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TRANSCRIPT
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
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