Written answers

Thursday, 1 October 2015

Department of Public Expenditure and Reform

Public Procurement Contracts

Photo of Michael ColreavyMichael Colreavy (Sligo-North Leitrim, Sinn Fein)
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26. To ask the Minister for Public Expenditure and Reform the consideration he has given to reducing the size of public procurement tenders to make them accessible to micro-business; and if he will make a statement on the matter. [33413/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The reform of the procurement system across the public service is a key element of the reform programme for the public service.  Reform of Public Procurement is being carried out in a manner that recognises the importance of SMEs including micro business. 

In its report "Public Service Spend and Tendering Analysis for 2013", the Office of Government Procurement (OGP), which comes under the remit of my Department, found, as part of its Key Findings, that 74% of tender notices were of small value (i.e. below EU threshold), with the median contract values by spend categories ranging from €500,000 (Utilities) to €50,000 (Veterinary, Marketing, Print, Stationery, Defence).  Of the €2.742 billion spend data analysed, just over 66% of the value (€1.82 billion) was spent with suppliers whose business was classified as 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.  As the Deputy is aware, in April 2014 my Department issued Circular 10/14 aimed at opening up opportunities for small businesses, including micro business, that want to tender for public contracts by, for example, encouraging more on-line open tendering, reducing bidders' turnover requirements, promoting the use of proportional and reasonable insurance requirements, and breaking larger contracts into lots.

The OGP is also continuing to work 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.  For example, in 2015, the OGP supported the "Meet the Buyer" event which took place on 17 June in Belfast and drew over 600 delegates and the OGP is supporting another "Meet the Buyer" event on 21 October in Dublin.

The OGP will continue to work with suppliers 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.

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