Transcript Example

New Rules overview
(3 hour presentation)
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Training
Presentation
Government Rules of Sourcing
New Rules training module
This presentation provides information about:
1. Rules and Principles
2. Application of the Rules
3. Non-procurement activities, opt-out procurement and
exemptions from open advertising
4. Response times, minimum time periods and allowable
reductions
5. Notice of Procurement
6. Other new Rules
7. Existing Cabinet directives now part of the Rules
Rules and Principles
Section One
Rules and Principles
The Rules set out the standards we work to
The Principles represent our values
Why do we have Rules?
 To strengthen accountability
 To promote our values
 To encourage commercial practice
 To support economic development
The Rules set out the government
standards for all of the sourcing
stages of the procurement lifecycle
What are the values that underpin the Rules?
The five principles of procurement
A new rule sets out the five principles of procurement:
You’ll learn more about
these over the next few
screens.
Rule 1
Principle 1
Rule 1
Principle 1
Rule 1
Principle 2
Rule 1
Principle 2
Rule 1
Principle 3
Rule 1
Principle 3
Rule 1
Principle 4
Rule 1
Principle 4
Rule 1
Principle 5
Rule 1
Principle 5
Rule 1
The Principles
 Each agency must have in place policies that incorporate
the five Principles
 The Principles apply to all procurements, even if the Rules
don’t apply
 Each agency must make sure that:
o
o
o
all procurement staff have been
trained in the Principles
its procurement practices reflect the
Principles
for each procurement, it is able to
show good planning and an
appropriate market strategy
Rule 1
Application of the
Rules
Section Two
Who do the Rules apply to?
• Government in New Zealand is made up of four ‘tiers’,
each of which has different levels of responsibility and
oversight by central government
• Some agencies are required to apply
the Rules
• Other agencies are expected or
encouraged to apply the Rules
Who do the Rules apply to? continued
Tier 1: Public Service
Must apply the Rules}
Ministries and Departments
(includes NZ Police and NZ Defence
Force)
Who do the Rules apply to? continued
Tier 2: State Services
Expected to have regard for the
Rules as good practice guidance
eg ACC, DHBs, Crown Research
Institute
Who do the Rules apply to? continued
Tiers 3 & 4:
Encouraged to regard the Rules
as good practice guidance
eg universities, State Owned
Enterprises, Regional Councils, local
government
Non-procurement
activities, opt-out
procurement and
exemptions from
open advertising
Section Three
When the Rules don’t apply
The Rules don’t apply in two broad areas:
 Non-procurement activities
 Opt-out procurements
In addition, there are exemptions from
open advertising
Rule 12
Rule 13
Rule 15
a. Non-procurement activities
For the Rules, these activities are not considered to
be procurement activities:
 employing staff (excluding contractors and consultants)
 disposals and sales by tender
 investments, loans and guarantees
 gifts, donations and any form of unconditional grants
 statutory appointments
 Ministerial appointments
 Category 1 Legal Services
Rule 12
b. Opt-out procurements
What is an opt-out procurement?
 If a procurement is covered by the
Rules, in some circumstances an
agency can opt-out of applying the Rules
 These circumstances are called ‘opt-out
procurements’
Rule 13
b. Opt-out procurements continued
The circumstances in which an agency can opt out of the Rules:
 between government departments, NZ Police or NZ Defence
 purchased overseas / for use overseas
 government offices overseas
 non-contractual arrangement
 purchasing or renting land and buildings
 conditional grant
 some forms of international development assistance
Continued on the next screen
Rule 13.3
b. Opt-out procurements continued
The circumstances in which an agency can opt out of the Rules:
 international funding that is subject to another process
 international organisations’ procurement processes
 international agreements between countries
 public services, eg, certain types of health service
 government’s central financial control functions
 military and essential security interests
Rule 13.3
Exemptions from open advertising
Where a procurement can be exempt from open advertising
all other Rules still apply
An agency does not need to openly advertise a contract
opportunity on GETS if an exemption from open advertising
applies, for example:
 in an emergency
 following an open tender
 if there is only one supplier
 in the case of an unsolicited proposal
Rule 15.9
Exemption to open advertising continued
All other Rules still apply, even when an exemption to open
advertising has been claimed
These Rules include:
 the circumstances of the exemption must justify
the exemption
 the agency must publish a Contract Award Notice
when it has awarded the contract
 the Contract Award Notice must state the reasons
for the exemption to open advertising
 an agency must offer each unsuccessful supplier a
de-brief
Rule 45.2.h
Rule 45.1
Rule 46
Response Times,
Minimum Time Periods
and Allowable Reductions
Section Four
Sufficient time
How much time should I give suppliers to respond?
