Public procurement rules and Approved Housing Bodies (AHBs)

Recent investigations by the Charities Regulator have highlighted the importance of tendering for the supply of goods, services and works contracts to ensure the good governance of charities.

This is particularly so for Approved Housing Bodies (AHBs) to ensure transparency, fairness, and value for money. AHBs must adhere to specific public procurement rules when entering into contracts. Public Procurement is governed by EU Directive 2014/24/EU and SI No 204/2016. The Department of Housing, Local Government and Heritage has also provided AHBs with Public Procurement Guidelines for AHBs to assist in ensuring their compliance with public procurement rules.

There are different procedures for AHBs to follow depending on the value of the contract for the supply of goods and services:

• Below €50,000: A simplified procurement process can be adopted, and it is recommended that AHBs seek at least three quotes to ensure value for money.
• Above €50,000: Contracts in this range must be advertised and awarded through a competitive process on eTenders. Typically, AHBs use the ‘open’ or ‘restricted’ procedures.

The Capital Works Framework Management provides guidance for work contracts and the threshold for the simplified procurement process is below €200,000 and the competitive process should be used for contracts in excess of €200,000.

The most utilised procedures are the open procedure and restricted procedure. The open procedure allows all interested suppliers submit bids. This is a straightforward and transparent method suitable for many contracts. The restricted procedure is used for more complex contracts and involves a two-stage process where interested suppliers are first screened before submitting detailed bids.

Other procedures available to AHBs include a competitive dialogue procedure or a negotiated procedure.

AHBs must adhere to the key principles in their procurement activities which include transparency, non-discrimination and equal treatment, proportionality, and competition.

AHBs should also seek to incorporate ethical considerations in their procurement processes, such as sustainability, local economic impact and supplier diversity.

Public procurement rules for Approved Housing Bodies in Ireland are designed to promote efficiency, transparency, and fairness in the procurement process. By adhering to these regulations, AHBs can ensure they provide the best possible value for public funds while also contributing to the broader goals of sustainability and community development. As housing needs continue to evolve, so too will the frameworks governing procurement, requiring AHBs to stay informed and compliant with changing regulations.

Please note that this does not constitute legal advice and AHBs should always seek advice from their legal advisors in relation to the procurement process.

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