Thursday, 9 November 2017
Department of Public Expenditure and Reform
Public Procurement Regulations
73. To ask the Minister for Public Expenditure and Reform the extent to which public procurement procedures can achieve savings in the course of 2019; and if he will make a statement on the matter. [47554/17]
The OGP and its partner sector sourcing organisations in Health, Education, Local Government and Defence have enabled procurement savings estimated at €300 million over 2013, 2014, 2015 and 2016.
The 2017 savings outturn has not been finalised but the target for 2017 was between €80 and €100 million and current indications are that this will be achieved. The OGP and its partner sector sourcing organisations in Health, Education, Local Government and Defence are currently developing the 2018 savings targets. 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.