Dáil Éireann Debate, Tuesday - 18 February 2014
321. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform to give details on the value of contracts entered into by the State, its agencies and public bodies which went to contractors in Northern Ireland, the rest of the UK, other EU countries and to countries outside the EU; and if he will make a statement on the matter. [8010/14]
View answer323. Deputy Andrew Doyle asked the Minister for Public Expenditure and Reform to outline the number and value of public procurement contracts, above and below the EU threshold requirements, which were issued to foreign companies from 2008 to 2012, inclusive. [8046/14]
View answerI propose to take Questions Nos. 321 and 323 together.
Under EU Directives on public procurement public works, supplies and service contracts above certain thresholds must be advertised and award notices published on the Official Journal of the EU and awarded on the basis of objective and non-restrictive criteria. The EU Thresholds for the relevant years are listed as follows.
The main advertising thresholds in effect from 1 January 2008 to 31 December 2009 were as follows:
|
Works |
Threshold |
Public Bodies |
|
Contract Notice |
€5,150,000 |
Government Departments and Offices, Local and Regional Authorities and other public bodies. |
|
Supplies and Services |
- |
- |
|
Contract Notice |
€133,000 |
Government Departments and Offices |
|
Contract Notice |
€206,000 |
Local and Regional Authorities and public bodies outside the Utilities sector. |
|
Utilities |
- |
- |
|
Works Contracts/Prior Indicative Notice |
€5,150,000 |
Entities in Utilities sectors covered by GPA |
|
Supplies and Services |
€412,000 |
Entities in Utilities sectors covered by GPA |
The main advertising thresholds in effect from 1 January 2010 to 31 December 2011 were as follows:
|
Works |
Threshold |
Public Bodies |
|
Contract Notice |
€4,845,000 |
Government Departments and Offices, Local and Regional Authorities and other public bodies. |
|
Supplies and Services |
- |
- |
|
Contract Notice |
€125,000 |
Government Departments and Offices |
|
Contract Notice |
€193,000 |
Local and Regional Authorities and public bodies outside the Utilities sector. |
|
Utilities |
- |
- |
|
Works Contracts/Prior Indicative Notice |
€4,845,000 |
Entities in Utilities sectors covered by GPA |
|
Supplies and Services |
€ 387,000 |
Entities in Utilities sectors covered by GPA |
For contracts below these thresholds, the general requirement is that they be advertised on the national public procurement website www.etenders.gov.ie or, depending on value, awarded on the basis of a competitive process of direct invitation to an adequate number of suitable suppliers. Data relating to contracts awarded below EU thresholds would be held by relevant contracting authorities. The following information is based on data available on above EU threshold awards only:
- In 2008 296 Contracts valued at €568M of the total known awarded contract above threshold by the State went to non-domestic companies.
- In 2009, 172 Contracts valued at €753M of the total known awarded contract above threshold by the State went to non-domestic companies.
- In 2010, 115 Contracts valued at €293M of the total known awarded contract above threshold by the State went to non-domestic companies.
- In 2011, 123 Contracts valued at €240M of the total known awarded contract above threshold by the State went to non-domestic companies.
In 2011, the public procurement awards that went to non-domestic companies represented less than 5% of the overall annual public procurement spend (approximately €13.1 billion). The main centres of origin of companies that have been awarded public procurement contracts above the EU threshold in 2011 are:
|
Country/Region |
No. of Contracts |
|
Northern Ireland |
5 |
|
United Kingdom |
69 |
|
EU Other |
30 |
|
Non-EU (US, UAE etc..) |
18 |
Data 2012 and 2013 will be available later this year. I should point out that the Public Service Reform Plan published by my Department includes a recommendation to improve performance measurement and procurement expenditure analysis. In this regard, a key focus of the Office of Government Procurement will be a move towards centralisation of data collection in the area of procurement activity. The centralisation of data collection will not only enable the Office to procure in a more cost efficient manner but will also capture more informative data on SME participation.
It is important to remember that open tendering is a two way street and that it provides Irish companies with opportunities to compete abroad. The public procurement market in the EU is estimated to be valued in excess of €2.4 trillion. In this regard, it is worth pointing out that the open market regime also offers opportunities for Irish companies to win business abroad and reliable EU studies indicate that many Irish businesses are successful in this regard.
