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5 - Types of supplier lists

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Types of supplier lists

Rule 51 - Types of supplier lists

Rule 52 - Registered Suppliers List

Rule 53 - Pre-qualified Supplier List

Rule 54 - Panel of Suppliers

 

Rule 51

Types of supplier lists

  1. If an agency regularly purchases a specific type of good, service or works, it may establish a list of suppliers. Common types of lists include:
    a.  Registered Suppliers List (Rule 52)
    b.  Pre-qualified Suppliers List (Rule 53)
    c.  Panel of Suppliers (Rule 54).

Rule 52

Registered Suppliers List

  1. A Registered Suppliers List is a list of suppliers who have registered an interest in supplying specific types of goods, services or works.
  2. A Registered Suppliers List is appropriate where an agency wants to know which suppliers are active in the market supplying the specific type of good or service.
  3. An agency that establishes a Registered Suppliers List is not exempt from open advertising where a contract opportunity meets or exceeds the relevant value threshold (Rules 7 and 8). An agency must openly advertise each such contract opportunity on GETS. Registered suppliers should make sure that they are listed on GETS under the correct tender watch code/s to receive notifications.

    Establishing a Registered Suppliers List
  4. To establish a Registered Suppliers List, an agency must:
    a.  publish an Invitation to Register (a type of Notice of Procurement) on GETS and make it continuously available
    b.  allow suppliers to respond at any time, or at specific deadlines for responses
    c.  clearly describe, in the invitation, the specific type of goods, services or works the agency is interested in procuring
    d.  add to the list any suppliers who wish to register, as soon as possible
    e.  notify unsuccessful applicants promptly and, if requested, provide the reason/s why.

    Operating a Registered Suppliers List
  5. To operate a Registered Suppliers List an agency must:
    a.  keep an updated list of registered suppliers and make this publicly available at all times (eg on the agency’s website), and
    b.  notify registered suppliers if the list is terminated or they are removed from the list. If an agency removes a supplier from a list, it must explain why.

Rule 53

Pre-qualified Suppliers List

  1. A Pre-qualified Suppliers List is a list of suppliers who an agency has pre-approved as capable of delivering specific types of goods, services or works.
  2. A Pre-qualified Suppliers List is appropriate if an agency wants to:
    a.  verify which suppliers can deliver specific goods, services or works
    b.  make it easier for suppliers to respond to contract opportunities by only asking for qualifying information once.
  3. An agency that establishes a Pre-qualified Suppliers List is not exempt from open advertising where a contract opportunity meets or exceeds the relevant value threshold (Rules 7 and 8). An agency must openly advertise each contract opportunity on GETS. Pre-qualified suppliers should make sure that they are listed on GETS under the correct tender watch code/s to receive notifications.

    Establishing a Pre-qualified Suppliers List
  4. To establish a Pre-qualified Suppliers List an agency must:
    a.  publish an Invitation to Qualify (a type of Notice of Procurement) on GETS and make it continuously available
    b.  allow suppliers to respond to the invitation at any time or by specific deadlines for responses
    c.  include the following information in the invitation:
         i.    the agency’s name and address and contact details for the person managing the process
         ii.   a clear description of the specific goods, services or works potential suppliers must be capable of delivering
         iii.  a list of any conditions that each supplier must meet to participate and how the agency will check each supplier meets the conditions
         iv.  how long the list will be active for and how it will be refreshed or terminated
    d.  assess applicants within a reasonable timeframe and add qualifying suppliers to the list as soon as possible
    e.  notify unsuccessful applicants promptly and, if requested, provide the reason/s why.

    Operating a Pre-qualified Suppliers List
  5. To operate a Pre-qualified Suppliers List an agency must:
    a.  keep an updated list and make this publicly available at all times (eg on the agency’s website)
    b.  notify pre-qualified suppliers if the list is terminated or they are removed from the list. If an agency removes a supplier from a list it must explain why.

