Public Procurement in Galway County Council
Galway County Council's Procurement Officer, Barry Horgan, oversees a significant expenditure on goods and services funded by Irish taxpayers. Explore the impact of public procurement on the economy and learn about the Office of Government Procurement's initiatives to enhance efficiency and savings through centralized policies and demand aggregation.
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Presentation Transcript
Galway County Council Barry Horgan Procurement Officer bhorgan@galwaycoco.ie Phone: 091 509280 Mobile: 087 2210139 County Hall Prospect Hill Galway
Public Procurement Excluding capital, the public service spends 8.5bn every year on goods and services - or roughly 23m every day and this fuels about 13% of our economy. In 2014 local authorities will have spent around 4.17 billion on goods & services This expenditure is funded by the Irish taxpayer and represents a very significant portion of overall Government spending
Revenue Expenditure 2014 Excluding Water Services Main Spend Areas 000 Minor Contracts- Trade Services & Other Works Materials Hire (Ext) - Plant/Transport/Machinery & Equipment Energy Repairs & Maint - Buildings Non-Capital Equip Purchase Repairs & Maint - Plant Consultancy/Professional Fees and Expenses Printing & Office Consumables Communication Expenses Training Computer Software and Maintenance Fees Postage Advertising Insurance Library Book Purchases Legal Fees and Expenses Cleaning 20,209 5,490 3,800 2,210 2,001, 1,162 1,047 950 428 407 287 2560 225 161 161 157 116 116 http://www.clipartpictures.net/pictures/MONEY/_thm/thm_CASH.png
2014 Revenue-Expenditure Spend Distribution - 000 Galway 17,152 Dublin 7,918 Mayo 7,333 Cork 552 Other (Ireland) 3,582 UK 241 Other (Overseas) 22 47% 21% 20% 2% 10% 1% Symbol for spending Dublin includes most of the Utility payments (Energy, Phones etc)
OGP Office of Government Procurement The Government has identified Procurement as a key public service reform programme OGP was launched in July 2013 Operates as an office of the Department of Public Expenditure & Reform Board is chaired by Minister of State
OGP Office of Government Procurement Responsible for Public Procurement across all sectors Savings Target of 500million over three years - 127million in 2014 Transform existing fragmented procurement model & replace with common policies, procedures & systems Demand Aggregation Realise Cost Savings - Reduce Administration Costs Identified 16 Main Spend Categories Create 16 Category Councils
Category Councils The role of each Category Council is to decide how best to source the goods or services in their category so as to both meet the needs of customer organizations and achieve the savings required by the State. Category Councils decide whether the public sector should approach the market in one or more lots, what specifications can/cannot be harmonized, how demand can be controlled, market considerations etc. Each council is made up of members who are nominated by the Departments and Agencies that are the main users of the category. Each chaired by a Category Lead.
60 % of spend Who will buy what?
Where will you find Tenders? OJEU eTenders SupplyGov.ie eSourcingNI LA Internal Procedures - Quotations http://www.clipartpictures.net/pictures/Business/_thm/thm_g0901788.png
Official Journal of the European Union Captures all Tenders over the EU thresholds: Goods/Services: - 134,000 - 111,676 II. Works: 5,186000 - 4,322,012 The EU Procurement Rules apply to public authorities (as defined by the Public Sector Procurement Directives 2004/18/EC & 2014/23EU) I.
top logo eTenders is the Irish Governments web based procurement portal Suppliers can view current opportunities on the portal and then, if interested, register to respond to a particular tender. All contracts over 25k (Goods & Services) and 50k (Works) must be advertised on eTenders. Registration is free www.etenders.gov.ie
SupplyGov.ie Designed & maintained by Kerry County Council on behalf of the Local Authorities replaces LAQuotes.ie i. ii. iii. iv. v. vi. vii. viii. ix. 9 Main Frameworks for 2015/16 Plant Hire Services Road Making Materials Supply Only Road Making Materials Supply & Placement Footway & Road Pavement Restoration Ready-Mix & Concrete Additives (Supply only) Voids Framework (2014) for a No of LAs Electricians (2015) Plumbers (2015) IW Plant Hire Framework Local Authorities run Mini-Competitions run from Frameworks Quick Quotes facility available
eSourcingNI eSourcing NI is a web based portal which provides access to Central Government procurement opportunities. Suppliers can view current requests for tender RFT s on the portal and then, if interested, register to respond to a particular tender. It operates in a similar fashion to eTenders Registration is free www.e-sourcingni
LA Internal GCC Regulations Less than 3,000 Value for Money verified by Budget Holder No written quotations required. Between 3,000 & 15,000 Written quotations from a minimum of three suppliers. From 15,000 to 25,000 Quotations/Tender to be invited by public advertisement or by letter from at least six suppliers. Within this segment GCC encourages the use of SupplyGov or eTenders. Above 25,000 Must be advertised on eTenders Exception Emergencies Direct Invitation to Tender.
