Written answers

Tuesday, 2 October 2018

Department of Finance

Public Procurement Contracts Data

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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199. To ask the Minister for Public Expenditure and Reform the annual volume in millions of public funds spent on the procurement of goods, services and capital projects for each of the years 2002 to 2017 and to date in 2018. [40004/18]

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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201. To ask the Minister for Public Expenditure and Reform the number of contracts tendered annually to SMEs and businesses of less than 50 employees in each of the years 2011 to 2017 and to date in 2018. [40006/18]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 199 and 201 together.

I should point out that my Department is responsible for public procurement policy 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 SMEs with a platform to take advantage of similar opportunities in Ireland and across the European Union.

Individual accounting officers and accountable persons are responsible for procurement processes undertaken by their Department or public service body. Accordingly, the Office of Government Procurement (OGP) does not collate the information requested by the Deputy as the expenditure data is, and will continue to be, held by the individual Government Departments and State Bodies that purchase goods, services and works. However, it is estimated that in the order of €12bn per annum is spent on goods, services and works.

In relation to actions that have been developed to improve SME access to public procurement opportunities, the OGP has 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 the 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.

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 held across the country which are designed to help SMEs.

In relation to data on the number of contracts awarded to SMEs, the position is that the contract award templates do not capture the size of businesses that have been awarded contracts. However, the "Public Service Spend and Tendering Analysis for 2015" published on the OGP website indicates that the majority of spend analysed is with SMEs. The analysis also indicates that 76% of tender notices are of smaller value (below OJEU threshold). 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.

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