Dissatisfaction with public procurement process

IBEC, the group that represents Irish business, has released results of a new survey of Irish companies, which revealed that most believe fundamental problems exist with the process of selling goods and services to the public sector in Ireland.

Given that the size of the public procurement market in Ireland amounts to €16 billion annually, this is a significant cause for concern for Irish businesses.

The survey asked 423 companies to rate the process of selling to the public sector in Ireland over the past year. 56% of respondents view the process as poor. Satisfaction with the process is higher among companies with existing contracts, whereas problems are particularly acute among companies trying to access this important market. The survey shows that the problems exist across the public sector, including central government, local government or state agencies.

Common complaints, aside from the reduction in government expenditure, include:

•length of the procurement process
•emphasis on price instead of value-for-money
•administrative burden
•late payment to suppliers
•unfriendly environment for SMEs.

Commenting on the survey results, IBEC enterprise executive Aidan Sweeney said: “These results provide important feedback on the Government’s efforts to reform public procurement. To date, progress has been slower that industry had hoped. Reform aspirations are different to implementing a real and lasting change in practice and culture. A number of government-backed initiatives in the public realm need to be acted upon openly and transparently.

“Procurement is an expensive process for both contracting authorities and bidding suppliers. We believe there is significant scope to streamline the procurement process in ways that benefit all parties and ultimately the tax-paying public.”

Article HGV Ireland