Willie O'Dea (Limerick City, Fianna Fail)
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362. To ask the Minister for Social Protection the public procurement criteria used when tenders are issued by her Department; if there is a restriction on the turnover of companies who can submit to tender for her Department; and if she will make a statement on the matter. [17873/14]

Joan Burton (Dublin West, Labour)
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The procurement of services is essential to support the Department in providing high quality service to the public in a cost effective and efficient manner and is governed by a comprehensive regulatory, legal and procedural framework.

In accordance with Department of Public Expenditure and Reform (D/PER) procedures, procurements of goods and services in excess of €25,000 ex. VAT and all IT procurements in excess of €10,000 ex. VAT are advertised on E-tenders.

Increasingly, and in accordance with Government policy, the Department draws its procurement requirements from a range of central Framework Agreements for common goods and services, established by the Office of Government Procurement (OGP). These centralised frameworks and the use of collaborative procurement arrangements across the public service are targeted at securing best value for money.

The Department is committed to ensuring that in procuring goods and services, our procedures do not impose barriers which could unfairly disadvantage small and medium size enterprises (SME) in competing for contracts, while at the same time having regard to our legal obligations and the capability of potential suppliers to carry out the contracts. In these respects the Department takes into account the guidance set out in Department of Finance Circular 10/10 Facilitating SME Participation in Public Procurement.

In relation to minimum turnover thresholds, OGP guidance suggests requirements for annual turnover may range from half the value to three times the value of a contract, depending on the size, duration, nature and complexity of the contract. The Department’s key consideration is that the turnover level chosen is proportionate to and justified by the needs of the contract.

The Department’s procurement policy is published on the website . I am satisfied that procurement in the Department is compliant with best practice in realising value for money.