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Framework For Infrastructure Delivery and Procurement Management 2019
Framework For Infrastructure Delivery and Procurement Management 2019
May 2019
FOREWORD ............................................................................................................................................................ II
1. SCOPE ............................................................................................................................................................ IV
3. ABBREVIATIONS ............................................................................................................................................ VI
i May 2019
Foreword
Government has a vision to create opportunities for social and economic growth through
infrastructure investment. In 2002, the National Treasury conducted a review of provincial service
delivery systems with the intention to enhance infrastructure delivery. The review recommended,
amongst others, that a framework be developed to guide and structure the management of
infrastructure delivery. In order to address issues and gaps identified in the aforementioned review,
the Infrastructure Delivery Improvement Programme (IDIP) was established. It was within this
programme that the concept of the Infrastructure Delivery Management System (IDMS) was
developed. The IDMS was later adopted as the chosen government wide system for infrastructure
delivery.
In order to establish a common approach to infrastructure delivery across all organs of state, the
National Treasury adopted the Standard for Infrastructure Procurement and Delivery Management
(SIPDM). In order to give effect to the SIPDM the following guidelines were issued:
• Treasury Instructions Notes No. 4 of 2015/16 in terms of Public Finance Management Act
(PFMA); and
• Circular 77 for Model Supply Chain Management (SCM) policy for infrastructure
procurement and delivery management.
In the process of implementing and institutionalizing the SIPDM, various institutions expressed
concerns regarding certain aspects in the SIPDM, which imposed operational challenges. This was
further compounded when the Preferential Procurement Regulations, 2017 were promulgated and
effected, resulting in conflict between the SIPDM and Regulations.
The National Treasury, in consultation with relevant stakeholders, conducted the SIPDM review,
which resulted in the Framework for Infrastructure Delivery and Procurement Management
(FIDPM). The FIDPM prescribes minimum requirement for effective governance of infrastructure
delivery and procurement management.
ii May 2019
Introduction
The Framework for Infrastructure Delivery and Procurement Management (FIDPM) is primarily
focused on governance decision-making points as well as alignment and functions to support good
management of infrastructure delivery and procurement processes.
The IDMS Diagram shown in Figure 1 above, depicts the structure and relationships between the
different elements of the IDMS, is. The inner interconnected circles represent the core legislative
requirements of the IDMS, namely, asset management, planning and budgeting, and supply chain
management. Infrastructure Delivery Management (IDM) comprises portfolio, programme,
operations, maintenance and project management processes. Performance and risk management
are integrated in the IDM processes, while the outer circle represents the institutional system that
provides organisations with guidance on a generic approach towards building an institutional system
to effectively implement the IDMS.
1.2. The Framework prescribes minimum requirements for the implementation of the IDMS through the:
1.3. This Framework specifies the allocation of clear responsibilities for performing activities and making
decisions at control points, stages and procurement gates.
1.4. This Framework promotes the concept ‘value for money’ by organs of state throughout all the
Infrastructure Delivery Management and Infrastructure Procurement Management processes and
activities to promote optimal use of resources to achieve the intended outcomes.
Contract management: Applying the terms and conditions, including the agreed procedures for
the administration thereof.
Contractor: Person or organisation that contracts with the employer to provide goods or services
or any combination thereof covered by the contract.
Gate: A control point at the end of a process where a decision is required before proceeding to the
next process or activity.
Gateway review: An independent review of the available information at a gate upon which a
decision to proceed to the next process, or not, is based.
iv May 2019
Infrastructure:
a) Immovable assets, which are acquired, constructed or result from construction operations;
or
b) Movable assets, which cannot function independently from purpose-built immoveable
assets.
Infrastructure delivery: The combination of all planning, technical, administrative and managerial
actions associated with the construction, supply, refurbishment, rehabilitation, alteration,
maintenance, operation or disposal of infrastructure
Infrastructure Delivery Management System: The government management system that guides
and enables infrastructure delivery in the Public Sector.
