Written answers

Tuesday, 27 January 2015

Department of Public Expenditure and Reform

Public Procurement Contracts

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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221. To ask the Minister for Public Expenditure and Reform his views on lowering the turnover threshold which must be reached by small and medium-sized enterprises as part of the public procurement process; if a regulatory impact analysis has been carried out to ascertain the impact of the current threshold guidelines; and if he will make a statement on the matter. [3819/15]

Photo of Mattie McGrathMattie McGrath (Tipperary South, Independent)
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222. To ask the Minister for Public Expenditure and Reform the number of small and medium enterprises who unsuccessfully tendered for contracts under the public procurement process, because of their failure to reach the current threshold guidelines; and if he will make a statement on the matter. [3820/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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I propose to take Questions Nos. 221 and 222 together.

There are no centrally imposed requirements for a minimum turnover. The assessment of a tenderer's financial and economic standing is a key part of any procurement process. 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. Therefore there are no centrally imposed requirements for a minimum turnover. Such requirements must 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 guidance (Circular 10/14) to public bodies 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. The Office of Government Procurement through its category councils and through its engagement with public bodies is ensuring that this message is being brought to the attention of buyers across the public service.

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