• An agency must allow Sufficient Time for suppliers to
respond to a Notice of Procurement
• Unrealistic time periods introduce
unnecessary risk
• Don’t jeopardise your results with a rushed
process
• Put yourself in the suppliers’ shoes to work
out how much time is Sufficient Time
Rule 26
Sufficient time continued
Ask yourself: how long it will take to:
• obtain, read and analyse all tender documents?
• ask questions to clarify the requirements and get answers?
• prepare a meaningful response
including accurate pricing
information?
• develop, check and submit a
response including delivering it
on time?
Rule 26
Sufficient time continued
• An agency must act in good faith and use sound judgement
when calculating Sufficient Time
What is considered to be Sufficient time will
always vary, depending on the nature and
complexity of the procurement
Rule 26
Sufficient time continued
The key factors to take into account when calculating Sufficient
Time include:
• the nature and complexity of the procurement
• the amount of information and level of detail
that suppliers must provide in their responses
• the type of goods, services or works
• how simple or hard it is to describe deliverables
• the level of risk
• the extent of any possible subcontracting
• how critical the procurement is to the agency’s success
• the time it takes for domestic and foreign suppliers to
submit tenders
Rule 26
Sufficient time continued
Example 1: Simple one-step Request for Quote
• The request is for a large quantity of an off-the-shelf product
at short notice
• You need a fixed price and a guaranteed delivery date
Rule 26
Sufficient time continued
Example 2: One-step Request for Proposal
• You need a review of a social policy programme
• This requires experts who will provide their own methodology,
work plan, budget quote and timeline for delivery
Rule 26
Minimum time periods
Minimum Time Periods
• The Rules set Minimum Time Periods for different
procurement processes
• The Sufficient Time that an agency sets for a procurement
must not be less than:
o
the Minimum Time Period, or
o
the new Minimum Time Period, after Allowable Reductions
The ten-day rule no longer applies!
Rule 27
Rule 26
Rule 31
Minimum time periods continued
The following Minimum Time Periods apply:
One-step processes:
Multi-step processes:
Process
Minimum time period
RFQ
13 business days
RFT or RFP
25 business days
Step / process
Minimum time period
Step one: ROI, EOI, ITP 20 business days
Step two: RFT, RFP
25 business days
Rule 31
Allowable Reductions
• In some circumstances reductions to the Minimum Time
Period are allowable
• If any of these Allowable Reductions apply, you can deduct
them from the Minimum Time Period
• The result is the new Minimum Time Period
Rule 28
Allowable Reductions continued
An agency can claim Allowable Reductions if it complies with
the requirements in any of the following circumstances:
• a prior listing in Annual Procurement Plan
• all documents are made available electronically
• responses are accepted electronically
Rule 28
Allowable Reductions continued
Minimum time period and allowable reductions for
a one-step process:
Business Days
One-step process
RFQ
RFT / RFP
13
25
• Prior listing in an Annual Procurement Plan
-1
-3
• All tender documents available electronically on GETS
-3
-4
• Suppliers’ tenders or proposals accepted electronically
-1
-3
8
15
Minimum time period (Rule 27)
Allowable Reductions (Rule 28):
Minimum time period allowed, if allowable reductions apply
Rule 28
Allowable Reductions continued
Minimum time period and allowable reductions for
step one of a multi-step process:
Step one of a multi-step process
Business Days
Minimum time period (Rule 27)
20
Allowable Reductions (Rule 28):
• Prior listing in an Annual Procurement Plan
-3
• All tender documents available electronically on GETS
-4
• Suppliers’ tenders or proposals accepted electronically
-3
Minimum time period allowed, if allowable reductions apply
10
Rule 27
Rule 28
Allowable Reductions continued
Minimum time period and allowable reductions for
step two of a multi-step process:
Step two of a multi-step process
Minimum time period (Rule 27)
Business Days
25
Allowable Reductions (Rule 28):
• All tender documents available electronically on GETS
-5
• Suppliers’ tenders or proposals accepted electronically
-5
Minimum time period allowed, if allowable reductions apply
15
Rule 28
Notice of
Procurement
Section Five
Notice of procurement
What is a Notice of Procurement?
 A notice published on GETS that
advertises a new contract
opportunity, eg, a Registration of
Interest or a Request for Tender
 It includes all the information that
suppliers need to know in order to
prepare and submit a meaningful
response
Rule 34
Notice of procurement continued
What should I include in my Notice of Procurement?
