Developments in

Procurement Policy

Jim Deane

Head of Policy, OGP

OGP Client Conference

12-13 November 2019

Hibernia Conference Centre, Dublin Castle

Content

1. Policy Environment

2. Procurement Reform Programme

3. Governance Structures

4. National Public Procurement Policy Framework

5. SME Access

6. Social Considerations

7. Brexit

8. Next steps

2

1. Policy Environment

3

• Strategic use of

public procurement

World Trade Organisation

4

• 164 Members - Governments and customs territories• set, apply and enforce the global rules for trade

• forum for international trade negotiations (e.g. the Doha Development Round)

• resolving trade disputes

• Agreement on Government Procurement (GPA)• Open, fair and transparent conditions of competition in the government

procurement markets

5

European Commission’s priorities

1. Ensuring wider uptake of innovative, green

and social procurement

2. Increasing access to procurement markets

3. Improving transparency, integrity and data

4. Boosting the digital transformation of

procurement

5. Professionalising public buyers

6. Co-operating to procure together

Programme for Government

6

• Refine the new procurement structures in place, such as the OGP,

as they bed down and make adjustments according to best

international practice and in conjunction with Irish businesses

• Facilitate quarterly meetings of the SME Advisory Group

• Continue to develop measures to support SMEs in accessing

public procurement market

• Commission an external review of Tender Advisory Service

• Consultation on the merits of establishing a Procurement

Ombudsman

Programme for Government Commitments

7

Consultation on the merits of establishing a

Procurement Ombudsman

• Initial consultation with SME AG

• Interim Public Sector Procurement Reform Board

• Procurement Executive

• Wider consultation

• EU Developments

Private Members Bills

8

• Public Services and Procurement (Social Value) Bill 2017

– Fianna Fáil

• Public Services and Procurement (Workers’ Rights) Bill

2017 – People Before Profit

• Public Authorities and Utility Undertakings (Contract

Preparation and Award Criteria) Bill 2019 – Sen. Alice

Mary Higgins

Our Public Service 2020

9

National Development Plan

• NDP €116bn expenditure, €7bn capital budget 2019

• Medium Term Strategy (MTS)

• Reforms - how risk is managed, assessed and planned for

• Consultation process ongoing

• Aligned with work of:

o Project Ireland Delivery Board

o Infrastructure Projects Office

o Public Spending Code review

o Construction Sector Working Group

o Commercial Skills Academy

10

11

2. Procurement Reform Programme

• Programme started 2013 – wider public service reform

agenda, OGP commenced operations 2014

• Shift from decentralised to centralised model of procurement for

16 categories – OGP, Health, Local Government, Defence and

Education

• Spend >€9 billion annually on goods and services

• Strategic approach to public procurement

12

Procurement Reform Programme – 2019

Consultation – Government Ministers, Departments, OGP

Governance Structures, Sectors and Industry

• Progress on implementation

• Experience of using central procurement arrangements

• Are central arrangements meeting requirements

• Steps taken to promote good governance and eliminate bad

practices

• Suggestions for improving and refining the public procurement

model

Review the implementation of the procurement reform programme

13

3. Governance Structures

• Oireachtas

• Minister and Minister of State – DPER

• Chief Procurement Officer – OGP

• Interim Procurement Reform Board

• Procurement Executive

• C&AG/Local Government Audit Service

Procurement is part of overall Governance and Accountability arrangements

Oireachtas Scrutiny

• Programme for Government

• Confidence and supply arrangement

• Finance/Public Expenditure and Reform Committee

• Public Accounts Committee

• Private Members’ Bills

• Parliamentary Questions

• Representations

14

Accountability

• Constitution, Legislation, Accounting Officer or Accountable

Person, C&AG, PAC and the Dáil

• Accountability rests with:

o Government Departments

o Public Bodies

o Contracting Authorities

o Internal Audit, External Audit, Risk Management, Internal

Management and Procurement

15

OGP Role

OGP supports compliance by:

• Setting out overarching policy framework

• Putting in place compliant procurement solutions

• Proactive engagement with sectors

• Communications Strategy

• Guidance and template documentation, information

sessions, Category Councils and KAMs

16

4. National Public Procurement Policy Framework

17

1. Legislation (Directives, Regulations)

2. Government policy (circulars etc.)

3. Capital Works Management Framework for

Public Works

4. General Procurement Guidelines for Goods

and Services

5. Technical guidelines, template documentation

and information notes

National Public Procurement Policy Framework

18

1. Legislation – EU and National Rules

• EU Procurement Directives

• Above EU thresholds – detailed legal requirements

• Below EU thresholds – national rules apply

• National rules

• €25k to EU threshold – award on basis of evaluation criteria in line with detailed specifications and advertising on etenders

