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​​Definitions

A list of words and what they mean.

A

Agency

A generic term used in the Rules to refer to New Zealand government entities across the Public Sector.

All-of-Government Contracts (AoG)

A type of collaborative contract approved by the Procurement System Leader (the Chief Executive of MBIE).

AoGs are usually panel contracts established by MBIE or other agencies that are approved centres of expertise for common goods or services (like vehicles, laptops, and recruitment services).

Rule 6: Planning

Rule 12: Exemption from open advertising

Rule 38: All-of-Government Contracts

Rules roles and responsibilities

Approach to market

The formal process of giving notice of a contract opportunity to potential suppliers and inviting them to respond. An example of an approach to the market is a Request for Tender published on the Government Electronic Tender Service (GETS).

Approaching the market

B

Beneficial ownership

Beneficial ownership is the individual(s) who ultimately owns or controls a company, trust, or other legal entity, even if they are not the registered owner.

Rule 28: Reasons to exclude a supplier

Rule 29: Awarding the contract

Bid rigging

A type of price-fixing, or collusive tendering, where there is an agreement between competitors about which of them should win a bid.

Rule 28: Reasons to exclude a supplier

Rule 29: Awarding the contract

Business case

A management tool that supports decision-making for an investment. It sets out the reasons for a specific project, considers alternative solutions and identifies assumptions, constraints, benefits, costs and risks.

Rule 7: Estimating monetary value

Rule 12: Exemption from open advertising

Rule 41: Infrastructure

Rule 42: Business cases and investment decisions

Business day

Any weekday in New Zealand, excluding Saturdays, Sundays, New Zealand (national) public holidays and all days from Boxing Day up to and including the day after New Year’s Day.

Rule 16: Sufficient time

Rule 32: Contract award notice

Rule 33: Debriefing suppliers

Rule 36: Prompt payment times

C

Closed competitive process

A tender process where an agency asks a limited number of known suppliers to tender for a contract opportunity. The contract opportunity is not openly advertised.

Rule 12: Exemption from open advertising

Collusion

A secret agreement or cooperation between two or more parties to cheat or deceive others by illegal, fraudulent or deceitful means.

Rule 16: Sufficient time

Rule 24: E-auction

Rule 28: Reasons to exclude a supplier

Commercially sensitive information

Information that, if disclosed, could prejudice a supplier’s commercial interests (like trade secret, profit margin or new ideas).

Rule 20: Additional information

Rule 33: Debriefing suppliers

Commissioning

Commissioning is how government and organisations plan, fund, procure and deliver social services, often through and with others, to meet the needs of individuals, whānau and communities.

Rule 10: Requirement to openly advertise

Rule 17: Notice of Procurement

Application of the Rules – General information

Commodity market

A legally-regulated exchange (market) where raw goods or primary products, such as agricultural produce, metals and electricity, are bought and sold using standardised contracts (for example, the London Metal Exchange and the Chicago Board of Trade).

Rule 12: Exemption from open advertising

Common Capability contracts (CCs)

A type of collaborative contract that has been approved by the Procurement System Leader.

CCs establish various supply agreements (like for ICT goods or services purchased across government with approved suppliers).

CCs differ from All-of-Government and Syndicated Contracts because, in a CC:

  • a private sector supplier may be authorised to purchase from a CC when it's acting on behalf of an agency (authorised agent)
  • the lead agency may charge a participating agency an admin fee or levy.

Rule 6: Planning

Rule 39: Common capability contracts

Competition

Rivalry between suppliers for sales, profits and market share. Competitive tension in the market can produce innovation, better-quality goods or services, better value and better pricing.

Rule 5: Protection of supplier information

Rule 10: Requirement to openly advertise

Rule 12: Exemption from open advertising

Rule 16: Sufficient time

Competitive Dialogue

A type of open procurement process often used where there is no known solution in the market place. For more information, see the guide to competitive dialogue.

Competitive dialogue

Conditional grant

More information about conditional grants is available from the Office of the Auditor-General.

Public sector purchases, grants, and gifts: Managing funding arrangements with external parties — Office of the Auditor-General New Zealand

Conflict of interest

A conflict of interest is where someone’s personal interests or obligations conflict, or have the potential to conflict, with the responsibilities of their job or position or with their commercial interests. It means that their independence, objectivity or impartiality can be called into question.

