Performance Bond Providers – Performance Guarantee – BG MT760
PERFORMANCE MONITORING OF SERVICE PROVIDERS 15Assessement... · • Performance Monitoring of...
Transcript of PERFORMANCE MONITORING OF SERVICE PROVIDERS 15Assessement... · • Performance Monitoring of...
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