Government Procurement Rules consultation

Part 1 focuses on the core values that underpin good procurement practice and processes and the behaviours that are expected when spending public money.

Part 1 has an increased emphasis on integrity, accountability and transparency. Adhering to the Principles and Charter is a requirement here and agencies will have to ensure they have policies that incorporate these and to publish their procurement policies.

There is a Rule on accountability to maintain focus on the responsible and transparent use of public money.

Greater accountability measures are also woven throughout the Rules to ensure the system demonstrates its commitment to improving public trust in government procurement.

Integrity in government procurement processes is important. There may be invisible or unmanaged risks across the system due to a lack of attention to appropriate due diligence. To address this there is an expanded Rule on integrity.

This part of the Rules ensures that good processes and practices are used. There is more emphasis on procurement planning and contract management, and good decision making.

This includes greater clarity around the level of planning required to ensure the right approach to market, and what is expected after the contract has been awarded.

The Broader Outcomes Rules are being replaced with a Rule requiring agencies to include economic benefits to New Zealand in all procurements. There will be a minimum 10 percent weighting for evaluation purposes on economic benefit criteria.

There are stronger requirements around setting up and running supplier panels, and secondary procurement. When setting up panels, it must be clear how long the panel will run for, and how often it will be refreshed.

Agencies will also need to have developed a contract management plan for the panel. Agencies buying from panels will be required to provide a best value assessment when direct sourcing and to publish award notices for secondary procurements of $10,000 or greater.

Government is accountable for the responsible and efficient use of tax-payer money, including getting the best possible public value throughout the life of the contract. When agencies award contracts, they must also take responsibility for managing the contract and supplier performance.

A contract should be managed proportionate to its value, risk and complexity. Contract management should be factored into the procurement plan early in the process to better manage risks and ensure better value outcomes.

This section outlines the obligations agencies have to the procurement system. These help to ensure the system operates efficiently – for example to purchase from collaborative contracts and to be eInvoice capable.

Requirements to share information will give the System Leader greater visibility over the system to more effectively manage data and monitor performance.

This section provides information about who must apply the Rules and when, what types of contracts are covered by the Rules, information on the value thresholds, the roles and responsibilities of those within the Government Procurement System, what happens if the Rules are not applied and information on supplier complaints.

There is a glossary of terms defined in the Rules or terms commonly used in procurement practice.

The proposed Rules 5th edition has been streamlined and simplified. The layout is designed to be easy to navigate for a range of users.

The foundational core values are front and centre, the procurement lifecycle steps provide practical end-to-end process requirements to support procurers at the coalface, and procurement system requirements are easily accessible for Chief Procurement Officers to implement across their agencies.

Each Rule is set out with a primary requirement, further requirements setting out how agencies should apply the primary requirement and further information and guidance. This layout enables the experienced practitioner to see the primary requirement at a glance.

The proposed Rules format and layout aims to make it easier to follow good process and practice.