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Dáil
‹ An tOrd Gnó - Order of Business

Procurement advice on hospital contract

Summary

Deputies asked whether the children's hospital contract complied with EU procurement rules and whether the Attorney General had been consulted. The Taoiseach said it was compliant but could not guarantee there would be no legal challenge, and he did not know if the Attorney General's advice had been sought.

May I ask a very direct question of the Taoiseach? The public tender process in Ireland is governed by Directive 2014/24/EU, on public procurement. Article 72 of that directive makes it clear that a new procurement procedure, that is, a new tendering process, is required if the provisions of a public contract are modified during the term of that contract. What constitutes modification, including price increases, is set out. Some modifications are permitted if they are provided for "in clear, precise and unequivocal review clauses". If, however, the modifications relate to "additional works, services or supplies" that are "not included in the initial procurement", any increase in price must not exceed 50% of the value of the original contract. The purpose of those rules is obviously to ensure everybody is on a level playing field. Can the Taoiseach tell the House that the procurement procedure for the national children's hospital complies with Directive 2014/24/EU? Can he assure the House that there is no possibility of underbidders taking legal action against the State because of the change in prices that has occurred since the contract was entered into?

Comment on this
Leo Varadkar The Taoiseach Fine Gael

I am assured it is compliant with the EU procurement directive but I cannot give the Deputy an assurance that an underbidder or another party will not contest this legally. Anybody has the right to go to court if he believes he has been treated unlawfully. Obviously, I cannot give an assurance in that regard.

Comment on this

At the time of the actual contract, was the advice of the Attorney General sought in regard to the procurement directive?

Comment on this
Leo Varadkar The Taoiseach Fine Gael

I do not know. I would have to check.

Comment on this