0. Overview of the Reformed Procurement Model in Ireland
Meet the Buyer Cork Oct 19th 2016

1. Our Role: Sustainable Savings for Taxpayer
National approach to public procurement
Align to general government policy
Delivering quality solutions for our public sector clients =
Encouraging SME engagement
Key messages:
The OGP enables sustainable savings for the taxpayer that can be reinvested in front line services.
We do this by:
Taking a national approach to procurement across the public sector and encouraging SMEs to fully engage in public procurement;
Delivering quality solutions for our public sector clients; and
Aligning to general government policy – social policy and sustainability.
Centralising procurement across the public sector and encouraging SMEs to fully engage in public procurement
Enabling savings that can be reinvested in frontline services

2. What we do Supplier Framework Agreements & Contracts Openness &
Transparency
Enable
Sustainable Procurement
Savings
Information
Assistance
Support
Procurement Policy, Strategy & Operations
Key messages:
We bring together procurement policy, strategy and operations in one office
We put in place supplier framework agreements and contracts so that public bodies can buy goods and services
We enable sustainable procurement savings
We work with other government agencies and industry representative bodies in developing and implementing policy initiatives and in driving supplier education and awareness
We gather and analyse procurement expenditure across the public sector to inform future procurement strategy and increase openness and transparency on public expenditure
We provide quality customer service to stakeholders including proactive and reactive information, assistance and support.
We invest in our people to continue to grow capacity and capability
Continue to Grow Capacity & Capability
Implementing
Policy
Initiatives

3. The Model 8 16 Categories – ‘One Voice’ to the market Health Education3 2
Key messages:
The 8 common categories of goods and services are sourced from one office – the OGP.
Health (3 categories), Education (2 categories), Local Government (2 categories) and Defence (1 category) each retain a sector procurement function to procure where the sector is the main user - but they source 'on an all of Government basis‘
Model underpinned by:
Common Policies
Common Systems, Processes and Data Management
Common Governance
Local
Government
Defence 8 1 2

4. Treaty Principles Free movement of goods and services
Freedom of establishment
Key messages:
The Treaty of Rome is the international agreement on which the EU is based.
The Treaty sets out a number of fundamental principles that underpin the EU. Of these fundamental principles, the most relevant in terms of public procurement are:
free movement of goods and services
freedom of establishment
prohibition against discrimination on grounds of nationality
It is important to remember that open tendering is a two way street and that it provides Irish companies with opportunities to compete abroad. The public procurement market in the EU is estimated to be valued in excess of €2.4 trillion per annum. The open market regime offers opportunities for Irish companies to win business abroad and reliable EU studies indicate that many Irish businesses are successful in this regard.  
Prohibition against discrimination on grounds of nationality

5. Key Principles of Law Open and Transparent Equal Treatment &
Non-Discrimination
Proportionality
Mutual Recognition
Key messages:
In addition to the fundamental Treaty principles, some general principles of law have emerged from the case law of the European Court of Justice (ECJ). These general principles are important because they will often be used by the ECJ to fill in gaps in the legislation and to provide solutions to situations that are often very complex. The most important of these general principles of law in the procurement context are:
transparency
equality of treatment
proportionality
mutual recognition
These general principles apply independently of the Directives so that, even if the Directives do not apply, the principles may still apply to the procurement and award of contracts by contracting authorities.

6. Our commitment to you
We encourage SMEs to fully engage in public procurement You have equal opportunities and access to potential business in the public sector Our processes are open, transparent and fair
Key messages:
The OGP takes a balanced approach to delivering value for the taxpayer and ensures that public procurement is accessible by all businesses, including SMEs.
The OGP actively applies the principles of Circular 10/14 and makes every effort to facilitate participation by all potential tenderers.
By ensuring our processes are open, transparent and fair, the OGP delivers quality sourcing solutions in accordance with EU and Irish laws.

