Extending the Government Procurement Rules to government entities in the New Zealand public sector
23 November 2020, 10am
The Ministry of Business, Innovation and Employment is seeking feedback on a discussion document titled ‘Extending the Government Procurement Rules to government entities in the New Zealand public sector’.
Published: 7 Oct 2020
A discussion document that seeks feedback on whether to extend the mandatory application of the Government Procurement Rules to more government entities in New Zealand’s public sector.
Each year the New Zealand public sector spends around $42 billion on goods, services and works from third party suppliers to build infrastructure and provide public services. The size and nature of this spend means there is a real opportunity for government procurement to achieve better social and economic outcomes for New Zealanders, as well as meeting the public’s expectation that taxpayer money is spent appropriately and competently by government organisations.
The Government Procurement Rules provide a flexible framework that governs the way government entities procure goods, services and works in accordance with good procurement practice. Currently, it is mandatory for approximately 135 government entities to apply the Rules. However, a significant portion of the New Zealand public sector is ‘encouraged’ to apply them.
Government Procurement Rules(external link) - New Zealand Government Procurement and Property website
Government entities in the Public Service and State Services are required to apply the Rules, however government entities in the State Sector and Public Sector are ‘encouraged’ to apply them.
Public Service departments are the core departments and ministries listed in the Public Services Act 2020, Schedule 2.
State Services is the State Services agencies covered by the Whole of Government Direction. These include:
- Crown Agents
- Autonomous Crown Entities
- Independent Crown Entities
- Crown entity companies
- Public Finance Act Schedule 4a companies
* 7 crown research institutes are expected to apply the Rules.
State Sector includes:
- School Boards of Trustees
- Offices of Parliament
- Tertiary Education Institutes
- State-owned Enterprises
Public Sector includes:
- Regional Councils
- Territotial Authorities
In the current policy settings, Government is limited in its ability to influence government procurement policies, implement system-wide improvements to procurement practices and achieve greater public good from the $42 billion that is spent each year by the government sector.
We would like to hear your thoughts on the potential benefits, opportunities, and other impacts of extending the Government Procurement Rules to more government entities in the New Zealand public sector.
Submissions close at 10am on Monday 23 November 2020.
You can make your submission by:
If you have any questions please contact NZGPPpolicy@mbie.govt.nz