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Anne Frawley
Posted on 24 May 2012 11:20 pm

The Minister details - the information provided by the NPS to those wishing to tender and he goes on in great detail to explain how the service envisages SME's must adapt to be successful in any tendering process.The formation of the NPS the Minister explains gave rise to an policy change resulting in larger tenders compared to the tenders as per the GSA.

As the EU requires tenders over 25K to go out for EU tender this policy decision results in many tenders going out to European tender. Ireland is rated as one of the countries in the EU with the highest granting of tenders to "foreign" companies. Countries like Spain, France and Poland which one would expect to have high levels of tenders going to companies within the EU by virtue of their populations have less that 1% each - recent reports detail.

One would suspect the policy change the Minister referred to on the formation of the NPS has given rise to the fact Ireland issues a high level of tenders out-side its boarders while other larger EU member States provide less than 1%.

In proportion to Ireland's size, its economic distress and the fact that other larger member state's policy seems to be diametrically opposite to Ireland this I would suggest is a matter of concern.


Efficiencies and value for money for the Irish taxpayer are detailed as core requirements when tendering.There is no detail given by the Minister on the risk assessment carried out by the NPS on all pertinent factors regarding tenders nor indeed does he define what government or NPS policy is in the circumstances where:

In determining the value for money aspect of the tender what proportion of risk assessment is
given to over to the consideration as happened recently that a tender issued to a "foreign" company had a cost saving value of 7,500K but an Irish company who lost out had to lay off 6 people. That would be 6 x 30K per year in costs to the domestic exchequer as a result of job losses.

This would be an Irish company who's job is tendering in a specialized area and who is prohibited from tendering in the UK as in this area in the UK there is a mandatory 5 million t/o required.

There was no explanation given as to whether "mandatory"checks are carried out by the NPS to see that there is compliance on all aspects on competition law and or Revenue law on the issuing of a tender to a company before final granting of the tender.

Neither did the Minister define what steps are taken by the NPS to ensure no action they take may remove competition and thus leave the Irish taxpayer exposed
to future restricted options whereby the Irish taxpayer would not be perceived as getting value for money.

I also noted with concern that the Minister did not at any stage indicate that the NPS or the department have been mandated to monitor other EU member trends in tendering. Nor to closely watch trends whereby companies in members States such as the UK (though not exclusively the UK) - UK companies are acquiring the "rights" for the supply of product or services in both jurisdictions as this trend has substantial implications for Ireland and on competition.


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