The Digital Transformation of Public Procurement in Ireland

Executive summary

The current state of digital public procurement in Ireland shows promising foundations. This includes the mature use of e-procurement system for the tendering phase of the procurement lifecycle, as well as a supportive policy framework that encourages the use of data and the digital transformation of government processes and services. However, there are gaps in areas such as the pre- and post-tender phases and the collection and use of data across the procurement system. By identifying these strengths and areas for improvement, this report provides a baseline to inform decisions on the ambition and scope of a digital transformation strategy in Irish public procurement.

Areas of strength

The digital transformation of public procurement is closely aligned with the Irish government’s ambitious digital agenda. Public sector digital and data strategies emphasise the direct delivery of public services, including reducing administrative overhead and increasing openness for business. These government transformation efforts present an opportunity for the Office of Government Procurement (OGP), sector central purchasing bodies (CPBs) and other procurement stakeholders to employ broader strategies and initiatives for the digital transformation of public procurement.

Ireland has been successful in establishing the mature use of e-procurement for the tendering phase of the public procurement lifecycle. This has taken place primarily through the implementation of eTenders, which functions as a central point for publishing notifications and as the single eSender to Tenders Electronic Daily (TED), the online portal for public procurement notices from across the European Union. In addition, sector CPBs have developed and implemented tools and platforms adapted to their specific sectors.

Areas for improvement

Public procurement governance structures could better address and support digital transformation. Because many of the benefits are dependent on integration across the procurement cycle and between contracting authorities and CPBs, Ireland could make greater use of existing governance bodies and consider creating a digital-focused public procurement forum or body.

There is no clearly articulated vision and roadmap to achieve digital transformation. The absence of a clear national strategy for digital public procurement means that initiatives have mainly been driven by specific regulatory requirements such as those set out in the EU’s Public Procurement Directives. The absence of a common set of guiding principles and oversight contributes to operational silos, limited interoperability among systems and reduced ability to make the most of joined-up data, ultimately resulting in a more complex environment for contracting authorities and suppliers, especially SMEs.

There are opportunities to expand digitalisation in the pre-tendering and post-tender phases of the public procurement lifecycle. An increased focus on the full public procurement lifecycle, from needs assessment and planning to e-invoicing and contract management, could equip the public sector with improved tools and result in more efficient processes and better data.

There is limited interoperability across the public procurement lifecycle. Procurement solutions and tools are generally not integrated and there appear to be few existing initiatives or plans to increase interoperability. Transferring information requires inefficient manual processes, leading to data errors and challenges tracking individual procurements through the lifecycle.

Advances in the digitalisation of public procurement in Ireland have not consistently addressed access to and sharing of high-quality and timely procurement data. Connecting data across the lifecycle in a consistent and unified way could improve procurement decisions and strategies and, if made publicly accessible through open data efforts, would improve transparency and oversight. A more ambitious approach to the development of procurement data collection, sharing, and use, such as broader e-invoicing implementation, could provide the basis for a procurement data architecture that facilitates the uptake of digital technologies and greater openness.

Digital transformation could make public procurement more responsive to the needs and expectations of users. Enhancing the user experience is vital to addressing capacity and staff turnover challenges; by establishing a one-stop-shop approach that is data-driven and process automated for procurement tasks, public servants could more easily access the tools and resources they need. A strong user experience is also critical to attracting potential suppliers. For example, Ireland’s application of the once only principle in procurement could be strengthened.

Recommendations

Ireland would benefit from defining a clear vision and ambition for the digital transformation of public procurement. A clear whole-of-government plan would improve Ireland’s ability to make strategic decisions about the deployment of new tools and systems that could work together in a co-ordinated way. Working with partners and stakeholders from inside and outside procurement, the OGP should lead the development of a credible strategy and roadmap for digital public procurement. The digital public procurement strategy should establish clear governance structures to facilitate decision making and collaboration across the lead institutions. The strategy should outline a roadmap and the necessary investments to make the vision a reality and recognise the opportunity for the digital transformation of public procurement to support policy goals in areas such as the green transition and social inclusion.

Ireland should develop interoperable applications and tools that can adapt to the needs of different stakeholders across the public procurement lifecycle. Digitalisation should take a holistic approach that seeks to identify opportunities to expand digitalisation in the pre-tender and post-tender phases. This approach does not imply the introduction of a single solution or platform: efforts should focus on making public procurement processes more efficient by connecting systems and putting in place a consistent experience across platforms. A focus on users can help to ensure this process is successful in delivering systems and tools that contracting authorities and economic operators will use.

Data should be used to increase access and transparency, ensure seamless integration between systems and applications, support evidence-informed decision making, and enable innovation in public procurement. Digital transformation should enable data access and exchange among various stakeholders, promoting coherence and sharing of procurement data.

Ireland’s digital transformation strategy should include a co-ordinated approach to the deployment of innovative and emerging technologies in public procurement. This could include identifying requirements for the use of innovative and emerging technologies. Implementing innovative and emerging technologies in a co-ordinated way can enhance interaction across platforms and applications and help ensure that different stakeholders can learn from each other’s experiences and co-design interfaces.