Managing conflicts of interest and confidentiality

Rule 2: Integrity

Rule 12: Exemption form open advertising

Contract Award Notice

A notice containing the information listed in Rule 32.

Rule 11: Opt-out procurements

Rule 12: Exemption form open advertising

Rule 22: Panel of suppliers

Rule 32: Contract award notice

Contract opportunity

An opportunity for suppliers to bid for a contract for goods, services or works.

Core Crown legal matters

Defined in Cabinet's directions for the conduct of Crown Legal Business 2016 (reference: Cabinet Office Circular CO (16) 2). These are published in the Cabinet manual.

Public service departments, New Zealand Police and New Zealand Defence Force (and bodies, decision-makers, officeholders and employees within those agencies) must refer all their requirements for external legal services relating to Core Crown legal matters to the Solicitor-General. These matters are usually dealt with by the Crown Law Office.

Application of the Rules – General information

Crown Research Institutes

Companies established under the Crown Research Institutes Act 1992.

A full list of Crown Research Institutes is available from Te Kawa Mataaho Public Services Commission.

Central government organisations — Te Kawa Mataaho Public Service Commission

Rule 11: Opt-out procurements

D

Deadline for responses

The closing time and date for responses to a Notice of Procurement or any other call for tenders. If a tender is submitted after the closing date, it may not be accepted by the agency.

Rule 21: Changes to process or requirements

Rule 22: Panel of suppliers

Direct source

A process where the agency asks a single supplier to respond to a contract opportunity, and the contract opportunity is not openly advertised.

Rule 12: Exemption from open advertising

Rule 22: Panel of suppliers

E

E-auction

An online reverse auction that takes place in real time. It gives suppliers the opportunity to bid against each other to improve their offers.

Rule 17: Notice of Procurement

Rule 24: E-auction

Economic benefit

The benefits to New Zealand which are generated through the procurement of goods, services or works.

Rule 8: Economic benefit to New Zealand

Education services

A generic term for public education services provided by government that includes:

  • primary education services: preschool and primary school
  • secondary education services: general and higher, technical and vocational
  • higher education services: post-secondary, sub-degree technical and vocational, and those leading to a university degree or equivalent
  • adult education services: for adults not in the regular school and university system
  • other education services: not definable by level, excluding sport and recreation education.

Rule 11: Opt-out procurements

Electronic invoicing (eInvoicing)

eInvoicing is the direct exchange of digital invoice information between a supplier’s and a buyer’s software or systems using the secure Peppol (Pan-European Public Procurement Online) network and common standard. The New Zealand and Australian governments have committed to a joint approach to eInvoicing using Peppol, a global standardised framework that enables businesses to exchange procurement documents electronically.

Rule 36: Prompt payment times

Rule 44: eInvoicing capability

Evaluation criteria

The criteria used to evaluate responses. These include measures to assess the extent to which competing responses meet requirements and expectations (for example, criteria to shortlist suppliers following a Registration of Interest or criteria to rank responses in awarding the contract).

Exceptionally advantageous conditions

A one-time event such as a sale by public auction or a sale resulting from liquidation, bankruptcy or receivership.

Rule 12: Exemption from open advertising

Exemption from open advertising

The recognised circumstances (for example, a procurement in response to an emergency) where an agency does not need to openly advertise the contract opportunity.

Rule 10: Requirement to openly advertise

Rule 12: Exemption from open advertising

Rule 32: Contract award notice

F

Framework agreement

Usually used in relation to panel contracts. It's the umbrella agreement that governs the relationship between the agency and the supplier(s). It sets out the terms and conditions (including pricing) that the parties agree to contract on in the event that the supplier is allocated the contract.

When the agency wants to buy something under the framework agreement, the parties then enter into a separate contract that refers to the terms and conditions contained in the framework agreement.

Rule 22: Panel of suppliers

G

GETS

An acronym for Government Electronic Tenders Service. GETS is a website managed by New Zealand Government Procurement. It is a free service that advertises New Zealand government contract opportunities and is open to both domestic and international suppliers. All tender information and documents are made freely available through GETS.

