Question to the Minister of Finance Standing Committee - NW3311

19 December 2018 - NW3311

Mashabela, Ms N to ask the Minister of Finance

(1)(a) On what date was the information technology (IT) infrastructure of (i) the National Treasury and (ii) entities reporting to him last upgraded or updated, (b) what is the name of the company contracted to do the upgrades, (c) what was the monetary value of the contract and (d) what is the name of each IT system that was upgraded; (2) (a) what is the name of the company that is currently responsible for the maintenance of the IT systems of (i) the National Treasury and (ii) entities reporting to him and (b) what is the value of the contract?

Source
Link

Reply:

NATIONAL TREASURY

(1)(a)(i) 21 December 2016

(1)(a)(i)(b) Storage Technology Services (Pty) Ltd (StorTech)

(1)(a)(i)(c) R13,574,635.87

National Treasury shares infrastructure with Government Technical Advisory Centre and Co-operative Banks Development Agency.

(1)(a)(i)(d) Underlying IT Infrastructure that supports all applications and services, was upgraded.

(2)(a)(i) Maintenance of the IT systems is done within National Treasury.

(2)(a)(i)(b) N/a

ASB

1. The Accounting Standards Board uses off-the-shelf software without any amendments or modifications. All the computers were upgraded to Windows 10 on 26 October 2018. The upgrades were done by ITWindows CC and the cost of the upgrade was R10 062.50.

2. All IT maintenance is outsourced to ITWindows CC and the monthly fee is R5 500. The contract is for a twelve-month period, but can be cancelled with a 30-day notice period.

CBDA

CBDA uses National Treasury IT infrastructure at no cost. Please see information below provided by the National Treasury.

Date when the information technology (IT) infrastructure procurement	21-Dec-16
Name of Service Provider	Stortech
Value of Requisition	R 13,574,635.87
Nature of goods	Underlying IT Infrastructure that supports all applications and services was upgraded
Maintenance	In-house
Note:	CBDA shares infrastructure with GTAC and National Treasury hence costs are shared

DBSA

(a) (ii), (b) (c) (d)

DBSA applies the Supply Chain Management (SCM) processes of reviewing and inviting bidders for ICT services every three years (3 years). Provisions are in place to also re-evaluate sole source vendors on a minimum annual basis. The core ICT systems and ICT infrastructure purchases done is shown on Section 1 of the below table.

Section 1. Update / Term Contracts
Core Infrastructure	Vendor	Update Date	Contract End Date	Value	Comments
Servers and Storage	Puleng Technologies	Jul-14	N/A	R7,452,017.29	Capex purchase of IBM Server/Storage equipment.
Local Area Network	Bytes Technologies	Jul-14	N/A	R11,519,640.00	Capex purchase of Cisco Network equipment.
Wi-Fi Network	Bytes Technologies	Sep-17	N/A	R7,582,621.38	Capex purchase of Cisco Wi-Fi equipment.
Telephone System	Gijima	Jan-16	N/A	R4,211,373.77	Capex purchase of NEC Telephone system
Multifunction Printers	Dido	May-18	Apr-21	R6,874,929.00	3 year agreement for the provision of multi-function printers
Backup and DR Services	Global Continuity SA	Apr-18	Mar-21	R3,705,300.00	3 year agreement for the provision of data backup and disaster recovery services
Internet Bandwidth and related services	Internet Solutions	May-18	Apr-21	R9,564,256.68	3 year agreement for the provision of Internet Bandwidth, hosting, APN, video conference bridge and web content filtering
Core Systems	Vendor	Update Date	Contract End Date	Value	Comments
SAP	SAP	Jul-16	N/A	R5,133,120.25	Last major update on Human Capital, Financials, Loans, Procurement
Quantum (Treasury System)	FIS Global	Apr-18	N/A	R3,090,675.00	Last major upgrade due to IFRS 9

(a) (ii) (b)

The SCM processes are applied for ICT services for maintenance and support contracts. Section 2 and 3 covers the core ICT systems and ICT Infrastructure maintenance & support and licencing.

