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Initial findings from the 2020 Procurement Capability Index

Early analysis of this year’s Procurement Capability Index (PCI) agency assessments shows there has been a 2% increase in procurement capability maturity on 2019 results.

Progress towards achieving 12-month targets set in 2019 has not been as fast as it may have been under normal circumstances, due to the impact of COVID-19 and many procurement functions heavily involved in supporting the government’s response.

Governance and Assurance (an agency’s ability to deliver its procurement activities through robust governance and organisational structures and systems) remains the strongest area of capability. Building Capability (supporting continuous improvement of people and procurement activities) remains the least developed area of maturity, scoring within the “moderate” level of capability development.

Within the PCI, agencies set 12-month targets for capability development and long-term aspirational targets. Agencies have development targets that reflect their size and spend profile - some smaller agencies who undertake limited procurement activity may only need to reach “well-placed” across a number of categories.

In the next 12 months, agencies have overall set targets to achieve “well-placed” for all capability categories. The biggest progress is expected in building capability (24% improvement in score), managing for results, in particular, contract management (16% improvement), and commercial and social outcomes (16% improvement).

This early analysis compares the 2019 and 2020 scores for the 58 agencies who submitted their self-assessment by 12 October. Note this analysis shows the average scores across all the agencies in the sample and is not necessarily representative of any individual agency in the sample.

We will be publishing more information on this year’s PCI submissions in early 2021.

We have a number of resources to help agencies build their procurement capability. Check out our learning modules on Hīkina or email our Advisory services team.

Learn more about the Procurement Capability Index

Hīkina - Learning for Government Procurement and Property

Many thanks to these agencies who have submitted PCI self-assessments (as at 22 October 2020):

Accident Compensation Corporation
Auckland District Health Board
Bay of Plenty District Health Board
Broadcasting Standards Authority
Callaghan Innovation
Capital and Coast District Health Board
Children's Commissioner
Commerce Commission
Counties Manukau District Health Board
Crown Irrigation Investments Limited
Crown Law Office
Department of Corrections
Department of Internal Affairs
Department of the Prime Minister and Cabinet
Drug Free Sport New Zealand
Education Payroll Limited
Electoral Commission
Electricity Authority
External Reporting Board
Guardians of New Zealand Superannuation
Health and Disability Commissioner
Health Promotion Agency
Health Research Council of New Zealand
Health Source
Hutt Valley District Health Board
Inland Revenue Department
Institute of Environmental Science and Research Limited
Kāinga Ora – Homes and Communities
Lakes District Health Board
Land Information New Zealand
Landcorp Farming Limited (Pāmu Farms)
Maritime New Zealand
Mid Central District Health Board
Ministry for Culture and Heritage
Ministry for Pacific Peoples
Ministry for Primary Industries
Ministry for the Environment
Ministry of Business, Innovation and Employment
Ministry of Education
Ministry of Foreign Affairs and Trade
Ministry of Health
Ministry of Transport
Museum of New Zealand Te Papa
National Emergency Management Agency
New Zealand Antarctic Institute
New Zealand Blood Service
New Zealand Defence Force
New Zealand Forest Research Institute Limited (Scion)
New Zealand Green Investment Finance Limited
New Zealand Lotteries Commission
New Zealand Police
New Zealand Productivity Commission
New Zealand Trade and Enterprise
New Zealand Transport Agency
Northland District Health Board
NZ Health Partnerships
Otakaro Limited
Pharmaceutical Management Agency
Public Trust
Southern District Health Board
Tairāwhiti District Health Board
Takeovers Panel
Taranaki District Health Board
Te Puni Kōkiri
Waikato District Health Board
Waitemata District Health Board
Whanganui District Health Board
WorkSafe New Zealand