GETS listing

The summary of a contract opportunity published on GETS. It includes key information such as the:

  • name of the buying agency
  • approach to market process that will be used (for example, Request for Proposals)
  • deadline for responses
  • address for any enquiries.

Rule 10: Requirement to openly advertise

Goods

Items which are capable of being owned. This includes physical goods and personal property as well as intangible property such as Intellectual Property (like a software product). It includes the goods related to achieving outcomes in an outcomes-based contract.

Government Procurement Charter

The Charter sets out government’s expectations of how agencies should conduct their procurement activity to achieve public value.

Rule 1: Principles and the Government Charter

Government’s central financial control functions

This relates only to the acquisition of fiscal agency or depository management services, liquidation and management services for regulated financial institutions, and sale and distribution services for government debt.

These are central banking control functions on behalf of government such as those carried out by the Reserve Bank and Crown debt management functions such as those carried out by Treasury.

Ordinary commercial banking and financial services are not covered by this definition and are not valid opt-out procurements.

Rule 11: Opt-out procurements

Grant

Financial assistance in the form of money paid by the government to an eligible organisation with no expectation that the funds will be paid back.

It can be either:

  • a conditional grant, where the recipient undertakes specific obligations in return for the money, or
  • an unconditional grant, where the recipient has no specific obligations in return for the money.

Rule 11: Opt-out procurements

Guidance

A generic name for a range of New Zealand Government good procurement practice guides, tools and templates.

Guides 

H

Health services

A generic term for health services provided by government for the public good including:

  • hospital services (in-outpatient and outpatient) including: surgical, medical, gynaecological and obstetrical, rehabilitation, psychiatric and other hospital services delivered under the direction of medical doctors chiefly to outpatients, aimed at curing, restoring, and/or maintaining the health of such patients
  • general and specialised medical services
  • military hospital services and prison hospital services
  • residential health facilities services other than hospital services
  • ambulance services
  • services such as supervision during pregnancy and childbirth and the supervision of the mother after birth
  • services in the field of nursing (without admission) care, advice and prevention for patients at home, the provision of maternity care, children's hygiene, etc
  • physiotherapy and para-medical services, ie services in the field of physiotherapy, ergotherapy, occupational therapy, speech therapy, homeopathy, acupuncture, nutrition instructions, etc.

Rule 11: Opt-out procurements

I

Infrastructure

‘Infrastructure’ means fixed, long-lived structures that facilitate economic performance and well-being. Infrastructure includes buildings and physical networks, principally: transport, water, social assets and digital infrastructure such as mobile and broadband infrastructure, however funded.

Rule 41: lnfrastructure

L

Lean agile procurement

Also called LAP. A competitive sourcing approach, typically for complex sourcing projects, focused on collaboration, agility, and outcomes that lets a buyer tangibly evaluate respondents in a 'live' environment. It can improve buyer planning, cross-functional teamwork, and prompt decision-making during the planning phase, and can enable better collaboration and communication with suppliers while approaching the market.

LAP involves a 2-3 day structured event, sometimes called a ‘Big room event’, where a shortlist of respondents is brought together with the buyer in a shared space to create technical and commercial proposals, refine these throughout the event, and have them evaluated 'live'.

Rule 10: Requirement to openly advertise

Rule 17: Notice of Procurement

M

Market engagement

Market engagement is a process that allows you, at all stages of procurement, to:

  • communicate your needs or requirements to suppliers
  • openly and transparently discuss possible solutions
  • stimulate innovation in the design and delivery of the solution
  • understand market capacity, capability and trends.    

Rule 2: Integrity

Market-led proposals

Where a potential business partner approaches Government without being invited, and proposes to deal directly over a commercial proposition, project, or developed concept.

Market-led Proposals  The Treasury New Zealand
Market-led Proposals National Infrastructure Funding and Financing  New Zealand

Maximum total estimated value

A genuine estimate of the total cost that an agency will pay over the whole-of-life of the contract. It covers the full contract cost of goods or services, and any other expenses such as maintenance and repairs, and the cost of disposing of the goods at the end of the contract.

Rule 7: Estimating the monetary value of a procurement

Ministerial appointments

Non-statutory government board and advisory body appointments made by Ministers or Cabinet. A situation where a Minister instructs an agency to appoint a named consultant to undertake a piece of work is not a Ministerial appointment.