Maintenance: All actions intended to ensure that an asset performs a required function to a specific
performance standard over its expected useful life by keeping it in as near as practicable to its
original condition, including regular recurring activities to keep the asset operating but specifically
excluding renewal.
Package: Work grouped together for delivery under a single contract or an order.
Procurement strategy: Selected packaging, contracting, pricing and targeting strategy and
procurement procedure for a particular procurement.
Project: A unique set of processes consisting of coordinated and controlled activities with start and
end dates, performed to achieve the project objective.
Stage: A collection of periodical and logically related activities in the Project Management Control
Stages that culminates in the completion of an end of stage deliverable.
Statutory permission: Any relevant approval, consent or permission in terms of any legislation
required to plan and deliver the infrastructure.
v May 2019
3. ABBREVIATIONS
CP Control Points
vi May 2019
4. NORMATIVE REFERENCES
The following referenced Acts of Parliament are indispensable for the application of this document:
• Constitution of the Republic of South Africa, 1996 (Act No. 108 of 1996)
• National Archives and Record Services of South Africa Act, 1996 (Act No. 43 of 1996)
• Project and Construction Management Professions Act, 2000 (Act No. 48 of 2000)
1 May 2019
4.3 Standards
b) Portfolio, Programme, Operation & Maintenance processes are typically cyclical and performed in
phases and are reviewed and updated on an annual basis.
c) The Portfolio, Programme, Operation and Maintenance phases contain key Control Points (CP) at
which the associated phase deliverable that needs to be approved. The phase may only continue
beyond the control point once the phase deliverable has been approved by the person or body
designated in the institutional policy arrangements to do so.
d) Project processes are typically linear, meaning a project process is performed in stages from start to
completion.
e) The project stages contain gates at the end of each stage at which the associated stage deliverable
needs to be approved. The project may only continue beyond the stage gate, in accordance with the
approved contracting arrangements, once the stage deliverable has been approved by the person or
body designated in the institutional policy arrangements to do so.
2 May 2019
Figure 2: The IDM Process Diagram
Cyclical
phases are
applicable to
Portfolio,
Programme
and
Operations
and
Maintenance
Linear stages
are applicable
to Projects
f) The Portfolio phases that outline and describe the annual, cyclical, repetitive processes in the
management of a portfolio of infrastructure assets are:
(v) Improvement.
g) The Programme phases that outline and describe the annual, cyclical, repetitive processes in the
management of a programme of infrastructure assets are:
(i) Initiating;
(ii) Defining;
(iii) Managing;
3 May 2019
(iv) Review; and
(v) Improvement.
h) The Operations & Maintenance (O&M) phases that outline and describe the annual, cyclical, repetitive
processes of a facility or an infrastructure asset network are:
(i) Planning;
(ii) Implementation;
(iv) Improvement.
(i) Initiation;
(ii) Concept;
(v) Works;
(vii) Close-out.
4 May 2019
5.1 Portfolio Processes
b) Table 1 below outlines the minimum requirements of the Infrastructure Asset Management Plan
(IAMP) as a control point deliverable that must be developed, updated annually and approved by a
delegated person or body in an institution.
(i) The long-term plan that outlines the asset activities and resources
required, to provide a defined level of service, in the most cost-
effective way. The plan must include a list of programmes and
projects for a period of at least five years.
5 May 2019
5.2 Programme Processes
(i) The IPS shall include a list of programmes and projects covering the
prescribed planning period and include the following minimum contents:
a) Delivery Plan
b) Contracting Arrangements
c) Procurement Arrangements
6 May 2019
Programme Phase Deliverables
(i) The IPMP must specify how the infrastructure programme will be executed,
monitored and controlled over the planned Medium-Term Expenditure
Framework (MTEF) period.
(ii) The IAMP must inform the development of the IPMP, with respect to
describing the infrastructure programmes and projects that will be executed,
monitored and controlled over the planned MTEF period. This will ensure that
all programmes implemented over the MTEF period are aligned with broader
strategic objectives of government.
(iii) The IPMP documents the deliverables to be achieved by each party in
accordance with the designated roles and responsibilities defined in the
agency agreement where applicable.
