Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

76. To ask the Minister for Public Expenditure and Reform the procedure to be followed by small and medium suppliers of goods and services who are anxious to quote for advertised public contracts; and if he will make a statement on the matter. [19107/15]

Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context | Oireachtas source

The reform of the procurement system across the public service is a key element of the reform programme for the public service.  The fragmented procurement arrangements across the public service have enabled suppliers to charge different public service bodies different prices for the same goods and services. Public Procurement savings are necessary to enable public service organisations deliver much needed services within the tighter budgets that they must now operate.

However, I would point out that reforms in this area are being carried out in a manner that recognises the importance of SMEs.  The Government acknowledges the significant role that SMEs play in the Irish economy and is committed to ensuring that SMEs are fully engaged with public sector procurement and the opportunities presenting.  Circular 10/14 issued in 2014 by my Department sets out positive measures that contracting authorities are to take to promote the involvement of smaller enterprises as well as highlighting practices that are to be avoided because they can hinder small businesses in competing for public contracts. The main thrust of the circular is as follows:

- buyers are advised to undertake market analysis prior to tendering in order to better understand the range of goods and services on offer, the competitive landscape, including the specific capabilities of SMEs, etc.

- the circular promotes transparency in procurement by requiring supplies and general services contracts with an estimated value of €25,000 be advertised on the Government's electronic tendering portal, e-Tenders;

- it encourages suppliers including SMEs to fully use e-Tenders and avail of its facilities in relation to registration, e-tendering and automatic alerts in relation to future tendering opportunities;

- buyers are encouraged not to set turnover thresholds at more than twice the estimated contract value and puts limits on insurance levels for suppliers where possible;

- promotes greater use of "open" tendering and less use of "restrictive" tendering;

- it  encourages SMEs to consider using consortia where they are not of sufficient scale to tender in their own right or where they may lack certain capabilities necessary to provide a compelling proposition; and,

- it encourages Contracting Authorities to break large contracts down into lots where reasonable to do so and where it does not expose the State to undue risk or significant management overheads.

The OGP proactively launched a campaign to get more businesses to register with e-tenders (the national tendering portal) which resulted in 12,300 new supplier registrations in 2014.

In addition, the Office of Government Procurement (OGP) is working with industry representative bodies to promote the engagement of Irish business in public procurement (including ISME, IBEC, SFA, Chambers Ireland, and CIF) as well as the Department of Jobs, Enterprise and Innovation, InterTrade Ireland, and Enterprise Ireland.  Last year, for example, the OGP supported two 'Meet the Buyer' events - one in Belfast and the other in Dublin attended by over 1,100 businesses. The OGP will continue to work with industry to ensure that winning government business is done in a fair, transparent and accessible way and to ensure that Government procurement policies are business friendly.