Oireachtas Joint and Select Committees

Tuesday, 11 December 2012

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Eligibility of Small Firms in Tendering for Capital Projects: Discussion with Office of Public Works

1:40 pm

Ms Clare McGrath:

As for the question regarding churn on the list, I cannot provide the Deputy with details of departures from it. Such departures would not have been because of anything the OPW has instigated but might have been on the other side, that is, pertaining to the aforementioned 225 companies. Turnover levels in respect of most jobs are determined on an annualised basis. Were we placing a contract for a particular amount, it could range, under the guidance from the Department of Public Expenditure and Reform, from 75% on an annualised basis to 150%. Again, however, the Office of Public Works examines such contracts, in cases where we are placing individual ones, ascertains what is appropriate and then sets turnover levels that are appropriate to what we seek to have done. Consequently, we do our utmost to ensure that people can compete. We cannot make them competitive but we do our utmost to make the position such that as many as possible can come in to compete in respect of the turnover levels. The guidance indicates 75% on an annualised basis, up to 150%. Moreover, there is an application form with which people may apply. I will go back and will make sure it is on the website, if it is not, because I am very happy to advertise before this joint committee that this is the case. However, we will send the application to anyone who contacts us.

On the Deputy's question regarding the 15 calendar days, we are at a compliance rate of 97% in respect of the 30-day target. As for complying with a 15-day target within that figure of 97%, I believe we are up at 65% and growing. It is at that level and the OPW is very concerned to ensure we are paying promptly. I reiterate the compliance rate in respect of the other figure is at 97%. As for the Deputy's reference to State contracts, again we carry out a lot of investigation and consideration of the market with regard to the service that is being sought. Moreover, we give consideration to regionalising or dividing into lots, as appropriate, taking into account both access for the market and the value for money question. There is not a single size, as it is about looking at each instance of procurement and determining what is the optimum strategy. I will take away the Deputy's comments with regard to printing and perhaps will revert to the joint committee on that particular subject. I think that might cover the questions.