Written answers

Wednesday, 9 July 2014

Department of Public Expenditure and Reform

Public Procurement Regulations

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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29. To ask the Minister for Public Expenditure and Reform the impact of his plans for public procurement reform on the delivery of community services; and if a cost-benefit analysis has been undertaken by his Department in relation to this. [29613/14]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Public Procurement is governed by EU and National rules. T he aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.  These rules apply to Central Government Departments and bodies under their aegis, commercial or non-commercial state bodies, Local and regional authorities, health authorities and, entities that are substantially state-funded (over 50 per cent).  The latter would include community service groups

Reform of public procurement followed the publication of a Capability and Capacity Review of the Central Procurement Function in September 2012 which analysed the total State non-pay expenditure on goods and services, excluding capital expenditure and commercial semi-States. The State spends around €8.5 billion on goods and services each year. This represents a very significant portion of overall spending and it is, therefore, essential that the public service achieves maximum value for money and operational efficiency in its approach to public procurement.  

Public procurement in Ireland is complex, with different levels of procurement development, capabilities and systems across the public service.  The Office of Government Procurement  contracts will result in better value for money and will provide sourcing solutions that are smarter and more efficient. Given the budgetary pressures facing the public service, public procurement savings can support the dual objectives of meeting our fiscal targets and of maintaining/improving services for the public.  Individual customer organisations will no longer need to tender separately for their (often common) goods and services. This will avoid duplication of effort and increase administrative efficiencies.

The Government acknowledges the significant role that the Voluntary and Community Sector plays in the Irish economy and will seek to ensure that the sector is fully engaged with public sector procurement by building awareness within the sector of their obligations to adhere to public sector procurement regulations and by providing advice and support to them in relation to public procurement matters.

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