I am 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. Circular 10/10 was developed in 2010 by a cabinet committee which was tasked with considering issues that face SMEs in the public procurement market. The cabinet committee recommendations that formed the basis for the circular were consistent with EU commissioned research, entitledEvaluation of SMEs’ Access to Public Procurement Markets in the EU (2010).
Circular 10/10 sets 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.
The reason why the threshold for advertising onwww.etenders.ie (the national public procurement web portal) was reduced from €50,000 to €25,000 was to make such contracts more accessible to SMEs. This initiative is consistent with national public procurement policy which is aimed at ensuring that all public sector purchasing is carried out in a manner that is transparent and secures optimal value for money for the taxpayer. The Deputy will appreciate that advertising such contracts facilitates SMEs in accessing public procurement opportunities whilst also ensuring that each public body secures work, goods and services that are value for money.
Facilitating SMEs to access public procurement opportunities is an ongoing priority for Government. 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.
