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Snapshot of Irish Procurement Activity at EU level* in 2018

8th February 2019 By Bid Services

The following statistics, extracted from the EU Commission’s Tenders Electronic Daily, provide an interesting snapshot of the level and types of procurement activity undertaken by Irish contracting authorities during 2018. It suggests a number of interesting trends including:

the emergence of the first Dynamic Purchasing Systems as enabled by the 2014 Directives;
significant uptake in the use of Competitive Procedure with Negotiation (41);
the first use of Contract Modification Notices (which permit certain changes to contracts during their term);
the first use of so-called “Light-Touch” procedures for certain health and social services as prescribed in Annex XIV to the 2014 Directive; and,
an increased use of Voluntary Ex Ante Transparency Notices (VEAT).

We will comment further on the foregoing trends in future posts over the coming weeks but, for now, here are the main details for 2018:

Irish Procurement Activity at EU level* in 2018

Type of Notice	Number Published by Irish Contracting Authorities	Comment
Contract Notice	1,545	Of which 1,268 were issued under the Public Sector Directive; 269 under the Utilities Directive and 8 under the Defence Directive.
Contract Notice for Open Procedure	1,016
Contract Notice for Restricted Procedure	215
Contract Notice for Negotiated Procedure	237	(Utilities only)
Contract Notice for Competitive Procedure with Negotiation	41	(only available to Public Sector CAs since 2016)
Contract Notice for Competitive Dialogue	35
Contract Notices for Framework Agreements	320
Contract Award Notice	1,188	1,029 under Public Sector Directive; 157 under Utilities; 1 under Defence; 1 under other.
Prior Information Notice without Call for Competition	125
Prior Information Notice with Call for Competition	15
Periodic Indicative Notice	27
Without Call for Competition
Periodic Indicative Notice with Call for Competition	1
Design Contest	6
Works Concession	1
Services Concession	10
Concession Award Notice	4
Qualification System with Call for Competition	37	Available to Utilities Sector only
Dynamic Purchasing System	5
Voluntary Ex Ante Transparency Notice	28
Contract Modification Notice	26
Annex XIV Notices (“Light Touch” Procedures) subject to €750k threshold (Public Sector) and 1m (Utilities)	12	Approx. 100 such notices for EU as a whole, with remainder from UK.
Corrigendum Notices	149

*This data relates only to contracts/concessions with values in excess of monetary thresholds prescribed in EU Directives. A large volume of contract notices for contracts under EU-Threshold values are published on the national procurement portals www.etenders.gov.ie and www.supplyGov.ie

The publication of contract notices represents the majority of activity and the number published in 2018 (1,545) represents an increase of 326 (or 26%) over the number of such notices published in 2014 (1219).

The publication of contract award notices shows a continuing and welcome improvement over previous years with 1,188 such notices published in 2018, an increase of 466 or 64% over the 722 award notices published in 2014.

At national level, the etenders website indicates that there were approximately 6,300 contract notices published on that portal during 2018 with approximately 2,800 award notices.

However, on the down side, the 2017 Appropriation Accounts published by the Comptroller and Auditor General during 2018 showed a continuing high level of contracts awarded or renewed without competitive process in 2017. The published figures show that, across the 42 Votes covered, there was a total of 686 such awards made during 2017 to a combined value of €122.6 million. These figures, which are self-declared under Circular 40/02, are in respect of central government bodies only and do not cover the Health, Local Authority, Semi-State (commercial and non-commercial) and Utilities Sectors.

With regard to the Health Sector, the 2017 HSE Annual Report confirms that non-compliance with public procurement rules remains an issue. That Report states that “Comptroller and Auditor General findings in 2017 indicated a level of non-compliance in relation to 36% (by value) of the sample of payments examined at 5 HSE locations visited during the audit.” However, the HSE (Health Procurement Services) is committed to addressing this matter and has put a programme in place to enhance compliance in the coming years.

Clearly, while much is being done by many diligent officials across the system, there is still room for improvement.

James Farrell
Procurement Research Limited
7 February 2019

© Copyright Procurement Research Limited, February 2019. Used by Public Procurement Services Ltd. with permission. Further use or citation not authorised without permission of copyright holder and due attribution.

National Development Plan – Procuring €116 billion

16th February 2018 By Bid Services

16th February 2018

Peter Brennan, Chairman of Bid Services, shares his thoughts on the Project Ireland 2040 National Planning Framework and Capital Development Programme announced by the Government this afternoon.

I reviewed the NDP to find out what the Government is proposing in terms of procuring the announced €116 billion in works, supplies and services.

Correctly, there is a lot of emphasis in the document in terms of securing value for money through the strict application of the Public Spending Code.

