Oireachtas Joint and Select Committees

Wednesday, 6 December 2023

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach

Preventing Bid Rigging in the Public Procurement Process: Discussion

Mr. David O'Brien:

Yes, we are familiar with the processes used in the North. We have made an input into the Private Members' Bill that the Deputy's colleagues introduced. We feel that the legislation goes further than is permitted under the directives in defining an abnormally low tender in the manner that was proposed. The directives allow for the exclusion of a bid that appears abnormally low relative to the prices for the goods, services and works. It cannot be automatically excluded. We are only obliged to exclude where it can be determined that the price is low because the contractor or the bidder is not complying with labour law, environmental law and such matters. There is also the provision with respect to trying to apply a formula to determine whether a bid is abnormally low in respect of the spread of bids that could be prevalent on a project. It could lead to unintended consequences with respect to the bid in question and potentially lead to challenges to the award of the contract if somebody were to be excluded in that fashion.

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