Oireachtas Joint and Select Committees

Thursday, 5 December 2019

Public Accounts Committee

2018 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 15 - Development of Primary Care Centres

9:00 am

Photo of Seán FlemingSeán Fleming (Laois, Fianna Fail) | Oireachtas source

My reading of this, which is subject to correction, is that the framework expired last year. It appears that €5 million or €6 million per annum may not be in the framework due to the passage of time. The letter also states that payments would be made to service providers who are not party to the framework agreement. This cost is running at an average of €2.5 million per year. As they are not part of the framework, these payments are clearly not compliant. Mr. Reid has said the main ones are compliant. I query whether they are compliant given that the roll-over period has concluded. On 25 May 2017, the HSE advertised for tenders to replace the current framework. This has gone on for a long time. I have had correspondence from people who are very competent. They might be subcontractors for some of the companies approved by the HSE. They are legitimately trying to get on to the list. The most recent letter I received as from the HSE's national director of procurement. He skirts around the current competition but the letter states that, due to competing priorities in the past 12 months with planning for CervicalCheck and Brexit planning, the HSE did not have the resources to replace the existing framework agreement and it has not been processed. However, it will examine the market position in early 2020 and will either progress the existing competition - it would be hard to resurrect because it is now three years old - or relaunch a procurement process with a view to establishing a new framework next year. The HSE has been in the tendering process for three years and my reading of the letter is that it might be abandoned and a new one started. What is going on? I am not talking about €1 million here or there but several million euro every year. Part of this should be covered by the framework. Having been two years in the process, the HSE is now putting its hands up and potentially abandoning the tendering process. This is what it reads like to me. Is Mr. Reid familiar with this?

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