Bernard Durkan (Kildare North, Fine Gael)
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Question 205: To ask the Minister for Public Expenditure and Reform the degree to which he has examined the way costs can be reduced through more effective procurement policies; and if he will make a statement on the matter. [28858/11]

Brendan Howlin (Wexford, Labour)
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In light of the need to accelerate the reform agenda, my Department is currently developing a Public Service Reform implementation plan. This Plan will outline the priority actions and timelines for reform in a broad range of areas including procurement, as well as setting out how implementation should be driven and monitored. New initiatives will build on the significant reforms that have been already introduced.

To date, the National Procurement Service (NPS) has been the key driver reforming the procurement function nationally, particularly in terms of developing centralised contracts for commonly used goods and services. On the basis of market analysis, the NPS has identified the top 50 categories of procurement expenditure that can be targeted for intervention. It currently has in excess of 45 national frameworks agreements and contracts in place for high spend requirements with a total value in excess of €450 million. These frameworks and contracts include energy, office supplies/ICT consumables, vehicles, fuel, advertising, clothing and footwear, print services etc. In addition, my Department manages framework arrangements for Information and Communications Technology requirements and associated products and services. Such framework arrangements maximise volume discounts and provide for reductions in administrative and transaction costs for suppliers and for State bodies.

My Department is keen to streamline – consistent with its value for money, legal, transparency and priority objectives. In order to reduce the costs involved in participating or conducting the procurement function, the NPS is promoting standardisation and simplification of the public procurement function and in this regard has published a suite of model tendering and contract documents which will help both businesses and buyers to reduce administrative costs. The NPS is also actively involved in the education and development of both buyers and suppliers involved with public service procurement and promotes collaboration between sectors where this is appropriate.

In addition the National Procurement Policy Unit in my Department has developed contracts for Public Works and Construction-Related Services that give greater cost certainty at tender stage, for capital projects. The construction reform initiative has yielded substantial savings in capital procurement.