Jackie Cahill (Tipperary, Fianna Fail)
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127. To ask the Minister for Public Expenditure and Reform to review a number of regulations in the tendering process for Government contracts, namely, the need for the company that is tendering to have carried out similar projects (details supplied) within the previous five years; the need for the company that is tendering to have a turnover of three times the value of the contract; the fact that foreign-owned companies do not have the same criteria imposed on them when tendering for Government contracts in respect of employees as do Irish-owned companies; and if he will make a statement on the matter. [7054/16]

Brendan Howlin (Wexford, Labour)
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Public procurement in Ireland is governed by EU and National Law and National Guidelines. The EU Treaty principles of equal treatment and non-discrimination, transparency, mutual recognition, proportionality, free movement of goods and services and the right of establishment must be observed on all tenders.  The main purpose of the EU public procurement regime is to open up the market and to ensure the free movement of supplies, services and works within the EU having regard to Treaty of Rome principles including transparency, proportionality and equal treatment.

Public procurement procedures require all applicants to meet certain standards when applying for public contracts.  The assessment of a tenderer's financial and economic standing, and professional and technical capacity is a key part of the procurement process.  This is because the contracting authority must be reasonably satisfied that a tenderer has the necessary capacity to carry out a contract if awarded it.  Proof of the tenderer's economic and financial standing is set by reference to one or more of the criteria set out in Article 47 of EU Directive 2004/18/EC while Article 48 of the same Directive sets out the evidence required of the tenderer's technical and professional abilities dependent on the nature, quantity or importance, and use of the works, supplies or services. Establishing the appropriate qualification criteria that are relevant and appropriate to a particular contract is a matter for the contracting authority concerned.  This is because the contracting authority is in the best position to gauge the appropriate levels of capacity that are appropriate to the needs of a proposed contract and to avoid putting the tax-payer at undue risk.  The qualification criteria that are required by the contracting authority should be 'proportionate' to the subject matter of the contract.

In relation to turnover requirements,  it is current policy that turnover should be set at no more than twice the estimated contract value for routine goods and services competition (DPER Circular 10/14 refers).  For non-routine services and goods higher turnover requirements may be necessary.

In relation to foreign owned companies not having the same criteria imposed on them, I would point out that the same public procurement rules apply equally to foreign companies as to Irish companies in line with European Directives on public procurement.  Contracting Authorities cannot favour or discriminate against particular candidates and there are legal remedies which may be used against any public body infringing these rules. Finally, the Office of Government Procurement 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 do not put unnecessary obstacles in the way of bidders.