Dáil Éireann debate -
Wednesday, 31 May 2000

Vol. 520 No. 2

Written Answers. - Public Procurement.

Tony Killeen

Question:

125 Mr. Killeen asked the Minister for the Environment and Local Government if he has satisfied himself that select list tendering for projects, funded by bodies under the aegis of his Department, is conducted in accordance with the provisions of Directive 71/305/EEC, public procurement guidelines of 16 May 2000 and other such regulations of the EU; and if he will make a statement on the matter. [15557/00]

Minister for the Environment and Local Government (Mr. Dempsey):

It is a basic principle of the national guidelines on Public Procurement, 1994 edition, and EU Public Procurement Directives that competitive tendering should generally be used for construction works. For major construction projects, the tendering options normally used by local authorities, and other bodies under the aegis of my Department, are: (a) open tendering – where all interested contractors may tender; or (b) two stage selective tendering – stage one being the pre-qualification of firms for a particular project, and stage two being the invitation of tenders from pre-qualified contractors.

Advertisements seeking tenders in the national and/or local newspapers are a basic part of either tendering option. In the case of projects with a value in excess of £4.2 million, excluding VAT, advertisements are also placed in the Official Journal of the European Community (OJEC).

EU Public Procurement Directives apply to construction projects with an estimated value in excess of £4.2 million, excluding VAT. The basic Directive 71/305/EEC of 26 July 1971 was amended on a number of occasions and subsequently consolidated into Directive 93/37/EEC of 14 June 1993. The 1993 directive was amended by Directive 97/52/EC of 13 October 1997. My Department has not yet received the public procurement guidelines of 16 May 2000 referred to by the Deputy.

Local authorities and bodies under the aegis of my Department have been issued with copies of all EU Public Procurement Directives and have been asked to ensure that the provisions of the EU directives are complied with on all occasions. I should add that tender award decisions of local authorities are subject to independent audit by the Local Government Audit Service and, in the case of EU funded projects, by EU auditors.

Unsuccessful tenderers are entitled, on request, to a written explanation as to why their firm did not pre-qualify or why their tender was not accepted. Under the EU Remedies Directive (89/665/EEC of 21 December 1989), an unsuccessful bidder is also entitled to challenge the award of a public works contract in the courts.