Hildegarde Naughton (Galway West, Fine Gael)
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Government agreed on 27 July 2021 to commence the formal procurement process for a new Coast Guard aviation service. The decision was informed by a detailed appraisal and business case prepared by KPMG for the Department of Transport. The business case presented to Government set out the strategic case for a new service. It considered the range of options for how such a service could be delivered, including the potential for the Air Corps to provide an element of the service as a “hybrid” option alongside another civil operator. It also set out an implementation plan to achieve the desired service. The detailed appraisal included a financial and economic appraisal of short-listed options, with an assessment of costs, benefits, affordability, deliverability, risks and sensitivities associated with the options. The approval of the business case was one of the key steps required in the Public Spending Code (PSC).

Provision has been made in the procurement documentation to allow the Air Corps to undertake the fixed wing element of the new service at some point during the contract term. Discussions with Department of Defence are ongoing in relation to this aspect.

The procurement process is being conducted in accordance with ‘Competitive Procedure with Negotiation’ (CPN) under the European Union (Award of Public Authority Contracts) Regulation 2016 (S.I. 284 of 2016). The first stage of the process – Prequalification - is reaching a conclusion and Candidates will be notified of the outcome in the coming weeks.  Shortly thereafter, Stage 2 of the procurement process will commence, when a Request for Tenders (RFT) will issue to those Candidates, which, at Prequalification Stage of the Competition, were determined to have the technical capability, and economic and financial standing to perform the contract.

I would envisage publication of the business case will occur at the appropriate juncture in line with the Public Spending Code. However, at this stage the business case is an integral part of the procurement process and cannot be published at this time as it contains information which is commercially sensitive or could prejudice the outcome of the procurement process.  This is a requirement to ensure all tender competitions are competitive.  Making the Business Case, or associated financial analysis, available at this time could jeopardise not only the integrity of the process but tie our evaluators’ hands in striking the best deal possible for the Coast Guard and the taxpayer. There is a risk that even at a private hearing of Oireachtas Committees, discussions could breach EU principles on transparency, by virtue of the fact that the Department could be perceived to be influenced in its approach to particular tenderers by public representatives' representations.

However, the Deputy may wish to be aware that my Department has already published a significant amount of non-financial and/or non-commercially sensitive material which collectively provides a clear and comprehensive outline of the project, including the strategic rationale, options considered and the recommended procurement strategy. This information is available on the project website (www.gov.ie/en/campaigns/ed653-irish-coast-guard-search-and-rescue-sar-aviation-project/ ), including a “Information Note on Business Case and Government Decision July 2021”.

As the Deputy has stated, my Department has appointed an independent external Process Auditor and has been working with the Process Auditor since December 2019. I understand he will shortly submit a review of the process to date to the Secretary-General of my Department, which would encapsulate progress on the project since its commencement, up to and including the Prequalification stage referenced above. My Department intends to publish that review letter from the process auditor on the project webpage once it is available next month.