Application of the Rules – General information

Multi-step process

A procurement process with more than one step (like a Registration of Interest followed by a Request for Proposals).

Rule 10: Requirement to openly advertise

Rule 17: Notice of Procurement

N

New construction works

In the context of the Rules, the term relates to goods and services associated with developing new civil or building construction works. This includes buildings, roads, rails, bridges and dams. It covers new builds and replacement of an existing construction. This also includes related services such as design, architecture, engineering, quantity surveying, and management consultancy services. It includes various stages in the project such as:

  • demolition of previous structure
  • pre-erection works at construction sites, including site investigation work
  • construction work for buildings, residential and non-residential
  • construction work for civil engineering
  • assembly and erection of prefabricated constructions, that is, installation on site of complete prefabricated buildings or other constructions, or the assembly and erection on site of prefabricated sections of buildings or other constructions
  • special trade construction work such as foundation work, including pile driving, water well drilling, roofing and waterproofing, concrete work, steel bending and erection, erection work from purchased or self-manufactured structural steel components for buildings or other structures such as bridges, overhead cranes or electricity transmission towers, steel reinforcing work and welding work
  • masonry work
  • installation work such as heating, ventilation and air conditioning work, water plumbing and drain laying work, gas fitting construction work, electrical work, insulation work (like electrical wiring, water, heat, sound), fencing and railing construction work, other installation work (like installation of lifts and escalators and moving sidewalk), fire escape equipment and construction work (like staircases)
  • building completion and finishing such as glazing work and window glass installation work, plastering work, painting work, floor and wall tiling work, floor laying, wall covering and wall papering work, wood and metal joinery and carpentry work, interior fitting decoration work, ornamentation fitting work, other building completion and finishing work (like special trade building acoustical work involving the application of acoustical panels, tiles and other material to interior walls and ceilings), and steam or sand cleaning work of building exteriors
  • renting services related to equipment for construction or demolition of buildings or civil engineering works.

Rule 7: Estimating the monetary value of a procurement

Rule 9: Planning for new construction works

Rule 11: Opt-out procurements

New Zealand business

A business that originated in New Zealand (not being a New Zealand subsidiary of an off-shore business), is majority owned or controlled by New Zealanders, and has its principal place of business in New Zealand. For purposes of Rule 8, the reference to New Zealand business includes Australian business.

Notice of Procurement

The document published on GETS that advertises a new contract opportunity (like a Registration of Interest or a Request for Tender).

O

Official Information Act 1982

A New Zealand law that sets out the information that government must make freely available to the New Zealand public.

Rule 5: Protection of supplier information

What happens if the rules are not followed – General information

Open advertising

Publishing a contract opportunity on GETS and inviting all interested domestic and international suppliers to participate in the procurement.

Rule 10: Requirement to openly advertise

Rule 12: Exemption from open advertising

Rule 32: Contract award notice

Open competitive process

An open competitive process means procurement opportunities are openly advertised on GETS and any supplier or provider can submit a response. This could involve traditional tenders, or alternatively an outcome-based contract, or an invitation to participate in a lean agile procurement or competitive dialogue event.

Rule 7: Estimating the monetary value of a procurement

Rule 10: Requirement to openly advertise

Rule 11: Opt-out procurements

Rule 12: Exemption from open advertising

Open syndicated contract (OSC)

A type of collaborative contract that includes a common use provision allowing other, unspecified agencies to contract with the supplier on the same terms at a later stage.

Rule 6: Planning

Rule 40: Syndicated contracts

Rule 44: eInvoicing capability

Opt-out procurements

Specific types of procurement activities where agencies can choose to opt out of applying most of the Rules.

Rule 11: Opt-out procurements

P

Panel contract

A type of framework agreement that governs the relationship between the agency and each panel supplier. It sets out the terms and conditions that the parties agree to contract on in the event that the panel supplier is allocated a contract to provide specific goods, services or works.

Rule 22: Panel of suppliers

Rule 23: Pre-qualified suppliers list

Rule 32: Contract award notice

Rule 38: All-of-Government contracts

Panel guide

A document that sets out how the panel contract will be run and managed.