(i) The IPIP must specify how the infrastructure programme will be executed,
monitored and controlled over a specified financial year and the outer two
years that make up the planned Medium-Term Expenditure Framework
(MTEF) period.
(ii) The IPMP must inform the development of the IPIP, with respect to describing
the infrastructure programmes and projects that will be executed, monitored
and controlled over the planned MTEF period. This will ensure that all
programmes implemented over the MTEF period are aligned with broader
strategic objectives of government.
(iii) The IPIP documents the deliverables to be achieved by each party in
accordance with the designated roles and responsibilities defined in the
agency agreement when applicable.
7 May 2019
Programme Phase Deliverables
(i) The EoY Report must be consistent and aligned to the IPMP. The report must
specify the:
c) Impact that the previous year’s performance will have on planning and
implementation on the next and subsequent year’s delivery.
The control point deliverable is complete when the End of Year Report is
approved.
8 May 2019
5.3 Operations and Maintenance Processes
a) The infrastructure delivery Operations and Maintenance processes are shown in Figure 5
below.
(ii) These updates are required on completion of work carried out on the
infrastructure assets i.e. acquisition, construction, renewal,
maintenance and disposal.
(i) The OMP contains the Operations Work Schedules with the
organizational structure and institutional arrangements for the
planning, implementation, monitoring and controlling of all operational
activities.
a) Operating procedures;
9 May 2019
Operations and Maintenance Phase Deliverables
b) Scheduling activities;
c) Emergency procedures;
b) Scheduling of activities;
10 May 2019
Operations and Maintenance Phase Deliverables
11 May 2019
5.4 Project Processes
b) Table 4 below outlines the control point deliverables as minimum requirements that to be
developed, updated annually and approved by a delegated person or body in an institution
Or
12 May 2019
Stage Project Stage Deliverables
b) Establish the detailed brief, scope, scale, form and cost plan for
the project, including, where necessary, the obtaining of site
studies and construction and specialist advice.
g) Contain a risk report linked to the need for further surveys, tests,
other investigations and consents and approvals, if any, during
subsequent stages and identified health, safety and
environmental risk.
13 May 2019
Stage Project Stage Deliverables
• An options analysis.
• A financial analysis.
• Institutional capacity.
• A procurement plan.
14 May 2019
Stage Project Stage Deliverables
6 Handover Works which have been taken over by user or owner; completed
training; Record Information
15 May 2019
Stage Project Stage Deliverables
(i) The Close-Out Stage commences when the end user accepts
liability for the works. It is complete when:
a) Record information is archived;
a) The IDM Project Processes should be implemented in accordance with the following
principles:
(i) Procurement of PSPs and Contractors can occur at different points in the project
stages.
(ii) It should be noted that additional stages may be added to the prescribed stages, if
deemed necessary. Such stages could include, for example, those necessary to
ensure that project activities are appropriately carried out and stages linked to contract
16 May 2019
activities, would, in many instances, be contingent upon the requirements of the
(iii) When reporting a specific project’s progress using the project stages, it is important
to emphasise that when the project is shown as being in a specific stage, it is the
deliverable of the previous stage that has been achieved and which must be reported
on. For example, if a project is shown as being at Stage No. 3 (Design Development),
it implies that the deliverable for Stage No. 2 (i.e. the Concept Report) has been
achieved, and that the deliverable for Stage 3 (i.e. the Design Development Report)
(iv) Where Organs of state who engage another organ of state to provide agency services
shall develop a service delivery agreement that should outline the roles and
responsibilities for each organ of state which creates a relationship between a client
cooperative and consultative manner between both parties (i.e. between Client and
Implementer). All deliverable must be developed and signed off as per their service
delivery agreement.
17 May 2019
5.5 Gateway Reviews
(i) In terms of section 38 and 51 of the PFMA (Act 1 of 1999), the Accounting Officer or
authority must ensure that the department, trading entity, constitutional institution or
public entity has and maintains a system for properly evaluating major capital projects
prior to a final decision on the project.
