SME-friendly process planned for public projects, says Tánaiste

The Tánaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan TD, yesterday announced that she had begun work in her department on a project designed to improve opportunities for SMEs in gaining access to public procurement.

She confirmed that the project would implement measures aimed at breaking down barriers to SMEs’ access to public contracts, such as reducing and minimising the costs to submit tenders for public projects; breaking contracts being offered down into lots; encouraging partnering among SMEs; and also encouraging larger companies to sub-contract public work.

“The public procurement process must become SME-friendly and in Government we must make every effort to ensure that our smaller enterprises are enabled to participate in the competitive bidding process for public contracts,” the Tánaiste said.

“Public procurement is not all about achieving the lowest cost, it is about getting best value for money.

“Quite often our smaller enterprises are in a position to provide more innovative and flexible solutions in response to Government needs than their larger corporate competitors.

“It is my intention that the initiative now underway will ensure that those smaller enterprises do not find the requirements to enter that competitive process too high.”

The  Small  Firms Association (SFA) welcomed the Tánaiste’s announcement that she intends to break down the barriers to SMEs gaining access to work on public projects.

"For a number of years, we have been calling on the Government to overhaul its public procurement procedures, which have prevented many small Irish companies from winning valuable public contracts,” said SFA Assistant Director, Avine McNally.

"The actions outlined in today's announcement, including the minimisation of the costs and bureaucracy associated with current public procurement, recognises that the SME environment has limited resources available, and by reducing the administrative burden and procedures will mean that many small firms will find it easier to tender, and thereby open up new business opportunities.

"Public procurement is an essential element of delivering better public services in Ireland.  Effective procurement procedures ensure value for money for taxpayers and the efficient allocation of resources, thereby enhancing the quality of public services. 

“Small businesses provide a valuable contribution to the needs of the public sector through innovation, responsiveness and quality in the provision of goods and services which are vital to the public sector and the economy. 

“In addition, by allowing small Irish companies access to this market, it enables them to increase their competitiveness and consequently contribute to job maintenance and  growth and the overall economy,” McNally said.