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Delivering greater public good through government procurement

Over the past year there has been a specific focus on how procurement can deliver greater public good for New Zealand. Agencies have embraced this approach and made significant efforts to include broader outcomes in their procurement activity.

More recently, New Zealand’s response to COVID-19 has highlighted further opportunities to improve the standards and consistency of government procurement practices and achieve better outcomes for New Zealanders. 

The $42 billion annual spend through government procurement can be used to support New Zealand’s economic and social recovery by helping create more jobs, using more sustainable construction practices and delivering better outcomes for Māori and Pasifika.

Cabinet has approved changes to the Government Procurement Rules, as well as other initiatives to accelerate the delivery of these broader social, cultural, economic and environmental outcomes. New Zealand Government Procurement (NZGP) developed these in consultation with agencies and the Procurement Functional Leadership Group.

We will be consulting again with agencies and other stakeholders on the implementation of these changes:

  • A new Rule that will require mandated government agencies to consider how their procurement and related supply chains will create quality employment opportunities for New Zealanders.
  • Providing an additional authority to the Procurement Functional Lead to drive positive change across the government procurement system through the Rules. This will also enable it to respond to an emergency or crisis, or wider policy priority, and declare an appropriate procurement response measure or measures for the government procurement system.
  • Exploring options to extend the application of the Government Procurement Rules to more agencies across the public sector, to help accelerate improvements in procurement practices.

We’re also launching new initiatives:

  • A procurement assurance function that identifies and mitigates procurement system risk and recommends remedial action where required.
  • Working with key stakeholders and agencies to develop guidance on assessing carbon emissions generated by building materials and construction processes in government-funded new builds.
  • Working with the Infrastructure Commission, the Infrastructure Reference Group, and the Construction Sector Accord, NZGP has already published the rapid mobilisation playbook, for the use of accelerated procurement approaches in construction procurement.

Rapid mobilisation playbook

We will be providing more information on these changes, and consulting further with agencies and stakeholders over coming weeks.

Please contact your account manager if you require any further information.