    Managing contract opportunities
  6. If a contract opportunity arises for the specific goods, services or works that a Pre-qualified Suppliers List was established for, an agency must:
    a.  openly advertise the contract opportunity on GETS. Pre-qualified suppliers should make sure that they are listed on GETS under the correct tender watch code/s to receive notifications
    b.  allow any unqualified supplier to submit an Application to Qualify either prior to or along with its response to the Notice of Procurement.
  7. If a supplier submits an Application to Qualify before or with its response, the agency must:
    a.  promptly assess the application
    b.  allow a supplier who is successful in becoming pre-qualified to take part in the contract opportunity if there is enough time to complete the qualification process
    c.  promptly notify the supplier of the decision.

Rule 54

Panel of Suppliers

  1. A Panel of Suppliers (Panel) is a list of suppliers who have been pre-approved by an agency and who have agreed to the terms and conditions for supply.
  2. A Panel of Suppliers is appropriate when an agency wants to:
    a.  verify which suppliers are capable of delivering specific goods, services or works
    b.  agree in advance with each supplier the terms and conditions of supply of the goods, services or works, including the pricing (eg agreed hourly fee) or the pricing mechanism that will apply.
  3. Once a Panel has been established through an open process under the Rules, an agency does not need to openly advertise individual contract opportunities. It may purchase directly from the panel. This is called secondary procurement.
  4. When purchasing from the Panel the agency must use the specified method (Rule 54.10) to select a supplier.

    Establishing a Panel of Suppliers
  5. An agency must openly advertise the opportunity to be selected for the Panel of Suppliers in accordance with Rules 14 and 32.
  6. The Notice of Procurement must comply with Rule 34 and include the content specified in Rule 35. It must also include the following information:
    a.  the terms and conditions of supply that will apply (eg the framework agreement)
    b.  the method/s the agency will use to award contracts to suppliers on the Panel (ie the secondary procurement process (Rule 54.10))
    c.  how the agency will contract with a supplier who agrees to deliver a specific goods or service or works
    d.  the period of time the Panel will be established for
    e.  whether or not the Panel is ‘open’ or ‘closed’
    f.  any circumstances that may lead to a supplier being removed from the Panel.
  7. The Notice of Procurement (Notice) can be:
    a.  a one-off Notice to establish the Panel
    b.  a standing Notice which is made available continuously on GETS that allows interested suppliers to respond on an ongoing basis
    c.  an occasional Notice that is published from time to time when an agency wants to refresh or expand the Panel.
  8. It is expected that an agency will appoint more than one supplier to a Panel.

    Method of allocation of contracts
  9. The Notice of Procurement used to establish the Panel must outline the method/s that the agency will use to select suppliers when a contract opportunity arises (secondary procurement process). The method/s should be appropriate for the nature of the goods, services or works and the anticipated volume of work.
  10. Accepted selection methods for secondary procurement processes include:
    a. competitive quotes based on the lowest price: Ask for quotes from some or all of the Panel Suppliers and award the opportunity to the supplier who offers the lowest price
    b.  competitive quotes based on the supplier’s expertise, proposed solution and best value for money: Ask for quotes from some or all Panel Suppliers and award the opportunity to the supplier who has the right level of expertise, can offer the best value for money, which isn’t always the cheapest price, and deliver on time
    c.  direct source, based on the best fit for purpose: Fair evaluation of all Panel Suppliers and selection of the supplier who has the right capacity and capability to fulfil the opportunity and offers the best value for money, which isn’t always the cheapest price, at the time of the purchase
    d.  rotation: Award opportunities to each supplier in turn regardless of their expertise, value for money, which isn’t always the cheapest price, or delivery time
    e.  equal division of the work: Fix an upper limit for the amount of work that can be awarded to each supplier and award opportunities on a rotational basis. When a supplier reaches the upper limit, the agency chooses the next supplier from the Panel
    f.  preferred supplier basis: Identify a preferred supplier from the Panel. This supplier receives most of the opportunities unless it has a conflict of interest or is unable to supply. If this happens, the agency will award the opportunity to the next-ranked supplier from the Panel
    g.  location: Award opportunities to the supplier who is best able to deliver based on their location and the location of the work.
Last updated 22 April 2015