Section 2.Licenses
Software	Vendor	Contract Start Date	Contract End Date	Value	Update Frequency	Last Update	Comments
Microsoft Productivity Tools - DBSA	Microsoft	Jul-16	Jun-19	$597,296.79	Monthly	Oct-18	3 year agreement for Microsoft Windows, Office, SharePoint, Skype for Business, Data Centre and Client Access Licenses
Microsoft Productivity Tools - IDD	First Technologies	Oct-17	Sep-20	R1,705,089.39	Monthly	Oct-18	3 year agreement for Microsoft Windows, Office and Client access licenses. Subscription licenses procured to allow for flexibility
Microsoft Server licenses	Microsoft	Jul-17	Jun-20	$344,355.48	Monthly	Oct-18	3 year agreement for Microsoft SQL licenses
SAP Licenses (ERP)	SAP	Feb-09	N/A	R3,653,043.00	Annually	Aug-18	Country Legislative Changes (e.g. Tax, Budget, etc.) Vendor review conducted annually
Quantum (Treasury System) licenses	FIS Global	Dec-04	N/A	R1,900,000.00	OEM release schedule	Sep-18	OEM release schedule and Legislative (IFRS9) Vendor review conducted annually

Section 3. Maintenance and Support
Core Infrastructure	Vendor	Contract Start Date	Contract End Date	Value	Update Frequency	Last Update	Comments
Servers and Storage	IBM	May-17	May-19	R1,560,888.60	As per OEM release schedule	Jul-18	2 year maintenance contract for hardware and software support
Local Area Network	Datacentrix	Mar-18	Feb-21	R6,392,728.00	As per OEM release schedule	Aug-18	3 year maintenance for hardware and software support, combined into one contract including both Wi-Fi and LAN
Wi-Fi Network	Datacentrix	Mar-18	Feb-21		As per OEM release schedule	Jul-18
Core Systems	Vendor	Contract Start Date	Contract End Date	Value			Comments
SAP	Gijima	May-17	Apr-20	R14,645,493.55	Monthly	Oct-18	3-year support and maintenance of SAP system
Quantum (Treasury System)	FIS Global	Apr-17	N/A	R312,500.00		Apr-18	Annual support and maintenance fee

FAIS OMBUD

No upgrades being done.
(a) Hubtech Investment is currently responsible for the maintenance of the IT System

(b) R263 547.00

FIC

(1) The Financial Intelligence Centre’s information is as below:

(a)(ii) Year	(b) Supplier	(c) Value	(d) Description of Infrastructure Hardware – Last 3 years
02/11/2015	Datacentrix	R 2 782 641.00	Cisco IPS
23/09/2015	Nambiti	R 169 269.20	Dell Server – Extra SQL host
04/12/2015	Sizwe	R 285 504.04	Cisco Routers
24/11/2015	Sithabile	R 315 903.39	Quantum Tape library
20/11/2015	Sizwe	R 1 534 947.64	Cisco Routers and Switches
24/03/2016	DEP Technologies	R 278 423.81	SAN storage upgrades
30/11/2016	Sizwe	R 2 607 191.95	Cisco Routers and Switches
16/10/2016	First Technology	R 187 567.85	VMWare Site recovery Manager
09/09/2016	DEP Technologies	R 225 818.82	VEEAM Backup software
02/12/2016	Edzenel Construction	R 160 611.06	Sophos firewalls
16/01/2017	JOS Electronics	R 142 249.18	Sophos Firewalls
16/02/2017	Dell	R 457 183.96	Dell Server Memory
23/03/2017	Sizwe	R 1 140 279.44	Video Conferencing equipment
27/08/2018	Data Science	R 6 556 109.01	Pure SAN storage

(2)(ii) The Financial Intelligence Centre’s information is as below:

(a) Supplier	(b) Value
Business Connexion	R 1 188 482.28
Tendai Group	R 124 200.00
DEP	R 166 200.00
SITA	R 522 105.46
Sizwe	R 109 997.00
Dell	R1 419 449.08

FSCA

There were several information technology (IT) infrastructures upgrades over the past 3-4 years and this upgrade was driven by the need to refresh the aging technology that was about to reach end of useful and support life and were becoming uneconomical to maintain.

