PERFORMANCE MONITORING OF

SERVICE PROVIDERS

• Introduction

• Objectives of PMSP

• Legislative Framework

• PMSP Process Flow

• Roles and Responsibilities

• Challenges

• Assessment Outcomes Q1-Q4

• Reporting

• Special Notes

• Applicable Templates

PRESENTATION OUTLINE

• What is Performance Monitoring of Service Providers?

• Performance Monitoring of Service Providers is a business practice to

measure, analyse and manage supplier performance to manage risk,

monitor costs, identify performance gaps, drive improvement and

achieve contract outcomes.

INTRODUCTION

OBJECTIVES OF PMSP

• Ensure a high quality of service is maintained

• Detect underperformance early, thereby reducing the risks to projects

• Create mechanisms to improve performance where targets are not being

achieved

• Provide data to municipal officials so that informed decisions can be made

• Assist in government’s developmental objectives in the form of structuring

appropriate business support strategies/interventions to targeted

enterprises

• Assess the suitability of a service provider for pre-qualification, selective

tender lists or expressions of interest

• S 41 of the Municipal systems Act 32 of 2000

• Section 116(2) of the MFMA

• PMSP Policy of 2009

• Section 53 of SCM Policy of 2018

• Blacklisting Policy of 2018

LEGISLATIVE FRAMEWORK &

POLICIES

Quarterly Supplier

Performance

Monitoring

submissions to

SCM (Performance

and Risk

Department)

Close out report is

submitted to

Supply Chain

Management

(P&RM) Section 42

of the SCM Policy

Letter of Award

Site Handover

Contract Supervision

Completion of the Contract

Certificate

PMSP PROCESS FLOW

SCM is entirely dependent on line departments to undertake assessments.

Assessments are undertaken only to those contracts that have been through bid committees and

whose values at the time of award is estimated above R10million

Public Tender Awards schedule is used as a source of extracting contracts due for assessments

Role ResponsibilitiesProject Officer Prepare schedules of contracts due for assessment

Distribute to line departments

Review assessment outcomes for completeness

Report quarterly

Reporting Officer Assessment of service providers (Line Department)

Reviewing Officer Review the assessment of service providers (Line Department)

Senior Manager Review and recommend

Head: SCM Final review and approval

Head: Business Support

Deputy Head: Business Support

Provide intervention for underperforming suppliers

ROLES AND RESPONSIBILITIES

CHALLENGES

PMSP Policy adopted in 2009 yet implementation of the

Policy only started in 2016/17

There are no set consequences if assessment forms are

not submitted

Performance assessment forms not submitted on time

Incomplete assessment forms received

Inconsistent reporting (not receiving assessment forms for

all quarters)

Assessment forms captured manually

24

250

186

16

0

50

100

150

200

250

300

Poor Accepted Outstanding Blanks Close-outReport

Received

Q1_ASSESSMENTS OUTCOME

372314

58

Q1_TOTALS

Total No. of Contracts

Due for AssessmentTotal No. of

Assessments Outcome

Assessment Not received

ASSESSMENT OUTCOMES - Q1 OF 2017/18

23

198

121 70

50

100

150

200

250

Poor Accepted Outstanding Blanks Close-outReport

Received

Q2_ASSESSMENTS OUTCOME

355241

114

Q2_TOTALS

Total No. of Contracts

Due for AssessmentTotal No. of

Assessments Outcome

Assessment Not received

ASSESSMENT OUTCOMES – Q2 OF 2017/18

23

251

190

27

0

50

100

150

200

250

300

Poor Accepted Outstanding Blanks Close-outReport

Received

Q3_ASSESSMENTS OUTCOME

356

320

36

Q3_TOTALS

Total No. of Contracts

Due for AssessmentTotal No. of

Assessments Outcome

Assessment Not received

ASSESSMENT OUTCOMES – Q3 OF 2017/18

16

237

21

0

22

0

50

100

150

200

250

Poor Accepted Outstanding Blanks Close-outReport

Received

Q4_ASSESSMENTS OUTCOME

306296

10

Q4_TOTALS

Total No. of Contracts

Due for AssessmentTotal No. of

Assessments Outcome

Assessment Not received

ASSESSMENT OUTCOMES – Q4 OF 2017/18

REPORTING

• Audit Committee

• MPAC

PMSP Module

• eThekwini Municipality appointed a Service Provider in July 2018 to develop a Module that will allow users to capture assessments online

• The system has been developed and testing is currently underway

• Implementation date is February 2019

• What gets measured, gets done

• If you do not measure results, you cannot tell success from failure

• If you cannot see success, you cannot reward it

• Likewise, if you can’t see success, you cannot build from it

• If success is not rewarded, it is probable that failure is

• If you cannot recognise failure, you cannot correct it

• If you can demonstrate results, you can change perceptions and win support!

SPECIAL NOTES ON PERFORMANCE MONITORING

• S53 of SCM Policy- hyperlink to usb

• Assessment form for Performance Monitoring of Service Providers

hyperlink to usb

APPLICABLE TEMPLATES

THANK YOU