Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 279: To ask the Minister for Public Expenditure and Reform if he is satisfied that current procurement processes for publicly funded construction contracts gives adequate opportunity for small and medium enterprises to be successful in tendering for work; and if he will make a statement on the matter. [21610/12]

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. Current guidelines including Circular 10/10 -'Facilitating SME Participation in Public Procurement' issued by my Department require public bodies to promote participation of small and medium-sized enterprises in the award of public contracts. These 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:

· works and related services contracts with an estimated value of €50,000 or more to be advertised on the www.etenders.gov.ie website. While there is no requirement to advertise works projects below €50,000 on www.etenders.gov.ie or elsewhere, the principle of transparency and non-discrimination still needs to be satisfied. Where a Contracting Authority does not advertise for projects below €50,000 and has satisfied the principles in some other way, five firms should be invited to tender with the expectation that five tenders will be submitted;

- all public works and related services contracts up to €250,000 to be procured using an 'Open' procedure, an 'Open' procedure admits all contractors to the tendering stage providing they meet the minimum qualification standards set by the contracting authority;

· ensuring that the levels set by contracting authorities for suitability criteria are justified and proportionate to the needs of the contract. National guidelines for contracting authorities in relation to minimum standards for suitability criteria for construction contractors interested in tendering for public works projects are published on the Capital Works Management Framework available at www.constructionprocurement.gov.ie . These guidelines take account of the principles of transparency, proportionality and fairness under the EU Treaty;

· permitting applicants to pre-qualify on the basis of self-declaring that they meet the qualification criteria without having to submit all of the required evidence which can be a significant administrative burden for an SME. Evidence in support of the declarations is only sought at the contract award stage; and sub-dividing larger requirements into lots where this is practical and can be done without compromising efficiency and value for money.

All policy, guidance and implementation measures relating to capital projects are published on the Construction Procurement Reform website www.constructionprocurement.gov.ie where the Capital Works Management Framework provides a suite of best practice guidance, standard contracts and generic template documents are available to download for all contracting authorities to provide a consistent approach to the management of public works projects.