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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 that has been approved by the Procurement Functional 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 (eg vehicles, laptops, and recruitment services).

Rule 58: All-of-Government Contracts

Allowable reduction

An agency may reduce the minimum time period for tender response deadlines in three circumstances, namely if:

  • it has listed the contract opportunity in its Annual Procurement Plan not less than two months and not more than eight months before the publication of the Notice of Procurement
  • all tender documents are made available electronically at the same time as the publication of the Notice of Procurement
  • it accepts responses electronically.

The number of business days for each allowable reduction is specified in Rule 31.

Rule 30: Minimum time periods

Rule 31: Allowable reductions

Rule 39: Other tender documents

Annual Procurement Plan (APP)

An agency's list of planned contract opportunities that meet or exceed the value threshold. It is a rolling list covering at least the next 12 months.

Rule 21: Annual procurement plans

Application to Qualify (ATQ)

An application by a supplier to be included in an agency’s pre-qualified suppliers List. A supplier must prove it has the capability and capacity to deliver specific types of goods, services or works to be included in the list.

Rule 56: Pre-qualified suppliers list

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 GETS.

Approaching the market

B

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 14: Exemption from open advertising

Rule 44: Reasons to exclude a supplier

Broader outcomes

Broader outcomes are the secondary benefits which are generated due to the way goods, services or works are produced or delivered. They include economic, environmental, social and cultural outcomes.

Rule 16: Broader outcomes

Business activities

Any activity that is performed with the goal of running a business. For the private sector, these are activities associated with making a profit (eg operations, marketing, production or administration).

Rule 28: Pre-conditions

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 12: Opt-out procurements

Rule 63: Intellectual property

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 26: Delivery date

Rule 65: Business cases and investment decisions

C

Clear business day

One full business day from 9am to 5pm.

Rule 32: Business day

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 14: 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 33: Fair application of time

Commercially sensitive information

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

Rule 4: Protection of suppliers' 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 (eg the London Metal Exchange and the Chicago Board of Trade).

Rule 14: Exemption from open advertising

Common Capability contracts (CCs)

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

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

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

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

Rule 60: Common capability contracts

Competition

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

Rule 4: Protection of suppliers' information

Rule 14: Exemption from open advertising

Rule 24: Procurement advice

Competitive Dialogue

A type of open procurement process often used where there is no known solution in the market place. It involves a structured dialogue phase with each shortlisted supplier who invents a possible solution to meet the agency's needs. Shortlisted suppliers are often paid for their participation in the dialogue phase. All shortlisted suppliers are invited to respond to a Request for Proposal or Request for Tender.

Guide to Competitive Dialogue [PDF, 430 KB]

Rule 37: Notice of Procurement

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.

Guide to conflict of interest [PDF, 307 KB]

Rule 2: Integrity

Contract Award Notice

A notice containing the information listed in Rule 45.2.

Rule 14: Exemption from open advertising

Rule 48: Contract award notice

Rule 57: Panel of suppliers

Contract opportunity

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

Rule 14: Exemption from open advertising

Rule 24: Procurement advice

Rule 28: Pre-conditions

Rule 31: Allowable reductions

Rule 35: Open advertising

Rule 36: GETS listing

Rule 43: Treatment of responses

Rule 44: Reasons to exclude a supplier

Rule 56: Pre-qualified suppliers list

Rule 57: Panel of suppliers

Crown Research Institutes

Companies established under the Crown Research Institutes Act 1992.

State Services Commission website has a full list of Crown Research Institutes.

Rule 5: Who the Rules apply to

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 is deemed to be late and may not be accepted by the agency.

Rule 36: GETS listing

Designated contracts

These are contract categories identified by Cabinet in which priority outcomes must be included and published online.

Rule 16: Broader outcomes

Rule 17: Increase access for New Zealand businesses

Rule 18: Construction skills and training

Rule 19: Improving conditions for New Zealand workers

Rule 20: Transitioning to a net zero emissions economy and designing waste out of the system

Direct source

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

Rule 14: Exemption from open advertising

Discrimination

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

Rule 3: Non-discrimination

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 45: E-auction

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 12: Opt-out procurements

Evaluation criteria

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

Rule 38: Content of notice of procurement

Exemption from open advertising

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

Rule 14: Exemption from open advertising

F

Framework agreement

Usually used in relation to panel contracts. It is 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 a contract for supplying the covered goods, services or works.

