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Broader outcomes

Achieving wider benefits from government procurement

Government procurement can and should be used to support wider social, economic and environmental outcomes that go beyond the immediate purchase of goods and services.

The Government agreed on 23 October 2018 to a set of priority outcomes for agencies to leverage from their procurement activities and identified specific contracts or sectors for initial focus.

Four priority outcomes to leverage through procurement

Agencies are expected to collectively focus on four priority outcomes where the greatest benefit can be achieved for New Zealand.

  1. Access for New Zealand businesses
    Increasing access to government procurement contracts for New Zealand businesses, with particular focus on those less able to access opportunities and those working in priority sectors (such as ICT, Māori and Pasifika businesses and businesses in the regions).
  2. Construction sector skills and training
    Increase the size and skill level of the domestic construction sector workforce and provide employment opportunities to targeted groups.
  3. Employment standards
    Improve conditions for workers and future-proof the ability of New Zealand business to trade.
  4. Reducing emissions and waste
    Support the transition to a zero net emissions economy and reduce waste from industry by supporting innovation.

Specific areas to be targeted

Agencies will be asked to target specific areas for these four outcomes.

Work areaOutcome
Construction Skills development and training
All-of-Government vehicles Reducing emissions
Stationary heat in government buildings Reducing emissions
All-of-Government office supplies Reducing waste
ICT services/computer software Innovation and support for New Zealand businesses
Cleaning services Employment standards
Security services Employment standards
Forestry contracts Employment standards, training and health and safety

Implementation steps

To implement this work, NZGPP will undertake the following steps:

  • Work with agencies and stakeholders to identify the best approach to operationalise each outcome.
  • Update the Government Rules of Sourcing and develop guidance and support for agencies.
  • Develop a monitoring and reporting framework to track agency adoption and outcomes achieved. This will be reported to Cabinet annually and findings will inform practice improvements.