Rule 16: Sufficient time

Rule 22: Panel of suppliers

Panel of suppliers

A list of suppliers an agency has pre-approved to supply particular goods or services and who have agreed to the agency's terms and conditions for supply.

Rule 12: Exemption from open advertising

Rule 17: Notice of Procurement

Rule 22: Panel of suppliers

Panel supplier

A supplier included in a panel of suppliers.

Rule 22: Panel of suppliers

Principles

Short for the principles of government procurement. The six principles are:

  • plan and manage for great results
  • be proportionate and right-size the procurement
  • be fair to all suppliers
  • get the right supplier
  • get the best deal for everyone
  • play by the Rules.

Rule 1: Principles and the Government Charter

Rule 7: Estimating the monetary value of a procurement

Rule 11: Opt-out procurement

Procurement

All aspects of acquiring and delivering goods, services and works. It starts with identifying the need and finishes with either the end of a service contract or the end of the useful life and disposal of an asset.

Procurement Functional Leader

The Chief Executive of the Ministry of Business, Innovation and Employment, who has been appointed by the Commissioner for State Services as the Functional Leader for procurement activities across government. See also 'Procurement System Leader'.

Procurement System Leader

The Chief Executive of the Ministry of Business, Innovation and Employment, who has been appointed by the Public Service Commissioner under section 56 of the Public Service Act 2020 as the Procurement System Leader. 

Procurement plan

A plan to analyse the need for specific goods, services or works and the outcome the agency wants to achieve. It identifies an appropriate strategy to approach the market, based on market research and analysis, and summarises the proposed procurement process. It usually includes the indicative costs (budget), specification of requirements, indicative timeline, evaluation criteria and weightings and the economic benefits to New Zealand.

Rule 6: Planning

Rule 7: Estimating the monetary value of a procurement

Rule 9: Planning for new construction works 

Rule 12: Exemption from open advertising 

Prototype

An early sample, model or pilot study used to test a concept or process.

Provider

Synonymous with supplier, frequently used in the social sector.

Public sector

This includes agencies in the:

  • Public service (departments and ministries)
  • the wider State Services (for example, Crown Entities, Crown Research Institutes, entities listed in Schedules 4 and 4A of the Public Finance Act 1989, and School Boards of Trustees) and
  • the wider State sector (for example, Offices of Parliament, Tertiary Education Institutes and State Owned Enterprises) and
  • Regional Councils and Territorial Authorities (as defined in s5 of the Local Government Act 2002).
Public Service

The Public Service is defined in section 10 of the Public Service Act 2020 (the Act) and means the departments, departmental agencies and interdepartmental executive boards listed in Schedule 2 of the Act.

The Public Service Commission has a list of these agencies.

Central government agencies – Te Kawa Mataaho Public Service Commission 

Public Private Partnerships (PPPs)

A long-term contract for the delivery of a service, involving building a new asset or infrastructure (for example, a prison) or enhancing an existing asset. The project is privately financed on a non-recourse basis and full legal ownership is retained by the Crown.

Application of the Rules – General information

Public Private Partnerships The Treasury New Zealand

Public value

Public value means the best available result for New Zealand for the money spent. It includes using resources effectively, economically and responsibly, and taking into account:

  • the procurement’s contribution to the results you are trying to achieve, including economic benefits
  • the total costs and benefits of a procurement (total cost of ownership).

The principle of public value when procuring goods, services or works does not mean selecting the lowest price but rather the best possible outcome for the total cost of ownership (over the whole-of-life of the goods, services or works).

Selecting the most appropriate procurement process that is proportionate to the value, risk and complexity of the procurement will help achieve public value.

R

Refurbishment works

In the context of the Rules, the term relates to goods or services or works associated with delivery of refurbishment works in relation to an existing construction. Construction means buildings, roads, bridges and dams. Refurbishment works cover renovating, repairing or extending an existing construction.

Refurbishment works does not include replacing a construction. That is deemed to be new construction works.

Rule 8: Economic benefit to New Zealand

Rule 10: Requirement to openly advertise

Rule 23: Pre-qualified suppliers list

Application of the Rules – General information

Registration of Interest (ROI)

Also known as an Expression of Interest. A formal request from an agency asking potential suppliers to:

  • register their interest in an opportunity to supply specific goods, services or works
  • provide information that supports their capability and capacity to deliver the goods, services or works.

