Written answers

Thursday, 22 March 2018

Department of Public Expenditure and Reform

Public Procurement Regulations

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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34. To ask the Minister for Public Expenditure and Reform his views on the number of contracts awarded without competitive procurement as outlined in the latest annual 40/2002 circular; his plans to address this non-competitive procurement; if each Department and office has created a central register of all contracts which records key data including whether or not a competitive process was used as recommended by the Comptroller and Auditor General in 2012; and if he will make a statement on the matter. [11315/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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Public Procurement is governed by EU and National rules. The aim of these rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.It is a basic principle of public procurement that competitive tendering should be used other than in justifiably exceptional circumstances. 

Under Department of Finance Circular 40/02, Accounting Officers of Government Departments and Offices are required to complete and submit an Annual Report (signed off by the Accounting Officer) to the Comptroller and Auditor General in relation to contracts in excess of €25,000 (exclusive of VAT) that were awarded without a competitive process by 31 March of the following year.

The justification for using non-competitive procurement is a matter for each contracting authority.  Individual Accounting Officers in their 40/02 returns certify that the appropriate national and EU procedures were followed and that contract prices were fair and reasonable and represented best value for money.  

The Office of Government Procurement (OGP) formulates and develops public procurement policy and promotes best practice.  The OGP supports compliance by putting in place compliant procurement solutions, publishing guidelines and template documentation and proactive engagement with Government Departments and Offices including our sourcing partners in the Health, Education, Defence and Local Government Sectors through the Procurement Executive.However, individual public bodies remain accountable for their actions.

Under the Department of Public Expenditure and Reform Circular 10/14, contracting authorities are required to advertise all contracts for supplies and services with an estimated value of €25,000 (exclusive of VAT) and upwards on www.etenders.gov.ie

I can confirm that the Department of Public Expenditure and Reform supports the 2012 recommendation of the Comptroller and Auditor General that every Government Department and Office should create a register of all contracts which records key data, including whether or not a competitive process was used. I would also point that both of my Departments and the OGP maintain such registers.

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