The Office of Government Procurement, a Division within my Department, has established a central procurement solution for Managed Security Services for Public Sector Bodies throughout the State. The arrangement was established in September 2024 and will run until September 2028.
The Automatic Enrolment Retirement Savings System Bill 2024 was published in April 2024 and enacted in July 2024 and commenced on 1 January 2026. This legislation was fully considered during the development of the procurement strategy for the new Framework. The design phase of the Framework also included market engagement which was sought via eTenders in the form of a Preliminary Market Consultation (PMC).
Throughout the procurement process, tenderers were clearly advised that the introduction of auto enrolment, along with other foreseeable statutory changes such as sick leave entitlements and adjustments to unsociable hour rates, was to be included within the Maximum Variable Rates submitted at tender stage and applied to any rates submitted at Mini Competitions conducted under the Framework. This requirement was put in place to ensure pricing stability and to provide Public Service bodies with consistent and predictable costs throughout the four-year duration of the arrangement.
The Framework contains three mechanisms through which price adjustments are either applied automatically or may be sought after the first anniversary. Rates will automatically update in line with the Employment Regulation Order (ERO) of the Security Industry Joint Labour Committee for the duration of the Framework, together with any PRSI changes. Framework members may apply for an increase to their Maximum Variable Rates in line with changes in the Consumer Price Index on the first and any subsequent anniversary dates. A price review may also be requested where additional legislative changes arise, other than those foreseeable changes that tenderers were required to factor into their pricing at tender stage.
During recent engagement with Framework members, the OGP reiterated that suppliers may seek a price review where there is a justified basis to do so, provided the request is made through the established mechanisms and is supported by appropriate evidence. Apart from increases through Employment Regulation Order (ERO) no other price increase has been sought or applied since the establishment of the arrangement in September 2024.
