Policy statement: developing a new public procurement strategy for Ireland

Introduction

The Government’s long-term vision for public procurement is to enable sustainable, innovative, transparent and cost-effective public procurement that meets the needs of the State and delivers greater benefit to the public. To help achieve this, a new national public procurement strategy will be developed which will build on the public procurement reform programme established in 2013 and align with Better Public Services: Public Service Transformation 2030,published in 2023.

In 2019, the Government published its National Public Procurement Policy Frameworkin which the legal and policy instruments governing public procurement and the architecture for the procurement reform programme were set out. While the legislation and principles governing public procurement are not changing, revision is required across a number of policy areas.

In the post-pandemic era, and because of current economic, environmental and geopolitical events, public procurement has become an increasingly complex consideration for public administrations worldwide. Governments are moving to allow for this added complexity in procurement policy and practice. The goods, services and works needed for the ongoing provision of public services must be procured strategically, sustainably, transparently and cost-effectively. Other considerations include security of supply, SME participation, making room for innovation and the use and procuring of emerging technologies.

The policy arena is further complicated by the introduction of non-procurement-related legislation aimed at leveraging public procurement to enable broader social and environmental priorities.

In addition, a study by the European Court of Auditors, published in late 2023, questions the degree of competiveness in public procurement across the EU. In response, the Commission intends to undertake detailed analysis to further elucidate the Court’s findings and strengthen the competition and strategic dimensions of public procurement.

It is therefore timely to revisit existing national policy on public procurement in Ireland to support Government in prioritising spending and targeting resources, making it simpler to procure the goods, services and works, increasing SME participation and addressing sustainability concerns. The groundwork to support this process has begun. Policy priorities subject to revision are grouped into four themes, each described and accompanied by specific objectives. These themes and related objectives provide the direction for the development of the new national public procurement strategy.

National policy priorities and themes

In laying the policy groundwork for developing a new national strategy three foundational positions have been adopted. The strategy must:

• be in the public’s best interest.
• enable public buyers to better access the markets on which they rely.
• make participation in public procurement easier for suppliers.

Consistent with EU principles and the Government’s long-term vision for public procurement, the Government has also prioritised the development and implementation of procurement policy aimed at minimising the environmental impact of goods, services and works procured and increasing the delivery of community benefit, supporting innovation in supply markets and SME participation in public procurement, enabling Ireland’s transition to the circular economy, and using data, evidence and technology to deliver on these priorities. This vision is reflected in the Department’s Statement of Strategy – strategic goal 3.7 aims to shape a future for public procurement that is transparent and socially, environmentally and economically sustainable.

These priorities can be grouped thematically as follows: (1) strategic public procurement, (2) transparency, (3) digitalisation and (4) informed delivery. Each theme contains a series of policy objectives that will inform the new national public procurement strategy and actions arising from the strategy.

1. Strategic Public Procurement

Strategic public procurement is sustainable public procurement. It is a shift from focusing solely on value for money to obtaining value for money while at the same time transitioning to a greener, more innovative and circular economy. Undertaken in line with national and EU procurement rules, and in compliance with target 12.7 of the Sustainable Development Goals (SDGs), strategic public procurement incorporates green public procurement, socially responsible public procurement, the procurement of innovation, and SME participation. To increase the uptake of strategic public procurement in Ireland and help Ireland meet its climate targets, the following policy objectives must be achieved:

Policy objectives

• Seek to make GPP the default for procuring goods, services and works in key areas to reduce negative impacts on the environment.
• Develop national procurement policy that aligns with UN Sustainable Public Procurement policy and national GPP policy.
• Embed the inclusion of social considerations including the use of reserved contracts where applicable in public procurement.
• Increase participation and competition in public procurement through open competition and with particular regard to SMEs.
• Develop policy supports for public buyers in the procurement of innovative and sustainable solutions.

Relevant policy instruments

• Circulars 5/23, 20/19, 16/13 • Climate Action Plan • Buying Greener: Green Public Procurement Strategy and Action Plan 2024-7 • Sustainability Development Goals National Implementation Plan • Impact 2030: Ireland’s Research and Innovation Strategy • Making Innovation Real: Public Service Innovation Strategy.

2. Transparency

The principle of transparency is embedded in national and EU public procurement legislation. Transparency benefits competition, reduced costs for the State, accountability and better policy development among others. The capture, accessibility and analysis of relevant high quality data is fundamental to ensuring transparency. Procurement notices published on eTenders are the primary, and the only centralised source of public procurement data in Ireland. Public sector buyers are obliged to advertise procurements with values in excess of certain national and EU financial thresholds. Data from these notices support obligatory reporting requirements nationally and to the European Commission. This data also informs other discretionary reporting exercises including for the United Nations (UN), Organisation for Economic Cooperation and Development (OECD) and World Bank.

