The Office of Government Procurement, a Division of my Department, has published a tender to establish a new Framework Agreement for the Provision of Microsoft Solution Renewals and Associated Services.

The Deputy has clarified that the question relates to the framework and the estimated value of future contracts for services. The estimated value range of the proposed framework is €750 million to €1 billion. This represents the estimated maximum value of contracts that may be awarded by Public Service Bodies under the framework over its lifetime. It does not represent a central Government budget allocation or a commitment to expenditure of that amount.

The framework provides Public Service Bodies with a compliant procurement mechanism through which they may conduct their own competitions for Microsoft solution renewals and associated services, where they have pre-existing contractual arrangements in place with Microsoft. A framework agreement is not itself a contract or a binding commitment for the purchase of goods or services.

Based on the most recent information available to OGP, the existing framework has supported an estimated €510 million in contract value since its establishment in 2023. It is a matter for each Public Service Body to determine whether and when to use the framework, to assess its own requirements, and to make the necessary budgetary provision from within its own resources.

The establishment of the framework is a procurement process and is not part of a budgetary process. Expenditure arising from any contract awarded under the framework is a matter for the relevant Contracting Authority.