 Everything to help suppliers prepare meaningful responses
 Which procurement process is being used, eg, RFQ or RFP
 Contact details and descriptions of the goods / services
 Any conditions, including any pre-conditions or standards
 Any limits on the number of shortlisted suppliers
 The evaluation criteria and their importance / ranking
 The deadline and address for submitting responses
Rule 34
Notice of procurement continued
What should I include in my Notice of Procurement?
 Any limits on how suppliers can send responses
 Any other conditions relating to the procurement process
 The proposed contract conditions
 If procurement will be done electronically, all information
suppliers will need to participate electronically
 The rules of an e-auction and info suppliers need to
participate, if applicable
Rule 34
Delivery date
When identifying a delivery date take into account:
 how complex the procurement is
 how much sub-contracting there
might be
 how long it will take to produce and
transport goods
 how long it will take to deliver
services
Rule 23
E-auction
 An e-auction is an online reverse auction - it gives suppliers
the opportunity to bid against each other to improve their
offers
 An agency must notify suppliers in advance if it
intends to run an e-auction
 This advance notice must be in the
Notice of Procurement which must
include:
o a summary of the rules that will
apply to the e-auction
o the specific criteria that will be
used in the e-auction
Rule 42
Types of supply lists
If an agency regularly purchases a specific type of product,
service or works it may establish a list of suppliers
Common types of lists include:
 Registered Suppliers List
 Pre-qualified Suppliers List
 Panel of Suppliers
Rule 52
Rule 53
Rule 54
Types of supply lists continued
Registered
Suppliers List:
A list of suppliers who have registered an
interest in supplying specific types of goods,
services or works
Pre-qualified
Suppliers List:
A list of suppliers who have been
preapproved by an agency as capable of
delivering specific types of goods, services or
works
Panel of
Suppliers:
A list of suppliers who have been
preapproved by an agency, and who have
agreed to the terms and conditions for
supply
Rule 52
Rule 53
Rule 54
Other new Rules
Section Six
New Rules
 Several Rules have been added since the Procurement
Rules were last released
 The new Rules include:
o
o
o
Rule 18: Extended Procurement Forecast
Rule 19: Significant Business Cases
Rule 57: Common Capability contracts
Rule 18
Rule 19
Rule 57
Extended Procurement Forecast
 An Extended Procurement Forecast (EPF) is a list of
forecast contract opportunities over the next 5 years
 Agencies must give an EPF to MBIE for review, for all
procurements that:
o have a value of $5million or more, or
o pose significant risk, or
o have the potential for collaboration
 EPFs are for cross-government planning purposes only
 Agencies must update their EPF at least once a year
 Updated EPFs are due by 1 October each year
Rule 18
Significant Business Cases
 An agency must give to MBIE for review its
Business Case for any procurements that fall
into one or more of these categories:
o
have a value of $5million or more, or
o
pose significant risk, or
o
have the potential for collaboration
 This is a supportive peer review
 An agency should take note of MBIE’s advice
Rule 19
Significant Business Cases continued
 This requirement doesn’t apply where a
Business Case is subject to review under
another governance process, for example:
o the Better Business Cases process
o
the Syndicated Contract process, or
o
the Common Capability contract process
Rule 19
Rule 63
Rule 56
Rule 57
Common Capability contracts
 Common Capability contracts (CCs) are a
type of approved collaborative contracts
between government and approved
suppliers
Rule 57
Common Capability contracts continued
There are two types of CC contracts:
• Mandatory CC contracts
o an agency must purchase from these contracts where
the contract reasonably meets the agency’s needs
o an agency that wants to opt-out of purchasing from this
type of contract must seek the approval of the relevant
Functional Leader
•
Voluntary CC contracts
o
an agency should purchase from these contracts
where the contract meets the agency’s needs
Rule 57
Common Capability contracts continued
CC contracts differ from other contracts:
 The lead agency may charge a participating agency an
admin fee
 A supplier acting for an agency may purchase from a CC
contract
 Before approaching the market for goods, services or
works an agency should check if there is an existing CC
contract that meets its needs
Rule 57
Existing Cabinet
directives now
included in the Rules
Section Seven
Existing Cabinet directives now included
 There are several cabinet directives that are now included
in the Rules
 The Rules provide links to other websites where details
can be found
Prompt payment
 Each agency should ensure prompt
payment of suppliers’ invoices
 At a minimum, invoices must be
paid in accordance with their
contract terms and conditions or earlier if possible
