The Minister for Public Expenditure and Reform, Michael McGrath TD, approved the publication of the Request for Tenders (RFT) for the External Assurance Process (EAP). The EAP will be utilised for major infrastructure proposals, (those estimated to cost in excess of €100 million).
As part of the National Development Plan (NDP) Review, the Department of Public Expenditure and Reform (DPER) committed to strengthening the scrutiny of major public investment proposals. International evidence suggests that the single most effective guard against major project failure is the incorporation of an independent external review prior to project commencement.
Public investment proposals over €100m require Government approval at key decision gates in line with the Public Spending Code. The current process involves assurance by the funding Department, and a DPER scrutiny and challenge role through business case technical reviews. While this has proven useful, the ability to robustly challenge on substantive delivery issues such as scrutiny of costings, feasibility of delivery plans, and appropriateness of procurement strategies, needs to be strengthened.
Minister McGrath said: “The public have a very strong desire for realistic and timely delivery of major capital projects and I want to ensure these expectations are met. I am acutely aware of the pitfalls that have arisen in the past which have delayed projects or given rise to additional costs and I am taking immediate actions to address weaknesses in the process. In particular we need a strong challenge function at key stages in the process to ensure risks are identified and fully addressed.
"The panel of external experts will add to the depth of knowledge within my own Department in delivering complex, multi-year major capital projects. The pandemic has shown us that harnessing additional skill sets leads to better results overall for the public and I am determined that we bring new thinking to bear in how we meet the very obvious infrastructure needs we have as a country.”
The External Assurance Process (EAP) will involve independent expert reviews at two key stages in the project lifecycle under the Public Spending Code (before approval in principle and pre-tender). This will allow for robust scrutiny of the costs underpinning major public investment proposals, and the consideration given to risk, delivery and governance in the business case for the proposal. The process will supplement DPER's current role in conducting the formal reviews of business cases allowing for more robust scrutiny of the technical elements of planned delivery.
Minister McGrath has agreed to publish the RFT for establishing a framework of external experts to review business cases at two critical stages (Decision Gates 1 & 2 of the PSC). The RFT is available here. The RFT will seek responses from the market for 6 specific skillsets for experts in those areas to join a framework for a period of three years.
Notes to Editors
In approving the publication of the Public Spending Code: A Guide to Evaluating, Planning & Managing Public Investment (December, 2019), the Government noted the proposed arrangements for major project delivery. This included the introduction of an external assurance process for projects estimated to cost more than €100 million.
The External Assurance Process (EAP) will see the introduction of independent external reviews to inform Government consideration at Decision Gate 1 (Approval in Principle) & Decision Gate 2 (Pre Tender Approval). Independent Expert Reviews will focus on costings, delivery feasibility, governance & consideration of risk and procurement. The EAP reviews will replace the technical reviews conducted by DPER of business cases at Decision Gates 1 & 2.
The indicative timeline is that the Expert Reviewer framework will be finalised in September 2021. In early-Q4 2021, a circular will set out the new requirements in the Public Spending Code.
ENDS
Contact: Claire Godkin - Press Officer, Department of Public Expenditure and Reform - 085 806 3969, pressoffice@per.gov.ie