Written answers

Tuesday, 14 February 2017

Department of Public Expenditure and Reform

Public Procurement Regulations

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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316. To ask the Minister for Public Expenditure and Reform the reason decentralised Government Department offices are precluded from purchasing office supplies locally in favour of centralised purchasing in view of the fact the practice is contrary to the concept of Government decentralisation; and if he will make a statement on the matter. [7246/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Procurement reform is a key element of the Government's overall reform programme and is aimed at delivering increased value for money, more accurate and timely data and improvement in the capacity and capability of the procurement function across the public service.  The fragmented procurement arrangements across the public service which existed prior to this facilitated amongst other things suppliers charging different public service bodies different prices for the same goods and services.  This was not sustainable, as the State could not afford to continue to purchase works, goods and services in a manner that undermined the efficient delivery of services.

All public bodies are keenly aware of the importance of maximising the value for money achievable when procuring any commonly acquired goods or services.  The central procurement frameworks and contracts established by the Office of Government Procurement (OGP) have been designed to optimise benefits to the public service through the strategic aggregation of its buying power.       

Central procurement frameworks are targeted at securing best value for money and facilitating contracting authorities to deliver services within their budgetary constraints. In this regard, public bodies are encouraged to use these frameworks arrangements. The benefits arising from these central procurement frameworks include: cash savings; administrative savings from reduced duplication of tendering; greater purchasing expertise; improved consistency; enhanced service levels and legal certainty.  It is Government policy, as set out in Circular 16/2013, that public bodies, where possible, should make use of all such central arrangements. Where public bodies choose not to utilise central procurement frameworks they should be in a position to provide a value for money justification. It should also be noted that the OGP issued Circular 10/2014 which contains initiatives aimed at facilitating SME access to public contracts.

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