1. (a) The Information Technology (IT) infrastructure at the FSCA was upgraded as follows:

• The server and storage infrastructure in the production and in the disaster recovery environments were upgraded in March 2016 and March 2017;

• The server and storage infrastructure in the development and User Acceptance testing environments were upgraded in March 2018;

• The security and network optimisation and load balancing infrastructure (F5) was upgraded in September 2017 and in February 2018;

• The first phase of the audio visual equipment took place in June 2017 and the second phase of the upgrade is in progress. It is anticipated to be completed in February 2019;

• The network infrastructure is in the process of being upgraded with the anticipated project completion date March 2019.

(b) and (c) The infrastructure upgrades were conducted by different companies and the names of the companies contracted to do so as well as the monetary values are as follows:

		( b )	( c )
IT infrastructure Upgrade	Date Completed	Contracted Company	Contract Value
Server infrastructure upgrade for the Production and DR environments	March 2016	Ubuntu Technologies	R 1 322 706.03
	March 2016	Bytes Systems Integration	R 697 766.43
	March 2017	Nambiti Technologies	R 2 392 429.09
Server and storage infrastructure upgrade in the Non production environments. Additional servers for the Production and DR environments	March 2018	Aptronics (Pty) Ltd	R 13 586 783.61
Storage infrastructure for the production and DR environments	March 2016	Dell SA	R 7 930 160.00
Implementation of the wireless network at the FSCA head office	March 2017	Business Connexions	R 832 778.37
Server and storage infrastructure for the new FSCA organization in the production and DR environments	March 2018	Aptronics (Pty) Ltd	R 7 959 089.16
Network virtualisation infrastructure (XSIGO) was replaced in the production environment	March 2018	Eclipse (Pty) Ltd	R 992 618.27
Security and network optimisation and load balancing infrastructure (F5 appliance ) in the production and DR environment	September 2017	XON (Pty) Ltd	R 3 907 780.18
	March 2018	XON (Pty) Ltd	R 8 181 600.01
Audio visual equipment in the process of being upgraded in the production environment	June 2017	VOX Telecoms	R 564 106.18
	March 2019	AE Solutions	R 2 372 507.50
Installation of server racks and network cabinets – Project in progress	March 2019	IT Master	R 2 005 954.60
Network infrastructure is in the process of being upgraded in the Non production, Production and DR environments	March 2019	Sizwe IT Group	R 4 661 860.89
Microsoft Skype for business is in the process of being upgraded pending approval	March 2019	Omega Solution	R 1 928 943.43

2. (a) The company contracted to maintain the IT systems, in particular the provision of desktop and infrastructure support services, is Aptronics (Pty) Ltd and the contract value is R30 million over a period of five years, which commenced on 09 December 2015.

GEPF

The Government Pensions Administration Agency provides ICT services to the GEPF.

GPAA

System	Last Upgraded	Name of company	Monetary Value of contract	Company currently responsible	Value of contract for current contract
1.CIVPEN	June 2014 (will be phased out/replaced by 2021)	Accenture	R 17 538 555	IBM (hardware is currently under a maintenance and support agreement with IBM until 30 September 2021)	R 4 812 506
2.ORACLE Infrastructure	March 2014 (Refresh planned for 2020)	Accenture	R 23 651 835	ORACLE (Currently under Oracle Premier Support until 31 March 2019 through SITA)	R 2 307 132
3.HP Infrastructure	April 2014 (Refresh planned for 2020)	EOH	R 23 995 085 Plus R 3 369 116	EOH (currently the equipment is still under a maintenance and Support contract with HP until 31 March 2020)	R 6 093 514 for all HP infrastructure

IRBA

Hardware

(1) (a) (ii) All significant hardware components are subject to the warranties from the manufacturer.

