Oireachtas Joint and Select Committees
Thursday, 24 October 2024
Public Accounts Committee
Financial Statements 2023: Health Service Executive
9:30 am
Mr. Stephen Mulvany:
I thank the Deputy. Procurement is clearly a significant challenge for the HSE. It is one we have been working on for some time. We estimate that the addressable spending, in other words what is subject to procurement rules, for this year is more like €4.9 billion. Obviously, the figure goes up every year. We are trying to do two things. First, we are trying to increase the number of contracts and frameworks in place that make it easier for people to comply. This gives us a competitive procurement base. As the CEO said in the opening statement, we had about 75% last year, which meant we hit the target of getting about 75% of that addressable spending covered by contracts and frameworks. Now, we only count contracts and frameworks where all the terms are complete. In other words, it would be possible to state the price is settled and just issue an order. We have another 5% or 6% where we have frameworks in place but where an element of competition or mini-competition is still required. This year, therefore, we are trying to move on and drive this figure up from 75% from the end of last year up to 85%. As we said, we are on track to get there.
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