David Stanton
Ceist:272 Mr. Stanton asked the Minister for Finance the value of contracts for which a Department or State agency must invite tenders; and if he will make a statement on the matter. [28080/01]
Written Answers. - Government Procurement.
It is a basic principle of Government procurement that a procedure based on competitive tendering should be used unless exceptional circumstances apply. Contracts are advertised in newspapers, on the national procurement website, or a number of contractors, sufficient to ensure effective competition, may be invited to submit tenders directly where appropriate. In general, with contracts of lower value a less formal procedure is appropriate.
EU public procurement directives apply to contracts above certain thresholds. Under these directives there is an obligation on contracting authorities to advertise contracts in the Official Journal of the European Communities and to follow specific tendering procedures.
The EU threshold for works contracts is 5.3 million or £4.2 million. For service and supply contracts of Departments and offices the threshold is 139,312 or £109,717. For other public bodies the threshold is 214,326 or £168,795. In the utilities sector the threshold for most service and supplies contracts is 428,653 or £337,592.
Guidelines which apply to all Departments, local and regional authorities and other public bodies are set out in the booklet "Public Procurement – 1994 Edition" which is issued by my Department. Its purpose is to promote open, fair, competitive procedures in the award of public contracts.