Dáil Éireann Debate, Tuesday - 12 June 2012
294 Deputy Willie O’Dea asked the Minister for Public Expenditure and Reform the progress that he has made in relation to improving the public procurement process for small and medium enterprises; and if he will make a statement on the matter. [27517/12]
Amharc ar fhreagraI am very aware that public procurement can be an important source of business for local enterprises. Current guidelines (Circular 10/10) issued by my Department require public bodies to promote participation of small and medium-sized enterprises in the award of public contracts. These guidelines set out positive measures that contracting authorities are to take to promote SME involvement in a manner that is consistent with the principles and rules of the existing public procurement regulatory regime. The guidance also highlights practices that are to be avoided because they can unjustifiably hinder small businesses in competing for public contracts. The key provisions of the guidance include:
supplies and general services contracts with an estimated value of €25,000 or more to be advertised on thewww.etenders.gov.ie website;
less use of "restrictive" tendering procedures and greater use of "open" tendering;
ensuring that the levels set by contracting authorities for suitability criteria are justified and proportionate to the needs of the contract;
sub-dividing larger requirements into lots where this is practical and can be done without compromising efficiency and value for money.
Circular 10/10 has been in place for almost two years. It is clear that there is a need to ensure greater consistency in relation to the implementation of this circular. In this regard, the National Procurement Service (NPS) recently established a Working Group on Small and Medium Enterprises to respond to public procurement issues arising for SMEs. The Working Group consists of representatives from the NPS, the Health Service Executive, the Irish Business and Employers Federation, the Irish Small and Medium Enterprises Association, Chambers Ireland, and the Small Firms Association. The Working Group will develop measures to highlight the scope that contracting authorities have under circular 10/10 to encourage SME participation in public procurement processes.
Finally, it is worth noting that in terms of overall procurement budget (approximately €14 billion in 2010), the NPS estimate that 5% of the overall spend went to non-domestic suppliers.
