Michael McGrath (Cork South Central, Fianna Fail)
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92. To ask the Minister for Public Expenditure and Reform the reason a company (details supplied) has terminated its contract, effective from 3 September 2015, with the Office of Government Procurement for OGP Group 4, awarded under the supply of stationery and office supplies, as set out in the request for tenders to establish a multi-supplier framework agreement dated 9 August 2013; if he will advise on the financial implications of this contract cancellation; and if he will make a statement on the matter. [26779/15]

Brendan Howlin (Wexford, Labour)
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The Office of Government Procurement has confirmed that the company (details supplied) has given notice to terminate the contract within the terms of the contract for the supply of stationery and office supplies to the OGP Group 4 "Sector" (i.e. Central Government, Local Authorities and Schools).  The termination date is 3 September 2015.

The decision to terminate the contract early was taken by the company and is allowed for under the contract.  In informing the OGP of its decision, the company cited a range of factors including the low average value of orders placed under the contract, the high frequency of multiple low value orders, and low take-up of the contract in certain sections of the Sector.

During the period to 3 September, OGP Group 4 Sector customers can continue to use the contract for their stationery and office supplies needs. The current OGP catalogue is still valid and the company will maintain service as normal until that date.  To ensure that public sector bodies experience no gap in service, the OGP will shortly be commencing a mini-competition to put in place a new arrangement for OGP Group 4 customers, which will run from 4 September onwards.

Regarding the financial implications of this contract cancellation, this will be known when the mini-competition has been run, estimated to be by end of July, and a new contract awarded following the receipt of prices submitted by the other members of the framework.  Framework members cannot propose pricing that is in excess of what they proposed in their framework response so the cost exposure is capped.