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Policies and procedures

Government departments and other agencies required to apply the Government Rules of Sourcing need to align their internal policies and procedures with the Rules and the five Principles of Government Procurement.

This can be done in different ways, as long as the Principles and relevant Rules are included. On this page you can find examples to help you develop the right approach for your government agency.

The Office of the Auditor General’s Procurement Guidance for Public Entities also provides a useful benchmark and guide on what procurement policies and procedures should contain.

 

Procurement Policy Examples

Policies are high level statements of the principles and values that guide procurement decisions.

Each government agency must incorporate the Principles of Government Procurement into their procurement policies. These apply to all procurement activities even when other Rules do not apply (Rule 1).

A procurement policy is also a good place to identify your government agency’s core procurement objectives (for example, value for money), roles and responsibilities, and thresholds for open advertising.

You can use the model procurement policy below as a starting point for updating your government agency’s policy. It includes a section for outlining your agency’s procurement objectives and a high level statement of the Principles as they apply to different stages of the procurement life cycle. You can adapt it to suit your needs.

 

Procurement Procedures Examples

Procedures describe how your policies will be put into action. They explain:

  • Who will do what
  • What steps they need to take
  • Which forms, documents, or processes to use

These should be as simple as possible, taking into account the value and nature of your agency’s procurement and the risks you need to manage.

The Rules require government agencies to openly advertise most procurement for goods, services and refurbishment works that have a total estimated value of $100,000 or more. To make procedures proportionate, government agencies can set additional monetary thresholds and decide what processes and documents should be used at each level.

The map below shows a simple model that would be a suitable starting point for most government agencies. It includes links to New Zealand Government Procurement guides, tools and templates you can use to build your procedures.

Examples of other government agencies' procurement procedures will be published soon.

 

[Agency] Procurement Procedures

Step 1

See if the goods or services you need are covered by an existing supply arrangement [add a list or a link to your agency’s current contracts. You may also add a link to current Collaborative Contracts (including All-of-Government contracts and their buyers' guides).

Step 2

If it is not on the list, work out the total estimated value. Include all related costs over the whole life of the goods or contract, including options to renew the contract or purchase extra goods or services.

Step 3

Use the table to find out what you need to do.

 

Total estimated value

Plan

Source

Manage

[Under $X,000]

  • Direct source

  • Confirm price verbally or by email

  • Use purchase/ credit card or purchase order
  • Purchase order / receipt processed
  • Confirm delivery and pay invoice

[$X,000 to $X,999]

Approval by delegated financial authority holder

  • End of contract review
  • Documents filed

[$X,000 to $99,999]

Consult procurement team

Approval by delegated financial authority holder

  • Get 3 written quotes or proposals
  • Use Govt Model Contract
  • Original signed contract sent to [title]

Consult legal on contract

  • Milestone reviews
  • End of contract review
  • Documents filed

$100,000 or more

  • Procurement plan

  • Specifications and evaluation criteria

  • Tender response schedule
  • Conflict of interest declaration

Consult procurement team

Approval by delegated financial authority holder

Consult legal on contract

  • Contract management plan
  • Post RFP review for complex / high value projects
  • Milestone reviews
  • End of contract review
  • Documents filed

 

Last updated 26 August 2015