BRIEFING ON THE OUTSOURCING OF NUTRITIONAL SERVICES Presented by the CDC : Development and Care Date : 19 August 2008

CONTENT 1.PURPOSE 2.RATIONALE FOR OUTSOURCING 3.THE CONTRACT 4.OBJECTIVES OF THE CONTRACT 5.IDENTIFICATION OF MANAGEMENT AREAS 6. BENEFITS OF OUTSOURCING 7.CHALLENGES OF OUTSOURCING 8.PROGRESS 9.STATUS

TO BRIEF THE PORTFOLIO COMMITTEE ON THE OUTSOURCING OF NUTRITIONAL SERVICES PURPOSE

RATIONALE FOR OUTSOURCING The shortage of officials and overcrowding of Correctional Centres put a lot of strain on the members as well as the facilities and infrastructure. The dining halls could not cater at once for the large number of different categories of inmates often being served from one kitchen. Provisions of the three meals a day system could not be adhered to as per Sect 8(5) of the CSA 111 of 1998.

RATIONALE FOR OUTSOURCING (cont’) The kitchens did not meet the requirements as set out in the Occupational Health and Safety Act and Health Regulations. Food prepared in bulk could not be distributed to the various dining areas in bulk food containers that comply with the minimum health standards. Kitchens were most often in a poor state of repair. Kitchens were not adequately staffed with properly trained officials.

RATIONALE FOR OUTSOURCING (cont’) Programmes specific to a catering environment were not in place nor were they accredited. No proper control measures were in place to prevent theft and mal-administration. DCS did not have a controlled computerized meal planning system

THE CONTRACT Outsourcing of catering services in certain Management Areas to specialist caterers. Monitoring and controlling of contract by DCS Project Officer at each Management Area.

OBJECTIVES OF CONTRACT Serving of three meals per day to inmates. Training of staff and inmates. Serving of meals must not interfere or hamper development and care programmes. Provision of take-away meals.

OBJECTIVES OF CONTRACT Improve palatability of food. Adhere to Health Regulations. Upgrading of kitchens. Maintenance of kitchens and equipment.

IDENTIFICATION OF MANAGEMENT AREAS Seven big Management Areas, viz. Pollsmoor, St Albans, Durban Westville, Johannesburg, Modderbee, Krugersdorp and Pretoria; including Waterval were identified to implement outsourcing due to the above mentioned problems. The total offender population of these management areas was approximately

BENEFITS OF OUTSOURCING The quality of food and related services showed improvement, Food related complaints were drastically reduced, Area Commissioners had sufficient time to focus on their core business and at the same time they had a central point of contact on all matters relating to catering, Most of the kitchen equipment were replaced or upgraded at the beginning of the contract to ensure compliance to relevant legislation with a timeous maintenance of equipment. Smuggling and theft was significantly reduced, by the installation of and use of technology (CCTV Cameras)

BENEFITS OF OUTSOURCING (cont’) Training programmes for staff and offenders were put in place to improve service delivery and ensure compliance to legislation and nutrition related programmes. The service provider appointed a dietician per Management Area to manage Therapeutic Diets and the ARV Nutrition Programme which DCS was not able to do. The service provider has dedicated personnel for both administration and other catering tasks, while DCS had only one official responsible for administrative, food preparation and custodial duties with inadequate time for training of food handlers.

CHALLENGES OF OUTSOURCING Training programmes wrt staff were not successful due to staff shortages and lack of dedicated staff to food service units. Instances of partial service delivery include situations whereby offenders have been re-assigned from the food service units due to possession of illegal substances, or transfer to other correctional units/centres.

CHALLENGES OF OUTSOURCING (cont’) The three meal system was not implemented successfully in all Correctional Centres due to overcrowding and lack of adequate dining facilities except at Johannesburg Correctional Centres Female and Medium C.

Contract HK 2/2004 which was awarded to the service provider for the provisioning of food and related services in seven (7) Management Areas expired on the 31 July The National Bid Adjudication Committee approved the extension of the contract for a period of twelve (12) months from the – The then Acting Commissioner requested that prior to the re-advertisement of the tender a task team be appointed to conduct an audit to evaluate and assess the following: PROGRESS

PROGRESS (cont’) a).The extent to which the Service Provider complied with contractual requirements and whether DCS derived any value for money out of the out-sourcing of the catering services b). Determine the extent to which skills were transferred, i.e. training of both officials and offenders.

c).Provision of three nutritional meals as required by Section 8 of Correctional Services Act. d).The extent to which DCS products were utilized. The task team appointed to conduct the Financial and HR audits as well as the review of the specifications and bid conditions comprised of officials from the Branches Development and Care, Finance, Corporate Services, GITO and Corrections. PROGRESS (cont’)

During this period, the task team reviewed and consulted the specifications. The final reviewed specifications were submitted to the Commissioner for approval on 9 April The HR audit was completed. The full audit could not be finalized within the stipulated period as the value for money audit lacked the capacity and expertise needed for this task. PROGRESS (cont’)

The Commissioner requested that a service provider with the relevant knowledge and financial expertise be appointed to conduct a feasibility study with regards to value for money. However the extended contract was to expire on the 31 July Given that the feasibility study was not done and the fact that the contract was to expire and had to be advertised the Bid Adjudication Committee met on the 4th July 2008 and approved a further extension of the contract for six (6) months from the – PROGRESS (cont’)

STATUS During the six months the specifications and conditions would be reviewed, the advert would be placed on tender, with the necessary compulsory briefing sessions and site inspections concluded. The bids would be evaluated and a bidder/s would be appointed to provide nutritional services to the seven management areas.

STATUS (cont’) The specifications and bid conditions underwent final scrutiny by the task team and was approved by the Commissioner. On the Commissioner’s approval to re- advertise the tender was forwarded to Supply Chain Management who confirmed that it would be published in the Government Gazette on the All other aspects of the project plan would be managed accordingly.

Thank you

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