I propose to take Questions Nos. 324, 327 and 328 together.
The reform of the public procurement infrastructure is a key element of the reform programme for the public service. This reform enables public service organisations deliver much needed services within the tighter budgets that they must now operate. The Government acknowledges, however, the significant role that SMEs play in the Irish economy and is committed to ensuring that SMEs are fully engaged with public sector procurement and the opportunities presenting.
In this regard my Department issued Circular 10/14 in 2014 aimed at opening up opportunities for small businesses that want to tender for public contracts and also to ensure that engaging with public procurement is easy and low cost. This guidance set out positive measures that contracting authorities should take to promote the involvement of smaller enterprises and highlights practices that are to be avoided which may hinder small businesses in competing for public contracts.
The main thrust of the circular is as follows:
- buyers are advised to undertake market analysis prior to tendering in order to better understand the range of goods and services on offer, the competitive landscape, including the specific capabilities of SMEs, etc.
- the circular promotes transparency in procurement by requiring supplies and general services contracts with an estimated value of €25,000 to be advertised on the Government's electronic tendering portal, e-Tenders;
- it encourages suppliers including SMEs to fully use e-Tenders and avail of its facilities in relation to registration, e-tendering and automatic alerts in relation to future tendering opportunities;
- buyers are encouraged not to set turnover thresholds at more than twice the estimated contract value and the circular puts limits on insurance levels for suppliers where possible;
- it promotes greater use of "open" tendering and less use of "restrictive" tendering;
-it encourages SMEs to consider using consortia where they are not of sufficient scale to tender in their own right or where they may lack certain capabilities necessary to provide a compelling proposition; and,
- it encourages Contracting Authorities to break large contracts down into lots where reasonable to do so and where it does not expose the State to undue risk or significant management overheads.
In addition, the Office of Government Procurement (OGP) which falls under the remit of my Department, works with the various industry representative bodies (including ISME, IBEC, SFA, Chambers Ireland, and CIF) to promote the engagement of Irish business in public procurement as well as with the Department of Jobs, Enterprise and Innovation, InterTrade Ireland, and Enterprise Ireland. Last year, for example, the OGP supported two "Meet the Buyer" events in Belfast and Dublin which were attended by over 1,100 suppliers. The OGP also supported the 'Go 2 Tender' programme run by InterTrade Ireland which was attended by approximately 400 SME's. This year InterTrade Ireland also delivered a programme on consortia building to assist SME's to jointly bid for state contracts.
In relation to SME participation in public procurement, recent analysis carried out by the OGP indicates that 93% of government procurement expenditure falls within the State and that 66% of this is directly with Irish SMEs.
The OGP will continue to work with suppliers and business representatives on behalf of Government to ensure that winning government business is done in a fair, transparent and accessible way and to ensure that public procurement policies are business friendly.
