Government's beleaguered Integrated Financial Management System (IFMS) is to get an "objective programme management office" in order to improve governance and overall performance of the project.
Sanctioned in 2005, the multibillion-rand project, sponsored by National Treasury, is being run as a joint-initiative incorporating the Department of Public Service and Administration, the State IT Agency (SITA) and a number of ad hoc representatives from other government departments.
The final solution is envisioned to provide government with a single solution for its core administration requirements and will encompass supply chain management, financial management, HR management, payroll, and business intelligence. The system is expected to resolve many of the issues behind the numerous negative outcomes resulting from the auditor-general's assessments and its use will be mandatory for all national and provincial departments.
Despite the high priority of the project, IFMS progress has been dogged by delays and controversy since its outset. SITA's long-standing organisational difficulties have been a continual drag on the project. Reporting officers from the main players have openly stated the team was ill-equipped for the technological complexity integrating various software solutions presented. The numerous IFMS tenders have largely been met with varying degrees of industry bemusement, triggering heated debates between alarmed service providers and the heavily-criticised unit behind the project's development.
Parliament has been equally unimpressed, struggling to get an accurate handle on the project's progress while dealing with the repercussions of departments and state-owned entities having to make do with outdated technology.
New management sought
In an advert calling for bids on the establishment and operation of a programme management office (PMO) for the IFMS project, National Treasury admitted there is "general consensus among the IFMS partners that programme governance should be fortified, in the interest of all parties concerned.
"In this respect, it is recommended that an objective PMO be established... It will be responsible for ensuring delivery of distinct projects on time, of the standard required, within budget," it said.
The PMO will be chaired by National Treasury and will comprise representatives of IFMS partners. It will be mandated to perform programme management functions made up of main components: programme and stakeholder management; strategic business and systems planning; financial modelling and budget management; contract management and legal support; operational and technical advice; strategic infrastructure advice; communications; and support relating to areas of risk management and quality assurance. At present, these functions primarily fall under SITA's purview.
National Treasury is currently considering responses to the contract it expects to run for a period of five years. While many industry players rejoiced at the announcement, the successful bidder is unlikely to be one of the usual suspects. A requirement of the tender was that bidders not have any affiliation with any system or product suppliers: "as it is required that the consultant view must be completely unbiased and objective for the entire duration of this assignment".
Treasury requested that bids be made valid for a period of 90 days from the closing date of the bid, suggesting its decision should be announced before the end of February 2014.
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