Dáil Éireann Debate, Tuesday - 17 December 2013
262. Deputy Brendan Griffin asked the Minister for Public Expenditure and Reform if he will change tendering criteria for large public contracts, such as schools, to enable contractors other than the huge construction companies to tender; if his attention has been drawn to the exclusive nature of the existing criteria; and if he will make a statement on the matter. [53835/13]
View answerUnder EU Directive on public procurement contracts above certain thresholds must be advertised on the Official Journal of the EU and awarded on the basis of objective and non-discriminatory criteria. For works contracts the threshold is €5 million. The aim of European and national rules is to promote an open, competitive and non-discriminatory public procurement regime which delivers best value for money.
All policy, guidance and implementation measures relating to capital projects is published on the Construction Procurement Reform website www.constructionprocurement.gov.ie where the Capital Works Management Framework provides a suite of best practice guidance, standard contracts and generic template documents. Tendering is dealt with through a range of guidance notes and template documents such as Suitability Assessment Questionnaires, Instructions to Tenderers and Forms of Tender which are published under the CWMF. These documents may be downloaded and modified to suit each particular tender competition, and provides a consistent approach for contracting authorities to the management of public works projects.
The Capital Works Management Framework (CWMF) was introduced on a phased basis from 2007 and became mandatory for all contracting authorities through the issue of Department of Finance Circular 06/10 on 5 May 2010. The documents are updated and augmented where appropriate to respond to new developments in the industry and changes in the regulatory environment.
The Deputy will appreciate that the assessment of a tenderer's financial and economic standing is a key part of any procurement process because the contracting authority must be reasonably satisfied that a contractor will have the necessary capacity to carry out a contract if the contractor is awarded the contract. Establishing the appropriate suitability criteria that are relevant and appropriate to a particular contract is, of course, a matter for the contracting authority concerned. This is because the contracting authority is in the best position to gauge the appropriate levels of financial capacity that are appropriate to the needs of that specific contract. My Department has developed specific national guidelines for contracting authorities in relation to minimum standards for suitability criteria for construction contractors interested in tendering for public works projects; published as part of the Capital Works Management Framework (Guidance Note 2.3.1.3 Suitability Criteria for Works Contractors Minimum Standards refers. http://constructionprocurement.gov.ie/wp-content/uploads/GN_2.3.1.3.doc ) In this regard, it is important to point out that there are no centrally imposed requirements for a minimum turnover. Such requirements would logically be developed on a case by case basis with reference to the specific needs of the contract.
The Government recognises that the small and medium enterprise (SME) sector is very important to the economy and that public procurement can be a source of business for SMEs. In this regard, my Department has issued public procurement guidelines (Circular 10/10) to public bodies which are aimed at facilitating greater participation of SMEs in public procurement opportunities. In relation to suitability criteria, the guidelines stress that public bodies must ensure that any criteria/turnover levels set by them must be both justifiable and proportionate to the needs of the contract.
