Latest Laois News: Local TD introduces her first bill in Dáil
Deputy Patricia Ryan Introduces First Bill To Dail
Sinn Féin TD for Kildare South has introduced her first bill in the Dáil yesterday. The aim of this bill is to regulate publicly procured capital and to provide greater regulation of publicly procured capital works.
“Our bill is designed to tackle one potential contributor to cost overruns, namely abnormally low bids. These abnormally low bids are sometimes referred to as ‘low ball’ offers.” Said Teachta Ryan
“One problem in getting value for money for taxpayers is the issue of cost overruns arising from abnormally low tender bids (low ball offers). This occurs when a supplier makes a very low offer in order to win the contract, but then incurs additional costs due to the unrealistically low offer, which are passed onto the taxpayer.
“When four or more tender bids are submitted for a public works contract, a tender that’s more than 15% below the adjusted average shall be considered an abnormally low tender. In the event of an abnormally low tender being submitted, the contracting authority must seek information on, and explanation of the following: The economics of the construction method with a detailed cost breakdown, The apparent exceptionally favourable conditions available, Technical solutions, and compliance with contractual and legislative requirements. Following this, if the contracting authority has not received a reasonable explanation for the abnormally low price submitted, the tender price should be rejected, and the tenderer disqualified from the procurement process. The contracting authority should record the reasons for rejection and submit it to the Office of Government Procurement.
“We believe if that if this legislation is enacted it will ensure better value for taxpayers, reduce possible instances of litigation and the delays to completion that arise from this, but also encourage good behaviour and better performance by suppliers.”