Transcript 1 hour overview - Business.govt.nz

New Rules overview
(1 hour presentation)
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Government Rules of Sourcing
An overview
Meeting name
meeting date
Introduction
What are the Rules?
Government Rules of Sourcing

New Rules replace the Mandatory Rules of
Procurement by Departments (2006)

Endorsed by Cabinet

Come into effect 1 October 2013
What do they cover?
Focus mainly on the
sourcing stages of
the procurement
lifecycle
Why are the Rules important?

Set the standard for procurement

Strengthen accountability

More consistent process

Encourage commercial practice

Get more suppliers involved in
delivering to government
Who do the Rules apply to?
Required
Expected
Encouraged
Encouraged
Rule 6
When do they apply?
Value thresholds have not changed.
Type of procurement
• Goods
• Services
• Refurbishment works
• New construction works
Value threshold
$100,000 +
$10 million +
Rules 7 & 8
What’s different?
Interpretation

Plain English format that is easier to understand

Our agency is required to apply the Rules

All ‘must’ rules are mandatory

All ‘should’ rules are good practice

More context
to assist
interpretation
more
information
definitions
guides
tools
templates
examples
Interpretation

Plain English format that is easier to understand

Our agency is expected to apply the Rules

All ‘must’ rules are good practice

All ‘should’ rules are good practice

More context
to assist
interpretation
more
information
definitions
guides
tools
templates
examples
Interpretation

Plain English format that is easier to understand

Our agency is encouraged to apply the Rules

All ‘must’ rules are good practice

All ‘should’ rules are good practice

More context
to assist
interpretation
more
information
definitions
guides
tools
templates
examples
Rule #1 apply the Principles
Rule 1
Non-procurement activities
The rules don’t apply to activities that are
deemed to be non-procurement

Employing staff

Making investments

Gifts, donations and unconditional grants

Statutory & Ministerial appointments

Category 1 legal services
Rule 12
Opt-out procurements
Sometimes you can opt out of applying
the Rules
Examples include:

Non-contractual arrangement

Purchasing/renting land or buildings

Conditional grants

Essential security interests
Rule 13
old Appendix 1
Basic rule: advertise
Government should openly advertise
“Wherever possible an agency should use
open competitive procurement processes
to give all suppliers the opportunity to
compete.”
Rule 14
Exemption from advertising
Certain procurements are exempt from
advertising on GETS

Emergency

Following an open tender

Only one supplier (eg for technical reasons)

Prototype or design contest

Unsolicited unique proposal
Rule 15
‘Sufficient time’
Agencies must allow suppliers sufficient
time to respond
Take into account:
 Nature and complexity of
procurement
 Level of detail you need
 Opportunities for subcontracting
 Level of risk
Rule 26
Minimum time period

“10 day” rule gone

New minimum time periods by process
Procurement process
• Request for Quote
• Registration of Interest
• Expression of Interest
• Request for Tender
• Request for Proposal
Minimum time period
13 business days
20 business days
25 business days
Rule 27
Allowable reductions
Deductions for:

Prior listing in APP

All documents available
electronically

Suppliers’ responses
accepted electronically
Note: Different processes allow different numbers of days for reductions.
Rule 28
How does that work?
Example: one-step Request for Tender
Minimum Time Period
25 business days
Allowable reductions:
• Prior listing in APP
• All documents available electronically
• Suppliers’ responses accepted
electronically
- 3 business days
- 4 business days
- 3 business days
New Minimum Time Period 15 business days
What’s new?
New requirements

E-auctions

Evaluation criteria published in the tender

Rank or weight criteria

Better information on Panel Contracts

Contract Award Notice published in 30 days
Rule 42
Rule 35
Rule 54
Rule 45
Supporting better practice

Reviewing significant business cases

Applies to contracts:
- valued at $5M>
- with significant risk
- potential for collaboration
Rule 18
Rule 19
More collaboration
Extended procurement forecasts
 Common capability contracts
- new Government approved collaborative
contract
- lead agency may charge admin fee
- a supplier acting on behalf of an agency
may be able to purchase from this type of
contract

Rule 57
Other rules you need to know
References other government requirements eg:

Web standards

Geospatial information

Intellectual property

Better business cases (capital projects)

Gateway assurance

Employee transfer costs
Rule 42
Rule 35
Rule 54
Rule 45
Help!
MBIE support to transition

Briefing sessions for agencies and suppliers

YouTube videos

‘Noticeboard’ regular features

Comms pack

Training module

Standard agency procurement policy
More guidance









Maximising value & optimising results
Total cost of ownership
Constructive market engagement
Competitive Dialogue
Unsolicited unique proposals
Extended procurement forecasts
Review of significant business cases
Common capability contracts
Jargon Buster
More information
website:
www.procurement.govt.nz
email queries:
[email protected]
Questions?