Dáil Éireann Debate, Tuesday - 27 November 2018
83. Deputy Bríd Smith asked the Minister for Public Expenditure and Reform if the policy in relation to the delivery of public infrastructure to examine the long-term costs and benefits of the present reliance on private sector providers will be reviewed in view of recent issues with competitive tendering and public procurement; and if he will make a statement on the matter. [49215/18]
View answerThe Public Spending Code, published by my department, summarises the high level principles to be applied when scrutinising expenditure proposals as well as the roles and responsibilities of those involved.
It also encompasses guidance on a variety of issues related to the management of expenditure at each stage of the expenditure lifecycle. This includes central guidance on the application of appraisal and evaluation methodologies including cost benefit analysis. This methodological guidance aims to enhance consistency across sectors through common approaches and the use of key technical parameter values needed for quantifying costs and conducting economic appraisals.
Where construction projects are concerned, the optimum means of delivery and the long-term costs of the project are specifically addressed as part of the evaluation.
In reality the majority of construction projects are undertaken by private sector contractors engaged following a procurement process since it is neither practical nor cost effective for the State to employ a skilled workforce of the size necessary to directly deliver large sections of the NDP. Indeed, even in that scenario, procurement of specialist expertise would still be necessary in certain circumstances.
Where there is a requirement to procure contractors, all public works projects delivered under the exchequer-funded element of the NDP must be procured in accordance with the provisions laid down in the Capital Works Management Framework which was developed to assist contracting authorities to meet their ongoing procurement requirements. It provides an integrated set of contractual provisions, guidance material, technical templates and procedures which cover all aspects of the delivery process of a public works project from inception to final project delivery and review.
The performance of the public works contracts was reviewed in 2014 and set out a number of recommendations including a range of interim amendments and the development of a medium term strategy for the procurement of public works projects. The interim amendments have been adopted and engagement on the medium term strategy has commenced. This will see a comprehensive review of the manner in which public works projects are procured and will focus on better delivery through public procurement. It will not determine whether procurement is the optimum means of delivery for a contract as this responsibility remains with the contracting authority as part of the initial evaluation process.
