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Dáil Éireann debate -
Thursday, 13 Dec 2001

Vol. 546 No. 5

Ceisteanna–Questions. Priority Questions. - Departmental Contracts.

Alan Shatter

Question:

1 Mr. Shatter asked the Minister for Justice, Equality and Law Reform the reason An Garda Síochána and his Department accepted the £3.4 million tender price which resulted in a contract for the purchase and installation of video recording equipment in Garda stations being entered into with a company (details supplied) and which sum substantially exceeded the tender price of a company (details supplied); and if all relevant documentation has been furnished by him and the Garda Síochána for assessment by the Comptroller and Auditor General. [32259/01]

Brendan Howlin

Question:

2 Mr. Howlin asked the Minister for Justice, Equality and Law Reform the steps being taken as a result of the report of the Comptroller and Auditor General which showed that the Garda Síochána had paid £208,000 more than was due to a company (details supplied); the efforts being made to recover the money; the state of the criminal investigation into this affair; if, in view of the strong criticism in the report of Garda management and control systems, he has legislative or other proposals for reform of Garda management; if his attention has further been drawn to concerns expressed regarding the manner of the awarding of a contract for the installation of video recording equipment in Garda stations; the tendering procedures used; the investigation held into the procedures used; and if he will make a statement on the matter. [32212/01]

I propose to take Questions Nos. 1 and 2 together.

On a point of order, a Cheann Chomhairle, Question No. 2 deals with a different issue. I do not understand why Nos. 1 and 2 are being taken together.

That is a matter for the Minister.

One deals with the Advance Pitstop issue while the other deals with something different.

The video matter is mentioned in my question as well.

That is the reason. In relation to the contract for the supply and installation of audio-video recording equipment for the Garda Síochána, this contract was awarded on the basis of an invitation to tender which was made available to interested parties by the Garda authorities. That document specifically stated that the contract would be awarded from the qualifying tenders on the basis of the most economically advantageous tender, applying seven award criteria which were listed in order of priority. Given the specialised requirements of the equipment involved, the first award criterion was technical merit. The second criterion was the cost of providing the relevant systems and further criteria were concerned with matters such as the extent of compliance with the invitation to tender and the ability to meet installation time scales.

In the course of a detailed procurement process, which included publication of a tender notice in the Official Journal of the European Communities, two tendering parties were found to have submitted qualifying tenders. Those tenders, and samples of the equipment offered, were evaluated by a team of Garda technical experts with reference to the award criteria in the invitation to tender. The overall conclusion of the experts was that, having regard to the award criteria I have mentioned, the most economically advantageous tender had been submitted by SKS Ltd. at a cost of approximately £3.5 million, including VAT. The other qualified tenderer had submitted a lower cost tender but was considered by the experts to be less satisfactory from the point of view of technical merit and other award criteria to be taken into account in determining the most economically advantageous tender.

What was the other price?

I do not have that information with me. The £3.5 million tender won the contract. A report outlining the conclusions of the Garda experts with regard to each of the award criteria was forwarded by the Garda authorities to my Department. Having examined the report in detail, my Department applied, in compliance with national procurement procedures, to the Government contracts committee for approval to award the contract in accordance with the recommendation of the Garda evaluation team. For the purpose of the application, the committee was provided with the relevant background information and the financial details of the qualifying tenders. Following approval of the application by the Government contracts committee, the contract was awarded on the basis of the most economically advantageous tender.

Subsequent to the award of the contract, the unsuccessful qualifying tenderer raised a series of questions in connection with the procurement process undertaken in the matter. On foot of these queries, reports were sought and obtained by my Department from the Garda authorities, in particular in relation to specific aspects of the evaluation exercise carried out by the Garda experts. Having received the relevant reports from the Garda authorities, my Department carried out a comprehensive review of the procedures leading to the award of the contract and it concluded that the process had operated in accordance with procurement requirements and had not favoured any particular supplier. In addition, a significant amount of information was made available by my Department to the unsuccessful qualifying tenderer in the course of correspondence.

