Dominic Hannigan (Meath East, Labour)
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Question 197: To ask the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the fact that a company (details supplied) which is inspecting work carried out by the better energy homes scheme also undertook the same work when it was the warmer home scheme; and if he will make a statement on the matter. [22330/12]

Dominic Hannigan (Meath East, Labour)
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Question 198: To ask the Minister for Communications, Energy and Natural Resources the way the Sustainable Energy Authority of Ireland undertook their tender for companies to inspect work under the better energy homes scheme; the number of companies that applied; the conditions for the tender; the length of the contract; the amount the contract was worth; the terms of the inspections that have to be carried out; and if he will make a statement on the matter. [22331/12]

Pat Rabbitte (Dublin South West, Labour)
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I propose to take Questions Nos. 197 and 198 together.

The Better Energy Homes scheme provides fixed grants to homeowners who wish to improve the energy performance of their homes through insulation and heating upgrades. The Better Energy Warmer Homes Scheme provides insulation services free of charge to vulnerable fuel poor homes, through a combination of Community Based Organisations and private contractors.

The Sustainable Energy Authority of Ireland (SEAI) administers both of these schemes. One key component of scheme governance is to ensure that the works have been completed to an appropriate standard. Inspections are conducted in accordance with checklists issued by the SEAI which assess conformance to the technical specifications for the works as published by the SEAI. The inspections are undertaken by an outsourced third party appointed by the SEAI in accordance with Public Procurement Guidelines. Until recently inspections under the separate schemes were subject to two separate contracts, both of which were awarded to Carillion, following Invitation to Tender Procedures conducted through www.e-tenders.gov.ie and the Official Journal of the European Union.

In order to verify compliance with the requisite standards, under the scheme, SEAI implements a technical inspection regime in accordance with the SEAI's detailed Quality Assurance and Disciplinary Procedure. A percentage of properties are inspected by suitably qualified personnel, in accordance with published checklists, to ascertain compliance with relevant aspects of the Technical Specification and Code of Practice. The overall technical inspection rate for the scheme has been around 11% of installations. The rate of inspections and the targeting of inspections is being enhanced by SEAI to ensure, among other requirements, that both large and small or new contractors are appropriately and proportionately covered under the technical inspection regime.

While technical inspections are largely, but not exclusively, focused on quality assurance, SEAI is currently implementing much greater use of prepayment verification inspections across all categories of installations and contractors as well as a programme of ongoing enhancement of scheme assurances and controls.

In August 2011, the SEAI commenced a procurement process with the aim of consolidating the contracts for inspections and related services across the Better Energy Programme. The procurement process was completed in full compliance with the Public Procurement Guidelines. The SEAI published the Request For Tender (RFT) on the e-tenders website and in the Official Journal of the European Union on 25th August, 2011 with a closing date for receipt of tenders of 4th October, 2011. The stated objective of the RFT was to appoint an organisation to provide the SEAI with a range of survey, inspection and related quality assurance services in accordance with the quality assurance objectives of the Better Energy Homes schemes.

A total of nine tenders were received by the deadline which were evaluated by an expert selection panel and scored in accordance with the published selection criteria and weightings. The selection panel met with a number of the tenderers in order to clarify aspects of their submissions.

The selection panel recommended the appointment of Kerrigan Sheanon Newman (KSN), a Dublin-based company, to the contract which was approved by the Board of the SEAI in December 2011. Approval is, in accordance with the published RFT, initially for a one year period and thereafter, subject to satisfactory performance, for a further period of two years. All bidders were notified of the outcome and the contract notification cooling off period commenced. Engagement of the winning bidder by the SEAI and transition from the incumbent service provider, commenced in mid-January. The contract value is estimated at €1.9M per annum, excluding VAT. The service is managed on the basis of a Services Contract (template published at time of RFT) and a Service Level Agreement with agreed Key Performance Indicators (KPIs), monitored and managed by the SEAI.