SMEs Issues/Barriers The inability to participate due to the size of the contract being tendered Disproportionate qualification requirements, in particular, financial requirements The lack of or poor quality information in tender (RFT/RFQ) documents The bureaucratic nature of the process and the administrative burden of participation The reluctance of public buyers to consider new suppliers
Challenges for SMEs National Aggregation Frightening Challenging Opportunities Consider Joint Bids share expertise Research and evaluate the possibility of forming Consortiums Partnerships Large Contracts will normally be divided into Lots do not overlook Seek advice before responding to large Tenders may not be suitable to your company avoid unnecessary costs
Key issues for Suppliers There are three steps in the public procurement process, regardless of the procedure used Compliance, Selection, Award. Compliance - does the tender submission comply with all the mandatory requirements of the tender documents. Selection does the tenderer/candidate meet the Selection Criteria, have they met the relevant pre-qualification criteria in order to be evaluated under the award criteria, i.e. have they relevant Financial and Technical qualifications. Contract Award is presently based on either Lowest Price or Most Economically Advantageous Tender,(MEAT) which will consider price and other factors such as Whole Life Cycle Cost and proposed methodology and approach, running costs, after sales costs and disposals costs.
KEY ISSUES FOR SUPPLIERS Alerts - Notifications Ensure that you are registered with all the relevant procurement portals a) eTenders.ie b) SupplyGov.ie c) eSourcing NI Check that you have specified the correct Category / Service With SupplyGov you will need to indicate what local authorities you want to service.
http://www.clipartpictures.net/pictures/Awards/_thm/thm_AWARD353.pnghttp://www.clipartpictures.net/pictures/Awards/_thm/thm_AWARD353.png PREPARE FOR SUCCESS Manage your key information. Maintain a Tender Content Library to include up-to-date information consisting of: Company organisation chart, Financial Accounts/Statements, Insurances, Accreditation Documents, References, Key Staff Biographies, Any other relevant information required on a regular basis.
http://www.clipartpictures.net/pictures/Business/_thm/thm_g0901785.pnghttp://www.clipartpictures.net/pictures/Business/_thm/thm_g0901785.png Tips for Suppliers Know your strengths when & where to compete Be selective you won t win every tender preparing bids can be expensive Build relationships contacts check for upcoming possibilities Don't ignore small contracts less than 25,000 are sometimes awarded based on quotations. Access your competitors can you compete?
KEY ISSUES FOR SUPPLIERS Response to Tenders If in doubt contact the contracting authority for advice via www.eTenders.ie postbox system Do not be afraid to ask questions, seek clarification in advance of the closing date for questions The evaluation team can only assess your bid based on the information you provided Review & Check your tender before submitting, put yourself in the buyers seat while doing this. Keep your replies simple and relevant to the question Understand each specific Award Criteria that the tender will be assessed on.
KEY ISSUES FOR SUPPLIERS Target your replies Submit your tender in the format requested. Use reference numbers on your answers in the same sequence as the RFT (Request for Tender) Pay particular attention to the Qualifying/Selection Criteria. Remember, it won t matter if you are the cheapest if you miss the qualifying/selection criteria. If a signed & dated copy of a document is requested then make sure that it is signed and dated.
KEY ISSUES FOR SUPPLIERS Response to Tenders Read the entire RFT (Request for Tender) document Avoid panic and leave plenty of time to complete the Tender take note of the closing dates & times Ensure you understand the requirements Set out a schedule to complete the RFT Make a checklist/aide-memoire of documentation requested if one is not provided by the contracting authority. Submit your Tender on time
Circular 10/14 Circular 10/14 was issued by the Dept mainly to reiterate the Government s commitment to the SME sector in terms of public procurement as stated in Circular 10/10 and to outline the role of the new Office of Government Procurement (OGP). New issues addressed: Item 5.2 Publication of Contract Award Notices: The directive states that Buyers (contracting authorities) are required to publish all Contract Award Notices over 25,000 on the eTenders website.
Circular 10/14 SMEs Contracting Authorities to encourage SME s to form Consortia to bid for larger contracts Use Open Procedure for contracts below 134,000 Set Capacity Levels proportionate to the size of the contract Documentary evidence should not be sought at an early stage in the Tender process, instead a declaration should suffice. Twice the estimated value of the contract should be the norm when setting turnover requirements
Remedies S.I. No. 130 of 2010 Applies to Contracts above the EU threshold. Standstill period before contract signing - Minimum 14 days after notification letter Unsuccessful Tenderers are entitled to notification of decisions reached in relation to tenders. Summary of the reasons for the rejection of his or her tender. Characteristics and relative advantages of the tender selected
Remedies S.I. No. 130 of 2010 Applies to Tenders above the EU Thresholds The name of the successful tenderer, or, in the case of a framework agreement, the names of the parties to it The score obtained by the unsuccessful tenderer concerned and the score obtained by the successful tenderer in respect of each criterion assessed by the contracting authority. For contracts above the EU threshold a verbal debrief may also be possible. Full text on Remedies is available at -www.etenders.gov.ie
Further Information Additional information in relation to Tendering or Procurement Procedures /Policies contact me at: Barry Horgan, Procurement Officer Galway County Council County Hall Prospect Hill Galway bhorgan@galwaycoco.ie 091 509280
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