Transcript Example
Government Rules of Sourcing
An overview for suppliers
June 2013
Objectives
To provide information on the new Rules –
what they do and don’t do
To increase understanding of Government’s
expectations on procurement
Why is procurement important?
Increasingly public services delivered by
businesses
$30b annual spend across government on
goods and services
Choosing right supplier is critical
Rules are part of procurement reform
Encourage procurement professionals to upskill
Simplify, streamline processes - tools, templates and
model contracts
Unlock savings for agencies
Create an environment for business to succeed
A cultural change is underway
Why do we have Rules
Set the standard for procurement
Promote open, competitive,
transparent government procurement
More consistent process
Encourage commercial practice
Strengthen accountability
Help us to honour our agreements with trade
partners
Why do you need to know about the Rules
To compete successfully you need
to understand the environment in
which agencies operate
To assist us with ensuring
accountability
What are the Rules?
Focus mainly on the
sourcing stages of
the procurement
lifecycle
Come into effect on 1
October 2013
When do the Rules apply?
Various levels of application
Departments/ministries must apply them
Other agencies such as Crown entities, universities, SOEs are
encouraged to apply them as good practice
Apply to contracts estimated to be over $100,000
Don’t apply to grants, employment contracts,
investments, etc
Sometimes closed competition or direct sourcing is
okay
Rule #1 apply the Principles
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.”
GETS
Register on GETS!
Government departments must advertise
on GETS
But there are other places where
opportunities can be advertised (eg
Tenderlink, trade journals, etc)
Value for Money
Value for money over whole of life
Take account of total cost of ownership, not just
acquisition cost
Consider wider benefits, including economic,
environmental and social sustainability
‘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
Minimum time period
“10 day” rule gone
New minimum time periods by process
Procurement process
Minimum time period
• Request for Quote
• Registration of Interest
• Expression of Interest
• Request for Tender
• Request for Proposal
13 business days
20 business days
25 business days
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.
Evaluation Criteria
Must include evaluation criteria
Must include relative importance of the
criteria
Relative importance can be indicated in a
number of ways, including weightings,
ranking, or the amount of information
requested
Panel contracts
• Notice of Procurement must include :
• the terms and conditions that will apply
• the method the agency will use to award
contracts to suppliers on the Panel
• the period of time the Panel will be
established for
• whether the Panel is ‘open’ or ‘closed’
• any circumstances that may lead to a
supplier being removed from the Panel.
.
Innovation
IP rights – transparency + potential to negotiate
Permit and encourage engagement with the market
Encourage use of design contests in appropriate
circumstances
Unsolicited unique proposals – a structured
approach to assessing truly unique ideas that
deliver exceptional benefits
Competitive dialogue – an open and competitive
procurement process where suppliers work with the
agency to develop a solution/s
Standards
Standards are not prescribed by the Rules
Gives agencies flexibility to prescribe standard fit
for purpose
Where standards are used, they are to be based
on international standards where they exist, or
national standards or building code
ANZ standards are an international standard!
Use of standardised documents
Required use of government model contracts for
low value/low risk contracts
Standardised RFP/RFT – under pilot now - coming
soon
And other standardised documents as these are
developed
Prior government experience
Not allowed as a condition of contract
But request for relevant experience is allowed
What about local content?
Cannot be a condition of contract
But agencies can and should consider the
advantages of local supply
Example – in order to be awarded the contract, you
must be a New Zealand company – NOT
ALLOWED
Example – in order to be awarded the contract, you
must demonstrate that you can respond to faults
within 30 minutes - OKAY
What’s next
Success depends on good implementation
MBIE to support agencies with:
Training
Information
Guides
More information
www.procurement.govt.nz
Or
Call me, Karen English, 04 462 4287
Questions?