Public procurement refers to the process by which public bodies purchase works, goods or services from suppliers which they have selected for this purpose. It ranges from the purchase of routine goods and services to large scale contracts for infrastructural projects and involves a wide and diverse range of contracting authorities.
Watch the below video for an introduction to public procurement in Ireland.
The Office of Government Procurement (OGP) together with sourcing sector partners in Health, Local Government, Education and Defence, has responsibility for sourcing 16 categories of goods and services on behalf of the public service. These partners are central purchasing bodies (CPBs). A CPB is a contracting authority that provides centralised purchasing activities and which may also provide ancillary purchasing activities. In Ireland, there are five CPBs: Office of Government Procurement (OGP), Education Procurement Service (EPS), Health Service Executive (HSE), Local Government Operational Procurement Centre (LGOPC) and the Department of Defence. These central purchasing bodies establish central arrangements which offer a range of goods and services available to the public sector. Further information on all central arrangements.
The government buys in two ways:
- issuing a tender via eTenders
- seeking quotes for lower value contracts
Public bodies are required to advertise all contracts above €50k/€200k (exclusive of VAT) for goods & services/works on eTenders. Below this level, public bodies can contact suppliers directly to seek quotes. eTenders facilitates public bodies seeking quotes from registered suppliers below these thresholds. Suppliers are encouraged to register on eTenders to avail of these lower value opportunities.
The OGP's Public Procurement Guidelines for Goods and Services promote best practice and consistency of application of the public procurement rules in relation to the purchase of goods and services. Although primarily aimed at contracting authorities, the Guidelines can be a valuable reference tool for suppliers interested in selling to Government. For example, the Guidelines provide detailed information on the different procurement procedures and the overarching procurement process. An example of the project lifecycle, as below, is featured in the Guidelines.
Image: Procurement Project Lifecycle
Register on eTenders, the national electronic tendering website. eTenders was developed as part of the Irish Government’s strategy for the implementation of eProcurement in the Irish public sector. On 15 May 2023 a new eTenders was launched. The site is the central facility for all public sector contracting authorities to advertise procurement opportunities and award notices. The site displays, on a daily basis, all Irish public sector procurement opportunities being advertised in the Official Journal of the European Union (OJEU), as well as other lower-value contracts uploaded to the site by contracting authorities. You can register as a supplier on eTenders with further information available in an FAQ document.
There are a range of procurement terms that suppliers should familiarise themselves with when considering selling to Government. The ABC’s of Public Procurement outlines the most common terms that suppliers will come across.
Please read our Top Tips for Tendering for suppliers considering selling to Government.
The government recognises the importance of the SME sector and continues to enhance the already substantial measures to support SMEs in accessing the public procurement market. The OGP has developed a suite of policy measures aimed at assisting SMEs to access public procurement opportunities (implemented through Circular 05/2023 ). These include:
- increase to the national advertising thresholds (€50,000 for goods and services, and €200,000 for works, both exclusive of VAT)
- requirement for contracting authorities to publish contract award information for all procurements over €25,000 (exclusive of VAT) on eTenders
- updated general measures covering governance, reaffirming the principles underpinning all public procurement, and the applicability for works procurement
- specific measures that public bodies should take to promote SME participation
The National Enterprise Hub is a new all-of-government service staffed by experts and trained advisors, which is focused on helping businesses access a range of government supports. The hub brings together information and resources on over 230 government supports from 24 different departments and state agencies which can be accessed through the new online hub at National Enterprise Hub or by speaking to a member of the team of advisors by phone, email or via live chat.
In addition, Minister of State Ossian Smyth, who has responsibility for public procurement, chairs quarterly meetings of the SME Advisory Group. The SME Advisory Group provides a forum for government, policy makers and industry representative groups to come together to identify and progress measures to support SME access to public procurement opportunities. It also provides a forum for SME representative bodies to voice concerns on issues affecting SME participation in public procurement. Further information on the SME Advisory Group, including the group’s Terms of Reference and minutes.
Government is committed to strategic, sustainable public procurement. Many government contracts have specific social or environmental considerations that align with those of social enterprises around the country. Social enterprises are also encouraged to register on eTenders to avail of public procurement opportunities. Public bodies can ‘reserve’ a contract, or elements thereof, in the following circumstances:
- to sheltered workshops and economic operators whose main aim is the social and professional integration of disabled or disadvantaged persons
- for certain contracts for health, social and cultural services
Organisations such as not-for-profit, namely those that pursue a public service mission which deliver relevant services and reinvestment of profits into their organisation, may meet certain conditions for reserved contracts. These contracts are specifically listed by CPV codes in Regulation 77 of the 2016 Regulations.
The contract must still be open to competition in accordance with national procurement guidelines but entry to participation is limited to certain suppliers. The decision to reserve a contract, and the basis on which it is being reserved, must be called out in the invitation to tender. Public bodies may also contact social enterprises directly seeking quotes to procure lower valued goods, services and works. Further information on reserved contracts.
If a supplier has a concern around a live tender, they can raise this through the Tender Advisory Service (TAS) . TAS was established by the OGP in consultation with SME stakeholders to address concerns in relation to perceived barriers for SMEs in competing for tender opportunities.
The Tender Advisory Service can be used by individuals and companies in the following circumstances:
- where a Request for Tender (RFT) has been published
- the supplier must have registered an interest in a specific live tender process
- the supplier has sought answers to their queries through the normal clarification process with the Contracting Authority, and
- where the supplier is not satisfied with the response from the contracting authority
Enquiries should in the first instance be made to the OGP Support Helpdesk who will advise the enquirer on their eligibility for the service and the various steps involved in pursuing their enquiry.
Each year, the OGP reports on tendering expenditure on goods, services and minor works by Irish public service bodies. These reports are part of the OGP's commitment to openness and transparency around public procurement in Ireland. The report highlights the large percentage of spend with SMEs each year. Access the reports.
Watch case studies on businesses discussing their engagement with public procurement.
More videos are available on the OGP YouTube channel.