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Rule 3:
Transparency and accountability

Primary requirement

  1. Agencies must be accountable for their procurement performance and be transparent in their expenditure of public funds.

Application

  1. Agencies must:
    1. be able to give a complete and accurate account of their use of public funds
    2. have suitable governance and management arrangements in place to oversee procurement activities
    3. be transparent in their procurement activities.
  2. Agencies must not intentionally avoid applying the Rules when planning for, valuing or undertaking a procurement by either:
    1. designing, structuring or dividing a procurement into separate parts
    2. using a non-standard or alternative valuation method to lower the estimated value.

More information

Defining accountability and transparency

Accountability means that officials are responsible for the actions and decisions they take in relation to procurement and for the resulting outcomes.

Transparency means taking steps to enable appropriate scrutiny of your procurement activity.

Division into lots

After analysing the market, you might decide to restructure the work into separate lots and publish a tender with multiple subcategories. You should then indicate in your Notice of Procurement that you might award the procurement in separate lots.

Restructuring large contracts into smaller lots can be helpful for small New Zealand businesses that may not be able to compete for one large contract. For instance, instead of choosing one national supplier, you could split a contract by region and contract with multiple small regional businesses. However, you cannot split a procurement with the intent to avoid applying the Rules.

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