Written answers

Wednesday, 20 April 2016

Department of Public Expenditure and Reform

Public Procurement Contracts

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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135. To ask the Minister for Public Expenditure and Reform the extent to which procurement has featured in a positive way in the context of achieving savings in the course of the past four years; and if he will make a statement on the matter. [7750/16]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The OGP and its partner sector sourcing organisations in Health, Education, Local Government and Defence have enabled procurement savings estimated at €162m over 2013, 2014 and 2015. Additional direct and indirect benefits attributable to the new model arise from cost avoidance, reduced administration overhead and improved specifications.  Increasing the application of professional procurement also reduces risk to the State by identifying risk and establishing contractual arrangements to manage those risks, such as damages payments for non-performance where applicable.  

It is important to note that the consistent approach enabled by the new procurement structures can also deliver savings to businesses who bid for State contracts through standardised documents, proportional insurance requirements and reduced administration in submitting documents only when short-listed or successful in competitions.

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