Michael McGrath (Cork South Central, Fianna Fail)
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Question 85: To ask the Minister for Finance the position regarding the contract for the supply of stationery and office supplies as advertised by the national procurement service; his views on the economic fall-out arising from the consequences of the contract for small and medium-sized stationery suppliers around the country; and if he will make a statement on the matter. [3150/11]

Martin Mansergh (Tipperary South, Fianna Fail)
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The National Procurement Service (NPS) is currently engaged in a tender process for the procurement of Stationery and Office Supplies. This process is now at evaluation stage. No award has yet been made to any party. The NPS is anxious to support SMEs, and to this end included the following text in the Request for tender (RFT) of the Stationery and Office Supplies tender. It was felt that this strategy would enable SMEs participate in the process. "NPS policy seeks to encourage participation by Small and Medium Enterprises (SMEs) in this Competition. SMEs that believe the scope of this Competition is beyond their technical or business capacity are encouraged to explore the possibilities of forming relationships with other SMEs or with larger enterprises. Through such relationships they can participate and contribute to the successful implementation of any contracts, agreements or arrangements that result from this Competition and therefore increase their social and economic benefits. Larger enterprises are also encouraged to consider the practical ways that SMEs can be included in their proposals to maximise the social and economic benefits of the contracts that result from this tendering exercise "

The division of this tender into three distinct lots has also increased the possibilities for SMEs to tender individually, or form consortia that can enter competitive bids to win this State contract. Utilising this approach has significantly increased the potential opportunities for Irish SMEs to compete in this tender process.

It should be noted, however, that aggregating demand for a contract of this size, for low risk low value goods can yield substantial cost and administrative savings for the Exchequer as well as minimising legal exposure to the State, particularly in light of the recently transposed Remedies Directive.