Richard Bruton (Dublin North Central, Fine Gael)
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Question 84: To ask the Minister for Finance the steps he will take to ensure that small and medium business are given an opportunity to participate in public procurement competitions; if he will consider if the proposed designation of one supplier for specific goods or services will exclude small and medium sized businesses, who might not meet pretender conditions of such large orders and will not have the capacity to deliver; and if he will make a statement on the matter. [38333/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The small and medium enterprise sector is very important to the economy and I am very aware that public procurement can be an important source of business for SMEs. In this regard, my Department recently issued new guidelines addressed to public bodies and aimed at facilitating small and medium-sized enterprises in competing for public procurement opportunities. The guidance sets out positive measures that contracting authorities are required to take to promote SME involvement in a manner that is consistent with the principles and rules of the existing public procurement regulatory regime. The guidance also highlights practices that are to be avoided because they can unjustifiably hinder small businesses in competing for public contracts. Some of the key features of the guidance include: · Contracts for supplies and general services with an estimated value of EUR25,000 or more are now to be advertised on the www.etenders.gov.ie website.

· Limitation on the use of 'restrictive procedure' tendering and increased use of 'open procedure' tendering;

· Much of the documentary evidence of a tenderer's capacity to undertake a project should no longer be sought until the tenderer is shortlisted or being considered for the award of a contract; and

· Contracting authorities are required to ensure that the levels they set for suitability criteria must be justifiable and proportionate to the needs of the contract.

Measures such as these will increase the opportunities for SMEs to compete for public contracts and will reduce the up-front administration burden for them.

In regard to large orders, the guidance promotes sub-dividing requirements into lots as this clearly facilitates access by SMEs. This approach is to be considered by contracting authorities where it would be appropriate and practical and can be done without compromising efficiency and value for money.

The guidance also provides that in establishing framework agreements, contracting authorities are to consider how proposed arrangements will impact on SMEs. They are required to ensure that the terms of the framework facilitate the inclusion of smaller enterprises if these can meet requirements or compete for particular lots. Also smaller companies can combine with others to make a joint bid for a contract that they might not be in a position to perform on their own.

There will be instances where SMEs flexibility and ability to respond speedily to requirements could place such enterprises in a particularly favourable position to participate and compete effectively.