7. Support for SMEs Promoting SME Access Education & Awareness
Meet the Buyer
Taking Care of Business
Go 2 Tender
Ploughing Championship
LEO Workshops
Promoting SME Access
Processes & Support
Helpdesk & Website
Market Analysis
Tender Advisory Services
Open Procedures
Standard Documents
Communications
Published Schedule
Market Engagement
Bidders Briefings
eTenders Alerts
eProcurement
eTenders for > €25k
Policy & Guidance
Circular 10/14
Procurement Directives
High-Level Group for SME Access
Action Plan for Jobs
Consortia Building
Industry Engagement
SME Working Group
Data & Measurement
Spend & Tender Analysis
Business Intelligence

8. Circular 10/14
Accelerated implementation of business friendly aspects of New Directives
Market analysis
Turnover levels
Insurance levels
Open tendering
Lots
Consortia building
eTenders
Key messages:
New Public Procurement Regulations and Directives:
These contain many business-friendly obligations,
The implementation of many of these we accelerated through our Circular 10/14.
Circular 10/2014:
market analysis to enable sustainable strategies
it lowered turnover requirements
gave clarity to reasonable insurance requirements
promoted open tendering for contracts > €25,000
promoted lots and consortia building
requires use of eTenders for contracts > €25,000

9. Market Analysis
We undertake market analysis prior to tendering in order to better understand the range of goods and services on offer, market developments and innovation, what commercial models are available, the competitive landscape, and the specific capabilities of SMEs etc.
Key messages:
Aggregation in procurement gives leverage and scale benefits.
The OGP however recognises that excessive aggregation in certain markets might lead to negative impacts on the SME sector. The new 2014 EU Procurement Directives also aim to encourage greater SME participation.
The OGP undertakes market analysis prior to tendering, we use professional judgement to balance these competing forces by finding appropriate levels of aggregation on a market-by-market basis that sustain competition without distorting markets.

10. Smaller Lots
We break tendering competitions into smaller lots (for example, by sector, region, value etc.) to actively encourage SME participation and to align with the capacity and capability of the marketplace
Key messages:
The OGP sub-divides tendering competitions into lots to facilitate access by SMEs.
Examples of lotting:
All of Government legal services: The procurement competition was divided into eleven lots, with each lot representing a specific legal practice area. The lotting strategy was designed to allow firms with specific expertise in practice areas to compete on a lot by lot basis. In advance of publishing this tender, the OGP undertook extensive market engagement with the industry. This pre-tender engagement helped to shape the structure and inform the scope of the competition. Law firms of all sizes were encouraged to share their experiences of previous public sector procurement competitions, and their views on barriers to competition and participation.
Commercial cleaning services: 9 lots based on sector and value (3 sectors x 3 value bands). Small cleaning contracts (less than €135k in total over last 2 years) are out of scope.
Supply of dairy and other chilled products to HSE: 16 lots based on 4 geographical regions x 4 product types.
Water coolers and mains-fed coolers: 10 lots based on 5 geographical regions x 2 requirements (bottle water coolers and mains-fed coolers).
Big Business
SMEs

11. Supporting SME Participation
We set proportionate eligibility requirements, for example insurance and turnover, to support SME participation
The OGP actively applies the principles of Circular 10/14 and makes every effort to facilitate participation by all potential tenderers.
Circular 10/2014:
market analysis to enable sustainable strategies
it lowered turnover requirements
gave clarity to reasonable insurance requirements
promoted open tendering for contracts > €25,000
promoted lots and consortia building
requires use of eTenders for contracts > €25,000

12. TAS
The Tender Advisory Service (TAS) is an informal outlet that you can avail of to raise concerns about a live tender process
Key messages:
TAS allows potential suppliers to informally raise concerns about a particular live tender process. 
The service is aimed at improving communications with suppliers and increasing professionalism and consistency in the way procurement processes are carried out across the public service.
It covers procurement processes carried out by the OGP or other public sector contracting bodies.
Details
TAS can be used by individuals and companies with an interest in a specific tender process in the following circumstances:
tenders published on/after 1st February 2015.
in order to be effective this service can only be used up to six days before closing date for receipt of tenders - however, it would be more preferential to use this service as early as possible in the tendering process to allow for concerns/issues to be fully communicated by TAS;
in relation to procurements both under and over the EU thresholds - rules appropriate to the value of the contract will apply;
a Request for Tender (RFT) must have been published;
the supplier must also have availed of the query/clarifications options that exist for the tender, i.e. the supplier must have made contact with the contracting authority setting out their concerns about the RFT documentation.
where the supplier is not satisfied with the response from the contracting authority, TAS can be utilised;
where the opportunity to deal with issues under the queries and clarifications period has concluded without any response from the contracting authority in relation to a reasonable query or clarification.

