Paschal Mooney (Fianna Fail) | Oireachtas source

I compliment my colleagues, especially the Fianna Fáil Party leader in the Seanad, Senator Darragh O'Brien. He outlined the merits of the Bill and I compliment him on his initiative in bringing it forward. I also welcome the Minister of State and ask him to respond to a query that arises in the context of procurement. Contracts go out to public tender in all State agencies. Is any in-house evaluation done of value for money for the taxpayer regarding tenders? I will provide a hypothetical example which reflects a real case in the area of education. Let us take the case of an extension to a school for which a contract goes out to tender. Three tenders are received, which I understand is the norm, and the bid with the lowest price contains a technical flaw and must be withdrawn. I understand it is the norm in such circumstances to take the second lowest tender. If this is also found to have a technical flaw and must be withdrawn, the third bid will be chosen. Let us say the gap between the third tender and the first tender, which would have been successful but for the technical flaw, is significant. In such circumstances, what happens where the price quoted is in excess of what had been allocated for the job? If the price is almost one third higher than the allocation, will an in-house evaluation be carried out in the relevant Department? I have singled out education but I am speaking in general terms about Government contracts.

I have been somewhat frustrated by the view that there may be - I choose my words very carefully - a reluctance on the part of Government agencies to re-open tendering processes as to do so could leave them open to litigation. I refer to a case in the public domain, namely, the awarding to a helicopter company of a contract to operate an air service to the Aran Islands and the subsequent withdrawal of that contract. From what I have read in newspaper reports, the original successful tenderer is considering the legal position. I am not sure if the matter has gone beyond that but I know from making general inquiries that there is a reluctance in State agencies to reopen tendering processes because they are afraid of litigation. Perhaps the Minister of State will concede that point.

Is there not an obligation on State agencies to provide value for money? Given that building prices are involved and considering that most agencies are based in Dublin, is there also a question mark over the assessment process carried out by Dublin-based individuals who may not necessarily-----