However, to my astonishment, procurement is barely mentioned. There is no policy statement about the procurement strategy that will be used to drive this unprecedented level of socio-economic infrastructure.

There is no indication as to how much of the projected €116 billion should be won by Irish SMEs by way of competitive tendering. If current trends continue, over €12 billion of this quantum may be awarded to non-Irish contractors with a commensurate loss in taxation, jobs and knowhow. DPER should lead an initiative whereby Irish companies and sub-suppliers are trained to secure the maximum amount feasible from this not inconsiderable capital investment.

In the absence of any other option, public bodies will continue to rely on the Capital Works Management Framework (CWMF), a set of guidance dating from 2004 that is not fully compliant with the current EU Procurement Directives. It is timely to ask the question: is the CWMF fully ‘fit for purpose’ to deliver the wide variety of works projects identified in the NDP. While the CWMF provides important templates and model letters and contracts, it needs more flexible rules to make it easier for contractors and sub-contractors to pre-qualify. Only in relation to works contracts, are all tenderers required to submit a suite of supporting documents as part of the qualification process.

In addition, new rules should be written into the CWMF to allow some projects to be procured using the (very flexible) EU Concessions Directive. Many contracting authorities should be using the Competitive Procedure with Negotiation to procure complex works projects yet the CWMF is silent as to how best should be done.

The OGP should use the Dynamic Purchasing System to procure construction professionals for the many public bodies that will need specialist service providers over the coming decade.

It is notable that the Office of Government Procurement – Ireland’s Centre of Procurement Excellence – is mentioned just once in the NDP; in relation to the proposed investment in the eTenders platform.

The NDP states clearly that all large-scale projects should continue to be assessed in terms of suitability for procurement by Public Private Partnership and/or alternative financing (by means of user charges for example). There is a commitment to look at a ‘new procurement option’ (whatever that might be) later this year. The construction sector/PPP industry does not like the Competitive Dialogue, so whatever new process is preferred in its place will be an improvement.

Many of the works procurements will be tendered by Ireland’s utilities. Is there scope to streamline and make these tender competitions less costly for potential contractors?

The National Planning Framework identified the transition to a low-carbon and climate-resilient society and achieving sustainable mobility as ‘vital’ strategic outcomes. Yet there is no mention as to how green procurement techniques that are deployed in every other Member State could be best used to reduce Ireland’s carbon emissions. For example, energy efficiency in buildings and transport solutions could be hugely influenced if sustainability award criteria were written into tender requirements.

DPER’s Infrastructure Projects Steering Group and the Construction Sector Working Group need to assess how best smart procurement techniques should be used to drive the wide portfolio of projects in the pipeline.

Selling to Government Breakfast Briefing – 31 January 2018

29th January 2018 By Bid Services

Selling to Government – Breakfast Briefing – Wednesday 31 January 2018 @ IBEC
InterTradeIreland in partnership with the Office of Government Procurement, Enterprise Ireland, IBEC, SFA, ISME, CIF and Chambers Ireland are delighted to deliver the first of a series of breakfast workshops to demystify, educate and engage businesses on the island around public procurement, a market worth in the region of €12b.

This first introductory level briefing will cover:

What is procurement,
The procurement models on the island,
How to access opportunities,
Good bidding practice and common mistakes to avoid.

The briefing is aimed at micro businesses and SMEs who are new to public procurement or those who wish to update their market knowledge.
The briefing will also be an opportunity to network with like-minded businesses.

Click here to register directly:

https://sellingtogovernment-breakfastbriefing.ya-yaonline.co.uk/

Top Tender Tips – Bid To Win Part 2

11th September 2017 By Bid Services

Part 2 – Top Tender Tips – Bid To Win

4: Define your unique selling propositions

Write up what distinguishes your bid from your competitors

Describe your key differentiators

Tell the buyer why your solution is unique

If your USPs have won you awards let the buyer know – don’t be shy in selling your successes

5: Communicate your solution in terms of benefits

Quantify the payback period

What operational efficiencies will result over the lifetime of the contract – provide metrics to support your claims

Identify the types of savings that will result if your solution is selected.

Benchmark your proposed solution against a comparable buyer(s)

6: Demonstrate your capacity to deliver

With reference to practical examples, explain how you have successfully delivered comparable projects

How will the lessons learned benefit the buyer?

Is the same delivery team being proposed.

Set out the key skills set needed to deliver the buyer’s requirements and how your team has the proven expertise/experience

7: Submit a collaborative bid

Be open to forming or joining a bid consortium

If you cannot fulfil all the RFT requirements find a partner who can

For complex bids sign a Teaming Agreement (we can provide you with a template)

Choose your partners carefully; do due diligence

Top Tender Tips – Bid to Win

1st September 2017 By Bid Services

Number 1: Put the buyer and his needs at the centre of your bid response document.

