O’Dowd announces new procurement guidelines to cut bureaucracy and save money

Date published: 4 November 2025

Speaking following Executive agreement to publish revisions to what is known as a Dear Accounting Officer Letter (DAO 05/22 Grant or Procurement), Minister O’Dowd said: “Reducing bureaucracy saves time and money and enables faster delivery of projects and services to the public.

“Earlier in the year a review of existing procurement policy was undertaken to ensure we make full use of the flexibilities available under the new legal framework. As a result, we have updated the guidance to reduce red tape and make it easier for grant recipients to deliver the best outcomes, especially those in the Voluntary, Community and Social Enterprise sector.

“Grant recipients will now no longer need to follow the same procurement processes as government departments and arm’s-length bodies. This change recognises that most local businesses have fewer than 50 employees and is aimed at making it easier for them to deliver grant-funded projects for communities.

“As a result, the new guidance will help to reduce bureaucracy, support faster delivery, and lower costs—for both funders and recipients.”

Celine McStravick, Chief Executive of NICVA added: “NICVA welcomes this announcement as an important step toward a more proportionate and partnership-based approach to funding and procurement. The changes reflect what our sector has long called for — less red tape, greater flexibility, and a recognition that voluntary and community organisations deliver real value for money for citizens. Embedding the Fair Funding Principles agreed under the Partnership Agreement will be key to ensuring these reforms lead to fairer, more sustainable relationships between government and the voluntary, community and social enterprise sector.”