Ken O'Flynn (Cork North-Central, Independent Ireland Party)
Link to this: Individually | In context

237. To ask the Minister for Public Expenditure and Reform if his Department has examined the concentration of government contracts being awarded to the same consultancy firms across multiple Departments; and if this concentration poses risks to financial accountability and value for money. [50930/25]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context

In accordance with the provisions of Circular 16/13: Revision of arrangements concerning the use of Central Contracts, all public bodies are mindful of the importance of maximising the value for money achievable when procuring any commonly acquired goods or services. Central procurement frameworks and contracts established by the Office of Government Procurement (OGP) are designed to optimise benefits to the public service through the strategic aggregation of its buying power.

The Office of Government Procurement (OGP), a Division within my Department, operates as a Central Purchasing Body (CPB) and is responsible for fully leveraging the benefits of central procurement, including aggregation of the State’s expenditure, by establishing central procurement solutions. Such central procurement frameworks are targeted at securing best value for money and facilitating contracting authorities to deliver services within their budgetary constraints. It is Government policy that public bodies, where possible, should make use of all such central arrangements.

The OGP has established central procurement solutions (primarily Framework Agreements) for commonly required goods and services across 11 master categories of expenditure (Professional Services, Banking and Insurance, Consultancy and Advisory, Electricity and Gas, ICT, Facilities Management, Office Supplies, Travel Management, HR Services, Fleet, and Corporate Office Support Service). The OGP has established 83 such solutions. These central solutions are available for use by all other Departments and Agencies.

These solutions aggregate the State’s expenditure, deliver value for money, and provide process efficiencies for Public Services Bodies (PSBs) and Economic Operators (EOs) as well as managing risk. Central procurement solutions also provide for the inclusion of Government horizontal policy considerations, including green procurement, supports for the Circular Economy, the inclusion of social considerations (where appropriate and proportionate and linked to the subject matter at hand) and SME access to procurement.

Active supplier participation and increased competitiveness is key to ensuring that supply markets develop and quality procurement solutions can be established.

Central solutions for consultancy services include a large number of suppliers. There are currently in the order of 130 members as suppliers on the central solutions for consultancy related services, across different disciplines and practice areas providing the broad range of services typically required by public sector bodies.

These suppliers include SMEs, all of whom meet the financial and technical capacity requirements that are set appropriately and proportionately for each individual central solution. These requirements are set in line with the provisions of Circular 05/2023: Initiatives to assist SMEs in Public Procurement. This Circular is designed to enable SMEs in competing for public contracts. It is important that public procurement opportunities are available and attractive to SMEs.

In relation to Departments and Offices availing of these central solutions, it is the role of Accounting Officers and Accountable Persons to ensure that systems of internal control within their public service bodies support compliance with the requirements of Circular 16/13. Procurement practices are subject to audit and scrutiny under the Comptroller and Auditor General (Amendment) Act 1993 and Accounting Officers are publicly accountable for expenditure incurred. Management in Government Departments and Offices should also ensure that there is an appropriate focus on good practice in purchasing and that procedures are in place to ensure compliance with all relevant guidelines.

Ken O'Flynn (Cork North-Central, Independent Ireland Party)
Link to this: Individually | In context

238. To ask the Minister for Public Expenditure and Reform if his Department has undertaken an analysis of the risks to public expenditure management posed by the increasing reliance of State agencies on external consultants rather than in-house expertise. [50932/25]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context

My Department works at the centre of government to drive the delivery of better public services, living standards and infrastructure for the people of Ireland. In this context, it is responsible for public expenditure policies and frameworks designed to support public expenditure management. I would highlight that managing the delivery of public services, within budgetary allocations, is the responsibility of each Minister and their Department, which are required to ensure that appropriate measures are in place to facilitate financial control within budgetary targets. My Department has not undertaken an analysis of the nature specified in the Question.

In responding to this Question, I wish to acknowledge the depth and breadth of the in-house expertise in organisations across the Civil and Public Service and the commitment of those organisations to continuing to enhance this. For example, within the Civil Service, my Department, along with other Departments and Offices, has committed to working to further develop the expertise and professional knowledge of officials, while at the same time recruiting candidates with a diverse range of skill-sets who will enhance the development of public services into the future.

As the Deputy is aware, consultancy, where a person or private company is engaged to provide intellectual or knowledge-based services (for example expert analysis and advice), is sometimes required where the skill set within an organisation to deliver reports, studies, assessments, recommendations or proposals does not exist. Engagement is limited to the period of time it takes to carry out a specific finite task or set of tasks, which involve expert skills or capabilities that would not normally be expected to reside within the public body.

The leadership of all public bodies are required to ensure that their officials have the necessary skill sets to deliver each organisation’s public good and thereby reduce the need for private sector consultancy. For instance, the Comptroller and Auditor General Act, 1993 and Public Financial Procedures require Accounting Officers to ensure that they have put in place the systems, procedures and practices within their Departments and Offices for the purpose of evaluating the effectiveness of their operations. For public bodies in the wider Public Service, the Code of Practice for the Governance of State Bodies requires boards and management to be accountable for the proper management of their organisations, which includes the efficient use of resources in delivering their public goods effectively. Furthermore, but also in terms of contracting consultants, Accounting Officers and Accountable Persons must answer to the Public Accounts Committee in relation to value for money on the monies appropriated to them by the Oireachtas. In terms of procurement of consultancy, procurement practices are subject to audit and scrutiny under the Comptroller and Auditor General Act, 1993 and public bodies should ensure that there is an appropriate focus on good practice in procurement and that procedures are in place to ensure compliance with all relevant guidelines.

As the Deputy specifically refers to State Agencies, I would add that the Revised Estimates for Public Services 2025 (REV) includes a dedicated section on Non-Commercial State Agencies (NCSAs), which are agencies funded by Government Departments and Offices to deliver specific public services or functions on behalf of the State. This section provides a transparent account of the annual Exchequer funding allocated to each agency, along with details of their planned expenditure and, where available, the key outputs and activities supported by this funding. In 2025, the total allocations for NCSAs reported in the REV amount to approximately €10.7 billion, as outlined in the Summary Table of Exchequer Expenditure of Non-Commercial State Agencies (see appendices section of the REV). Separately, Appendix 3 of the REV 2025 sets out an estimated €77.5 million in consultancy expenditure incurred by Departments and Offices. This figure is distinct from the allocations reported for Non-Commercial State Agencies and does not form part of the expenditure associated with those bodies.

Finally, I would note that following the submission of a Memorandum to the Government, I recently published a circular that restates the key roles and responsibilities around value for money. In addition, in the context of the Estimates 2026 process now underway, Departments have been asked to identify efficiencies and reforms with a view to delivering policies and services as efficiently as possible.