• €5k to €25k – award on basis of responses to specifications issued to at least three suppliers/service providers

• <€5k – award on basis of verbal quotes from competitive suppliers/service providers

National Public Procurement Policy Framework

19

2. Government policy

• Public Spending Code

• Corporate Governance Standard for the Civil Service

• Circulars:

o 01/2016 – revised

arrangements re procuring

public works contracts

o 6/10 – re Capital Works

Management Framework

• Circulars:

o 20/2019 – Social considerations inc. GPP

o 10/2014 – Supporting SMEs

o 16/2013 – Use of central contracts

o 40/2002 – Public Procurement Guidelines

• Code of Practice for the Governance of State Bodies

• FOI Code of Practice for Public Bodies

3. Capital Works

Management Framework

National Public Procurement Policy Framework

20

4. General Procurement Guidelines

for Goods and Services

Key principles

• Procurement transactions and decisions must

in all respects be fair, equitable and ensure VFM

• Contracting authorities must be able to justify

decisions made and actions taken

• Generally, a competitive process conducted in

an open and transparent manner delivers best VFM

21

5. Technical guidelines,

template documentation

and information notes

National Public Procurement Policy Framework

22

Corporate Procurement Plans

• Procurement planning – integral part

of business planning

• Purpose of information note – assist

in the preparation of a CPP

• Benchmark current procurement

policies and practices and identify

future procurement needs

23

Corporate Procurement Plans

24

Procurement Officer - role

• Governance and planning

• Support

• Communication

OGP Customer Service Team

support@ogp.gov.ie

255. SME Access

• Encourage SME participation and align with marketplace capacity

and capability – break competitions into lots by sector, region and/or

value etc.

24

Support for SMEs

Promoting SME Access

Education & Awareness

• ‘Meet the Buyer’ Events• Taking Care of Business • ‘Go 2 Tender’ Training• Breakfast Briefings• Local Enterprise Offices

Processes & Support

• Helpdesk & Website• Market Analysis• Tender Advisory

Services• Open Procedures• Standard Documents

Policy & Guidance

• Circular 10/14• Procurement Directives• Future Jobs Ireland• Plan for Jobs• Consortia Building

Data & Measurement

• Spend & Tender Analysis• Business Intelligence

Communications

• Published Schedule• Market Engagement • Bidders Briefings• eTenders Alerts• eProcurement • eTenders for > €25k

Industry Engagement

• SME Working Group

25

o Market analysis

o Turnover levels

o Insurance levels

o Open tendering

o Lots

o Consortia building

o eTenders

Policy Circular 10/14 to Support SMEs

• Accelerated implementation of business

friendly aspects of 2014 Directives

27

Social considerations

29

• Promote and facilitate

• Identify social policy objectives

• Match identified objectives with procurement opportunities

• Advise on how best to incorporate social considerations

• Members are key contact points within their own Department

• Consider monitoring and reporting arrangements

• Identifying pilots

• Circular 20/2019

Social Considerations Advisory Group

How to incorporate social considerations

• Plan from the outset – business case stage

• Incorporate at the most appropriate stage:

o Specifications

o Selection criteria

o Award criteria

o Contract Management

30

Policy Depts

CPBs

CAs

Important factors to be considered

• Linked to the subject matter of the contract

• Comply with EU / National Rules

• Value for Money / Proportionality

• Possible alternatives

• SME impact

• Inform potential bidders from the start

31

7. Brexit

• Cross-Government Brexit Contingency

planning

• Updated Information Note

• Assessed Framework Agreements

• Engaged with key suppliers

• Advised Government Departments

• Key risks:

o increased costs

o interruption to supply

o changed regulatory environment

32

Brexit - Advice for Public Bodies

• Policy Information Note

• Raise awareness

• Gather Information (Market and Supplier dependencies)

• Assess the supplier base

• Understand exposure to UK market

• Consider possible mitigation steps

33

8. Next Steps

34

• Reflecting/reviewing consultation process

• Proposals for refinement

o Setting clear strategy and objectives

o High level indicators to monitor progress

o Improved service delivery and processes

o Digitalisation and eProcurement

o SMEs

o Social considerations

o Professionalisation