Dáil Éireann debate -
Wednesday, 28 Jun 1995

Vol. 455 No. 2

Written Answers. - Tendering Procedures.

Robert Molloy

Question:

21 Mr. Molloy asked the Minister for Finance if he is concerned that there are no formal procedures within any Government Departments, local authorities or semi-State bodies regarding the appointment of consultants to State or semi-State construction projects; if procedures will be put in place whereby suitably qualified consultants can be invited to put their names forward on panels which can be updated on a regular basis by public notice; and if he will make a statement on the matter. [10696/95]

Minister for Finance (Mr. Quinn)

There are formal procedures laid down for competitive tendering in all facets of public procurement including the engagement of consultants for construction projects, whether by Government Departments, local authorities or State Bodies and I would like to assure the Deputy that the Government is fully committed to observance of these procedures by all concerned. Competitive tendering should always be used unless there are exceptional reasons for proceeding otherwise. This policy ensures the maximisation of value for money for taxpayers and openness and fairness for suppliers. All suitable suppliers should have a fair chance and opportunity of competing for public business. Depending on the circumstances and legal requirements the operation of a panel of suitably qualified consultants, as recommended by the Deputy, may or may not be an appropriate mechanism to apply when consultants for construction projects are being engaged. However, irrespective of what mechanism is employed the principles I have just mentioned should be observed.

The rules governing procurement depend on firstly, the nature of the contracting body and secondly, the value of the contract in question. There is a legal obligation to advertise throughout the EU and follow procedures set out in the relevant EU Directives for contracts above specified values.

In the case of contracts below the EU value thresholds the procedures are set out in my Department'sPublic Procurement booklet. These guidelines are directed at Government Departments, local and regional authorities and other bodies dependent on State funding. In the case of State Bodies my Department's State Bodies Guidelines advise that competitive tendering should be normal procedure save in exceptional circumstances.

There are two EU Directives governing service contracts over certain threshold values. Consultancies of the type referred to in the question are covered by those Directives where the estimated value of a contract exceeds the threshold value in the Directive. The formal procedures outlined include advertisement in the official journal of the European Communities and the award of contracts using an open procedure where anyone can apply, or a restricted procedure where the Contracting Authority advertises for interested parties, and then forms a short list from which tenders are invited, or a negotiated procedure where there is an advertisement and then negotiations are carried out with one or more selected companies.

There are also specific national guidelines relating to the engagement of consultants. These procedures are also set out in the bookletPublic Procurement.

In summary, the basic policy is that public procurement should always be conducted on the basis of market-testing and executed in as open a manner as possible. Where EU Directives apply, the procedures set out therein have their own built-in safeguards to ensure fair competition. Given the procedures and safeguards already in place, which I am generally satisfied are adequate, and the binding legal requirements of the EU Directives, it would be neither practicable nor lawful for me to direct that a panel or list system of qualified construction consultants be used in every instance. Only general guidance can be issued centrally given the hundreds of contracting entities in the public sector and the very wide variety in the types and scale of procurement involved.