Catherine Murphy (Kildare North, Independent)
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Question 158: To ask the Minister for Finance the rules in relation to mandatory advertising within the European Union of public contracts or public private contracts; if the same rules apply to subcontracting; and if he will make a statement on the matter. [8131/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Contracting authorities are obliged to advertise contracts valued above thresholds set out in EU Directives in the Official Journal of the European Union (OJEU). The current thresholds are €5,278,000 for works contracts, €137,000 for supplies and service contracts of Government Departments and Offices and €211,000 for supplies and service contracts of most other public bodies. In estimating the value of a contract the totality of the requirement must be included and the value of all lots taken into account when determining if OJEU advertising is necessary. There are exemptions for particularly small lots but these must not exceed 20% of the total value of the contract.

In inviting tenders, contracting authorities may request tenderers to indicate any share of the contract that they intend to subcontract to third parties or any proposed subcontractors. It is not obligatory that such subcontracts be advertised or awarded separately. In building projects there is scope for a contracting authority to separately invite tenders (through an OJEU notice where the total value of the project exceeds the relevant threshold) for carrying out specialist works and services and, on the basis of a separate competitive tendering process, select the successful specialist firm for inclusion in the works requirements for the main contract tender.