Write about the buyer.

Explain why your solution is ‘fit for purpose’.

Write a bespoke response in the buyer’s language.

Do not use generic/brochure material.

Number 2: Address the buyer’s underlying needs by going beyond mere compliance

A fully compliant bid may score 80%.

A winning bid scores over 85%.

So make the extra effort.

If you do not have a fundamental understanding of the buyer’s detailed requirements your chances of winning are low.

Number 3: Use clear, jargon-free language

Assume the tender evaluators know nothing about your company and your solution.

Write to the project manager in easy to understand terms

Provide technical details whenever required

Include a list of abbreviations to assist the non-technical readers.

More to follow………

New Procurement Rules

9th August 2017 By Bid Services

The Office of Government Procurement has finally published clear guidance about tendering for goods and services. Here are Ten Key Messages.

1. All tender competitions regardless of their value have to respect the general principles of EU law, including principles set out in the 2014 Procurement Directives.

2. The OGP should be consulted by public buyers before tenders of a value over €25,000 are published.

3. It is the responsibility of public buyers to train staff involved with procurement to ensure tender competitions are compliant.

4. A new suite of template documents and model letters has been issued.

5. Buyers are now required to conduct a risk assessment and market soundings where high value and complex tenders are under consideration.

6. Public buyers are ‘strongly encouraged’ to provide written feedback to unsuccessful bidders.

7. Less formal procedures must be used for contracts below the EU threshold (€135,000).

8. Buyers must justify the decision they take to use a particular procurement procedure (there are seven options available).

9. Stricter reporting and monitoring arrangements now apply, including the preparation of a verifiable Procurement Audit Report.

10. Guidance is provided about the new features of the 2014 Directives, including issues such as dealing with abnormally low tenders, contract changes and using the European Single Procurement Document.

Despite the fact that over €90 billion in works, goods and services may be procured over the coming five years, the ‘Must Read’ OGP guidance was barely mentioned by the media.

Tenders in the Pipeline

2nd August 2017 By Bid Services

Be prepared! The current two-year framework agreement for business and management consultancy and advisory services ends in Q1/2018. The Office of Government Procurement is conducting market research (deadline to respond is 18th August) prior to re-tendering. It is highly likely that contracts below €25,000 will be excluded from scope; good news for small businesses if this change in policy is applied in other categories.

Companies who are short-listed will be asked to engage with the OGP in Q4 by way of a competitive dialogue for the provision by a single supplier of banking services across Government. The volume of transactions is valued at around €140 billion.

The OGP is progressing tender competitions between now and the end of the year for the following:

Laundry and linen services
Building supplies
Office furniture
Media planning and buying (international)
Print broker services
Fuel Charge Card
Fire engines (Class B)
Foreign travel insurance

There are over 110 framework agreements in place so the main area of procurement activity relates to on-going mini-competitions and direct drawdown contracts.

Tender Opportunities

25th July 2017 By Bid Services

Some very significant tenders have been published over the past few days.

The National Treasury Management Agency, in conjunction with Apple Sales International and Apple Operations Europe, is seeking expressions of interest for the provision of certain escrow agency and custodian services for a State aid recovery amount of upwards of €15 billion. Parties who express an interest will then be invited to pre-qualify.

Providers of mobile voice and data communications and associated products, accessories and services, including SMS text services will be interested in the framework tender issued by the Office of Government Procurement. The value of the business to be procured over four years is €60m.

The Department of Jobs, Enterprise and Innovation is looking for expert advisors on dual-use goods.

A Request for Information for a fully managed secure narrowband and nationwide digital radio network services has been published by the OGP.

The OGP has issued a survey (by way of a Request for Information) to take soundings from the market about public contracts in the areas of business and management consultancy and advisory services.

The Irish Centre for Business Excellence has invited tenders for its Learning and Development Training and Business Excellence Skillsnet Programmes.

An Post is looking for providers of health and safety training.

Finally, the Department of Finance is seeking a provider for a post graduate/professional diploma in tax policy and practice.

We would be happy to send you further details on request.

Q3 2016 OGP Schedule of Frameworks Published

12th September 2016 By Bid Services

The Office of Government Procurement (OGP) has published its Target Schedule of Contracts and Frameworks Q3 2016 [Read more…]

Public Procurement Book Launch

20th August 2016 By Bid Management Services

Some €90 billion in supplies, services and works will be procured in Ireland and Northern Ireland over the next five years—a significant opportunity by any reckoning. While tendering is an essential but a complex task, many companies struggle to submit a compelling and competitively priced tender document. [Read more…]