM to confirm Final Delivery Date with Client on site. Contractor busy with retention Items. 3 Repair and Renovation to Building 1,2,5 to 8 and 21 at MPA Tempe 5B Project behind schedule. Contractor busy with replacement of roof of building 21. RESTRICTED

PROGRAMME IN BLOEMFONTEIN Explanation by Department of Public Works PLANNED MAINTENANCE PROGRAMME IN BLOEMFONTEIN S/No Description Registration Status Explanation by Department of Public Works 4 Repair and Renovation to Building 70,81,82,83,95,104,105,107 and 318: Group 5 7 Project went out to tender on 18 May 2018 and will close on 12 June 2018. On evaluation stage. The contractor's price is higher than the estimate. PM negotiating the price with contractor. 5 De Brug Complex: Repairs and Renovations of Sewer System 5B First Delivery was taken on the 15 February 2018. PM expecting Final Account by end August 2018. 6 Bloemspruit Complex; Repairs and Renovations to Sewer System Practical completion was taken on the 10 July 2018. One year retention ending on 09 July 2019. RESTRICTED

PROGRAMME IN BLOEMFONTEIN Explanation by Department of Public Works PLANNED MAINTENANCE PROGRAMME IN BLOEMFONTEIN S/No Description Registration Status Explanation by Department of Public Works 7 Bloemspruit: Children Centre: Upgrading of Facilities The first contractor terminated in 2016 for non performance. The second contractor was terminated on 06/11/2017. Third contractor still to be appointed. RESTRICTED

ARMY SUPPORT BASE BLOEMFONTEIN UNITS PRIORITY PROJECTS S/No Priorities Remarks   a b 1 Refurbishment of Single living - Quarters Block 10 To be registered by the Army as Capital Works Project. 2 Family Married Quarters House 5 in Thaba Nchu House burnt due to electrical fault. Poor Maintenance Plan. 3 Refurbishment of 15 Family Quarters 5 in Tempe, 5 in Bloemfontein and 5 in Thaba Nchu Poor Maintenance Plan. 4 Revamp of Kitchen Equipment including Cold Rooms, Walk-in Fridges, Tiling Equipment and Food Preparation Equipment No Planned Maintenance . DPW to register under Planned Maintenance Programme RESTRICTED

ARMY SUPPORT BASE BLOEMFONTEIN UNITS PRIORITY PROJECTS S/No Priorities Remarks   a b 5 Fencing around Gen De Wet Training Area at De Brug Old Fence Rusted due to lack of maintenance. 6 Security Systems in Tempe military area and DOD Mob High Security Fence (Broekskeer) never maintained. 7 Fuel Replenishment Points - ASB Bfn SSS Lack of pro-active maintenance. Old fuel pumps continuously breaking and on DPW Emergency Maintenance. OHS non-compliant 8 Permanent Accommodation at Shooting Range (General De Wet Training Area) No Planned Maintenance hence the deterioration. 9 The Sewerage and Water Pipe Systems in Tempe Military Base Planned Maintenance Registered. RESTRICTED

UNITS PRIORITY PROJECTS SAMHS (3 MIL HOSPITAL) UNITS PRIORITY PROJECTS S/No Urgent Requirements Remarks   a b 1 DPW to perform an all-inclusive assessment of this facility with the aim to resolve all the inherent structural and design shortcomings Design fault and DPW to correct. 2 Establish a 24 Hour DPW Maintenance Control Room DOD and DPW had agreed to move away from Emergency to deliberate Planned Maintenance Programme in all hospitals and strategic facilities 3 Immediate replace / repair of roofs of the main hospital building as well as the surrounding buildings DPW registered this project 3 years ago and there is no progress 4 Immediate replacing of the Hot Water Storage Vessel (4th Floor) Certificate of Essentiality (COE) was submitted in May 2018 for the Replacement of Hot Water Storage Vessels. Work in process. RESTRICTED

UNITS PRIORITY PROJECTS SAMHS (3 MIL HOSPITAL) UNITS PRIORITY PROJECTS S/No Urgent Requirements Remarks   a b 5 Join the main hospital with a corridor to the Maternity Section Design Problem and requires urgent attention. 6 Total revamp of the Mfezi living - in quarters In and around 8 years ago DPW executed a Refurbishment/Capital Works Project and the roof was not properly design and that resulted in water leaking into the building/rooms. The old sewer system which was built inside the slabs was not replaced during the construction. All the water systems are running through galvanised pipes which need to be replaced. No sufficient power. All the above are as a result of poor or no planned maintenance. RESTRICTED

UNITS PRIORITY PROJECTS SAMHS (3 MIL HOSPITAL) UNITS PRIORITY PROJECTS S/No Urgent Requirements Remarks   a b 7 Service and repair of all air-conditioning systems Lack of Maintenance 8 Urgent replacement of 5 lead reinforced doors at the Radiology Sections. The defective doors were installed by contractors Capital Works Project delivered about 15 years ago with defective doors. Poor Capital Works Project Management 9 Total Security upgrade Poor Design. SAMHS to submit Certificate of Essentiality (COE) 10 Building of an on-site Helipad Design problem. SAMHS to submit Certificate of Essentiality (COE) RESTRICTED

SAAF : AFB BLOEMSPRUIT S/No URGENT REQUIREMENTS RESPONSE a b 1   a b 1 Boundary Wall / Damaged Perimeter Fence Major Refurbishment Project WCS No 052536. Project Registered in 2018/06/27. 2 Security Equipment High Security was never maintained. 3 Fire Detection System Project Registered in 2018/06/27. 4 Re-furbishment of the Officers Mess / Senior NCO Mess / Junior Mess. 5 Partial renovation of married quarters poor workmanship Poor Workmanship 6 Roads 7 Poorly constructed Hanger Facilities Poor Project Management. DPW to correct 8 Aircraft Wash Bay at 87 Helicopter Flying School Lack of Maintenance RESTRICTED

CHALLENGES AND REMEDIAL ACTIONS RESTRICTED

HISTORICAL CHALLENGES BETWEEN DPW AND DOD 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 lead to poor workmanship (poor vetting of consultants/contractors). 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. DPW never put Maintenance Contract in place for Hospitals and Strategic Facilities. 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. RESTRICTED

REMEDIAL ACTIONS 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 S.M. Thobakgale, DPW (now Mr Maroga) which will oversee and report progress to the two DGs. As of the above date, the joint Task Teams meetings are taking place regularly. Cooperation and liaison between the two Departments has improved. DPW has allowed the DOD to work on GIAMA properties. To date the DW Fmn has carried 100 projects in the Free State Province. (see the attached Regional Works Unit Free State Completed Projects) RESTRICTED

REMEDIAL ACTIONS DPW and DOD have agreed on the following with regards 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. DW Fmn will continue to carry out some of the projects in order to assist with the reduction of the backlog. DPW has agreed to improve vetting of consultants and to act swiftly on defaulting contractors. DPW and DOD agreed that the Hospitals and other Strategic Facilities like High Security Fences must be refurbished and have Maintenance Contract in place. RESTRICTED

QUESTIONS/COMMENTS QUESTIONS & COMMENTS RESTRICTED