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 57: Panel of suppliers

Functional Leader

A government Chief Executive appointed by Cabinet to drive performance across the State Services in a particular area, eg procurement, ICT and property.

Rule 48: Contract award notice

Rule 53: Reporting

Rule 58: All-of-Government contracts

Rule 59: Syndicated contracts

Rule 60: Common capability contracts

Rule 62: Approved Government Model Templates

Rule 66: Investment reviews

Rule 70: Procurement capability index

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 that is published on GETS. It includes key information such as the:

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

Rule 36: GETS listing

Goods

Items which are capable of being owned. This includes physical goods and personal property as well as intangible property such as Intellectual Property (eg a software product).

Rule 6: When the Rules apply – goods or services or refurbishment works

Rule 7: When the Rules apply – new construction works

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 12: 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 to perform in return for the money.

Rule 11: Non-procurement activities

Rule 12: Opt-out procurements

GST

Goods and Services Tax (GST) is a tax on most goods and services produced in New Zealand, most imported goods, and certain imported services. GST is added to the price of taxable goods and services.

Rule 8: Estimating value

Guidance

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

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 12: Opt-out procurements

I

Invitation to Participate (ITP)

An invitation to suppliers, published on GETS, to apply to be included in a competitive dialogue process.

Rule 34: Minimum time periods by process

Invitation to Qualify (ITQ)

An invitation to suppliers, published on GETS, to apply to be included in an agency's pre-qualified suppliers list.

Rule 56: Pre-qualified suppliers list

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 24: Procurement advice

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 8: Estimating value

Minimum time periods

The least amount of time, set by the Rules, that an agency must allow suppliers to respond to a particular contract opportunity.

Rule 30: Minimum time periods

Rule 34: Minimum time periods by process

Multi-step process

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

Rule 34: Minimum time periods by process

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. ie 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 (eg electrical wiring, water, heat, sound), fencing and railing construction work, other installation work (eg installation of lifts and escalators and moving sidewalk), fire escape equipment and construction work (eg 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 (eg 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: When the rules apply - new construction works

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.

Rule 17: Increase access for New Zealand businesses

Notice of Procurement

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

Rules 37: Notice of procurement

Rule 38: Content of Notice of Procurement

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 4: Protection of suppliers' information

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.

Rule 3: Non- discrimination and offsets

Open advertising

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

Rule 13: Requirement to openly advertise

Opt-out procurements

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

Rule 12: 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 58: All-of-Government contracts

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 57: Panel of suppliers

Panel Supplier

A supplier included in a panel of suppliers.

Rule 57: Panel of suppliers

Pre-conditions

A condition that a supplier must meet to be considered for a particular contract opportunity.

Rule 28: Pre-conditions

Pre-qualified supplier

A supplier included in a pre-qualified suppliers list.

Rule 56: Pre-qualified suppliers list

Pre-qualified Suppliers List

A list of suppliers an agency has pre-approved as having the capability and capacity to deliver specific goods or services. It is the New Zealand government equivalent of the World Trade Organization agreement on government procurement’s 'multi-use list'.

Rule 56: Pre-qualified suppliers list

Principles

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

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

Rule 1: Principles and the Charter

Priority outcomes

The following four priority outcomes have been identified by Cabinet to be leveraged by government procurement:

  1.  Increase New Zealand businesses’ access to government procurement
  2. Increase the size and skill of the domestic construction sector workforce
  3. Improve conditions for workers and future-proof the ability of New Zealand business to trade, and
  4. Support the transition to a net zero emissions economy and design waste out of the system.

Each priority outcome is targeted at specific focus areas. You can find these focus areas on Broader outcomes.

Rule 15: Planning

Rule 16: Broader outcomes

Rule 17: Increase access for New Zealand businesses

Rule 18: Construction skills and training

Rule 19: Improving conditions for New Zealand workers

Rule 20: Transitioning to a net low emissions economy and designing waste out of the system

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.

