Robert Troy (Longford-Westmeath, Fianna Fail)
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162. To ask the Minister for Public Expenditure and Reform his views on the recommendations in a report (details supplied) with regard to improving SME access to public procurement contracts; if his officials examined the proposal; and the findings of same. [50027/19]

Robert Troy (Longford-Westmeath, Fianna Fail)
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164. To ask the Minister for Public Expenditure and Reform his views on the recommendations in a report (details supplied) with regard to improving SME access to public procurement contracts; if his officials examined the proposal; and the findings of same. [50029/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 162 and 164 together.

Public procurement is governed by EU and national rules, the aim of which is to ensure that procurement transactions and decisions are open and transparent, fair, equitable and achieve value for money. Similarly, good governance results in more efficient use of resources and promotes better informed decision making. Contracting authorities have a responsibility to implement good corporate governance, of which a Corporate Procurement Plan is an important component. Completion of these plans will assist contracting authorities in this and in managing their public procurement activities.

It is a matter for individual contracting authorities to ensure that their public procurement activities are discharged in line with procurement rules and procedures. The Office of Government Procurement (OGP) supports contracting authorities in this regard by making them aware of their legal and policy obligations in respect to public procurement. In January 2019, OGP published an Information Note on Corporate Procurement Plans. The note is an initiative under the National Public Procurement Policy Framework which sets out the overarching policy framework for public procurement in Ireland. For contracting authorities that are already producing Corporate Procurement Plans the information note will help in the development of future iterations of these.

The European Single Procurement Document (ESPD) plays a crucial role in the digital transformation of public procurement and makes it easier to participate in this market. All public bodies must now issue and accept the ESPD form for all procurement exercises above the EU (OJEU) threshold. It is optional for contracting authorities to use the ESPD service for below threshold competitions. Under EU public procurement directives, ESPD should be provided exclusively in electronic form (eESPD).

In January 2019, OGP published guidance for contracting authorities and suppliers, and an information note, on how ESPD is to be used. The integrated eESPD service, available on eTenders since 28 January 2019, allows buyers to issue an ESPD request form as part of an above threshold procedure and enables suppliers to submit an ESPD response in a fully digitised format.

Since the launch of the service, 73% of OJEU procedures published by Central Government Departments and their agencies have used an eESPD. For all public sector contracting authorities including semi-state and grant funded bodies, 51% of all OJEU procedures have used an eESPD. Suppliers have submitted 3,320 eESPD responses as part of their tender submission for OJEU procedures since January 2019.

Robert Troy (Longford-Westmeath, Fianna Fail)
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163. To ask the Minister for Public Expenditure and Reform his views on the recommendations in a report (details supplied) with regard to improving SME access to public procurement contracts; if his officials examined the proposal; and the findings of same. [50028/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government recognises the importance of the SME sector and continues to enhance the already substantial measures to support SMEs in accessing the public procurement market. Significant work has been undertaken by the Office of Government Procurement (OGP) to ensure that public procurement is accessible by all businesses, including SMEs. Minister of State O’Donovan, in accordance with the Programme for Government, chairs quarterly meetings of the SME Advisory Group so that the voice of industry is heard at first hand by Government. The group comprises officials from OGP, DBEI, Enterprise Ireland, InterTrade Ireland, the CCPC, and representatives from Ibec, ISME, the Small Firms Association, the Construction Federation of Ireland and Chambers Ireland.

In June 2018, following consideration by the group of a proposal to raise the threshold for advertising on eTenders, it was decided that the current advertising threshold of €25,000 (excluding VAT) for goods and services be maintained. The proposal had been discussed at meetings of the group and members were invited to submit their views to the OGP with the majority opposed to increasing the advertising threshold at that time. The OGP also took account of analysis of data on eTenders into their findings and considered the fundamental procurement principles of openness and transparency.

This advertising threshold will be kept under review and OGP is continuing to monitor this issue in consultation with the SME Advisory Group. It is worth noting that the Public Service Spend and Tendering Analysis for 2017 report published by the OGP last week, indicates that of the €4.9 billion procurement addressable expenditure analysed, the majority of this spend is with the SME sector. This report is available on OGP's website,www.ogp.gov.ie.