The unsuccessful qualifying tenderer has also requested the Ombudsman to examine complaints about the way in which its correspondence has been dealt with by my Department. However, the Ombudsman is not reviewing the procedures which resulted in the award of the contract. A report on the relevant aspects has been provided by the Department to the Office of the Ombudsman and I understand examination of the matter is continuing in that office.

I will now turn to the other part of the question that refers to the report on the value for money examination by the Comptroller and Auditor General. The events that preceded the report on the value for money examination by the Comptroller and Auditor General on purchasing tyres by the Garda Síochána are now well known, but for the benefit of the House I will again set them out. A newspaper article, published on Sunday, 11 February 2001, alleged that members of the Garda Síochána and a civilian employee at Garda headquarters had participated in trips abroad paid for by a company which supplies tyres and related services to the Garda Síochána.

As soon as I became aware of the allegations, I took immediate action. On 13 February 2001, I advised the Dáil that the Garda Commissioner had asked a chief superintendent to look at the allegations. I also stated that I was of the view that the matter warranted an external examination and that the Secretary General of my Department, in his capacity as Accounting Officer for the Garda Vote, had instructed the internal audit unit of the Department to examine the matter. I also said the Secretary General of my Department had been in discussion with the Comptroller and Auditor General about arranging an independent examination of the matter from a financial control point of view.

The Public Services Commission also wrote to my Department on 13 February 2001 making certain inquiries related to this matter and the relevant information sought from the Department was forwarded to it. I understand the Public Services Commission also wrote to the Garda Commissioner about the matter.

The Comptroller and Auditor General carried out a value for money examination on the purchase of tyres by the Garda Síochána which he completed and submitted to me. As soon as I received the report, I immediately arranged for copies of it to be laid before both Houses of the Oireachtas. This was done on 21 November 2001. The Committee of Public Accounts will examine this report next month.

The Government Supplies Agency which has responsibility for procuring a range of items for Departments and other agencies, including the Garda Síochána, also has a role to play in this matter. The tender competition for the supply of tyres was held by the agency. I understand the agency is investigating the supply of tyres for official vehicles with a view to ascertaining whether the conduct of particular contractors or suppliers breached conditions of contract. Discussions are currently taking place between my Department, the Government Supplies Agency and the Garda Síochána in relation to the holding of a new tender competition.

As indicated in the report of the Comptroller and Auditor General, there was an overpayment for the supply of tyres to the Garda Síochána. However, the full amount has yet to be determined. This matter is currently being investigated by the internal audit unit of the Department. As soon as the exact amount is known, all necessary steps will be taken to ensure that the amount involved is recovered.

The criminal investigation is also progressing. I am informed that a file was submitted to the Director of Public Prosecutions on 20 April 2001. I am also informed that on 3 August 2001 the DPP sought additional information and that a further file was submitted on 13 September 2001. The directions of the DPP in this matter are currently awaited.

The internal audit unit in my Department has also raised certain queries with the Garda authorities concerning apparent irregularities that came to their notice in the course of the internal audit investigation. These irregularities are currently the subject of a separate criminal investigation by the Garda. This is at an advanced stage and it is expected that a file will be forwarded to the Director of Public Prosecutions shortly.

The Garda Commissioner has also taken action. He initiated a disciplinary investigation under the Garda Síochána (Discipline) Regulations, 1989. It was during the course of this investigation that certain matters that may be of a criminal nature came to light and a file was submitted to the Director of Public Prosecutions.

