Domestic firms miss out on €3.5 billion worth of business in 2013 government tender market

Irish businesses missed out on around €3.5 billion worth of business in 2013 within the government’s tender market worth €12 billion, as 28 per cent of public tenders were handed to firms outside Ireland, according to new research.
 
A report carried out by Enterprise Ireland-backed firm, TenderScout, said businesses in Britain and Northern Ireland were the primary beneficiaries of the government’s tendency to award public contracts to companies outside the State.
 
According to TenderScout, the average State tender is worth €25,000, with the company’s founder, Tony Corrigan saying its research suggested 10 per cent of Irish firms participated in any of the 7,500 opportunities to do business through public procurement in 2013.
 
The report goes further to examine the number of Irish businesses that were successful in winning European tenders, with only two per cent of firms successful. Meanwhile almost a third of Government tenders went to overseas firms.
 
Mr Corrigan believes it is vitally important for SMEs to compete in greater numbers for public sector contracts both at home and abroad.
 
"Ireland’s economic recovery depends on SMEs developing foreign markets and succeeding when tendering...They should resolve to get a greater portion of the domestic and international tendering cake," added Corrigan.
 
Government spending on procurement fell to €12 billion in 2013; down from €15 billion in 2012. This figure is likely to shrink further in the next 12 months.

Date published 31 Dec 2013 | Last updated 31 Dec 2013