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Rule 4:
Non-discrimination and offsets

Primary requirement

  1. Agencies must give all suppliers an equal opportunity to bid for contracts, except as provided for in Rule 8.2.

Application

  1. Agencies must:
    1. treat suppliers from another country no less favourably than New Zealand suppliers
    2. base procurement decisions on the best public value, over the whole of life of the goods, services or works.
  2. Agencies must not:
    1. discriminate against suppliers because of:
      1. the country the goods, services or works comes from
      2. their degree of foreign ownership or foreign business affiliations.
    2. ask for, take account of, or impose any offset at any stage in a procurement process. 

More information

Definition of offset

Within the context of the Rules, an offset is a condition or undertaking intended to develop the local economy or improve the balance-of-payments accounts that a supplier must fulfil in order to be awarded the contract.

Definition of discrimination

Making an unfair and prejudicial judgement for or against a person or product.

Non-discrimination

The expression “must treat suppliers from another country no less favourably than New Zealand suppliers” means a supplier will be assessed on their merits. It does not prevent you from awarding a contract to a New Zealand supplier if they present the best public value, inclusive of economic benefits sought as part of the tender process.

Direct engagement with capable New Zealand businesses is allowed below the value thresholds.

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