On a more general note, the Garda SMI programme of change has since 1998 been concerned with improving the efficiency and effectiveness of Garda management. Arising from the Garda SMI a new finance directorate has been introduced, headed by a civilian accounting expert, to develop a new financial framework for the Garda Síochána. As part of a general review of Garda organisational arrangements, consultants have been asked, taking account of the recent difficulties in the transport section, to make recommendations to improve the situation. I expect to see the final report early next year. As an interim measure, the Commissioner directed that the processing, certification and payment of invoices from the company in question be transferred to the finance section at Garda headquarters. Deputy Howlin asked the value of the tender from the other tendering party. It was in the region of £2.71 million.

The Minister stated that the lowest cost tender on the audio-visual equipment was less satisfactory from the point of view of technical merit. In view of that, who determined the technical requirements for the tender? Will the Minister tell the House the composition of the evaluation team? More particularly, will he indicate to the House whether Superintendent Geary was a part of the Garda evaluation team? AV Niche Ltd., which had the lowest tender, offered its audio-visual equipment for evaluation, and communicated by letter on 26 July 1999 with Superintendent Geary in Garda headquarters. The company received a reply from Mr. Harry Smith of SKS Communications Ltd. on 5 August 1999 asking for relevant catalogues, and asking for it to send a unit for evaluation in relation to the supply of interview recording systems to "our police force." Is the Minister aware that Mr. Harry Smith and SKS Communications were ultimately the successful tenderers?

Will the Minister explain to the House why the successful tenderer was involved directly by the Garda in seeking to obtain equipment from what, ultimately, was the competing tendering firm? Can the Minister explain why the company that engaged in the competitive tendering process with AV Niche was asked by the Garda Síochána to evaluate this equipment? What was the position of SKS in providing technical advice? Does the Minister accept that SKS had a serious conflict of interest in the manner in which it was brought into this by Superintendent Geary and the Garda?

The Deputy should avoid mentioning names or companies.

The names of the companies are in the public domain. They are mentioned in the Minister's reply.

The companies are in the public domain. Will the Minister also explain why, when an inquiry was made to the Garda press office about this, that office said it had referred the original proposal from the lowest tenderer to the then Garda pilot scheme supplier, SKS Communications, which, it was felt, may have been in a position to best inform the Garda Síochána of current technical requirements? It appears that SKS advised the Garda about the technical requirements for the tender. SKS, in effect, set out what audio-visual equipment the Garda should acquire, with certain specifications. Those specifications happened, by coincidence, to fit exactly with equipment that SKS could supply at a price of £3.5 million, as opposed to AV Niche which could supply it for £2.7 million. Will the Minister refer all the papers relating to this matter for review by the Comptroller and Auditor General so that it is clear what happened? Will the Minister explain why a substantive response has not been sent to AV Niche in reply to its query about the reasons for its unsuccessful tender, when, under the EU directive governing public procurement tenders, there is an obligation on the State to supply information requested by the unsuccessful tenderer?

The Minister is presiding over another major issue in which there is a suggestion of serious tendering and procurement irregularity. What has the Minister done to check into the matter in the context of advice he is getting from the Garda Síochána? Does he accept Garda advice or is he raising queries about that advice? This is a serious issue involving a substantial amount of public expenditure.

Deputy Shatter should be careful about making allegations in the House in relation to tendering procedures unless he can stand over them. As I understand it, the equipment sought by the Garda Síochána was required for the audio-video recording of interviews with suspects. The relevant equipment was of a specialist nature and one of the specifications was that the equipment should be capable of producing three simultaneous recordings in a manner that would safeguard the integrity of the recordings for evidence purposes. In the circumstances, it will be appreciated that the technical requirements were of the utmost importance and, accordingly, it was decided technical merit should be selected as the most important criteria for the award of the contract. The cost of the equipment was also taken into account and it was given the second highest weighting among the award criteria. The additional criteria and their weightings were chosen with reference to extensive Garda experience in dealing—

Who provided the technical advice to the Garda?

Time is running out. There are time limits on questions.

The selection of the most economically advantageous tender as the basis for the award of a tender is fully recognised here. In particular, it has been accepted for the purposes of our national and EU purchase requirements. The Government contracts committee oversees compliance with such requirements.

