Bernard Durkan (Kildare North, Fine Gael)
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123. To ask the Minister for Public Expenditure and Reform the extent to which procurement procedures continue to achieve good value for the taxpayer and speedy delivery to the consumer; and if he will make a statement on the matter. [40738/17]

Paschal 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 improvements in the capacity and capability of the procurement function across the public service and supporting increased compliance. The fragmented procurement arrangements across the public service which existed prior to this facilitated among 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 use 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.

The State spends around €12 billion on goods, works and services each year. This represents a very significant portion of overall spending and it is, therefore, essential that the public service achieves maximum value for money and operational efficiency in its approach to public procurement. Developing a strategic approach to public procurement means that the state can deliver much needed public service in a sustainable manner. 

While each procurement arrangement is different, each and every procurement competition must adhere to the rules and timelines prescribed in the relevant regulations. Notwithstanding this the professional service provided by the OGP enables the delivery of compliant arrangements within the most expeditious time frame possible. In particular, availing of OGP Frameworks offers a shorter timeframe than running standalone competitions. In terms of delivery of the OGP's programme of work, the OGP Schedule of Frameworks and Contracts sets out the OGP's service delivery plan for Q2 2017 to Q1 2018 and provides details of when key contracts and frameworks will be available for use by public sector bodies. The Schedule has been published to inform public sector bodies and suppliers. The Schedule is updated on a quarterly basis so that a rolling nine-month forward view is visible.

Ireland's procurement reform programme has been successful in establishing new structures and building momentum. The OGP is continuing to refine the model in order to strengthen and improve it, in line with the Programme for Government commitments.