Guide 8:
Increased use of New Zealand businesses

What this economic benefit means

Increased use of New Zealand businesses means creating opportunities for New Zealand based businesses to participate directly or through supply chains.

In particular, this participation should deliver value to New Zealand and align with procurement objectives.

This benefit is about enabling meaningful and appropriate participation, not about mandating “buy New Zealand”.

Wider impacts of using more New Zealand businesses

When procurement increases the use of New Zealand businesses:

• domestic supply chains are strengthened
• economic value is retained within New Zealand
• supplier participation and competition can improve.

Over time, this can support more resilient and responsive domestic supply markets.

Planning for using more New Zealand businesses

This guidance applies if using more New Zealand businesses has been identified as a benefit at the planning stage. When planning, consider:

• Is there a New Zealand supply base for this good or service?
• Are there opportunities for subcontracting or supply chain inclusion?
• Would increased New Zealand participation deliver additional value or resilience benefits?
• Are there barriers to supplier participation that can be addressed through this procurement?

The general guidance on planning for economic benefits applies alongside these specific considerations.

Plan to include economic benefits in the procurement

Example RFx questions for using more New Zealand businesses

Use and adapt these examples in your tender documentation to confirm whether respondents can successfully deliver this benefit.

• Describe how New Zealand businesses will be engaged in this contract, either directly or through the supply chain.
• Explain how opportunities for suppliers to participate will be made visible and accessible.
• Identify any risks to the contract’s delivery and how they will be managed.

Remember to keep requested information proportional and clear. The general guidance on approaching the market for economic benefits still applies.

Approach the market with economic benefits in mind

Indicators to measure using New Zealand businesses

You could use some of the following indicators to measure the use of New Zealand businesses in the contract. If they don’t directly fit your organisation’s context, adapt them as needed.

Keep performance measurement proportional to the procurement.

• Percentage of contract spend with New Zealand businesses (annual or per contract/project)
• Proportion of New Zealand businesses in the supply chain (including priority suppliers like small-to-medium enterprises)
• Qualitative supplier engagement outcomes (for example, surveying the suppliers' experiences)