Written answers

Tuesday, 18 September 2012

Department of Public Expenditure and Reform

Public Procurement Tenders

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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To ask the Minister for Public Expenditure and Reform if it is the case that a recent tender process operated by the National Procurement Service on managed print services operated a criteria which effectively excluded more than 90% of potential tenderers on the basis of requiring a minimum average turnover of more than €10 million for the previous three years; his plans to make such tender processes less restrictive to allow small medium enterprises to tender for State contracts; and if he will make a statement on the matter. [38462/12]

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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Managed Print Services (MPS) is a unique office print solution, where a supplier provides an all inclusive service based on an on-going per click charge, that includes the provision of print/imaging devices at no capital cost to the public sector body. The supplier in effect, provides the full infrastructure required for all day-to-day office printing. Research carried out by the National Procurement Service (NPS) has indicated that such an approach gives best value to the Irish public sector.

The majority of public sector bodies currently have ad-hoc print arrangements in place. A typical Government office has multiple print and imaging devices such as; photocopiers, scanners and faxes. These devices can potentially come from a wide range of different suppliers with separate supply and servicing arrangements. The ratio of print devices to staff is often in the region of 1:2 and in some cases as low as 1:1 where a large number of staff have their own desktop printer.

The MPS Framework offers all public sector bodies in the State access to a print solution that is strategic and cost efficient that can be tailored to the specific needs of their individual organisation. Following an open competition, advertised on e-tenders and in the Official Journal of the European Union (OJEU), the Framework Agreement for MPS was established on 8 February 2012. The Framework Agreement will be in place for two years, with an option to extend for a further two years. The minimum turnover requirement for entry into the Framework was an average of €10 million per annum for the three most recent years of audited accounts or where the date of establishment is more recent for each year the entity has been established.

The value of the Framework Agreement over two years was estimated to be €100 million. Taking into account the value of the Framework and the fact that suppliers are required to provide all of the print devices up front, from their own resources, the view was taken by the NPS that the €10 million minimum turnover requirement was proportionate. Tenderers who did not have the required turnover in their own right were invited to partner with other entities to satisfy this requirement.

Four of the successful tenderers are indigenous small and medium enterprises (SMEs) (MJ Flood, Bryan S Ryan, Hibernian Business Equipment and Ergo). One of the tenderers did not have the required turnover in their own right to qualify for the Framework and formed an alliance with a large manufacturer to satisfy the turnover requirement. Furthermore, the Framework Members have indicated in their tender submissions that they will use a further 11 indigenous SMEs in the delivery of MPS. The Framework for MPS stipulates that public sector bodies carry out mini-competitions between the Framework Members for MPS solutions. To date six mini-competitions have been completed and all six have been won by Framework Members who are indigenous SMEs.

Circular 6/12 specifies that the MPS Framework is mandatory from 1 September 2012. However, it is important to note that this Framework is only mandatory where a public sector body opts for an MPS solution. If a public sector body simply wishes to purchase a printer or a photocopier they do not have to use the MPS Framework. It is a matter for each public sector body to determine which route offers the best value for their organisation.

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