Reply - M14 SMEs & Public Procurement

That this council recommends that the SDCC Procurement Policy be further amended to ensure that SME’s based in South Dublin County are invited to submit quotations for purchases and contracts of less than national tender threshold €25,000.

The Council is very conscious of the needs of SMEs and in particular those SMEs, traders and supplier operating within the Council's administrative area. The importance and potential which exists for below- tender threshold selling opportunities for them cannot be underestimated.

Public procurement is undertaken within a strict legislative environment and all procurement (the acquisition, whether under formal contract or not, of works, supplies and services by public bodies) is to be implemented in accordance with the principles of EU law, and in a manner that is fully compliant with EC public procurement law and national guidelines.

Circular 10/10 was issued by the Department of Finance in July 2010. This circular issued guidance to public contracting authorities aimed at their structuring competitive processes in a manner that facilitates increased participation by SMEs, while they continue to ensure that all public sector purchasing is carried out in a manner that is legal, transparent, and secures optimal value for money for the taxpayer. In general Circular 10/10 provided for as follows:

Lower national Advertising Thresholds €25K/€50 K
Open Procedure up to €125K/€250K
Need for Proportionality - Company Financial (Turnover Issues) Appropriate Technical capacity ( Fair & Relevant )
Signed Declarations and Evidence at Award/Shortlisting stage
Sub-divide bigger contract possibilities into smaller lots

The following outlines the Council's current approach to procurement depending on the estimated value for subtendering requirements.

Up to €4,999 – At least one verbal quotation
€5,000 to €9,999 – Three verbal quotations
€10,000 to €24,999 – Goods & Services – Three written quotes
€10,000 to €24,999 – Works Contracts – Three written quotes
€25,000 to €49,999 – Works Contracts – Five written quotes

Where possible South Dublin County Council seek quotes from local suppliers and as part of the recent procurement awareness programme the Council's commitment to support of SMEs was reinforced.

The Council recently participated in a South Dublin Chamber of Commerce / County Enterprise Board / County Develpment Board Procurement Seminar during which the issue of local SME participation in sub-tendering opportunities was discussed. It was agreed at that seminar that the SD Chamber would provide details of its database to South Dublin County Council who will, in turn, make this available on its central in-house procurement homepage. This database is not yet to hand. The issue of making oneself known to the Council was also discussed and suppliers were advised to selfpromote through local advertisement / registration in local directories etc.

In the meantime being mindful that not all SMEs are part of the South Dublin Chamber a number of links have been provided on our internal procurement homepage to existing local / Dublin directories.