13. Policy in Practice: Case Studies
Accounting, Audit and Financial & Economic Services and Provision of Legal Services to Local Authorities
Restriction on number of value lots
that could be won
Appropriate insurance levels
Low
turnover requirements
Standardised
Tender
Multiple lots by value and specialism / region
Bidders’ briefing
Response
documents
Key Messages:
The OGP actively applies the principles of Circular 10/14 and makes every effort to facilitate participation by all potential tenderers.
Examples of this are the measures taken in the tender competitions for both the Accounting, Audit and Financial & Economic Services FW and the Provision of Legal Services to Local Authorities Framework.
The measures taken included:
Low turnover requirements
Breaking the competition down into multiple lots
Requiring appropriate insurance levels
Providing standardised tender response documents
Restricting the number of lots that could be won by each supplier
Holding bidders’ briefings
More details
Accounting, Audit and Financial & Economic Services Turnover
The maximum turnover sought was €200,000.
On the three lowest value lots, there was no minimum turnover requirement set: Tenders simply declare that they are able to pay their debts, identified on the current statement of assets and liabilities, as they fall due and will, on request, provide the contracting authority with a letter from their principal auditors confirming same.
Turnover requirements for higher value lots as follows:
€25k-€200k lot: €100k p.a. for each of the last three financial years
Over €200k lot: €200k p.a. for each of the last three financial years
Legal Services Turnover
No turnover requirements: Tenders simply declare that they are able to pay their debts, identified on the current statement of assets and liabilities, as they fall due and will, on request, provide the contracting authority with a letter from their principal auditors confirming same.
Accounting, Audit and Financial & Economic Services Lotting
Framework broken down into 9 lots by specialism and value.
Lotting: The FW is structured based on specialism and estimated project value as follows:
Accounting: Less than €25k; €25k-€200k; Over €200k
Audit: Less than €25k; €25k-€200k; Over €200k
Financial & Economic: Less than €25k; €25k-€200k; Over €200k
Legal Services Lotting
Framework broken down into 40 sub-lots geographically and by practice area to ensure an appropriate localised service is available across the key services areas.
The FW comprises 8 separate lots, each lot representing a cluster of local authorities that broadly fall within the Circuit Court jurisdictions. Within each lot, there are 5 sub-lots. Sub-lots 1-4 represent specific practice areas or legal services required by local authorities, while sub-lot 5 represents a full service offering. Each sub-lot will have a defined number of FW Members appointed to it.
Insurance
Accounting, Audit and Financial & Economic Services: Insurance levels required based on value of contract.
Legal Services: Professional indemnity set at €1.5m (the minimum regulatory requirement to practice).
Restriction on number of lots that could be won
Accounting, Audit and Financial & Economic Services: Tenderers could only be appointed to a maximum of 2 (of the 3) value Sub-Lots in each of the Framework Agreement Lots.
Legal Services: Tenderers can only be appointed to a maximum of 3 (of the 8) regional lots.
Bidders’ briefing (both)
Tenderers briefing to outline the structure and form of the competition: we have feedback to suggest that this is an excellent approach as it gives firm a real sense of whether they should compete or not.
Accounting, Audit and Financial & Economic Services: Outcome
This combination of measures has yielded positive results and SME participation has been encouraging.
The majority of the tenderers admitted to the framework are Irish-based SMEs.
Estimated cost reductions: €2m over 4 years
Legal Services Outcome
Evaluation still ongoing.
Main stats:
86 firms competed
264 separate tenders
52% are firms with between 1 to 4 solicitors.
71% have 10 solicitors or less.
12% are consortia.
Broad geographical base consistent with the structure of the market.
Other stats
19% are firms with 5-10 solicitors.
11% are firms with solicitors
9% are firms with solicitors
9% are firms with more than 100 solicitors
Geographical split – Dublin 33%, Munster 26%, Leinster 24%, Connaught 10%, Ulster 5%

