Patricia Ryan (Kildare South, Sinn Fein) | Oireachtas source

I will say a few words on how the process will work in practice. When four or more tender bids are submitted for a public works contract, a tender that is more than 15% below the adjusted average shall be considered an abnormally low tender. In the event of an abnormally low tender being submitted, the contracting authority must seek information on, and an explanation of, the economics of the construction method with a detailed cost breakdown, the apparent exceptionally favourable conditions available, technical solutions and compliance with the contractual and legislative requirements. Following this, if the contracting authority does not receive a reasonable explanation for the abnormally low price submitted, the tender price should be rejected and the tenderer disqualified from the procurement process. The contracting authority should record the reasons for rejection and submit them to the Office of Government Procurement.

In the event the explanation is deemed to be reasonable and acceptable, the contracting authority must notify the chief procurement officer at the Office of Government Procurement that it intends to award the contract to an abnormally low tender. The tenderer must confirm the price to the chief procurement officer, and the contracting authority must recognise the potential requirement for enhanced contract management resources to be put in place for the duration of the contract. The contracting authority must provide regular reports to the chief procurement officer for the duration of the contract.

Moreover, contracting authorities will be empowered to exclude those suppliers that demonstrate significant or persistent deficiencies or both in the performance of prior public contracts. In the event of exclusion, the contracting authority should record the reasons for rejection and submit them to the Office of Government Procurement. We believe if the Bill is enacted it will ensure better value for taxpayers and reduce possible instances of litigation and the delays to completion that arise from this. It would also encourage good behaviour and better performance by suppliers.

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