Transcript Example
Whole of government direction
Government Rules of Sourcing
January 2014
Cabinet has proposed:
To extend the mandatory application of the
Government Rules of Sourcing to cover Crown
Entities.
Background / Context
The world pre – better public services:
Strong vertical accountability
CEs having autonomy to manage
Strong incentives to focus on agency delivery
× Weak incentives for system or sector approaches
Minister
Minister
Minister
Minister
Chief
Executive
Chief
Executive
Chief
Executive
Chief
Executive
Department
Department
Department
Department
Functional leadership – a key pillar of Better
Public Services
Minister
Minister
Minister
Minister
Chief
Executive
Chief
Executive
Chief
Executive
Chief
Executive
Functional leaders mandated to drive performance in business functions
across the state services
Why extend the Rules to Crown Entities?
• Government spends about $30 billion per year
• That spend can shape the competitive landscape in New Zealand
• Used wisely, it can contribute to growth of the domestic economy
• The Rules set the standard and align New Zealand with best
practice internationally
• They provide a clear and consistent framework:
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•
•
•
Builds supplier confidence
Reduces duplicated effort
Improves market performance
Supports collaboration
Ensures agencies get the most out of the
procurement process
Process and timeline
• On 9 December, Cabinet initiated the process for issuing 3
directions (procurement, ICT and property)
• Proposed procurement direction would cover all Crown
Entities except School Boards of Trustees
• Directed consultation with affected agencies
• Directed report back in March 2014
Consultation period will close 14 February
What next?
• What are your concerns?
• What support or assistance will your organisation want or
need to implementation the proposed direction?
Give us your views!
Government Rules of Sourcing
What do the Rules cover?
Focus mainly on sourcing
stages of procurement
lifecycle
Consistent with Auditor
General’s guidance on
procurement
Include five Procurement
Principles
Procurement Principles
Rule 1
When do the Rules apply?
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•
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Principles always apply.
You should take other rules into account when using
public money for goods, services or construction works.
You must apply Rules when value exceeds thresholds.
$100,000
$10 million
goods,
services,
refurbishment works
new construction
works
Rules 1, 7, 8
Estimating value
Estimate the maximum total value over
the whole life of the contract
Include:
everything required for full delivery
options to purchase more / to extend contract
all contracts that may result from the procurement
Fees, commissions etc
Exclude GST
Rule 9
Open advertising
Basic rule: open advertising
You must openly advertise if the maximum
total estimated value is over the threshold
Publish ‘procurement notices’ on GETS
Include all required information
Apply required timeframes for responses
Rule 9
Rule 14
Notice of Procurement
New requirements include:
Evaluation criteria & any weightings
Upload all related tender docs on GETS if possible
Panel contracts require additional information (see Rule 54)
Electronic tendering encouraged
Rules 34, 35, 36
Tender deadlines
Suppliers must be given sufficient time to
respond
Consider:
nature and complexity of procurement
level of detail you need
level of risk
opportunities for subcontracting
Rule 26
Minimum times
You cannot go below minimum time periods.
These vary according to Rfx 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
Minimum times can be
reduced when:
Procured listed in APP
All documents available electronically
Suppliers’ responses accepted
electronically
Reductions vary by process
Rule 28
Choosing supplier(s)
Award contract to the supplier that:
demonstrates
can
capability to deliver
meet contract conditions
offers
value for money (not always lowest price)
Inform and debrief unsuccessful suppliers
Publish contract award notice
Rules 43 - 47
Other requirements
Procurement processes
RFIs
are not a tender process
New
options:
E-auctions:
shortlisted suppliers bid on price
or quality.
Competitive
Dialogue: shortlisted suppliers
work with buyer to develop solutions and
specifications
Rules 42
Collaboration
All-of-government contracts
mandatory
Syndicated contracts
use
if they meet your requirements
Common capability contracts
mainly
ICT, use if they meet your
requirements
Rules 55- 57
Planning
Strategic procurement outlooks
Annual procurement plans
Extended procurement forecasts
MBIE review of significant business cases:
$5M+
and/or
significant
potential
risk and/or
for collaboration
Rules 16 - 19
Opt-outs and exemptions
Opt-out procurements
Agencies can opt out of all Rules in certain situations,
eg:
Health,
education and welfare services
Purchasing/renting
Conditional
Essential
land or buildings
grants
security interests
Principles and guidance still apply
Agencies still expected to achieve best value for money
Rule 13
Open advertising exemptions
Examples:
Additional good services or works (criteria apply)
Following unsuccessful open tender (eg no
responses met requirements)
Only one supplier (eg for technical reasons)
Prototype or design contest
Emergency
Unsolicited unique proposal
Rule 15
Opt-outs & exemptions cont’d
Use opt-outs and exemptions judiciously
not automatically
Verify and document rationale
Get senior manager endorsement for exemptions
Publish contract award notice for exempt
procurement, including reason for exemption
Rule 15
Rule 45
Other rules you need to know
Existing Cabinet mandates are incorporated
eg:
Web standards
Geospatial information
Intellectual property
Public private partnerships
Better business cases (capital projects)
Gateway assurance
Rules 58, 60 - 67
Get the best results
Balance probity and commercial nous
Identify the best way to meet your needs & get value for
money…then consider how Rules apply.
Make the process proportionate to the value and complexity
of your procurement.
Keep good records of your process and decisions (rule 49)
Procurement resources
Find the Rules and procurement guidance, tools
and templates at: www.procurement.govt.nz
Recently published:
Rules
training modules
Constructive market engagement
Extended procurement forecasts
Review of significant business cases
Common capability contracts
Unsolicited unique proposals
email: [email protected]
or contact:
Jessica Allison-Batt
[email protected]
04 901 2437
Questions & feedback