SMEs

Public Procurement is governed by EU legislation and National rules and guidelines to ensure compliance with the principles of transparency, non-discrimination and equal treatment which are key to demonstrating the State’s attainment of maximum value for money through competitive procedures. To create a level playing field for all businesses across the Single European Market, EU law sets out minimum harmonised procurement rules for all Member States.

The 2016 Regulations contain a number of provisions to make it easier for businesses and in particular SMEs to tender for Public Sector procurement contracts. Measures specifically designed to improve access for SMEs and start-ups include:

• the financial capacity criterion is generally limited to twice contract value

• electronic methods of communication are mandated in parts of the tender process

• the introduction of the European Single Procurement Document (ESPD), a self-declaration form aimed at reducing red tape for suppliers

• discretion to divide public contracts into lots, with the proviso that opting not to divide a contract into lots must be explained in the procurement documents or the report on the procurement process

• provision for “consortia bidding” may assist SMEs to participate in procurement

• procedures where they would not have the relevant capability or scale if they were to bid as sole tenderers

• explicit provision for pre-market discussion with suppliers and independent experts, subject to safeguards against distorting competition or violating transparency and non discrimination principles

• reductions in the time limits for receipt of tenders by approximately 30% compared to the position under the 2006 Regulations

• Member States are required to report back to the Commission every three years on SME participation in public procurement

The OGP has developed a suite of policy measures that Public Bodies should consider in assisting SMEs to access public procurement opportunities (implemented through Circular 05/23). These include, inter alia:

• Proportionate financial capacity;

• Division of public contracts into lots;

• Provision for “consortia bidding” to assist SMEs where they would not have the relevant capability or scale;

• Proportionate insurance levels; and

• All contracts for goods and services valued above €50,000 must be advertised on eTenders.

In addition, the Minister of State chairs quarterly meetings of the SME Advisory Groupwith industry representative bodies Irish SME Association (ISME), Irish Business and Employers Confederation (IBEC), Small Firms Association (SFA), Chambers Ireland, and Construction Industry Federation (CIF).