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Rule 14:
Pre-conditions

Primary requirement

  1. Agencies must include only essential pre-conditions for participation in a procurement process in its Notice of Procurement (Rule 17).

Application

  1. Agencies must limit pre-conditions to the following critical areas:
    1. legal capacity
    2. financial capacity
    3. commercial or operational capacity or capability to deliver
    4. appropriate technical skills or expertise or relevant experience.
  2. To assess whether a supplier meets the pre-conditions, agencies must:
    1. evaluate responses against the pre-conditions that it published in its Notice of Procurement (Rule 17), and
    2. take into account the supplier’s business activities in New Zealand and overseas.
  3. Agencies must not make it a pre-condition that a supplier has been previously awarded a contract by a named buyer or a New Zealand government agency.

More information

Definition of business activities

Any activity that is performed with the goal of running a business. For the private sector, these are activities associated with making a profit (for example, operations, marketing, production or administration).

Pre-conditions

Pre-conditions allow agencies to do a 'first cut' and eliminate suppliers who do not have the minimum capacity or capability to deliver the contract. Agencies should use only pre-conditions that will enable them to efficiently shortlist suppliers with the capability and capacity to deliver the contract.

Clearly written pre-conditions help suppliers decide whether they should respond to the opportunity. Pre-conditions are usually answered by 'yes' or ‘no’, or ‘meets’ or ‘does not meet’.

Suppliers who meet all the pre-conditions are then eligible to be assessed against the scored evaluation criteria.

Suppliers who do not meet all the pre-conditions should not progress to evaluation of their proposal.

It is not appropriate to make the acceptance of a form of contract a pre‑condition.

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