Dáil Éireann Debate, Tuesday - 20 March 2018
399. Deputy Alan Kelly asked the Minister for Business, Enterprise and Innovation if her Department or agencies under its aegis have received reports or representations in respect of the impact on small and medium-sized enterprises of decisions made by the Office of Government Procurement; and if so, the action she has taken in respect of same. [12469/18]
Amharc ar fhreagra400. Deputy Alan Kelly asked the Minister for Business, Enterprise and Innovation if her attention has been drawn to the disquiet among small and medium-sized enterprises engaged in the supply of goods and services to State entities of the impact on them of decisions made regarding the awarding of contracts by the Office of Government Procurement. [12470/18]
Amharc ar fhreagraI propose to take Questions Nos. 399 and 400 together.
The State spends in the order of €12bn per annum on goods, services and works, and public procurement is a key element of the Government’s Reform agenda. Given the volume of spending, it is essential that a strategic approach is adopted and value for money is achieved.
The Office of Government Procurement was set up in 2014 to develop a more professional approach to procurement and to drive fair, transparent and open competition in the market place. My colleague Patrick O’Donovan, Minister of State at the Departments of Finance and the Department of Public Expenditure and Reform has responsibility for public procurement through the Office of Government Procurement.
Public procurement offers a very sizeable market to businesses in Ireland. Facilitating more Irish businesses, in particular SMEs, in winning opportunities within the State and in other States helps to create jobs in Ireland.
The Public Service Spend and Tendering Analysis for 2015 published in September 2017 shows that 94% of the State's expenditure is with firms within the State and that 52% of the State's expenditure is with SMEs. In any competitive process, there will be more losers than winners - that is the nature of competition. Such competition, however, can help make businesses healthier and more competitive.
My Department works closely with the OGP and with key stakeholders to ensure that the challenges faced by SMEs in accessing public procurement are acknowledged and addressed. Given that SMEs represent over 98% of our enterprise base, it is essential that the right supports are in place to assist SMEs to grow their business.
Since the establishment of the OGP, a small number of representations [and reports] have been received by my Department and Enterprise Ireland in relation to SME access to public procurement and the impact of decisions made by the OGP on small and medium enterprises. Any specific issue has been raised bilaterally with the OGP. Since the establishment of the OGP, a number of supports and initiatives have been implemented to remove the real or perceived barriers for SMEs to public procurement.
My Department is represented on the High Level Group (HLG) on SME Access to Public Procurement. The HLG consists of representatives from my Department, the OGP, Enterprise Ireland and InterTradeIreland (ITI). The focus of this group is to develop policies to support SMEs in accessing public procurement opportunities, and increase awareness and understanding of the public procurement process.
An SME Working Group, was established as a means of engaging with industry representative bodies to support SME access to public procurement and address any issues that are raised by SMEs regarding public procurement. Membership includes ISME, SFA, Ibec, Chambers, CIF, the OGP, DBEI, EI and ITI.
A Communication Strategy Subgroup, chaired by the OGP, was established in 2017 to work in partnership with industry representative bodies to improve understanding and awareness of public procurement in the target supplier community. A programme of workshops are underway as part of the Communications Strategy and a suite of explanatory animated videos has been developed to bring public procurement opportunities to a wider audience.
Specific measures to support SME participation in public procurement opportunities include:
-supports provided by Enterprise Ireland and InterTradeIreland to assist SMEs in preparing for public tenders, including events to foster awareness and encourage engagement such as Meet the Buyer events and Go2Tender events. For example, Enterprise Ireland hosted a Meet the Buyer event for the Social Housing PPP Bundle 1 on 14 March this year at which over 300 companies, mainly SMEs, had the opportunity to meet the construction and maintenance contractors tendering for the project;
-encouraging businesses to register on eTenders, The National Procurement Portal- set up by the OGP to advertise all procurement opportunities and to facilitate suppliers to register their interest in upcoming opportunities;
-the establishment of a Tender Advisory service to assist SMEs during the tender process
-Small Business Innovation Research (SBIR) - procurement which seeks an innovative solution to specific public sector challenges and needs. (ie- Enterprise Ireland, SEAI and ESB eCars competition to develop smart technology solution to parking charges for electric cars);
-setting proportionate eligibility requirements, e.g. turnover and insurance;
-breaking tendering competitions into lots, e.g. by sector, region, value;
- Guidelines for Consortium Bidding, issued by the Competition and Consumer Protection Commission as a resource to SMEs in accessing public procurement tenders.
Considerable work has been undertaken by Government Departments and agencies in recent years, including close consultation with SME representative bodies, to improve awareness of the opportunities available in public procurement and to develop improved tendering skills for businesses.
It is clear that there are enormous opportunities out there for SMEs. My Department and Agencies will continue to work with the OGP to enhance the supports that are there to help SMEs succeed in this space.
