Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 206 and 207 together.

Procurement is key priority for Government and has undergone significant reform aimed at ensuring the sustainable delivery of much needed public services while also encouraging and supporting SME participation in these business opportunities. This approach is beneficial for the State because it nurtures competition which ensures value for money is maintained and provides SME with a platform to take advantage of similar opportunities in Ireland and across the European Union.

Specifically, the Office of Government Procurement have developed a suite of measures (circular 10/14) aimed at assisting SMEs to access public procurement opportunities. These include:

- Proportionate financial capacity criterion (turnover requirements limited to twice contract value);

- Contracting Authorities are encouraged to divide public contracts into lots;

- Provision for “consortia bidding” to assist SMEs to participate in procurement procedures where they would not have the relevant capability or scale;

- Public bodies are required to advertise contracts for goods and services valued above €25,000 on the national eTenders portal.

In addition, my colleague, Minister of State Patrick O’Donovan, who has responsibility for public procurement, chairs quarterly meetings of an SME Advisory Group, ensuring that the voice of Irish SMEs (including ISME, IBEC, SFA, Chambers Ireland, and CIF) is heard by Government.

SMEs are also encouraged to register on the Government's eTenders portal. Suppliers that are registered and have expressed an interest in similar business opportunities will receive automatic notification when new opportunities arise.

The OGP proactively engages with the Department of Business, Enterprise and Innovation, Inter-Trade Ireland and Enterprise Ireland to promote SME access to public procurement. The OGP participate at "Go-2-Tender" workshops and "Meet the Buyer" events which are also designed to help SMEs.

A SME Communication Strategy sub-group, chaired by the OGP, was established in 2017 as a joint venture with the industry representative bodies. This further promotes awareness of potential opportunities and supports available for SMEs in tendering for public contracts. A series of information videos explaining specific public procurement topics, along with case studies of SMEs who have won government contracts, was launched by Minister of State O’Donovan earlier this year. A series of focused and targeted breakfast briefings have also been scheduled around the country in conjunction with Inter-Trade Ireland and the SME Advisory Group partners.

Currently, data on the award of public contracts does not generally capture the size of businesses that are successful. However, analysis carried and published by the Office of Government Procurement (OGP) in the "Public Service Spend and Tendering Analysis for 2015" indicates that 94% of government procurement expenditure analysed falls within the State. This was based on an analysis of €4.535 billion expenditure across 86 large public service bodies. Other key findings show that the majority of spend analysed is with SMEs. 76% of tender notices are smaller value (below OJEU threshold) tenders. The median contract value of 2015 tender notices is less than or equal to €100k in 12 of the 16 procurement spend categories. This would indicate that government contracts in Ireland are accessible to SMEs given the low median size of published estimated contract values.

The OGP will continue to proactively engage with business and strive to enhance the significant measures already in place to support SME access to public procurement opportunities.