Written answers
Monday, 9 September 2024
Department of Employment Affairs and Social Protection
Departmental Contracts
Éamon Ó Cuív (Galway West, Fianna Fail)
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1013.To ask the Minister for Employment Affairs and Social Protection when it is proposed to re-tender for the contract to deliver the over-the-counter services to social welfare recipients presently held by An Post; whether the terms of reference of this tender have yet been drafted; whether it is intended to refer them to the Joint Oireachtas Committee on Social Protection, Rural and Community Development and the Islands for comment and suggestion before finalising them; and if she will make a statement on the matter.[35616/24]
Heather Humphreys (Cavan-Monaghan, Fine Gael)
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My Department provides two main payment options for its customers: payment in cash at post offices or payment directly into customer accounts by Electronic Fund Transfer (EFT). Last year, approximately 69% of all Social Welfare payments were made by EFT and 31% were by cash collection at post offices. A small number of ad hoc payments were also made by cheque.
Cash payments are governed by the Department’s Cash Payment Services Contract with An Post. This contract was signed in December 2019 and came into effect on 1 January 2020. The agreement allows me, as Minister, to extend the term of the contract on an annual basis up to the end of 2025.
The Department is required by law to go to public tender for the provision of cash payment services from 1 January 2026. The award of public sector contracts with a significant financial value is subject to numerous EU Directives. Public procurement rules ensure that the taxpayer receives value for money and ensures that all potential suppliers are given the opportunity to put forward the most efficient, effective, and competitive solutions for consideration and evaluation.
My officials are currently drafting a new tender document which it is planned to issue by open competitive procedure in the first quarter of 2025. It is intended that the business specifications of the new tender document will retain the existing Department requirements for cash payments, including that any bidder is obliged to maintain a network of outlets so as to ensure that 95% of welfare clients are within 15km of a post office in a rural area and within 3km of an outlet in an urban area.
I welcome submissions from any Oireachtas member who wishes to make general submissions to my Department on its payment policy. However, in accordance with procurement best practice and the need to ensure the integrity of the procurement process, I do not believe that it would be wise to discuss the details of draft tenders at Committees.
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