The completion and timely publication of procurement notices relevant to a given competition is the easiest way of achieving greater transparency and building public trust. In particular, contract award notices return information on the value and volume of goods, services and works purchased by the State which supports budgetary and needs-based analysis. These notices also enable public sector buyers to consider current and likely future contract requirements which best meet the needs of the public. By completing and publishing contract award notices for each relevant competition, public sector buyers are returning data that can better elucidate their needs, increase SME participation, reduce their reporting burdens and support the governance and oversight of public procurement.

Policy objectives

• Develop a new strategy on the capture, analysis, publication, sharing and governance of public procurement data that will result in the availability of high quality data to facilitate reporting, policy-decision making and contracting authorities’ auditory obligations.
• Embed transparency measures in public procurement policy, practice and implementation including in areas such as remedies and bid-rigging.
• Build on the open data approach to the publication of procurement data by expanding the range of data and information published on the Government’s national open data portal, data.gov.ie.
• Support the accurate completion and publication of public procurement notices on eTenders via the continued provision of relevant guidance and information.

Relevant policy instruments

• Circular 5/23 • Circular 16/13 • Circular 40/02 • Freedom of Information Act 2014 • Design Principles for Government in Ireland • eTenders • Open Data • Open Government • Public Service Data Strategy.

3. Digitalisation

Connecting Government 2030 sets out an approach to deliver digital government and change how people, businesses, and policy makers interact. The ambitions therein are relevant here because of the cross-cutting nature of procurement and because procurement is how the State acquires the goods, services and works that enable the delivery of public services across the country. The strategic and phased provision of high quality, integrated, end-to-end digital procurement will result in reduced administrative burdens for buyers and suppliers, and create new pathways for Irish businesses to participate in public procurement.

Policy objectives

• Develop a national strategy on the digitalisation of public procurement with particular regard to once only principle and interoperability of systems. An OGP-OECD project is currently ongoing, which will provide a roadmap for the development of this strategy.
• Progressive development of public procurement IT infrastructure to arrive at the provision of an end-to-end public procurement solution.
• Increase flexibility in procurement through phased integration of additional eProcurement provision within the pre- and post-award phases of public procurement.

Relevant policy instruments

• Better Public Services: Public Service Transformation 2030 • Harnessing Digital: The Digital Ireland Framework • Connecting Government 2030 • Civil Service Renewal 2030 • eInvoicing • eProcurement

4. Informed Delivery

Successful procurement policy development is tied to consideration of the wider economic, societal and political context and events in which public procurement takes place, be that on a national or EU level, or globally. This environment is one in which national procurement policy must be clarified and revised as necessary, sometimes with multiple revisions to account for changes in the market. This iterative process is fundamental to the development and successful implementation of policy and also for reasons of quality assurance and legal compliance.

Policy objectives

• Advocate for Ireland’s public procurement interests with the European Commission and in other international fora.
• Strategically engage with the Commission on legislation and policy developments with implications for public procurement nationally.
• Evaluate and develop policy on the delivery and uptake of central arrangements.
• Provide for the ongoing consideration of how public procurement may best support wider policy considerations such as strategic procurement.
• Develop strategies to achieve integration of policy considerations. Such strategies will be specific and address short-, medium- and long-term objectives.
• Enable policy implementation, best practice, training and professionalisation via the provision of up-to-date circulars, tender and contract templates including the Construction Works Management Framework, guidance and information notes.

Relevant policy instruments

• National Public Procurement Guidelines • Templates – RFTs and Contracts, Outcome Letters • Construction Works Management Framework • Opportunities and Approaches for SPP Reference • Information Notes • eTenders • Professional Services • Public Service Duty • Public Spending Code • Civil Service Code of Conduct

Towards a national public procurement strategy

The policy set-out here informs the direction for the development of a new national public procurement strategy. The strategy will bring together all current and new policy priorities and directions for public procurement now and over the next five to ten years. It will provide an integrated, overarching vision, direction and agreed outcomes for public procurement in Ireland. The Office of Government Procurement (OGP) as a division of the Department of Public Expenditure, National Development Plan Delivery and Reform, will lead on this national strategy and will consult across government and the public in its development. Regular communications on the development of the national strategy, and other policy and legislative updates, will be posted on the policy pages of the OGP website where further information on the policy resources mentioned above is also available.