COMHAIRLE CONTAE ÁTHA CLIATH THEAS
SOUTH DUBLIN COUNTY COUNCIL

South Dublin County Council Crest

MEETING OF SOUTH DUBLIN COUNTY COUNCIL

Monday, September 22, 2014

QUESTION NO. 23

QUESTION: Councillor R. McMahon

To ask the Chief Executive what percentage, in value terms, of contracts awarded are awarded to companies based in the South Dublin County Administrative area? and is this a factor when awarding contracts when all other factors are equal?

REPLY:

An analysis of some €47.5m of expenditure (excludes payroll costs, statutory and mandatory payments) paid by the Council to businesses and individuals in 2013 shows almost €13m (approx. 27%) was paid to organisations with addresses in the local area.  There may be additional expenditure to local businesses with head offices or payment addresses outside the County that is not included in the €13m.  However, in terms of volume expenditure to local organisations etc. accounted for 38% of the number of transactions.

There are specific procurement rules and legislation which must be followed when contracts are awarded.  The primary law in this regard is European law which aims to create a fair and equitable internal market.  This prevents anti-competitive behaviour including specific measures to allow local bias in purchasing.

Presently, all contracts over the value of €207,000 for goods/supplies/services and over €5,186,000 for works and/or subject to European Procurement Directives must be advertised in the Supplement to the Official Journal of the European Union (OJEU) and on the Irish government procurement portal www.etenders.gov.ie. Contracts below these thresholds and not subject to European Procurement Directives but above the value of €25,000 for goods/supplies/services and over €50,000 for works must be advertised on www.etenders.gov.ie. The award criteria for a contract must be clearly outlined when the tender is advertised and must follow procurement rules and legislation.

Contracts below the value of €25,000 for goods/supplies/services and below €50,000 for works are primarily procured by means of requests for quotations and in practice this allows for local organisations to be requested to provide quotations for such works.