It's usually the first formal stage of a multi-step tender process.

Rule 10: Requirement to openly advertise

Rule 20: Additional information

Rule 23: Pre-qualified suppliers list

Relational contract

A contract that seeks delivery of an outcome or outcomes, used most often in the social sector. May also be called an outcomes-based contract.

Rule 10: Requirement to openly advertise

Request for Information (RFI)

A market research tool. A formal request from an agency to the market, for information that helps identify the number and type of suppliers and the range of solutions, technologies and products or services they can provide.

It is not a type of Notice of Procurement. It must not be used to select or shortlist suppliers.

Rule 17: Notice of Procurement

Request for Proposal (RFP)

A formal request from an agency asking suppliers to propose how their goods or services or works can achieve a specific outcome, and their prices.

An agency may be open to innovative ways of achieving the outcome.

Rule 10: Requirement to openly advertise

Rule 17: Notice of Procurement

Rule 23: Pre-qualified suppliers list

Request for Quote (RFQ)

A formal request from an agency asking potential suppliers to quote prices for ‘stock standard’ or ‘off-the-shelf’ goods or services or works, where price is the most important factor.

Rule 10: Requirement to openly advertise

Rule 23: Pre-qualified suppliers list

Request for Tender (RFT)

A formal request from an agency asking for offers from potential suppliers to supply clearly defined goods or services or works.

Often there are highly-technical requirements and a prescriptive solution.

Rule 10: Requirement to openly advertise

Rule 17: Notice of Procurement

Response

A supplier's reply to a Notice of Procurement. Examples include:

  • registering of interest in an opportunity
  • submitting a proposal
  • submitting a tender
  • applying to qualify as a pre-qualified supplier.
Rules

A short name for the Government Procurement Rules.

S

Secondary procurement

Where an agency purchases goods, services or works from a panel of suppliers, an All-of-Government Contract, Common Capabilities Contract or Syndicated Contract.

Rule 12: Exemption from open advertising

Rule 16: Sufficient time

Rule 22: Panel of suppliers

Rule 32: Contract award notice

Rule 33: Debriefing suppliers

Rule 37: Future Procurement Opportunities

Services

Acts or work performed for another party, for example, accounting, legal services, cleaning, consultancy, training, medical treatment, or transportation.

Sometimes services are difficult to identify because they are closely associated with a good (like where medicine is administered as a result of a diagnosis). No transfer of possession or ownership takes place when services are sold, and they:

  • cannot be stored or transported
  • are instantly perishable
  • only exist at the time they are provided.
Social investment outcomes contract

A way of procuring services that links to the achievement of specified outcomes. This differs from most government contracting for social services, which ties funding to the delivery of specific services. 

Rule 17: Notice of Procurement

Application of the Rules – General information

Social services commissioning

See 'Commissioning'. 

Sourcing

The parts of the procurement lifecycle that relate to planning, market research, approaching the market, evaluating responses, negotiating and contracting.

State Services

This includes:

  • the Public Service (departments and ministries)
  • Non-Public Service departments (including New Zealand Defence Force and New Zealand Police)
  • Crown agents, autonomous Crown entities, independent Crown entities, Crown entity companies, and Crown entity subsidiaries
  • Crown Research Institutes
  • entities listed in Schedules 4 and 4A of the Public Finance Act
  • Reserve Bank of New Zealand
  • School Boards of Trustees.

A list of these agencies is available on New Zealand's State sector organisations page of the Public Service Commission website.

Central government organisations Te Kawa Mataaho Public Service Commission 

Statutory appointments

Statutory appointments are made under statutory authority and include appointments made by warrant from the Governor-General under the Letters Patent, for example, Crown Solicitors.

Application of the Rules – General information

Supplier

A person, business, company or organisation that supplies or can supply goods or services or works to an agency.

Supplier Code of Conduct

The Supplier Code of Conduct provides a minimum set of expectations that government expects of all its suppliers. Agencies may have their own codes of conduct for suppliers. These can exist simultaneously.

