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Procurement capability is improving across government agencies

New Zealand Government Procurement (NZGP) has seen a number of improvements on Procurement Capability Index (PCI) scores since 2018.

While all capability categories progressed well compared to the previous reporting period, the biggest improvements are seen in an agency’s ability to engage with markets to meet current and future needs. This included publication of annual procurement plans, implementing government policies and initiatives through procurement activities and identifying suppliers and providers that are critical to delivering strategic outcomes. We’ve also seen great improvement in an agency’s ability to manage contracts and relationships with suppliers and providers, to deliver results for the agency.

Analysis of the 91 agency PCI self-assessments submitted to NZGP for 2019 shows overall procurement capability is progressing well, with the overall average score improving by about four percent compared to 2018.

Within the PCI, agencies are required to set up their 12 month targets for capability development and long-term (aspirational) targets.

While each agency has long-term development targets that reflect their size and spend profile, overall results show government agencies are aiming to reach a strong capability level for system leadership (stewardship of people, functions and systems) and advance to a level that they are well-placed for delivery management, strategic leadership and talent management.

The PCI is a self-assessment tool that government agencies can use to complete an evidence-based assessment of their procurement capability across eight categories. It allows agencies to self-assess the current maturity of their procurement function against four levels of capability.

As we’ve passed the half-way point for the PCI reporting cycle, in preparation for the next reporting round, it’s a good time for agencies to review their progress against the 12 month goals set in 2019 and also their tracking against long-term development targets (aspirational targets).

Capability services offers a number of avenues to support agencies with their procurement capability development. Check out our learning modules on Hīkina, or email our Advisory Services team.

Hīkina – Learning for Government Procurement and Property

Procurement capability index