The Rules set good practice standards that support accountability for spending and the delivery of public value.
‘Procurement’ covers all aspects of acquiring and delivering goods, services and works (refurbishment and new construction).
Procurement starts with identifying the need and finishes with a review at the end of a service contract, or the end of the useful life and disposal of the asset. This review informs the next procurement. This is the procurement lifecycle.
Procurement activities can be relatively simple and low risk, or more complex and high risk.
Taking a strategic approach to procurement will usually result in better outcomes for high risk or high value procurements.
A strategic approach involves:
The Rules address all parts of the procurement lifecycle. They cover:
More information about what procurement is, and a detailed guide to each stage of the lifecycle, is available.
Public value means getting the best possible result from your procurement, using resources effectively, economically and responsibly. It means taking into account:
Delivering better public value through government procurement should include securing economic benefits for New Zealand. See Rule 8 for a list of considerations you can use for delivering economic benefit. Agencies should consider what is most appropriate for the procurement and most likely to deliver the benefits.
Choosing the most appropriate procurement process — one that’s proportionate to the value, risk and complexity of the procurement — helps achieve public value. Good procurement is about being risk aware, not risk averse.
Government procurement is based on the Government Procurement Charter, Principles, Rules and other good practice guidance. Collectively, these provide a broad framework that supports accountability for spending, sound business practice and better results
Good practice isn’t just mechanically applying the Rules. It’s about understanding all aspects of the procurement lifecycle, and skilfully applying this understanding alongside commercial judgment to deliver the best results. While you still need to comply with the Rules, you should design your process proportionate to the value, risk and complexity of the procurement. This may involve a typical tender process or making the most of approaches outside of traditional tendering (like lean agile procurement or competitive dialogue).
All procurement covered by the Rules should be supported by a robust business case or procurement plan that has a level of detail reflecting the size, value, duration and complexity of the procurement.
Good procurement also means proactively managing supplier and other key stakeholder relationships throughout the sourcing process and the duration of the contract. This continues to develop the supplier and drives public value through ongoing gains in efficiency and effectiveness.
The procurement function can add value to an organisation beyond simply acquiring the goods and services the organisation needs. It’s an agency’s key market interface, meaning it can gather insights on market dynamics and trends, as well as external feedback on key investment projects. The procurement function can also feed information back to suppliers, supporting critical market investment and growth. By being available ‘in-house’, the procurement function is readily accessible. It can become a valued business partner within the organisation, informing operational and strategic decision-making, and driving better risk mitigation and management practices overall.
The Government Procurement Rules are the Government’s standards of good practice for government procurement.
They must be read alongside the Principles, Charter, and other good practice guidance.
Government procurement principles
Government Procurement Charter
This fifth edition aims to improve transparency of procurement activities, strengthen accountability, focus on growth, and streamline and simplify as much as possible.
The Rules set a standard of best practice procurement. To responsibly procure, agencies must achieve public value; this includes any economic benefits to New Zealand that an agency is seeking to achieve. The ability and responsibility to achieve public value through procurement applies to everyone involved in an organisation’s procurement processes, not just the procurement team.
Government agencies must account for how they spend public money.
The Rules are part of a wider framework that promotes responsible spending when purchasing goods, services, or works. This framework also includes the Principles of Government Procurement, the Government Procurement Charter and good practice guidance, available on this website and www.oag.govt.nz. This framework supports proactively managing procurement process and delivery risks.
The Rules establish processes that are consistent and predictable, making it easier for agencies and suppliers to engage with each other.
To maintain integrity, agencies must also be aware of and comply with relevant law, including:
Acting with integrity and being accountable for our actions will promote and maintain public trust in government.
New Zealand is committed to open, transparent and competitive government procurement that:
The Rules reflect these values and standards.
Early market engagement and continued open dialogue with suppliers are essential to building strong relationships and achieving good results. These stronger relationships with business can foster commercial benefits. The Rules encourage these types of behaviours, leading to greater public value.
New Zealand needs to export to thrive. A competitive economy trading successfully with the world can create jobs and build ongoing economic growth nationwide. New Zealand businesses need good access to international markets to increase their export opportunities.
Access to markets is secured through Free Trade Agreements (FTAs). Under FTAs, countries offer reciprocal access to their government contracts and agree minimum standards for open, transparent and fair government procurement.
The Rules reflect New Zealand’s FTA commitments, the Australia New Zealand Government Procurement Agreement, and align with the World Trade Organization Agreement on Government Procurement (GPA).
Following the Rules is essential:
Third party suppliers deliver a large share of the government’s public services. We can make public service delivery more effective and efficient through better procurement planning, supplier management, and more collaboration across government.
Agencies should be aware of their obligations under The Treaty of Waitangi/Te Tiriti o Waitangi (the Treaty) and how this relates to their procurement activities. This includes procurement obligations that are specifically named in Treaty settlements and Treaty settlement legislation, as well as agency-specific agreements with Iwi/Hapū.
Information that may help agencies understand their Treaty obligations can be found at:
New Zealand is party to International Agreements that include specific provisions preserving the pre-eminence of the Treaty. The Treaty exception provides flexibility for the Government to implement domestic policies in relation to Māori, including in fulfilment of the Crown’s obligations under the Treaty. Pursuant to this provision New Zealand may adopt measures it deems necessary to accord favourable treatment to Māori, provided that such measures are not used as a means of arbitrary or unjustified discrimination or as a disguised restriction on trade in goods, trade in services and investment.
The Treaty exception is not to be used to preference Māori suppliers, or as an opt-out or exemption from open advertising when undertaking procurement activities.
Where an agency is considering how to apply this provision in their procurement work, discuss in the first instance with the Trade Law Unit at the Ministry of Foreign Affairs and Trade (DM-LGL@mfat.govt.nz).