Guide 1:
What are economic benefits?
‘Economic benefit to New Zealand’ refers to the positive impact that an activity, policy, initiative or investment has on the nation’s overall well-being.
In the context of government procurement, agencies can deliver economic outcomes that benefit New Zealand when procuring goods, services or works.
These are positive benefits that go beyond what the procurement was going to deliver anyway. Agencies must approach economic benefits as a deliberate, value-add intervention outside the core requirements of the procurement.
Examples include, but are not limited to:
- using New Zealand businesses, including small-to-medium enterprises and regional businesses in delivering goods and services, either directly or as a subcontractor or in the supply chain
- making better use of New Zealand resource, such as increasing workforce participation, providing training or apprenticeships, improving the pay or conditions of New Zealand workers or using spare industrial capacity
- developing New Zealand industry capabilities or capacity
- developing and adopting innovative products or practices that benefit New Zealand communities
- creating export opportunities, boosting a businesses’ domestic supply chain and/or international competitiveness
- considering the sustainability and/or environmental benefit to New Zealand
- contributing to positive social and cultural outcomes in New Zealand communities.
Economic benefits are part of the overall assessment of 'public value' and form part of evaluating good outcomes.