The New Zealand Government Procurement Rules are changing. The fifth edition goes live on the 1st December. While a lot of the changes are cosmetic – making the language less bureaucratic, merging rules where they were repetitious, or moving information that was in the rules into guidance, there are a few points which suppliers need to be aware of.
In this series of articles, I want to highlight some of the more significant changes for suppliers, and outline any actions which you should be doing to get ready.
In this article, I’m taking a look at an update to the first rule – the requirement to publicly publish procurement policies.
Primary requirement
1. Agencies must adhere to the six Principles of Government Procurement and the Government Procurement Charter.
Application
3. Agencies must make their procurement policies publicly available.
Currently, while there is a requirement for every agency to have a procurement policy, there is no obligation to let external organisations know how an agency makes its procurement decisions or runs its processes.
It is important to understand how an agency makes its procurement decision making. It isn’t enough to assume that the agency will follow the rules, but to know how it incorporates the full procurement framework (including principles and the charter) in how it decides to spend public money and fulfil its outcomes.
From a supplier’s perspective, this allows for certainty on how an agency will approach the market, particularly for ‘below threshold’ processes. How does the agency apply the framework to its particular context? Does the agency allow direct sourcing all the way up to $99,999, or must they get a minimum of three quotes for anything over $5,000?
When you are interested in bidding for government work, it is crucial to know how an agency will apply the procurement principles and rules. While the basics are going to be similar, the devil will be in the detail.
Having access to this information will support you as you plan for bidding for work, and will help you understand what to expect.
In previous versions of the
rules, the wording specifically directed agencies to respond to suppliers’
questions about a procurement. This updated version simply states that
agencies must respond to queries from suppliers. I interpret this to mean
agencies must be responsive to questions and communications from suppliers,
even if they aren’t involved in an active procurement process.
I will be expecting to see
agencies providing options for suppliers to proactively contact them, including
a monitored email address advertised alongside their published procurement
policy (more about this updated rule in a future article!).
Keep an eye on agencies’ websites.
I wouldn’t expect to see much change before the beginning of December, even for agencies who already have their policies published, because behind the scenes, they will be rewriting their policies and procedures to take into account all of the updates.
However, from early December, if you are interested in working with specific agencies, start looking for their procurement policies online.
Check out how they talk about running their processes, particularly below threshold ones. Get an idea of when they are likely to go directly to a single supplier compared to inviting a number of organisations to bid.
Look for where they say they will advertise opportunities. Most agencies use the Government Electronic Tenders Service, but some also use other portals, such as TenderLink, BravoSolution or Cotiss. If so, then familiarise yourself with those portals – it will make your lives easier when an opportunity is published.
While a good proportion of agencies do have their policies published already, not all of them have them *easily* available. For a few, it takes quite a lot of digging and keyword searching to find the policy, buried several pages deep on the agency’s website.
In order to give effect to the intent of this rule, I shall expect the policies to be easily available on an agency’s website, not hidden!
