Dáil Éireann Debate, Tuesday - 27 June 2023
261. Deputy Bernard J. Durkan asked the Minister for Public Expenditure, National Development Plan Delivery and Reform the extent to which reform has become a feature of public procurement with a view to ensuring prompt delivery of projects and contracts; and if he will make a statement on the matter. [31344/23]
View answerPublic procurement directives apply to all Member States within the European Union. EU Procurement Directive 2014/24/EU which concerns the procurement of goods, services and works has been transposed into Irish Law in the form of corresponding Regulations under SI No. 284 of 2016 which form the legal basis for the national rules governing public procurement. The aim of these regulations is to promote an open, competitive and non-discriminatory public procurement regime that delivers best value for money. The legislative basis for public procurement in Ireland is fully aligned with regulatory norms throughout the EU.
Public procurement reform is a key aspect of the overall public service reform programme launched in 2011. As a result, the Office of Government Procurement was established in 2013 to deliver:
• Greater aggregation of purchasing across public bodies to achieve better value for money;
• Integration of procurement policy, strategy and operations in one office;
• Strengthening of spend analytics and data management; and
• Strengthening of vendor and category management.
The Procurement Reform Programme has enjoyed considerable success to date. Governance arrangements have been established to foster collaboration and cooperation across the main sectors of Central Government, Health, Local Government, Education and Defence. Through the development of a suite of centralised arrangements, the Government’s purchasing power has been leveraged by speaking to the market with ‘one voice’.
In line with the Programme for Government: Our Shared Future, the focus now is to further develop the potential of strategic procurement, with an emphasis on sustainability and social considerations, public works reform and innovation. While value for money remains a key consideration, the strategic use of public procurement will support green, social and innovation policies in line with the Programme for Government, international developments and EU priorities such as the Green Deal and digitalisation.
Each Accounting Officer is responsible for the performance of public contracts under his or her remit and for ensuring that the public procurement function is discharged in line with the standard accounting and procurement rules and procedures efficiently and effectively to deliver maximum value for money for the taxpayer. For tenders above EU Thresholds, minimum time limits are set down in the Procurement Regulations for the different stages of a contact award procedure. The Regulations provide for accelerated procedures in certain circumstances e.g. emergency purposes. For below EU Threshold procurements, sufficient time must be permitted for preparation and submission of responses to allow for genuine competition and for SMEs to participate in the tender process. Contracting authorities are advised to consider the complexity of a contract when setting time limits for receipt of tenders and the Guidelines provide assistance to Contracting Authorities in this regard.
To assist Contracting Authorities in the conduct of procurement procedures, the Office of Government Procurement has published extensive guidance material for contracting authorities including the Public Procurement Guidelines for Goods and Services (the Guidelines) available at: www.gov.ie/en/publication/c23f5-public-procurement-guidelines-for-goods-and-services/ and the Capital Works Management Framework (CWMF) available at: www.gov.ie/en/service/1d443-capital-works-management-framework/#.
The Guidelines outline the various stages of the procurement process from specification, selection and award stages to contract management stage. They provide comprehensive guidance on ensuring the specifications fully and accurately capture the requirement of the goods or services and identify the risks of poor specification and the challenges that this can cause Contracting Authorities when subsequently managing their contracts.
The OGP has also been proactive in the area of Strategic Procurement with the publication of Circular 20/2019: Promoting the use of Environmental and Social Considerations in Public Procurement and the Information Note on Incorporating Social Considerations into Public Procurement. The interdepartmental Strategic Procurement Advisory Group was established in March 2019 to promote and facilitate the incorporation of sustainable procurement considerations, including environmental considerations, into public procurement projects. The OGP developed a new online GPP Criteria Search tool in November 2022 which will assist all public bodies in meeting their green procurement objectives.
Procurement Reform has delivered a programme of policy supports for SMEs, most recently with the publication of Circular 05/2023: Initiatives to assist SMEs in Public Procurement. This Circular provides measures to promote SME participation in public procurement competitions. Furthermore, my colleague, Minister of State Ossian Smyth TD, chairs the SME Advisory Group which provides a forum for Small Medium Enterprises to discuss procurement issues for the SME sector and to build awareness in industry of the opportunities arising from public procurement.
With respect to public works the Capital Works Management Framework (CWMF) is a structure that has been developed to deliver the Government’s objectives in relation to public sector construction procurement reform. It has been operational since 2007 and consists of a suite of best practice guidance, standard contracts and generic template documents. All the documents that make up the framework are available online.
The CWMF contributes to efficiencies through standardising the documentation and processes associated with public works procurement to the greatest extent possible. The suite of contracts contain clear requirements with respect to performance and delivery whereas the project-specific aspects such as scope, design and technical specifications are matters for the contracting authority to determine. There is also a suite of guidance material covering all aspects of project delivery, including project-specific information, available under the CWMF.
My Department will continue the enhancement and refinement of guidance, systems, reporting, and engagement to assist public procurement practitioners to effectively and efficiently deliver value for money on behalf of the State.