The Warranties still active no upgrades are required.

(b) Manufacturers are Dell and HP.

(d) Dell servers and HP switch.

(2) (a) (ii) Bytes Systems Integration a division of Altron TMT (Pty) Ltd.

(b) R4, 824 963.00 (Tender value from June 2017 to June 2022, a five year contract)

Software (Significant Systems)

(1) (a) (ii) Windows Server Updates - This is done weekly - 2 November 2018

FlowCentric - When updates are available - January 2016

AccPac - This is done annually - March 2018

(b) Windows Server Updates - Bytes Systems Integration

FlowCentric - FlowCentric (Pty) Ltd

AccPac - Lorge Consulting (Pty) Ltd

(c & d) Windows Server Updates - Included under 2 (b) under hardware

FlowCentric - R131 426.04 (2016)

AccPac - R30 245 (2018/19)

(2) (a) Windows Server Updates - Bytes Systems Integration

FlowCentric - FlowCentric (Pty) Ltd

AccPac - Lorge Consulting (Pty) Ltd

(b) Windows Server Updates - Included under 2 (b) under hardware

FlowCentric - R374 834 (Year to date)

AccPac - R8 115 (Previous financial year)

LAND BANK

Response to questions as follows:

Question (1) – see link Annexure “A’
Question (2) – see link Annexure “B”

http://pmg-assets.s3-website-eu-west-1.amazonaws.com/RNW3311_AnnexureB.pdf

PFA

(1) (a) July 2018

(b) Nambiti Technologies Pty (Ltd),

(d) Provision of ICT equipment, installation and support for the data centre.

(2) (a)(ii) The Office of the Pension Funds Adjudicator has a service level agreement with the Financial Sector Conduct Authority for ICT support and maintenance. The following companies are used for ICT security management support:

Computer Security and Forensic Solutions Pty (Ltd) – Network protection and events monitoring and management
Check Point Software Technologies Ltd – Firewall management
Securicom Ltd – Email security management

PIC

(1)

(2) Other than the companies mentioned above, the PIC does not have any company that is responsible for the maintenance of IT systems.

SARS

Question 1 response

The SARS ICT Infrastructure is used to provide both support functions as well as enabling core business functions (processes). It is a heterogeneous infrastructure landscape consisting of various technology architectures sourced through formal procurement vehicles.

The SARS strategy for ICT infrastructure renewal is based on a rolling upgrade cycle in terms of infrastructure that reaches end of life in a fiscal year. This is used to request budget but actual implementation is subject to final budget approval that is not guaranteed.

Renewal of infrastructure and providing infrastructure support is categorised and handled in the following ways:

SARS follows formal procurement process to establish ICT service provider towers for a minimum of 3 years. Each tower has a formally appointed vendor for the provisioning of ICT services within that category:

Tower	Scope	Service Provider
D	Data Carrier Services	IS
V	Voice Carrier Services	IS
I	Internet and Hosting Services	Vodacom
SMS	SMS Carrier Services	MTN & Telkom
N	Network Support Services	Sizwe
S	Server Support Services	Gijima
E	End-user Device Support Services	Sizwe

From an infrastructure refresh perspective, SARS uses the appointed vendors listed above in combination with formal procurement tenders established by the State Information Technology Agency (SITA Transversals), SARS administered tenders as well as formally approved National Treasury tenders and exemptions to refresh ICT infrastructure that has reached replacement status for each fiscal year.

In terms of question 1) above the following ICT Infrastructure was updated/upgraded.

