New Zealand Government Procurement (NZGP) has developed guidance for agencies about the refreshed rules and has been running briefings and providing information to help embed the changes and new priorities.
The Government Procurement Rules 4th edition came into effect on 1 October 2019.
These rules mark a critical step on our journey to helping agencies achieve greater public value from procurement spending, shifting the view from value for money and cost driven procurement to considering the broader outcomes that they can achieve.
In October 2018 Cabinet agreed that government contracts should be leveraged to achieve broader cultural, economic, environmental and social outcomes for New Zealand, and that the Government Rules of Sourcing should be updated to enable this.
The priority areas for broader outcomes are:
- Increasing access for New Zealand businesses: agencies must now consider how they can create opportunities for New Zealand businesses, including Māori, Pasifika and regional businesses, as well as social enterprises.
- Construction skills and training: agencies must engage more effectively with the construction sector to grow the size and skills of New Zealand’s construction workforce.
- Improving conditions for New Zealand workers: agencies must use procurement to ensure suppliers and their sub-contractors comply with employment standards, and health and safety requirements to support vulnerable workers in the supply chain.
- Reducing emissions and waste: agencies must consider how they can achieve positive environmental outcomes through sustainable procurement by buying low emissions and low waste goods, services and works. This will also help the goal of transitioning to a net zero emissions economy by 2050 and significantly reducing waste by 2020.
There will be ongoing work by NZGP to embed the rules, and new requirements such as broader outcomes. This includes public sector procurement training modules available on Hīkina.
For more information about the rules, broader outcomes and how to implement them: