Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 37: To ask the Minister for Public Expenditure and Reform the steps being taken to assist small business in obtaining public contracts; and if he will make a statement on the matter. [34884/11]

Brendan Howlin (Wexford, Labour)
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I am very aware that public procurement can be an important source of business for local enterprises. In general, SMEs' flexibility and ability to respond speedily to requirements can be advantageous in competing for local contracts. Current guidelines from my Department require public bodies to promote participation of small and medium-sized enterprises in the award of public contracts.

The guidelines set out positive measures that contracting authorities are 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. The key provisions of the guidance include:

· supplies and general services contracts with an estimated value of

€25,000 or more to be advertised on the www.etenders.gov.ie website;

· less use of "restrictive" tendering procedures and greater use of "open"

tendering;

· ensuring that the levels set by contracting authorities for suitability criteria

are justified and proportionate to the needs of the contract;

· sub-dividing larger requirements into lots where this is practical and can

be done without compromising efficiency and value for money;

· the needs and possibilities for small businesses to compete and supply to

be taken into account when setting up panels/framework arrangements;

· encouragement of small companies to combine with others to make a joint

bid for a contract that they might not be in a position to perform on their

own.

Measures such as these should increase the opportunities for SMEs to compete for public contracts and will reduce the up-front administration burden for them. The Government continues to review the situation in regard to SME participation in public procurement and where consistent with achieving value-for-money, probity and transparency, will seek to address any further issues that might be identified.