Billy Timmins (Wicklow, Independent)
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105. To ask the Minister for Public Expenditure and Reform the total quantum of expenditure with suppliers on contracts of value less than the €5,000 threshold, below which contracts may be awarded on the basis of a verbal quotation; when he plans to extend the national e-procurement system to cover all public procurement contracts, with a value both above and below €5,000; if he has confidence that the existence of less stringent requirements for public procurement contacts with a value below €5,000 is not being abused by State bodies, Government Departments or their proxies; the controls that are in place to prevent such abuse; and if he will make a statement on the matter. [24100/15]

Brendan Howlin (Wexford, Labour)
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EU directives set out advertising requirements and tendering procedures for contracts above certain value thresholds that must be applied by all public bodies involved in procurement.

For contracts or purchases below these threshold values, contracting authorities can contact the OGP to see if they can procure the goods or services on their behalf. Where this is not the case the following national procedures apply:

- supplies or services costing less than €5,000 in value may be purchased on the basis of verbal quotes from one or more competing suppliers;

- contracts for supplies or services between €5,000 and €25,000 in value should be awarded on the basis of responses to specifications sent by fax or email to at least three suppliers or service providers. ICT procurement opportunities with a value of €10,000 or greater are required to be advertised on eTenders in line with paragraph 2. (viii) of DoF Circular 2/09.

- goods and general services with an expected value of €25,000 or more should be advertised on the eTenders website.

Public bodies are required to publish all contract award notices over €25,000 on the eTenders website with effect from 1 August 2014. There are no plans to compel contracting authorities to publish procurements below this level on eTenders at present and it is questionable whether SMEs would welcome the increased administrative burden this would place on them. I would point out however that under Department of Public Expenditure and Reform Circular 10/14 buyers are requested to extend the use of the eTenders website to include tenders for low value purchases where possible. In relation to the level of procurement that falls below €5,000, there is no data available on the quantum of procurement involved as this information is not published on the eTenders system.  

In relation to  abuses by State bodies, Government Departments or their proxies regarding procurements below €5,000, I would point out that it is a matter for individual contracting authorities to ensure that their public procurement function is discharged in line with the standard accounting and procurement rules and procedures. The question of putting controls in place in these areas is a matter for the local management which in turn is subject to scrutiny by the internal and external audit functions of these bodies.