(ii) This framework prescribes the gateway review at the end of stage 2 as the minimum
requirement to comply with section (i) above.
(iii) The focus of such a review shall be, in the first instance, on the quality of the
documentation, and thereafter on:
(iv) A gateway review team shall comprise not less than three persons who are not
involved in the project associated with the work covered, and are familiar with various
aspects of the subject matter.
(v) A gateway review shall be led by a person who has experience in the planning of
infrastructure projects and is registered as a professional with a statutory council
under the built environment professions. The members of the team shall, as relevant,
have expertise in the key technical areas, cost estimating, scheduling and
implementation of similar projects.
(vi) It is the duty of the institution’s Accounting Officer or Authority to appoint a team
responsible for the gateway review of his or her institution.
(vii) The gateway review team shall base its findings primarily on:
18 May 2019
(viii) The gateway review team shall issue a report at the conclusion of a gateway review,
which indicates the team’s assessment of the information at the end of a stage and
provides findings or recommendations on areas where further work may be
undertaken to improve such information.
(ix) The gateway review findings shall be classified by the gateway review team as:
a) Critical: Findings that pose adverse effect to the project or package. Critical
findings are wholly unacceptable.
b) Major: Findings that pose a potentially adverse effect to the project or package.
Major findings are serious findings and are in direct violation of key legislation,
e.g. The Constitution of the Republic of South Africa, 1996; the PFMA or the
PPPFA.
c) Minor: Findings not to posing any adverse effect to the project or package. Minor
findings indicate the need for improvement of practices and processes.
(x) A Stage 2 deliverable shall not be approved until such time that all critical findings
have been addressed.
(xi) An organ of state shall submit, on quarterly basis, a list of gateway reviews undertaken
in a prescribed format to the relevant treasury and national departments.
(i) A relevant Treasury may at any time institute a gateway review of any of the end-of-
stage deliverables associated with the IDM project processes, irrespective of the
estimated cost of a project. The focus of such a review shall be determined by the
relevant Treasury. The associated institution accountable for the project shall be
notified of the review and its focus at least three weeks prior to the conducting of the
review.
(ii) A relevant National Department may institute, at any time, a gateway review of any of
the end-of-stage deliverables associated with the IDM project processes, irrespective
of the estimated cost of a project. The focus of such a review shall be determined by
the relevant National Department. The associated institution accountable for the
project shall be notified of the review and its focus at least three weeks prior to the
conducting of the review.
19 May 2019
6. FRAMEWORK FOR INFRASTRUCTURE PROCUREMENT
6.1.4 Given the peculiarity of the institution, the procurement of Professional Service
Providers (PSPs) and Contractors can occur at any points in the IDM Processes.
6.1.5 The Accounting Officer or Accounting Authority must ensure that a budget is
available and cash flow is sufficient to meet contractual obligations and pay
contractors within the time period provided for in the contract.
6.1.7 The authorisation to proceed to the next procurement gate must be given by a
delegated person or body. The delegated person or body must be able to apply the
knowledge and skill to achieve intended results required at the relevant procurement
gate. The level of detail contained in the documentation upon which a decision to
proceed to the next procurement gate, must be sufficient to enable an informed
decision.
6.1.8 The Accounting Officer or Accounting Authority must develop and implement
effective and efficient emergency procurement procedures, including relevant
approval delegation, to safeguard the institution from:
20 May 2019
b) Consequential damages which could result in loss of life and or serious damage
to property;
6.1.10 The Accounting Officer shall, in a manual or electronic format, keep records of
Procurement Gate Approvals with the following minimum requirements:
a) Procurement gate;
21 May 2019
6.2 Infrastructure Procurement Gates
3) Ascertain a title for the procurement for the purposes of project identification.
22 May 2019
b) Minimum requirements for PG 3:
2) Establish control measures for payment of contractors within the time period
provided for in the contract.
23 May 2019
b) Minimum Requirement for PG 6:
a) Administer the contract and confirm compliance with all contractual requirements.
24 May 2019
c) PG 8 is complete when a delegated person captures contract
completion/termination data.
25 May 2019