
It is one month to the day (at the time of writing) since the Forum on Public Procurement. The public sector buying community was very well represented with officials attending on behalf of (1) the RPA, (2) Bus Eireann, (3) The defense Forces, (4) Department of Social Protection/& Family Affaris, (5) Bord Gais Eireann, (6) Various Higher Education Institutions and (7) The HSE amongst many others.
It offered a stark reminder that the future of Ireland’s economic recovery is more and more inextricably linked to the increasingly professional and open nature of public procurement both in Ireland and in the European Union.
Some Quick Points to Bear in Mind: EU
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Over 150,000 Contracts were advertised on an EU wide basis in 2009.
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On Average there were only 5 applicants per contract. In anyone’s language those odds are attractive as regards securing business.
- Legislation is in place to allow contracting authorities to favour new, emerging or clean technologies in the issuing of their contracts such as through the use of full life cycle costing for example to take into account overall energy costs through the entire life of the product. This reflects the emerging emphasis on green procurement.
Some Quick Points to Bear in Mind: Irish Procurement
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Ireland has disproportionately favoured suppliers domiciled outside the country by awarding a massive 17.7% of Public Procurement contracts to them which is an incredible statistic given that the EU average is 1.5%.
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In 2008 there were an average of 5 applications per contract award notice on eTenders for the HSE (Ireland’s largest procuring agency) across their entire product portfolio.
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Life cycle costing accounted for the third highest of average criteria in 2008 with 17% of overall criteria and 20% in 2009 for judging the award of contracts on eTenders. This is only beaten by various measures of product quality and use of initial measures of price.
*Figures relating to HSE procurement patterns taken from EI study of Contract award notices on eTenders.
With the downturn continuing to grip the nation, more and more Irish SME’s are turning to the public procurement market to source new business opportunities both in Ireland and abroad.
Are you involved in the buying process or a potential supplier to the public sector? To find out how our dedicated public procurement team can help you please email this address:
value4money@enterprise-ireland.com