Oireachtas Joint and Select Committees

Thursday, 11 June 2015

Public Accounts Committee

Special Report No. 88 of the Comptroller and Auditor General: Restructuring the Administration of Student Grants

10:00 am

Photo of Áine CollinsÁine Collins (Cork North West, Fine Gael) | Oireachtas source

I welcome all the witnesses. It is important we get clarity on the cost involved with respect to Abtran. Section 4.21 of the Comptroller and Auditor General's report states:

Abtran received maximum points for each of the tender criteria, except for ultimate cost which was significantly higher in both tenders than the next best candidate. However, Abtran indicated in its submission that it would be willing to apply a discount if it received both contracts. Abtran ultimate cost proposal for the contract call centre was 43% higher than the second placed candidate and 84% higher for document management than the second placed candidate.

Also, it was indicated that the original cost of this process would be €1.8 million per year for both document management and outsourcing of staff. I appreciate that there was a huge increase, that the planning process may not have been as good as it should have been, or that the foresight in terms of what was projected should have been better, and obviously there were problems from everyone's point of view, but in 2014 it cost €3.6 million and €638,000 in outsourcing, which adds up to approximately €4.2 million. Therefore, it is still running at more than double the projected cost. I ask the witnesses in the Department and in the public procurement area why that is the case.

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