Richard Bruton (Dublin North Central, Fine Gael)
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Question 166: To ask the Minister for Finance if he is satisfied that the prohibition of price only tenders for public contracts by his Department does not result in unnecessary restriction of competition to a limited circle of familiar contestants, the obstruction of new entrants who will not have a track record and the excessive cost of initial submissions; and his views on these concerns from experience with the price and quality system. [5903/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I assume the Deputy is referring to the use by contracting authorities of the most economical advantageous criteria rather than simply price in evaluating tenders for public contracts. In relation to tendering procedures it is important to note that, in line with EU procurement law, there are two stages: (i) a suitability assessment (pre-qualification) stage and (ii) the tender competition and evaluation stage.

In the suitability assessment stage a contracting authority invites expressions of interest and examines responses to determine which applicants are competent to go forward to the next stage of the competition. The level of evidence required from tenderers is a matter for each contracting authority to decide. This stage is open to everybody and is based on standardised documentation for short-listing participants for the tender competition and evaluation stage.

At tender competition and evaluation stage the most economical advantageous criteria are used to ensure that quality factors, in addition to price, are taken into consideration in order to decide which tender represents best value for money. At all stages of the competition, the contracting authority must ensure that the selection criteria observe the principals of proportionality, transparency and non discrimination as provided for in EU law.