Rule 48
All-of-Government Contracts (AoGs)
 An All-of-Government contract (AoG) is a type of approved
collaborative contract
 AoGs establish a single supply agreement between the
Crown and approved suppliers for the supply of selected
common goods, services and works purchased across
government
 Examples of the types of common goods and services are
office consumables, vehicles and travel
Rule 55
All-of-Government Contracts (AoGs) continued
 All agencies must purchase from the AoGs, unless there is a
good reason not to
 Before approaching the market an agency should check if
there is an existing AoG which meets their needs
Rule 55
Syndicated Contracts
 Syndicated Contracts typically involve a ‘cluster’ of agencies
combining their needs and going to market together
 They typically include a Common Use Provision (CUP)
clause in the contract, to allow other agencies to join the
contract later
 Agencies wishing to establish a Syndicated Contract with a
CUP clause must get approval from MBIE before
publishing a Notice of Procurement
 Before approaching the market an agency should check if
there is already a Syndicated Contract that meets their needs
Rule 56
Web Standards
 If an agency outsources web development work, it must
include a requirement in its Notice of Procurement, and
contract for the work to comply with the latest version of
the New Zealand Government Web Standards
Rule 58
Approved Government Model Templates
 From time to time, the Chief Executive of MBIE, as the
Procurement Functional Leader, issues
Approved Government Model Templates (A-GMTs)
 Agencies must use these templates in their procurement
activities, regardless of whether or not the Rules apply to
the procurement
 An example of an A-GMT is the Government Model
Contract (GMC)
Rule 59
Geospatial Information and Services
 If an agency intends to procure geospatial information or
services it must first contact the New Zealand Geospatial
Office (NZGO) (www.linz.govt.nz/geospatial-office) before:
o approaching the market or
o publishing a Notice of Procurement
Rule 60
Intellectual Property
 If a procurement involves creation by the supplier of new
Intellectual Property, the agency should advise its intentions
about:
o ownership,
o licensing, and
o future commercialisation of that
Intellectual Property
 Agencies should take these guidelines
into account
Rule 61
Public Private Partnerships (PPPs)
 The PPP Team in the Treasury oversees all Public Private
Partnership (PPP) arrangements
 All capital projects of $25 million or more must consider PPP
Rule 62
Public Private Partnerships (PPPs) continued
 If an agency wishes to do a Public Private Partnership (PPP):
o
the agency must consult the PPP Team early in the
development of the PPP proposal
o
the PPP Team should be involved in the
economic and financial assessment and
advice on the PPP
o
, and
the agency should give the PPP Team
the chance to make an experienced
officer available to the project steering
and working groups
Rule 62
Capital Business Cases
Capital Business Cases
 Cabinet approval is required for some capital
expenditure, lease or asset disposal proposals
from Departments, Crown agents or other Crown
entities
 A capital asset project that meets one of more of
the criteria shown on the next slide must:
o consult with the Treasury, and
o use the Treasury’s Better Business Cases (BBC)
methodology
Rule 63
Capital Business Cases continued
 The criteria are:
o
any project that requires new Crown funding
o
any project that is a potential PPP
o
any project with a whole-of-life cost of $25 million
or more
o
any project identified as high risk in the Gateway
Risk Profile Assessment
o
any programme / project involving asset disposals
with significant policy decisions
Rule 63
Gateway assurance
 Gateway is an assurance review process for major
investments
 It examines programmes and projects at key decision
points in their lifecycle to provide assurance that they can
proceed successfully to the next stage
 Gateway assurance is part of
Treasury’s Capital Asset Management
regime and is managed by the State
Services Commission
Rule 64
Timber and wood products
 When procuring timber and wood products, agencies must
apply the New Zealand Timber and Wood Products
Procurement Policy
Rule 65
Employee transfer costs
 In certain situations an agency must disclose the costs
relating to the transfer of employees due to a restructuring
 The circumstances are contained in the the Employment
Relations Act 2000, Part 6A and Schedule 1A
 In relation to a procurement activity the disclosure costs
must be made available to prospective suppliers (new
employers) who ask for them if:
o the restructuring is the subject of a tender, and
o the type of employees affected falls within a category
listed in the Act
Rule 66
Property Services Industry
Agencies must recognise
the Principles for a Sustainable
Property Services Industry
in their procurement of property
services
Rule 67
For further information about procurement, go to:
www.procurement.govt.nz
Questions?