Who was on the Garda evaluation team? Who provided the technical advice?

The Deputy should not interrupt the Minister.

The weighting scheme which applied was as follows: technical merit, 35%; cost, 20%;—

The Minister is avoiding the question.

—extent of compliance with invitation to tender, 10%; ability to meet installation time scales, 10%; supplier background and experience, 10%; cost of support contract, 10%; ongoing cost maintenance, 5%.

Application of these criteria to the qualifying tenders produced an advantage of more than 9% in favour of the firm to which the contract was awarded. I am aware, as Deputy Shatter says, that the matter has been raised in a recent newspaper report. The same article also stated that the Garda press office has clarified the circumstances in which this event took place. In particular, it has explained that, at the time, the firm subsequently awarded the contract was involved in the provision of audio-visual recording equipment for the Garda pilot scheme. It was considered to be well placed to offer technical information to potential suppliers.

The lowest tenderer offered its equipment for the pilot scheme. This is outrageous.

It should be borne in mind that the event took place over one year before tenders were invited on the main audio-video equipment contract. The fairness of the procedures which led to the award of the contract has been the subject of an extensive review carried out by my Department with the assistance of the report from the Garda authorities.

Who provided the technical advice to the Garda? Was it SKS?

Order, please.

The outcome of that review has been that no evidence has emerged that the procurement process was unfair or favoured any tendering party. Deputy Shatter asks if I am prepared to refer the matter to the Comptroller and Auditor General. There is nothing to hide. I have no difficulty transferring the files anywhere Deputy Shatter sees fit, provided it is to a responsible body or person.

Will the Minister transfer the file to the Comptroller and Auditor General?

The point has been made. That names are in the public domain does not change the rulings of this House. Names should not be mentioned.

The Minister has direct responsibility in this matter. Does he think it is a proper and acceptable procedure for a tenderer to contact the Garda Síochána in relation to the provision of equipment? Does he think it proper that the response that tenderer gets is from a competitor inviting the tenderer to submit their goods for valuation? Is the Minister happy with that procedure?

The Minister commented that this matter has been clarified by the Garda press office. The press office says it referred the inquiry to the current Garda pilot scheme. It was felt that those running that scheme could best inform on the current technical requirements of the project. Is the Minister happy that a company wishing to tender for a multi-million pound project made direct contact with the Garda Síochána, and that it received a telephone call from a competitor inviting it to submit its goods for valuation? Is the Minister happy that the explanation from the Garda press office, which he seems to accept, is that the Garda were undertaking a pilot scheme, and that the Garda thought the company would be the best placed to give technical advice, despite being expected to compete for the tender? Prima facie, will the Minister not accept that is a woeful way of doing business? What is he going to do about it?

We have to accept the equipment the Garda Síochána was seeking is very specialised.

It is a video recorder.

No, it is very specialised. Let us accept that is true because it must produce—

The Minister should answer the question I asked.

—three simultaneous recordings under conditions of security.

(Interruptions.)

Order, please.

All I can do is look into the matter—

Is the Minister happy with it?

All I can do is look into the matter to see whether there was anything untoward. For my part, I am satisfied that there was nothing untoward.

Does the Minister think that procedure was grand?

I am satisfied there is nothing untoward because this matter was referred to the Government contracts committee. The Government contracts committee—

The procedure I outlined to the Minister-—

Order, please.

The Government contracts committee was satisfied—

One competitor was asked to evaluate the other competitor's equipment.

If the Deputies have a difficulty with the award of the contract in this particular case, I strongly suggest they take it up with the Government contracts committee, discuss it with it and tell it they do not believe its procedures are fair and correct. I do not believe any objective person looking at either of the Deputies saying that would believe it.

Is the Minister referring the matter to the Comptroller and Auditor General?

We must take Question No. 3.

This is a Minister with absolutely no regard to what is happening around him. Talk about an ivory tower.

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