Consultancy paid €34.5m by Social Protection

A Dublin-based consulting firm has enjoyed a €34.5m contract from the Department of Social Protection over the past five years, new figures show.

Minister for Social Protection Joan Burton confirmed that last year alone the Irish arm of the Dutch headquartered BearingPoint consultancy received €5.26m in fees.

This followed BearingPoint Ireland Ltd receiving €5.5m in fees in 2012; €7.8m in 2011; €8.1m in 2010 and €7.8m in 2009.

The most recent accounts for BearingPoint Ireland Ltd show in 2012, staff costs for the firm’s 136 staff totalled €11.86m, or on average €87,240.

In 2012, its pre-tax profits increased almost four fold to €846,002 as revenues topped €23.8m.

BearingPoint has been trading in Ireland for over 40 years and the principal activity of the company is the provision of management and technology consulting services.

The overall spend by the Department of Social Protection on consultants and external service providers last year increased by 30% to €13.47m from a spend of €10.3m.

Ms Burton confirmed the spend on consultant and external service providers totalled €10.8m in 2011.

In a written Dáil response to Fianna Fáil’s Willie O’Dea, Ms Burton said: “I am satisfied that the engagement of consultants and external service providers contributes to decision-making and policy formulation, and provides valuable support for the department’s service delivery modernisation and reform programmes, and that procurement of consultants and external service providers is compliant with best practice in realising value for money.

“The procurement of services is essential to support the department in providing a high-quality service to the public in a cost effective and efficient manner and is governed by a comprehensive regulatory, legal and procedural framework.”

Ms Burton said services provided include the delivery of reports, studies, assessments, recommendations and proposals that contribute to decision-making or policy-making.

She said: “The department is engaged in a number of service delivery modernisation and transformation programmes involving business, organisational and technological change.

“In addition, the department is engaged in a number of cross-cutting public service reform programmes such as the public services card. These programmes are supported by the procurement of external development services as well as engagement of external consultants to provide strategic technical advice.”

The detailed breakdown shows:

- BearingPoint last year received €4.5m for ‘business object model implementation (BOMi).

- They received €4.9m in 2012 for service delivery modernisation.

- Accenture received €2.09m last year for a variety of contracts.