14. Policy in Practice: Case Studies
Commercial Cleaning Services
No turnover requirements
for lowest value lots
9 Lots based on sector
and value
Bidders’ briefing
Proportionate turnover requirements for higher
value lots
Small contracts out of scope
Key messages:
The OGP actively applies the principles of Circular 10/14 and makes every effort to facilitate participation by all potential tenderers.
Example of this is the measures taken in the tender competition for Commercial Cleaning Services.
More details
Tendering competition launched in February 2016.
Lotting
Framework broken down into 9 lots based on sector and value.
Central Government: €135k-€500k; €501k-€1m; over €1m
Education: €135k-€500k; €501k-€1m; over €1m
An Garda Síochána, Irish Prison Service, Department of Justice: €135k-€500k; €501k-€1m; over €1m
Turnover
No turnover requirements for lowest value lots: Tenders simply declare that they are able to pay their debts, identified on the current statement of assets and liabilities, as they fall due and will, on request, provide the contracting authority with a letter from their principal auditors confirming same.
Turnover requirements for higher value lots proportionate to lot value – with no multiplier - as follows:
€501k-€1m lot: €500k p.a. for each of the last three financial years
Over €1m lot: €1m p.a. for each of the last three financial years
Low value contracts
Small cleaning contracts (less than €135k in total over last 2 years) are out of scope.
Bidders’ briefing
Tenderers briefing: we have feedback to suggest that this is an excellent approach as it gives firm a real sense of whether they should compete or not.

15. Policy in Practice: Case Studies
Portable Fire Equipment Services
Market largely
unfamiliar
with
eTenders / template RFTs
Encouraged to register
on eTenders
Market analysis
Advised on supplier education supports
Pre-tender briefing session
Key Messages:
The OGP actively applies the principles of Circular 10/14 and makes every effort to facilitate participation by all potential tenderers.
Example of this is the measures taken in the tender competition for Portable Fire Equipment Services.
Call to action: To access public sector business opportunities – OGP encourages all suppliers here to register on eTenders and keep your details up to date.
More details
Market analysis suggested supply market was largely unfamiliar with using eTenders and with the template RFTs.
To promote engagement, communication issued to the supply market:
Encouraging prospective suppliers to register on eTenders and set up business alerts; and
Advising on the supplier education supports available.
Communication issued to the supply market through:
The central trade association (Fire Industry Association of Ireland – FIAI)
National Standards Authority of Ireland (who have been holding courses for suppliers regarding recently introduced revised standards
OGP websites: eTenders and procurement.ie
Pre-tender briefing session held:
to provide guidance on using eTenders; and
to explain the layout of the template RFT document.

16. Quality Solutions
We strive to put in place quality solutions that deliver value for money for the taxpayer through understanding the full costs over the lifecycle of the goods/services and strengthening category management
Key messages:
Our aim is to meet the sourcing needs of our public service clients
We strive to put in place quality solutions that deliver value for money - It is not all about price. Quality and price considerations. Simply putting out business to a competitive process can result in substantial cost reductions.

17. Registration
To access public sector business opportunities, you need to register on etenders.gov.ie and keep your details up-to-date
OGP encourages you to register with accurate company information on (and keep your details up to date) to ensure maximum exposure to tendering opportunities within your sector.
On the eTenders website, you can
Search for published tenders (RFTs) and prior information notices (PINs)
Receive alerts on potential business opportunities, so you never miss out. You can customise alerts so that you only receive alerts specific to your type of business.
Feature in search results for buyers looking for “quick quotes”
Tender for public sector business

18. Published Schedule Key messages:
The OGP Schedule of Frameworks and Contracts is published on
The Schedule is updated quarterly to give a rolling 9-month view of when key frameworks and contracts will available for use by clients. Suppliers can use this as a guide to when RFTs will be in the market.
The Schedule is influenced by the diverse range of requirements across our client base.
Alert sent also on e-Tenders – looking at incremental ways to communicate the updated schedule quarterly.