Written answers

Tuesday, 17 May 2016

Department of Public Expenditure and Reform

Departmental Contracts

Photo of Tony McLoughlinTony McLoughlin (Sligo-Leitrim, Fine Gael)
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598. To ask the Minister for Public Expenditure and Reform further to Parliamentary Question No. 124 of 26 April 2016 (details supplied), the way in which small and medium enterprises could compete for this tender; why a lot was not broken down into smaller lots; if he is aware that companies that did not price every single item on the list were excluded from the tender; if this tender is in compliance with Circular 10/14; his views on whether many companies which have lost out on competing for smaller amounts of services in this large tender may be forced to close with the loss of jobs; if he is aware that in previous competitions, companies which competed in the quantitative part-lots were broken down by various categories of goods, which gave them the opportunity to compete; and if he will make a statement on the matter. [9357/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The OGP is fully aware of the significant role that SMEs play in the Irish economy and is strongly committed to ensuring that SMEs are fully engaged with Public Sector procurement and the opportunities presenting.  In that context, the OGP has established the High-level Group on SME Access in conjunction with the Department of Jobs, Enterprise and Innovation, Enterprise Ireland and InterTrade Ireland.  The group is chaired by Mr. Paul Quinn, Chief Procurement Officer, and is focussed on monitoring the delivery of the procurement commitments under the Action Plan for Jobs and to develop further strategies to improve SME access to procurement.  In addition, the OGP Policy Director chairs the SME Working Group which brings together the Department of Jobs, Enterprise and Innovation, Enterprise Ireland, the Competition Authority and InterTrade Ireland with industry representative bodies including IBEC, the Small Firms Association, CIF, Chambers Ireland and ISME. 

Circular 10/14: "Initiatives to assist SME's in Public Procurement" (April 2014) issued new guidance and procedures to public procurers regarding SME access to procurement opportunities. The purpose of the new guidelines and procedures are to ensure that engaging with government procurement is easy and low cost. In line with the objectives of Circular 10/14, the lots were designed to facilitate the participation of SMEs.  The National Framework Agreement was structured into 10 sectoral lots, including 5 regional lots for the HSE and each lot was for commonly used products. This lotting structure was designed to deliver efficiency, value for money, reduce duplication and mitigate any undue risks on the State, whilst still supporting SME participation.   

Collaborative consortia bids were encouraged by the OGP thereby further facilitating SMEs' participation.

As previously advised five companies were appointed to the National Framework Agreement and four of the companies are SMEs based in Dublin, Cork, Monaghan and Galway. This outcome has demonstrated SME ability to compete and be successful in public procurement processes.

Comments

Anne Frawley
Posted on 19 May 2016 4:42 pm (Report this comment)

The Minister needs to explain how he proposes a group of collective sme's can compete .... he needs to detail the logistics of how such a group can meet the requirements of the tendering process laid down .....

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