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4 - Awarding the contract

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Awarding the contract

Rule 43 - Awarding the contract

Rule 44 - Informing suppliers of the decision

Rule 45 - Contract Award Notice

Rule 46 - Debriefing suppliers

Rule 47 - Supplier complaints

Contract administration

Rule 48 - Prompt payment

Rule 49 - Maintaining records

Rule 50 - Audit


Rule 43

Awarding the contract

  1. An agency must, unless there is a legitimate reason to cancel the procurement, award the contract to the supplier/s that has both:
    a.  demonstrated that it fully understands and has the capability to deliver the requirements and meet the contract conditions, and
    b.  offered either the:
         i.   best value for money over the whole life of the goods, services or works (which isn’t always the cheapest price), or
         ii.  lowest price, if price is the only criterion.
  2. If a supplier offers a price that is substantially lower than other responses (an abnormally low bid), an agency may seek to verify with the supplier that the supplier is capable of both:
    a.  satisfying all of the conditions for participation, if any, and
    b.  fully delivering all of the contract requirements (eg quality, quantity, time and location) and meeting all of the contract conditions for the price quoted.
  3. An agency must not cancel a procurement, use options or modify or terminate an awarded contract to avoid applying the Rules.

Rule 44

Informing suppliers of the decision

  1. After evaluating the responses and making the decision to award the contract to a particular supplier/s, an agency must promptly inform all of the unsuccessful suppliers in writing of this decision.


Rule 45

Contract Award Notice

  1. An agency must publish a Contract Award Notice on GETS when it has awarded a contract that is subject to the Rules. This Notice must be published whether or not the contract was openly advertised, unless it is:
    a.  an opt-out procurement (Rule 13) or
    b.  secondary procurement (Rule 15.9.i).
  2. An agency must publish the Contract Award Notice on GETS within 30 business days of all parties signing the contract/s. The Contract Award Notice must include:
    a.  the agency’s name and address
    b.  the successful supplier’s or suppliers’ name/s and address/s
    c.  a description of the goods, services or works
    d.  the date the contract/s was awarded
    e.  the term of the contract/s
    f.  the expected spend under the contract/s, or the highest and lowest offers the agency evaluated to award the contract
    g.  the type of procurement process used
    h.  if the agency claimed an exemption from open advertising (Rule 15), the circumstances that justify the exemption.

Rule 46

Debriefing suppliers

  1. All suppliers must have the opportunity to be debriefed following a procurement. An agency must offer each unsuccessful supplier a debrief.
  2. When a supplier asks an agency for a debrief, the agency must debrief that supplier within 30 business days of the date the contract was signed by all parties, or 30 business days of the date of the request, whichever is later.
  3. At the debrief, an agency must not disclose another supplier’s confidential or commercially sensitive information (Rule 5).
  4. An agency should provide information at the debrief that helps the supplier to improve future tenders or responses. At a minimum, the debrief must:
    a.  include the reason/s the proposal was not successful
    b.  explain how the supplier’s proposal performed against the criteria or any pre-conditions (Rule 25) and its relative strengths and weaknesses
    c.  explain the relative advantage/s of the successful proposal
    d.  address the supplier's concerns and questions.

Rule 47

Supplier complaints

  1. A supplier may complain to an agency if it believes the agency has not followed the Rules. An agency must consider and respond promptly and impartially to a complaint. An agency must try to resolve any complaints in good faith.
  2. The way the agency deals with the complaint must not prejudice the supplier’s ongoing or future participation in contract opportunities or affect any right the supplier may have to a judicial review or other remedy.
  3. An agency must keep good records of its procurement process and decisions. These records must be made available to any authority competent to hear or review a supplier’s complaint (eg the Office of the Auditor-General, the Ombudsman, the Commerce Commission or a court of law).
  4. Without limiting its legal rights, an agency must fully cooperate in any review or hearing of a supplier’s complaint by a competent authority.

Rule 48

Prompt payment

  1. Each agency should ensure prompt payment of suppliers’ invoices. At a minimum, invoices must be paid at the time/s set out in the contract, or earlier if possible.

Rule 49

Maintaining records

  1. Without limiting its obligations under the Public Records Act 2005, an agency must keep records of each procurement for at least three years from the date the contract was signed by all parties.
  2. The records must document the procurement process, all decisions, the contract awarded and include all recommendations and reports.
  3. An agency may store the records electronically, if its system complies with requirements of the Public Records Act 2005. Disposal of records is subject to the authorisation of the Chief Archivist, in accordance with the Public Records Act 2005.


Rule 50


  1. An agency must keep records (Rule 49) for audit purposes.


Last updated 7 July 2016