THE STATE’S PRACTICE of making procurement decisions based on the lowest-cost tender “does not always bring the best value for money”, an Oireachtas committee report has stated.

It warned against continuing with “the default selection of the cheapest available option”, as the lowest tender may often lead to a lower quality and value for money outcome. 

The report said that procurement practices within government departments and local authorities need to permit a “measured combination” of “suitability, future availability, quality and price”.

Value for money across the entire process should take precedence, it said, and the execution of that spending should be reformed.

Procurement processes in Ireland have long been subject to spending spirals and timeline overruns.

A now-famous instance of a project costing more than planned is the National Children’s Hospital, which was meant to be completed in 2020 for a planned cost of €650 million.

It is now set to cost around €2.2 billion. No date has been set for its completion, although it has now passed its last expected date of October.

Health Minister Jennifer Carroll MacNeill remains at war with contractor BAM over the delay in delivery, although BAM has countered with claims it is delayed due to revised design changes from the development board.

Procurement reform was among a number of recommendations contained in the report from the Joint Oireachtas Committee on Infrastructure and National Development Plan Delivery.

The joint committee today published its report on energy delivery, construction sector capacity, design reform and community infrastructure resources.

Its main recommendations in the 28-page report were focused on progress for renewable energy, while reform of procurement processes and reform active travel policy for wheelchair users were also highlighted.

There are 14 members of the joint committee. It is chaired by Fianna Fáil TD Seán Fleming.