The Department of Public Expenditure and Reform is engaged in an ambitious reform programme of the procurement function across the public service. Broadly speaking, the main objectives of this reform are to professionalise how procurement is conducted in the State and to ensure services are delivered in a sustainable manner in a cost-effective way for citizens. In carrying out these reforms, the Government is committed to ensuring that SMEs are encouraged to participate in procurement opportunities and to maximising the social benefits, such as employment and training opportunities, that can be delivered under public contracts.
Speaking today, Minister Howlin noted, “The issue of maximising the potential of public contracts to deliver social benefits is something I have been examining. Social clauses can be used in public procurement in cases where they are targeted at issues such as employment opportunities and social inclusion. In order to be compatible with EU law, they must be made known to all interested parties and must not restrict participation by contractors from other Member States.”
Last year, the Minister approved a pilot initiative under the Devolved Schools Programme to assess the potential benefits of such clauses. The pilot projects required the contractor to recruit a percentage of those employed on a public works construction site from the ranks of the long term unemployed was being piloted. There is a long led in time to such projects. However, initial feedback has been positive.
In order to maximise the effective use of such clauses in procurement a project group lead by the Office of Government Procurement (OGP) is to be established which will put forward projects where social clauses would be inserted into the contract to address employment and training.
The group will have the following functions:
- The Departments with responsibility for employment and training will identify the important social considerations and actively assist the procuring bodies and successful tenderers through the provision of training, accreditation.
- The OGP will assist departments/agencies in the design of the social clause most suited to the specific contract.
- The procuring body will monitor the impact of the social clause(s).
- The OGP will collate this information and report on it implementation.
The Minister added, “This is a complex area and I want to ensure that we learn from practical experience here and the experience in other jurisdictions to develop robust social procurement framework that is effective. It is important to ensure that where possible the State uses it purchasing power to develop employment and re-training opportunities that arise under certain public contracts. I have asked the OGP to review this approach after 12 months.”
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