Experts are to study how the Government spends overseas aid, which is set to reach €1.5 billion by 2012.
Accountancy firm Farrell Grant Sparks will carry out the review which was recommended in the 2006 White Paper on Irish Aid.
Irish Aid's funding programme, which is overseen by the Department of Foreign Affairs, has grown rapidly in recent years to reach UN targets.
The Government is committed to spending 0.7 per cent of GNP or about €1.5 billion on overseas aid by 2012.
Irish Aid currently funds development projects in more than 90 countries including parts of Africa and Eastern Europe as well as Palestine, Vietnam and East Timor.
The management review by Dublin-based Grant Farrell Sparks will cost €230,000. Tender documents said the firm will examine, report and make recommendations about current systems in place to select, implement and monitor Irish Aid projects overseas.
It will also ensure appropriate management structures and staffing levels are in place to carry out the extra workload involved.