PROJECT DETAILS
SPECIFICATION AND SCOPE OF WORK
INTRODUCTION
The client seeks submissions from suitably qualified service providers to configure SAP Project
system for various Departments. The SAP system is currently used by most departments in the
province. Government has identified infrastructure delivery as one of the key mechanisms to
enhance socio-economic growth and development. To this end, client has set aside budgeted
amount over 2014 MTEF for infrastructure delivery. Clients infrastructure portfolio consists of
approximately 2154 projects at various stages of the project life-cycle currently and client
monitors the financial and non-financial performance of these projects using manual,
nonintegrated systems posing a high risk of presenting a distorted view.
BACKGROUND
The Infrastructure Delivery Management System (IDMS) mandates client to review
infrastructure plans/budgets, enforce quality in spending of funds including monitoring
and reporting on the effectiveness of infrastructure delivery. The Public
Finance Management Act (PFMA), section (1)(a)(b)(c) requires the finance department
to prepare the provincial budget, exercise control over the implementation of the
provincial budget including promoting and enforcing transparency and effective
management in respect of revenue, expenditure, assets and liabilities of provincial
departments and provincial entities.
The envisaged system should help the directorate achieve the following objectives:
a) Increase access to information.
b) Assist to plan for infrastructure information effectively.
c) Enable to integrate all the information about infrastructure projects from various
sources into a central database/system that can be used for the storage of infrastructure
data, analysis and as the source of infrastructure asset reports
d) Provide a mechanism for the validation of new data and updating of existing data.
e) Provide a system that will retain analysis, queries and scenarios for future
comparisons and lessons learning opportunities.
f) Assist in improving consistency in reporting.
g) Increase the ability to plan for procurement of infrastructure projects,
The client infrastructure portfolio is characterized by the following irregularities;
Exorbitant and continuous cost and time variations emanating mostly from poor planning
Unavailability of credible project implementation plans making it elusive to closely monitor
attainment of project outputs
Misalignment of expenditure incurred to the actual project deliverables on the ground
Inadequate integration of project information to the financial reporting systems
Projects continuing with contracts that have expired
Unmanageable portfolios where projects are added ad-hoc and progress not updated
accordingly
Expected Functionalities of the SAP PS system
Provide a comprehensive project systems solution that links with SAP FI, SAP CO, SAP
MM and any other related module that may be required.
Provide a real time comprehensive dashboard view of all the projects within a department and
the respective project statuses (single version of the truth).
Provide an early warning function for projects that are or about to be over budget or exceed
time limits allocated
Allow for projects management at the programme level
Allow for different contract types i.e. fixed price, time and materials, etc.
Allocate human capital costs to projects seamlessly
Allow for the integrated SAP Procure to Pay business process to be performed for project
related purchases.
Provide operational and strategic reports that will allow quick and efficient decision making
for management, please see expected reports section below
Expected Reports:
Project status report including financial and non-financial details of projects providing a
view at a Programme level (technical), Budget programme level.
Reports that provide financial and financial status on the overall project life-cycle as well
as for a respective financial year
Reports that indicate the invoices processed aligned to project outputs including the time
taken to process them for a week, month, quarter and annual
Project contractual commitments over the MTEF including contracts that are going to
expire within the next 3 months