Robert Troy (Longford-Westmeath, Fianna Fail)
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165. To ask the Minister for Public Expenditure and Reform his views on the recommendations in a report (details supplied) with regard to improving SME access to public procurement contracts; if his officials examined the proposal; and the findings of same. [50030/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Office of Government Procurement (OGP) – an office within my department – has responsibility for developing and setting out the overarching policy framework for public procurement in Ireland. The OGP has undertaken a number of substantial measures to support SMEs in accessing the public procurement market which include:

- proportionate turnover requirements with turnover generally limited to twice the contract value,

- the division of large public contracts into smaller lots,

- encouraging SMEs to bid as part of a consortium in procurement procedures where they would not have the relevant experience or scale alone, and

- requiring public bodies to advertise contracts for goods and services valued above €25,000 (ex. VAT) and for works valued above €50,000 (ex. VAT) on the national eTenders portal.

In addition, the OGP is constantly striving to improve its processes and service delivery to make it easier for public sector bodies to procure the goods and services that they need and for businesses to partake in public procurement. As part of this process, the OGP developed a manual to guide contracting authorities through the set-up of a Dynamic Purchasing System (DPS) and the administration of the process using eTenders.

A DPS is a completely electronic system which may be established by a contracting authority to purchase commonly used goods, works or services which are generally available on the market.

Irish public sector bodies have alerted the market to a number of procurement opportunities using a DPS process. The Deputy can find a list of these opportunities on eTenders via the Notice Search function.

For its part, the OGP has put in place a DPS to supply electricity to public sector bodies in Ireland. Prior to commencing this DPS, the OGP issued a Request for Information (RFI) to the market through eTenders. The objective of this sounding exercise was to gain a better understanding of the electricity supply landscape in Ireland and find out the extent to which suppliers could engage with the proposed DPS. The RFI also acted as a guidance tool for the market on the process involved in establishing the DPS.

On 15 November 2019, the OGP published on eTenders a Request for Application to Participate (RFATP) in a Dynamic Purchasing System for the Supply of Vans, Police-Specification Vans, and Minibuses to the Irish Public Sector.

The OGP will continue to proactively engage with business to enhance the significant measures and strategies already in place to support SME access to public procurement opportunities.

Robert Troy (Longford-Westmeath, Fianna Fail)
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166. To ask the Minister for Public Expenditure and Reform his views on the recommendations in a report (details supplied) with regard to improving SME access to public procurement contracts; if his officials examined the proposals; and the findings of same. [50031/19]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Government recognises the importance of the SME sector and continues to enhance the already substantial measures to support SMEs in accessing the public procurement market. Significant work has been undertaken by the Office of Government (OGP) in this regard including:

- proportionate turnover requirements with turnover generally limited to twice the contract value,

- the division of large public contracts into smaller lots,

- encouraging SMEs to bid as part of a consortium in procurement procedures where they would not have the relevant experience or scale alone, and

- requiring public bodies to advertise contracts for goods and services valued above €25,000 (ex. VAT) and for works valued above €50,000 (ex. VAT) on the national eTenders portal.

My colleague, Minister of State Patrick O’Donovan, chairs the SME Advisory Group which provides a forum for Government and SME representative bodies (including ISME, IBEC, SFA, Chambers Ireland, and CIF) to exchange information and collaborate on promoting SME participation in public procurement. One of the initiatives emanating from this group is the SME Communication Strategy sub-group, chaired by the OGP, which was established in 2017 as a joint venture with the industry representative bodies. This group further promotes awareness of potential opportunities and supports available for SMEs in tendering for public contracts. The OGP, working in partnership with the industry representative bodies and other government agencies, has developed a series of online videos and workshops to support smaller businesses build their awareness of procurement opportunities and to develop their capabilities to engage in tender competitions, whether those competitions are at home or abroad. A series of focused and targeted breakfast briefings have also taken place around the country in conjunction with Inter-Trade Ireland and the SME Advisory Group partners. In 2018, OGP representatives attended 50 external events to raise awareness of the public procurement model. This focus on proactive engagement has continued in 2019 with the OGP attending events around the Country including in Athlone, Kildare, Kilkenny, Killarney, Letterkenny and Wexford.

As alluded to by the Deputy, the OGP operates a dedicated Support Helpdesk (from 09.15-17.15 Monday to Friday) that provides advice to public sector bodies and suppliers on a wide range of queries.

Minister of State O’Donovan and I wrote to Government Ministers in January asking for their views on implementation of the public procurement reform programme to date and suggestions for improvements. Minister of State O’Donovan has also conducted a wider consultation process including with opposition spokespersons, our sectorial partners in Health, Education, Defence and Local Government and the SME Advisory Group. This consultation will inform the future direction and shape of public procurement and SME participation in public procurement will form a key element.