Written answers

Wednesday, 23 January 2013

Department of Public Expenditure and Reform

Public Procurement Contracts

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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To ask the Minister for Public Expenditure and Reform if he will reconsider the centralisation of the National Procurement Services with regards to the supply of stationary to schools which will come into effect from April 2013; if the suppliers of the NPS are local and if he will consider using existing school suppliers. [3149/13]

Photo of Brian HayesBrian Hayes (Dublin South West, Fine Gael)
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The purpose of this Circular is to inform public bodies of the mandatory requirement to utilise central contracts, put in place by the NPS, when procuring a range of commonly acquired goods and services. Such central arrangements are targeted at securing best value for money and facilitating contracting authorities to deliver services within their budgetary constraints.

Where a public service body already has contracts in place for the categories of goods and services covered by the mandatory arrangements, it is expected that the public service body will transition to the NPS arrangements on expiry of the contracts currently in place.

The current holder of the stationery contract is Codex Limited, which is an Irish company, and that company reports that they have partnered with 136 other Irish SME suppliers to service this contract. Since 1st September 2012 this contract has been mandatory for all third level institutions (Universities, Institutes of Technology) and VEC schools but excluding other non-VEC primary and secondary schools.

The National Procurement Service will shortly be advertising a competition for a new stationery contract on the eTenders website and this competition will be run in accordance with all the established European and National procurement legislation. The new contract is scheduled to begin in April 2013 and its mandatory use will be extended to include all schools. It is anticipated that the new competition will facilitate many stationery suppliers to collaborate in the tendering process.

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Public Expenditure and Reform the progress being made in relation to reforming the public tendering process for projects such as schools and roads in order that organisations are not excluded due to unrealistically high thresholds or stringent requirements for consecutive years of high turnover; his views on whether the reforms are necessary to deliver greater competition for the State and fairness in the system; and if he will make a statement on the matter. [3283/13]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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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, which are available to download for all contracting authorities to provide a consistent approach to the management of public works projects.

The Capital Works Management Framework was introduced on a phased basis from 2007 and became mandatory for all contracting authorities in 2010. The documents are updated and augmented where appropriate to respond to new developments in the industry and changes in the regulatory environment.

The assessment of a tenderer’s financial and economic standing is a key part of any procurement process because the contracting authority needs to be reasonably assured that a contractor will have the necessary capacity to carry out a contract if the contractor is awarded the contract. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority concerned. This is because the contracting authority is in the best position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract. My Department has developed specific national guidelines for contracting authorities in relation to minimum standards for suitability criteria for construction contractors interested in tendering for public works projects, published as part of the Capital Works Management Framework. In this regard, it is important to point out that there are no centrally imposed requirements for a minimum turnover. Such requirements would logically be developed on a case by case basis with reference to the specific needs of the contract.

The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, my Department has issued public procurement guidelines (Circular 10/10) to public bodies which are aimed at facilitating greater participation of SMEs in public procurement opportunities. In relation to suitability criteria, the guidelines stress that public bodies must ensure that any criteria/turnover levels set by them must be both justifiable and proportionate to the needs of the contract.

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