Written answers

Thursday, 23 September 2021

Department of Public Expenditure and Reform

Public Procurement Contracts

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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226. To ask the Minister for Public Expenditure and Reform the extent to which his Department continues to monitor public contracts with a view to achieving optimum value for money while at the same time facilitating an expeditious process leading to increased efficiency; and if he will make a statement on the matter. [45875/21]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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232. To ask the Minister for Public Expenditure and Reform the extent to which the procurement process remains focused on ensuring the elimination of delays that might be associated with consequent higher costs; and if he will make a statement on the matter. [45881/21]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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233. To ask the Minister for Public Expenditure and Reform the steps taken to speed up the processing of various public contracts while protecting the interests of the taxpayer in all Departments; and if he will make a statement on the matter. [45882/21]

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 226, 232 and 233 together.

Each individual Accounting Officer is responsible for the monitoring of performance of public contracts under his or her remit and for ensuring that the public procurement function is discharged in line with the standard accounting and procurement rules and procedures efficiently and effectively to deliver maximum value for money for the taxpayer.

Public Procurement is governed by EU legislation and national rules and guidelines with the aim of promoting an open, competitive and non-discriminatory public procurement regime which delivers best value for money. All Irish public bodies are obliged to spend or invest public funds with care, and to ensure that optimal value for money is obtained in accordance with the Public Spending Code which sets out the rules and procedures to ensure that these standards are upheld across the Irish public service.

The Office of Government Procurement (OGP), an office within my Department, has responsibility for the National Public Procurement Policy Framework (NPPPF) which sets the overarching policy framework for public procurement in Ireland. The NPPPF consists of 5 strands: Legislation (Directives, Regulations); Policy (Circulars, etc.); General Guidelines; the Capital Works Management Framework (CWMF); and detailed technical guidelines, template documents and information notes that issue periodically. This framework enables a consistent approach to public procurement across the public sector to deliver value for money for the taxpayer.

To assist Contracting Authorities in the conduct of procurement procedures, the OGP has published extensive guidance material for contracting authorities including the Public Procurement Guidelines for Goods and Services (the Guidelines) available at: www.gov.ie/en/publication/c23f5-public-procurement-guidelines-for-goods-and-services/ and the Capital Works Management Framework (CWMF) available at: www.gov.ie/en/service/1d443-capital-works-management-framework/#.

The Guidelines outline the various stages of the procurement process from specification, through to selection and award stages, and through to the contract management stage. They provide comprehensive guidance on ensuring the specifications fully and accurately capture the requirement of the goods or services and identify the risks of poor specification and the challenges that this can cause Contracting Authorities when subsequently managing their contracts. The OGP and its sector partners in Health, Education, Local Government and Defence have a range of centralised procurement frameworks and dynamic purchasing systems in place in respect of sixteen categories of common goods and services to minimise administration and to deliver enhanced service levels and value for money promptly and efficiently. Contracting authorities are encouraged to check the Office of Government Procurement website for existing or planned procurement arrangements which may meet their needs.

All public works projects that are delivered under the Exchequer-funded element of the Government's capital plan must be procured in accordance with the provisions laid down in the Capital Works Management Framework (CWMF). The CWMF is mandated by circular and was developed to provide an integrated set of contractual provisions, guidance material, technical templates and procedures, which cover all aspects of the delivery process of a public works project from inception to final project delivery and review to assist contracting authorities in meeting their ongoing procurement requirements. The Public Works Contract is a key component of the CWMF. It is a lump sum, fixed-price contract. Fixed price contracts operate best when tendered on the basis of a comprehensively designed project. A well-defined project enables greater efficiency since it provides the necessary information up front so the contractor can schedule the works and commence early engagement with their sub-contractors on price.

It is a matter for each contracting authority to set the timeframe for responses which they deem appropriate given the nature of the contract, provided they fall within the timeframes as laid down in the Procurement Regulations, where applicable. For tenders above EU Thresholds, minimum time limits are set down in the Procurement Regulations for the different stages of a contact award procedure. The Regulations provide for accelerated procedures in certain circumstances e.g. emergency purposes. For below EU Threshold procurements, sufficient time must be permitted for preparation and submission of responses to allow for genuine competition and for SMEs to participate in the tender process. Contracting authorities are advised to consider the complexity of a contract when setting time limits for receipt of tenders and the Guidelines provide assistance to Contracting Authorities in this regard.

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