2015/16 financial year:

ICT Infrastructure CAPITAL Expenditure	Cost	Supplier
Security infrastructure	R43 593 554,00	IBM
Infrastructure licensing	R 8 964 259,00	Microsoft
Enterprise data storage	R 8 160 694,00	IBM
Transport network infrastructure	R 6 725 590,00	Cisco
IT facility infrastructure	R9 173 409,00	BTS, Merque Communications
End User Devices	R 2 342 702,00	Dell, Lenovo
Voice networking infrastructure	R 7 966 854,00	Cisco
Midrange servers capacity upgrades	R 3 361 006,00	IBM
Audio visual equipment	R 517 803,00	Other
Total	R90 805 871,00

2016/17 Financial year:

ICT Infrastructure CAPITAL Expenditure	Cost	Supplier
* IBM Software renewal	R97 616 255,00	IBM
*Midrange Servers	R52 728 191,00	IBM
*Enterprise data storage	R81 829 559,00	IBM & Ubuntu
*Mainframe replacement	R18 936 395,00	IBM
Commodity class servers	R17 754 055,00	Microsoft
Digital signage solution	R13 693 901,00	Bytes
End User Devices	R12 335 494,00	Dell, Lenovo
Transport network infrastructure	R 4 017 513,00	Cisco
Contact Centres data storage refresh	R 3 380 873,00	IBM
Microsoft software licences	R 2 599 525,00	Microsoft
Total	R304 891 761,00

* These items reflect the 3 year IBM Enterprise Agreement and are the reason for the big escalation in capital expenditure

2017/18 financial year:

ICT Infrastructure CAPITAL Expenditure	Cost	Supplier
Refresh of end of life commodity class servers	R24 133 311,57	Dell
Backup storage capacity upgrade	R 4 116 941,60	EMC
IT Facilities and Offices, Generators	R 4 968 616,30	BTS, Merque Communications
IBM WebSphere renewal	R 3 955 745,58	IBM
Personal Computers - Monitors, Laptops and Desktops refresh	R 3 304 820,64	Dell, Lenovo
SAP Licenses	R32 904 235,00	SAP
Casewise Enterprise Architecture tool	R5 999 757,00	Casewise
VMWARE software capacity	R2 675 570,00	VMware
Total	R 82 058 997,69

2018/19 financial year:

ICT Infrastructure CAPITAL Expenditure	Cost	Supplier
Personal Computers - Monitors, Laptops and Desktops refresh	R15 841 566,00	Dell, Lenovo
Refresh of end of life commodity class servers	R14 851 195,84	Dell
Renewal of Enterprise Content Management Maintenance Services	R12 036 532,50	OpenText
Network Infrastructure Refresh	R10 441 869,38	Cisco
Contact Centre Media Servers Renewal	R 7 230 810,25	Radisys
Casewise Enterprise Architecture tool	R 996 511,00	Casewise
IT Facilities and Offices, Generators	R 4 140 644,32	BTS, Merque Communications
Total	R65 539 129,29

The 2018/19 infrastructure expenditure does not show current projects in execution as this is only shown upon project completion. One such example is the renewal of the eFiling infrastructure and migration to the new data centre with a total estimated value of R 197 m. Another example is the equipment for the Disaster Recovery Facilities with a total estimated value of R54m. Both these projects are expected to be completed in April 2019.

Question 2 response

As per question 2 above and in addition to the infrastructure hardware and software that enables and support the SARS business, the following Business Systems are also maintained and supported by external vendors.

Period covered	Business System	Description	Supplier	2018/19 Average Annual Maintenance and Support Value	3 Yrs Contracts values
					BAU (Maintenance & Support)	Project and Capex	Procurement vehicle Total
01.01.2017 - 31.12.2019	eFiling	SARS premier digital channel for the submission of a variety of tax returns including VAT, PAYE, SDL, UIF, Income Tax, STC and Provisional Tax through the eFiling website.	Shandon Business Solutions	R 10 713 000	R 35 000 000	R 140 000 000	R 175 000 000
01.01.2017 - 31.12.2019	e@syFile™	SARS offline capability that assists the taxpayer to manage engagement with SARS and validate declarations in offline mode before sending them to SARS.	Ionize	R 15 659 000	R 50 000 000	R 45 000 000	R 95 000 000
01.01.2017 - 31.12.2019	ATP/Service Manager/IVR/Telephony/U3TM	A collective of integrated systems that offer Case Management, Workflows, Interactive Voice Response (IVR), Telephony for Contact Centres and Master Entity capabilities.	BBD	R 45 651 000	R 128 000 000	R 355 000 000	R 483 000 000
01.01.2016 - 31.12.2020	SAP (ERP, SRM, Sourcing, HR)	A collective of SAP modules that provide both revenue collection accounting functionality as well as corporate ERP (internal) capability.	SAP	R 35 196 000	R 129 796 838	R 160 554 000	R 290 350 838
01.01.2017 - 31.12.2019	iCBS (DPS, CPS)	The Customs ecosystem of capabilities to ensure processing of Customs declarations and other supporting functions	Interfront (SOC)	R 24 763 000	R 85 000 000	R 400 000 000	R 485 000 000
TOTALS **				R 131 982 000	R 427 796 838	R 1 100 554 000	R 1 528 350 838

