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​​Procurement capability index

​The procurement capability index (PCI) is a self-assessment tool that measures agencies' procurement capability.

All agencies that are mandated to use the Government Procurement Rules must submit their ​​procurement capability index (PCI) assessment to New Zealand Government Procurement (NZGP) annually (Rule 70).

The PCI takes an agency-wide view of procurement capability and covers the complete cycle of procurement across eight categories:

  • Strategy and outcomes
  • Commercial and social outcomes
  • Governance and assurance
  • Risks and benefits
  • Planning and sourcing
  • Managing for results
  • People strategy
  • Building capability

The PCI directly supports and is linked to the significant service contracts framework, giving senior leadership an evidence-based assessment of agency strengths and opportunities for improvement.

Significant service contracts framework

It is important that agencies include all procurement activities (such as ICT, social and commercial) from across the organisation, and consolidate this within their return.

The annual PCI submission provides NZGP with a snapshot of procurement capability across mandated agencies (and other agencies who choose to use the tool). We use this information to help identify capability improvement initiatives across government and offer targeted support to agencies.

Use the PCI self-assessment to:

  • Understand your strengths and identify opportunities for improvement across all your procurement activity
  • Monitor development of your procurement maturity
  • Equip your senior leadership team with an evidence-supported assessment of your agency’s procurement capability.

View the video of how Pāmu Farms of New Zealand are using PCI to assess their procurement function, set priorities and development goals, and raise the profile of the procurement team with internal stakeholders.

Pāmu Farms of New Zealand video (You will need to be logged into Hīkina to access this content)

PCI self-assessment tools and guides

Your designated procurement lead and approver can access your agency’s PCI self-assessment through Self-Assess. If you’re not sure who your designated procurement lead is or your agency doesn’t have access to the PCI in Self-Assess, email the Procurement team. If you have forgotten your Self-Assess credentials, email the Self-Assess team or use the “forgotten password” link on the Self-Assess login page.

Self-Assess

We have a spreadsheet based PCI self-assessment tool that may be better suited to smaller agencies. We can provide this on request, but note this version has limited analytics. If you aren’t sure which tool is right for you, email the Procurement team.

PCI and the investor confidence rating assessment

The investor confidence rating (ICR) is a three-yearly assessment of investment intensive agencies performance managing investments and assets that are critical to the delivery of New Zealand government initiatives. More on the process can be found on the Treasury website.

Investor confidence rating - The Treasury

Your ability to procure service critical goods and services, manage suppliers and providers and work with markets and sectors is an essential part of good investment and asset management. The PCI is included as a component of the ICR assessment with a weighting of 5% of the total score.

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