Peadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Public Expenditure and Reform the way the multi supplier framework agreement for the supply of monochrome and colour printers and multi function devices is consistent with the Action Plan for Jobs 2013 commitment 206, to prioritise the reduction of barriers to entry for small and medium enterprises in competing for procurement opportunities; the reason no social clauses have been considered as part of the process despite his commitment to promote such clauses. [12553/13]

Brian Hayes (Dublin South West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The National Procurement Service (NPS) is fully committed to encouraging the participation of SMEs in their nationwide competitions and has taken a number of steps to make this possible. In NPS competitions, the tender documents explicitly seek to encourage the participation of SMEs. A prime example of this is when the NPS decided to divide the office supplies contract into three individual lots for Stationery, ICT Consumables and Paper. The NPS actively encourages consortia to tender for their competitions. SMEs that believed the scope of the competitions were beyond their technical or business capacity were encouraged to explore the possibilities of forming relationships with other SMEs or with larger enterprises. Through such relationships they could participate and contribute to the successful implementation of any contracts that resulted from these competitions and therefore increase their social and economic benefits. Larger enterprises were also encouraged to consider the practical ways that SMEs could be included in their proposals to maximise the social and economic benefits of the contracts that result from these tenders.

One proven method to encourage the participation of SMES is through the use of lots in a competition. In the current office equipment tender the NPS has divided the range of printers sought into five individual lots with plans to place up to seven companies on a framework for each lot. Therefore, there is the potential for thirty-five different companies to win places on this new framework.

In order to lighten the burden placed on SMEs when tendering the NPS operates in line with the best practise recommendations of the Department of Finance Circular 10/10. These steps include the use of proportional criteria for turnover and qualification, proportional insurance levels being set, ensures that there is no requirement for companies to submit all relevant paperwork (e.g. tax clearance certificates, auditors statements) upfront. The NPS also uses the CSSO approved standard suite of documents when drafting a tender and uses the eTenders website to ensure all companies can access the documentation and any clarifications quickly and freely. There is a social clause included in current public works contracts which deals with pay and conditions of employment, the Department of Public Expenditure and Reform are considering how it may be possible to include a performance requirement for the employment of the long-term unemployed in future contracts.

Peadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Public Expenditure and Reform if he will review the current managed print services framework to include the annual turnover requirements, to ensure that it is fully consistent with his recent commitments to promote small and medium enterprise involvement in procurement and reflective of social clauses. [12554/13]

Brian Hayes (Dublin South West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Managed Print Services (MPS) is a unique office print solution, where a supplier provides an all-inclusive service charged on a per click basis, 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 MPS Framework Agreement offers all public sector bodies in the State access to a print solution that is strategic, cost efficient and that can be tailored to the specific needs of the 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 value of the Framework Agreement over two years was estimated to be up to €100 million. Taking into account the value of the Framework and the fact that suppliers are required to provide all of the print devices upfront, 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.

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. These turnover requirements were applied at the qualification stage as part of the competition for entry on to the MPS Framework Agreement. Under S.I. No. 329 of 2006 – European Communities (Award of Public Authority Contracts) Regulations 2006, no changes can be made to the composition of a Framework for the duration of the Agreement.

The MPS procurement competition explicitly sought to encourage the participation of SMEs. Those SMEs that believed the scope of the competition was beyond their technical or business capacity were encouraged to explore the possibilities of forming relationships with other SMEs or with larger enterprises. Larger enterprises were also encouraged to consider the practical ways that SMEs could be included in their proposals with a view to maximising the social and economic benefits of the contracts that result from these tenders.

All of the Framework Members have operations in Ireland and provide local employment. Four of the seven successful tenderers are 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.

Peadar Tóibín (Meath West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Public Expenditure and Reform in view of his commitment to promote social clauses and small and medium enterprise take up of Government procurement, the steps being taken to design tender documents and evaluation criteria that reflect these commitments. [12555/13]

Brian Hayes (Dublin South West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Government has taken several steps to encourage the participation of SMEs in their tender competitions. National Procurement Service (NPS) tender documents explicitly seek to encourage the participation of SMEs. They encourage SMEs who believe that the scope of a particular competition is beyond their technical or business capacity to explore the possibilities of forming relationships with other SMEs or with larger enterprises. Larger enterprises are also encouraged to consider the practical ways that SMEs could be included in their proposals to maximise the social and economic benefits of the contracts that result from these tenders.

The NPS uses the CSSO-approved standard suite of documents when drafting a tender and I have encouraged all other contracting authorities involved in public procurement to do the same – this use of standardised documents is designed to simplify the issues facing business when tendering for public contracts. The standard tender documents provide that much of the documentary evidence of a tenderer’s capacity to undertake a project is not required to be produced at tender stage – instead, tenderers are asked to declare that they have the necessary capacity and that they will be in a position to produce the necessary documentation when requested. That documentary evidence (e.g., bank statements, audited accounts, proof of professional indemnity, etc.) need only be produced when a tenderer has been short-listed or is coming under consideration for the award of a contract. This approach is aimed at reducing the up-front administrative burden for businesses interested in tendering for contracts.

In line with the best practise recommendations of the Department of Finance Circular 10/10, contracting authorities are encouraged to ensure that requirement levels for turnover and insurance levels are proportionate to the particular contract. There is a social clause included in current public works contracts which deals with pay and conditions of employment and, as I indicated to Deputy Tóibín in reply to an earlier question, the Department of Public Expenditure and Reform are considering how it may be possible to include a performance requirement for the employment of the long-term unemployed in future contracts. The Department is also considering whether it would be appropriate to include comparable clauses in other public contracts.