** The above list does not include any SARS internally developed and maintained systems

** These totals are 3year procurement vehicle value

SASRIA

Please refer below, at Table 1 for a reply.

Date last updated	Company responsible for upgrades	Monetary value	IT system
2018/08/01	Darktrace and Antegina	R 500 000	New security monitoring system to enhance our security
2016/09/01	AlienVault SIEM	R 500 000	New security management tool for internal and external vulnerability
2018/10/01	Data Guardian	R 150 000	Windows Server Upgrade Project and Commvault Disaster Recovery Live Sync
2016 -2018	Internet Solution	R 1 200 000	Management of comprehensive internet solution. External firewall management
2017/04/01	Metrofile	R 141 072	Backup Storage
2019/06/	Dimension Data	R 350 000	Expansion of the Wi-Fi including new WiFiless devices, WI-FI Expansion Cisco ASA Firewall & VPN
2017/04/01	Ilanga	R 823 755	Annual IMS Services, Licenses and Maintenance
2018/04/01	DCX- Hewlett Packard/ESS Disaster Recovery/ DCX	R 225 014	Disaster Recovery Services and Hosting
2016/04/01	IDI Technology Solutions	R 23 000	GP- Great Plains Micro Dynamic Support and licenses
2018/04/01	Great Soft(Pty) Ltd	R 378 000	Subscription and Support to BoardPad Software
2017/06/30	GX Diesel	R 16 850	Generator Maintenance Services and Power generation
2014/05/26	Software AG South Africa (Pty)Ltd	R 498 000	ARIS Software Licenses, Support, Maintenance
2017/03/01	Seventynine Digital	R 41 400	Website Maintenance & Support
2016/10/06	Fraxion (Pty)Ltd	R 28 000	Fraxion Software License
2014/05/26	Software AG South Africa (Pty)Ltd	R 490 637	Renewal ARIS Software Licenses, Support, Maintenance
2018/02/01	Isometrix	R 94 000	Isometrix Upgrade & Annual Licenses
2018/04/01	Cortell Management Solutions	R 264 175	IBM Cognos Licenses renewals
2018/04/01	Intervate Solutions	R 980 000	Web Rates Calculator
2018/05/01	Dimension Data	R 110 000	WI-FI Expansion
2018/08/01	Dimension Data	R 150 000	Cisco ASA new Firewall & VPN upgrade
2018/08/01	Microsoft	R 1 100 000	New Office 365
2018/11/01	EOH	R 100 000	Cisco 3850 Catalyst Switches for network connectivity
2018/11/01	Bytes Technology	R 300 000	2x Brocade Fibre Switches to enhance storage capability
2018/11/01	Interconnect Systems	R 300 000	Setting up new office space: 34 Fricker Road, Cisco 3850 Catalyst Switches & WI-FI devices

TAX OMBUD

The Office of the Tax Ombud utilizes the SARS IT infrastructure. All updates or upgrades are done by SARS.
Maintenance of the IT systems is done by SARS.

Source file

RNW3311-181219.docx

19 December 2018 - NW3311

Mashabela, Ms N to ask the Minister of Finance

Reply:

Source file

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