Joe Carey (Clare, Fine Gael)
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Question 111: To ask the Minister for Public Expenditure and Reform his plans in relation to the reform of the public procurement process specifically in relation to turnover qualification criteria; and if he will make a statement on the matter. [10399/12]

Brendan Howlin (Wexford, Labour)
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The guidelines on public procurement which are issued by my Department to public bodies specifically address the use of turnover as a qualifying criterion for potential tenderers for public contracts. Contracting authorities frequently use the ratio "tenderer's turnover : contract value" as a measure in deciding whether a business has the financial capacity and strength to perform a contract.

Clearly, each project will have different requirements depending on its particular features and the level of risk to the contracting authority arising from non-performance. Therefore, it is not possible to devise exact provisions to be applied to every situation. An appropriate turnover level would depend on the particular features of the project and other potential risks to the contracting authority arising from supplier not having the capacity to fulfil its contractual obligations. My Department's guidelines discuss these matters and advise public bodies on deciding an appropriate approach, including the need to ensure that newly established firms, or firms with no previous experience of public contracts are not excluded from competing for public projects. The key consideration is that the turnover level chosen by a public body is proportionate to and justified by the needs of the contract.

The guidance published by my Department includes Circular 10/10: Facilitating SME Participation in Public Procurement and accompanying guidance, which is available at: www.etenders.gov.ie; and www.constructionprocurement.gov.ie.; and GN 2.3.1.3 Minimum Standards on Suitability Criteria for Works Contractors, which is also available at: www.constructionprocurement.gov.ie.