The Department of Public Expenditure, NDP Delivery and Reform (Department) has on 28 March 2023 published a new circular, Circular 05/23: 'Initiatives to Assist SMEs in Public Procurement' (Circular) to enable small and medium-sized enterprises (SMEs) to tender for public contracts for works, goods and services. Circular 05/23 will replace Circular 10/14 which has acting as the guidance to all public sector bodies procuring public works and services since 2014. What do you need to know?
When will the new Circular take effect?
The Circular will take immediate effect from the date of publication. It replaces Circular 10/2014. It should be read in conjunction with the Capital Works Management Framework (CWMF) and associated CWMF guidance, standard tender documents and contracts, and the European Union (Award of Public Authority Contracts) Regulations 2016 / European Union (Award of Contracts by Utility Undertakings) Regulations 2016/ European Union (Award of Concession Contracts) Regulations.
To whom will the new Circular apply?
The Circular will apply to all public bodies.
What will be included in the new Circular?
The Circular will include the following:
- An increase to the threshold at which all contracts for works must be advertised on eTenders from €50,000 to €200,000 (exclusive of VAT);
- The threshold at which contracting authorities are required to advertise all contracts for works-related services remains at €50,000 (exclusive of VAT).
- An increase to the threshold at which all contracts for goods and services must be advertised on eTenders from €25,000 to €50,000 (exclusive of VAT);
- Updated guidance for insurance levels for supplies and general services;
- Updated general measures covering governance, the principles underpinning all public procurement, and the applicability for works procurement;
- Enhanced measures that public bodies should take to promote transparency;
- Specific measures that public bodies should take to promote SME participation (including new guidance on awarding contracts below €50,000 and new requirements on turnover requirements for tendering entities);
- A reiteration of the role that eTenders, the national e-tendering platform, can play in promoting SME participation; and
- A reminder to public bodies of their obligations around the use of central procurement arrangements.
Effects
The changes in Circular 05/23 contain welcome changes to reduce administrative burdens for resource-constrained SMEs and public bodies alike in tendering public contracts for works, supply of goods and services. The updated guidance on insurance levels follows on from Circular 05/2022 on guidelines for professional indemnity levels for publics works projects and will provide greater clarity in light of the changes impacting projects in the insurance market since 2022. The publication is timely, given the publication of updates in public procurement legislation and law since Circular 10/14. The detail of the Circular, will be of particular interest to public bodies/contracting authorities and those tendering for public works, supply of goods and services contracts
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
