Award of a contract without prior publication of a call for competition in the Official Journal of the European Union in the cases listed below
- The procurement falls outside the scope of application of the directive
Explanation
The award of the contracts specified in this notice fall outside the scope of the application of Directive 2014/24/EU by relying upon the provisions of Article 36 of the Treaty on the Functioning of the European Union.
Confirmation by the WHO of COVID-19 as a global pandemic in March 2020 caused worldwide demand for PPE to reach unprecedented levels, triggering severe disruption to global supply chains. The WHO reported a demand increase of 10000% and price increases of 2000% This presented the HSE with an extraordinary challenge as their traditional sources of supply for these products were depleted. The closure of manufacturing plants in China, worldwide export restrictionby March 2020 it is reported over 200 countries had export restrictions on PPE created a global supply crisis.
Unlike many member states Ireland had no indigenous manufacturer of appropriate PPE equipment. The lack of PPE equipment resulted in the risk of loss of life in Ireland. The severe global shortage resulted in certain Member States introducing an export ban on PPE equipment and other essential medical supplies including one particular Member State which introduced a ban on in excess of 1300 separate medical product lines. As the EU Commission stated in a Communication (COM (2020) 112 final) on 13 March 2020,
“It is the primary responsibility of EU Member States to take the appropriate health measures in the context of the current crisis. It is crucial that the primary objective of protection of health and human life is pursued by all national measures in compliance with EU rules. The internal market rules support Member States in this respect by ensuring efficiency, synergies and European solidarity.”
The direct purchase of PPE from international sources and the establishment of domestic production immune from export restrictions were a national necessity. Each day that passed without supply posed a risk of the loss of life and serious illness.
Acknowledging that responsibility Ireland had to and must now, not only maintain a stock of PPE but must have the ability to ensure manufacture and supply within its national boundaries. In the absence of national manufacturing capacity, Ireland’s exposure to a future crisis, (or an extreme escalation in the current crisis) poses unacceptable risk. Experience has shown the risk of export restrictions in other Member States or Member States acquiring the totality of domestic production.
The ECJ has ruled in the past that quantitative restrictions may be allowed to protect public health which may take precedence over the free movement of goods but such restrictions must be proportionate (i.e. there must be no alternative means of protecting public health other than the quantitative restriction proposed). The HSE views the requirement for national manufacturers of PPE as appropriate, necessary and proportionate to achieve the objective of protecting human life by ensuring an adequate supply to the persons who need the most while preventing any occurrence or aggravation of shortages of goods, considered as essential – such as PPE.
The HSE intends to award future contracts for PPE requirements via a tender process and reserves the right to rely upon the provisions of Article 36 in any future process. The HSE also believes that the provisions of Article 32(2)(2)(c) of the Directive 2012/24/EU apply and reserves the right to rely upon Article 32(2)(2)(c) at a later date.
The procurement is covered by the Government Procurement Agreement
: yes