Written answers

Thursday, 24 November 2016

Department of Public Expenditure and Reform

Public Procurement Regulations

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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160. To ask the Minister for Public Expenditure and Reform the extent to which public procurement procedures can achieve savings in the course of 2016; and if he will make a statement on the matter. [36720/16]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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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.  The 2016 savings outturn has not been finalised but the target for 2016 was between €80 and €100 million.  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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