Michael Noonan (Limerick East, Fine Gael)
Link to this: Individually | In context

Question 95: To ask the Minister for Finance if his attention has been drawn to the fact that the public procurement system operates unfairly against small contractors in so far as the pre-qualification regime and marking system used ensures that the order of pre-qualification generally reflects the size of the companies seeking to pre-qualify; if his attention has further been drawn to the fact that since the recession in the construction industry, larger companies are tendering for relatively small contracts and that as smaller contractors cannot pre-qualify they are being put out of business; if he will examine the marking system used to pre-qualify companies for tender purposes and revise it in order that smaller contractors are not discriminated against on the basis of size; and if he will make a statement on the matter. [25320/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Pre-qualification of contractors to be invited to submit tenders for public contracts is a necessary practice in public procurement. It is facilitated by the use of the standard suitability assessment questionnaire developed by the public sector and accepted by the Construction Industry Federation. Getting on a tender list requires a contractor to demonstrate the capacity to reach the minimum thresholds set at particular levels for a number of criteria in the suitability questionnaire. There is no simple pass-or-fail criterion.

The procuring authority is responsible for setting minimum thresholds as it is best placed to decide what is appropriate in a particular situation. As minimum thresholds can vary from project to project depending on its size, nature and complexity, they are not susceptible to standardisation. However, the overriding principles that all contracting authorities must observe when setting minimum thresholds are those set out in the EC Treaty of non-discrimination, proportionality, fairness and transparency. Contracting authorities are aware of these obligations and required to observe them when preparing tender lists.

I recognise the importance of public contracts as a source of business for SMEs and I am anxious to promote their participation to the greatest extent possible under EU law. It is inevitable, given the present conditions in the construction sector, that there will be greater competition for places on tender lists and in tender contests. However, the Government Contracts Committee for Construction is currently undertaking a review of guidelines Government Departments have published in relation to setting minimum standards. I will place this information on my Department's website in due course.