Michael McGrath (Cork South Central, Fianna Fail)
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Question 119: To ask the Minister for Finance the efforts being made across the public sector to ensure synergies are achieved in public procurement; and, for example, if procurement is organised on a collective basis for local authorities, schools, hospitals, and State agencies to secure maximum purchasing power and value for money. [5932/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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A number of initiatives have been taken to secure efficiencies and to maximise value for money in public procurement. For example, my Department establishes and manages framework arrangements for the purchase of personal computers (desktops and laptops), colour and mono printers, mobile telephony services, a Government Communications Network for voice, data and video and associated products and services. These national frameworks allow public bodies to operate much simpler procurement processes for these requirements. The arrangements maximise volume discounts and provide for reductions in administrative and transaction costs for suppliers and public sector purchasers. They are designed for use across the public sector and, for example, are tailored to the needs of the National Centre for Technology in Education to meet needs down to local school level.

Similar type arrangements are in place for requirements in particular sectors. For instance, the Health Service Executive has a dedicated Procurement Directorate which contracts on a HSE wide basis across all categories of expenditure. Recent examples are – vaccines, electricity, medical equipment, renal dialysis and mobile telephony. HSE Procurement Directorate has established approximately 35 framework agreements for the purchase of certain categories of supplies and services. Likewise, in a collaborative purchasing arrangement, the local authority sector has an online system of national tender lists for plant hire, haulage, tool hire and other common supplies and services acquired by 30 local authorities.

A National Public Procurement Operations Unit (NPPOU) was established by Government in 2009 within the Office of Public Works. It subsumes the functions of the former Government Supplies Agency which placed contracts for commonly acquired supplies and services for the central Government sector. The NPPOU's remit includes: (i) organising the procurement of common goods and services (e.g. office equipment, furniture, vehicles, fuel, electricity, travel, clothing, printing, advertising) across the public service (ii) operating and developing the electronic tendering system and further developing and deploying appropriate and cost effective e-procurement systems (iii) providing professional procurement advice to the public service (iv) assisting where appropriate with specialist procurement undertaken directly by public service bodies (v) organising networks of procurement professionals and (vi) developing procurement training and education measures.

During 2009, the NPPOU brought together statistical information on the procurement expenditure of the top thirty spenders among state agencies. This is now being used by the Unit in its strategic approach to purchasing in various markets in 2010.