Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Public Expenditure and Reform his views on the French model of public procurement where a tender can be spilt up into smaller modules to make it easier for small and medium businesses to compete for it; and if he will make a statement on the matter. [45924/12]

Brendan Howlin (Wexford, Labour)
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There are many EU countries including Ireland that sub divide larger contracts into smaller lots to make it easier for small and medium businesses compete for procurement opportunities. Current guidelines (Circular 10/10) issued by my Department require that public bodies conduct the public procurement function in a way that facilitates and does not place barriers to participation of small and medium enterprises. As one measure to achieve this, the guidance advises that the sub-dividing of procurement requirements into “lots” should be considered by contracting authorities where it would be appropriate and practical and can be done without compromising efficiency and value for money.

This 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.

In addition, the National Procurement Service, as part of its education and development remit, also has an active programme to assist SMEs in how to participate effectively in the public service procurement process. To date the NPS has facilitated workshops and presented at seminars to over 3,000 SMEs nationwide. The next event in this programme will be a major 'Meet the Buyer' event in Kilkenny in November at which it is anticipated more than 400 SMEs will attend.