Rule 2: Integrity

Rule 28: Reasons to exclude a supplier

Rule 31: Subcontracting

Supplier debrief

Information an agency provides to a supplier who has been unsuccessful in a particular contract opportunity, that explains:

  • the strengths and weaknesses of the supplier's proposal against the tender evaluation criteria and any pre-conditions
  • the reasons the successful proposal won the contract
  • anything else the supplier has questioned.
Syndicated contracts

A type of collaborative contract that typically involves a group of agencies aggregating their needs and collectively going to market for common goods, services or works.

If the contract includes a common use provision (CUP), to allow other agencies to contract with the supplier on the same terms later, it is an open syndicated contract and needs to be approved by the Procurement System Lead.

If the contract is limited to a group of named agencies, it is a closed syndicated contract.

Rule 6: Planning

Rule 12: Exemption from open advertising

Rule 40: Syndicated contracts

System leader

System leads are appointed under the Public Service Act 2020. System leads are mandated to lead across the Public Service in relation to a particular area or function.  They do this by creating a common vision for the future, setting standards and frameworks for agencies to operate within, co-ordinating and supporting best practice and looking for opportunities to work better together.
System Leads are appointed by the Public Service Commissioner to lead and coordinate best practice in a particular subject matter across the whole or part of the State services.

Rule 39: Common Capability contracts

Rule 43: Investment reviews

T

Technical specifications

A tendering requirement that either:

  • lays down the characteristics of goods, services or works to be procured, including quality, performance, safety and dimensions, or the processes and methods for their production or provision, or
  • addresses terminology, symbols, packaging, marking or labelling requirements, as they apply to a goods, service or works.

Rule 15: Technical specifications

Rule 17: Notice of Procurement

Rule 21: Changes to process or requirements

Tender watch code/s

Codes used on Government Electronic Tender Service (GETS) to classify goods, services and works. They are based on the United Nations Standard Products and Services Code (UNSPSC). You can find these codes on the GETS website:

GETS

Rule 10: Requirement to openly advertise

Rule 23: Pre-qualified suppliers list

Te Tiriti o Waitangi / Treaty of Waitangi exception

New Zealand is party to international agreements that include specific provisions preserving the pre-eminence of Te Tiriti o Waitangi. Te Tiriti o Waitangi 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 Crown

The short name for 'the Sovereign in Right of New Zealand' as the bearer of government rights, powers, privileges and liabilities in New Zealand.

Total cost of ownership (TCO)

A estimate of the total cost of the goods, services or works over the whole of their life. It is the combination of the purchase price and all other expenses and benefits that the agency will incur (for example, installation and training, operating and maintenance costs, repairs, decommissioning, cost associated with disposal and residual value on disposal). It is a tool often used to assess the costs, benefits and risks associated with the investment at the business case stage of a procurement.

Trade credit

Where there is agreement for a delay between supply of goods or services and payment for those goods or services. In other words, the good or service must already have been provided (to the required standard and quantity).

Rule 36: Prompt payment times

Rule 44: eInvoicing capability

W

Welfare services

A generic term for public welfare services provided by government, which includes:

  • social services, including residential and non-residential welfare services to the old, disabled, children and other social assistance clients
  • compulsory social security services (administration of benefits).

Rule 11: Opt-out procurements

Whole of government direction

The whole of government direction regarding procurement functional leadership (now procurement system leadership), given by the Minister of Finance and the Minister of State Services (now known as the Minister for the Public Service).

This direction requires certain types of State Services agencies to apply the Rules. A list of these agencies is available on the public sector agencies page.

The direction is available from Te Kawa Mataaho Public Service Commission.

Guidance: Directions to support a whole of government approach - Te Kawa Mataaho Public Service Commission

Rule 11: Opt-out procurements

Application of the Rules – General information

Whole-of-life cost

See total cost of ownership (TCO).

Read construction-related guidance about whole-of-life costs:

Whole-of-life - Construction procurement [PDF, 858KB]

Works

A generic term which covers new construction works for a new build or refurbishment works to an existing construction.

World Trade Organization (WTO) agreement on government procurement

Also known as the GPA. A free trade agreement established by the World Trade Organization (WTO). It is a legally -binding treaty between participating countries, based on the principles of openness, transparency and non-discrimination, and sets out detailed Rules for good procurement processes.

The main aim of the GPA is to improve access to government procurement markets and remove barriers to international trade.

Why have rules – Background to the Rules

Application of the Rules – General information

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