Rule 48: Contract award notice

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 an explanation of the broader outcomes an agency will seek to achieve through the procurement.

Rule 15: Annual procurement plans

Prototype

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

Rule 14: Exemption from open advertising

Public Sector

This includes agencies in the:

  • Public service (departments and ministries)
  • the wider State Services (eg 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 (eg 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).

State Services Commission website has a full list of New Zealand's State sector organisations.

Rule 5: Who the Rules apply to

Public Service

The New Zealand government public service departments and ministries listed in Schedule 1 of the State Sector Act 1988.

State Services Commission website has a full list of New Zealand's State sector organisations.

Rule 6: Who the Rules apply to

Public Private Partnerships (PPPs)

A long-term contract for the delivery of a service, involving building a new asset or infrastructure (eg 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.

Rule 10: Types of contract

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 any Broader Outcomes you are trying to achieve and
  • 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.

Rule 3: Non- discrimination and offsets

Rule 12: Opt-out procurements

Rule 46: Awarding the contract

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 6: When the Rules apply – goods or services or refurbishment works

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 34: Minimum time periods by process

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 34: Minimum time periods by process

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 34: Minimum time periods by process

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 31: Minimum time periods by process

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 34: Minimum time periods by process

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.

Rule 37: Notice of Procurement

Rules

A short name for the Government Procurement Rules, which are the Rules 1 to 71 and the definitions in this section. Information in boxes and diagrams accompanying the Rules are not part of the Rules but may be used to help with understanding the 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 14: Exemption from open advertising

Rule 21: Annual procurement plans

Rule 48: Contract award notice

Rule 55: Types of supplier lists

Rule 57: Panel of suppliers

Services

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

Sometimes services are difficult to identify because they are closely associated with a good (eg 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.

Rule 6: When the Rules apply - goods or services or refurbishment works

Sourcing

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

State Sector

This includes:

  • the Public service (departments and ministries)
  • the wider State Services (eg Crown Entities, Crown Research Institutes, entities listed in Schedules 4 and 4A of the Public Finance Act 1989, and School Boards of Trustees)
  • offices of Parliament, Parliamentary Service and the Office of the Clerk of the House of Representatives
  • Tertiary Education Institutes
  • State-owned enterprises

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

Rule 5: Who the Rules apply to

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 State Services Commission website.

Rule 5: Who the Rules apply to

Sufficient time

The time a government agency must give suppliers to respond to a Notice of Procurement, to support:

  • quality responses
  • the integrity of the process
  • the agency’s reputation as a credible buyer.

Rule 29: Sufficient time

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 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 and these can exist simultaneously.

Rule 2: Integrity

Rule 25: Subcontracting

Rule 44: Reasons to exclude a supplier

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.

Rule 49: Debriefing suppliers

Syndicated contracts

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

Syndicated contracts typically involve 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.

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

Rule 59: Syndicated contracts

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 27: Technical specifications

Tender watch code/s

Codes used on 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.

Rule 36: GETS listing

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.

Third party agent

A party who is contracted to manage a procurement process on behalf of an agency. The agency remains responsible and accountable for ensuring that the procurement complis with the Governement Procurement Rules.

Rules 23: Third-party agents

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 (eg 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.

Getting started

U

Unsolicited unique proposal

An approach initiated by a supplier proposing a unique solution which is not available in the market place.

Guide to unsolicited unique proposals [PDF, 304KB]

Rule 14: Exemption from open advertising

V

Value threshold

The minimum New Zealand dollar value at which the Rules apply to a particular procurement type. It excludes GST.

Rule 6: When the Rules apply - goods or services or refurbishment works

Rule 7: When the Rules apply - new construction works

Rule 8: Estimating the monetary value of procurement

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 12: Opt-out procurements

Whole of government direction

The whole of government direction regarding procurement functional leadership, given by the Ministers of Finance and State Services on 22 April 2014, under section 107 of the Crown Entities Act 2004 (notified in New Zealand Gazette No. 65 on 19 June 2014).

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 on the State Services Commission website.

Rule 5: Who the Rules apply to

Works

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

Rule 6: When the Rules apply - goods or services or refurbishment works

Rule 7: When the Rules apply - new construction works

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.

Rule 6: When the Rules apply to

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