From Department of Public Expenditure, NDP Delivery and Reform
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A new Circular has been introduced which requires large spending public bodies to report on their use of central procurement arrangements. The Circular is advanced by the Office of Government Procurement (OGP), a division of the Department of Public Expenditure, NDP Delivery and Reform. It follows Circular 16/13 on the use of centralised procurement arrangements.
The use of central procurement arrangements helps to meet green and social policy objectives, delivers value for money, administrative savings and process efficiencies, and improves risk management. Central procurement arrangements avoid duplication of effort by Departments, Agencies, and suppliers.
Minister for Public Expenditure NDP Delivery and Reform, Paschal Donohoe TD, welcomed the circular saying:
“I welcome the publication of this new Circular, which will support the effective implementation of public procurement policy regarding the use of centralised procurement arrangements. It was developed in consultation with other Departments. This new measure is intended to support public bodies in ensuring there is a continued focus on good procurement practice in the award of contracts and that procedures are in place to ensure public bodies can comply with relevant guidelines and policy regarding the use of central procurement arrangements.
“Several billion euro is spent each year on goods, services and works across the public sector. This circular is aimed at larger spending public bodies. It is designed to increase transparency and support the take up of central arrangements in a proportionate and balanced manner.”
The Programme for Government recognises the potential for public procurement to support the Government’s social and environmental agenda, including climate action and Circular Economy goals. The new reporting requirements are seen as central to harnessing the power of public procurement to support the achievement of these goals.
Minister of State with responsibility for public procurement and circular economy Ossian Smyth TD, outlined the benefits of central procurement arrangements saying:
“Centralised procurement arrangements are designed to meet the needs of the public service. They are developed with environmental sustainability in mind.
“Through strategic, centralised procurement, we are leading the way towards the circular economy. I welcome this circular, which will support Government policy on the use of central arrangements.”
To ensure the reporting requirements of the new Circular are balanced and proportionate, the provisions extend to Departments and larger spending public bodies in relation to the award of public contracts for goods and services valued over €143,000.
Only contracts for goods and services are in scope for the reporting requirements, and 2024 is the first year of review. Public bodies have until July 2025 to submit their report and smaller public bodies such as schools will not be subject to the reporting requirements.
Notes
• The Office of Government Procurement (OGP) is a division of the Department of Public Expenditure, NDP Delivery and Reform and plays a central role in helping the State to achieve value for money when buying common goods and services on behalf of the public sector.
• The OGP and its sector sourcing partners in the areas of Education, Defence, Health, and Local Government, are known as Central Purchasing Bodies (CPBs)
• The CPBs have established central buying solutions that serve the needs of Public Service Bodies across the Civil and Public Service.
• The (OGP) acts as the strategic advisor to Government on procurement and has policy responsibility for all areas of procurement.