National Postcode System

Dáil Éireann Debate, Wednesday - 24 June 2015

Wednesday, 24 June 2015

Ceisteanna (258, 259, 266, 267)

Michael Colreavy

Ceist:

258. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources further to Parliamentary Question No. 61 of 25 March 2015 and in view of the findings made by the European Commission, dated 16 October 2013 and 20 November 2013, if he remains of the view that the postcode procurement process was conducted in accordance with public procurement requirements, and other criteria; and if he will make a statement on the matter. [25433/15]

Michael Colreavy

Ceist:

259. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources in view of the finding made by the European Commission, dated 16 October 2013 and 20 November 2013, to the effect that the postcode procurement process was not conducted in accordance with public procurement requirements (namely Article 47(3) of EC Directive 2004/18/EC and Department of Finance Circular 10/10), the steps which he now proposes to take to address the fact that the postcode procurement process failed to comply with the terms of his statutory consent for the contract; and if he will make a statement on the matter. [25434/15]

Michael Colreavy

Ceist:

266. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the steps he proposes to take in order to rectify the shortcomings in the postcode tendering process, as identified in the investigation reports of the European Commission, dated 16 October 2013 and 20 November 2013, in particular, the Commission confirmation that his Department made an error in the use of certain selection criteria of the postcode tender process, the effect of which was to deny certain sized firms the opportunity to participate; and if he will make a statement on the matter. [25435/15]

Michael Colreavy

Ceist:

267. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if, in respect of the postcode tendering process, he accepts the finding made by the European Commission, dated 16 October 2013 and 20 November 2013, to the effect that his Department did not follow best practice in the design of the tender, specifically by failing to split the contract into suitable lots, and by providing adequate information in the prior information notice, to allow small and medium-sized enterprises prepare for the tender, as recommended in Finance Circular 10/10; and if he will make a statement on the matter. [25436/15]

Freagraí scríofa

Minister for Communications, Energy and Natural Resources

I propose to take Questions Nos. 258, 259, 266 and 267 together.

My Department commenced a procurement process for a National Postcode System in 2011. An open and competitive procurement process was conducted in accordance with Department of Finance and EU procurement frameworks.

A pre-qualification questionnaire was issued on www.etenders.gov.ie on January 2011. This invited interested parties to tender for the contract as a postcode management licence holder for a period of 10 years to design, provide, disseminate and maintain a National Postcode System. A number of companies participated in the procurement process. Three parties qualified following Stage 1 of the process. My Department subsequently received two final bids from consortia led by Capita and An Post. In October, 2013, the Government approved the award of a contract to Capita Business Services Ireland Limited.

My Department received correspondence from the EU Commission in August, 2012 regarding certain aspects of the procurement process. The case was fully examined by the Commission which informed the Department in November, 2013 that the matter had been closed on the basis that the Commission could not establish any breach of EU procurement law that would justify the opening of an infringement procedure. The Irish authorities, however, were requested to take measures in relation to the clarity of language to be used in relation to bids by consortia in future procurements.

In reply to a question from the European Parliament on the procurement process for the postcodes project, the then European Commissioner for the Internal Market stated on 14 May 2014 as follows:

The Commission received a complaint regarding the tendering procedure in question, it conducted an investigation into the matter.

After having received the requested clarifications from the Irish authorities, the Commission closed the file. Based on the available information, the Commission departments could not establish any violation of EU public procurement law that would justify the opening of an infringement procedure.

In April, 2015 in further correspondence, the EU Commission asked for additional information on the measures that have been adopted by the Irish authorities to avoid the possible misinterpretation of the language which arose in the pre-qualification questionnaire. My Department have responded to this request having consulted with the Office of Government Procurement.