Government Rules of Sourcing
The Government Rules of Sourcing support good practice for procurement planning, approaching the supplier community and contracting.
Why have rules
The Rules of Sourcing help to support good market engagement, which leads to better outcomes for agencies, suppliers and New Zealand taxpayers.
A key focus of the Rules is the importance of open competition – giving all businesses the chance to participate, and giving them enough time to respond to opportunities properly. They also help to:
- align New Zealand procurement practice with international best practice
- encourage more strategic procurement approaches
- foster competition and innovation, resulting in better solutions.
Who the Rules apply to
Anyone can use the Rules to help drive good procurement practice. You must follow the Rules if your procurement is worth more than $100,000 (or $10 million for new construction works) and you're from:
- a government department
- New Zealand Police
- the New Zealand Defence Force, or
- most Crown entities.
All other government agencies are encouraged to follow the Rules.
What the Rules cover
The Rules focus mainly on the process of sourcing — sourcing covers:
- planning your procurement
- market research
- approaching the market
- evaluating responses
- negotiating and awarding the contract.
Each rule should be considered in the context of the Principles and the rest of the Rules, as well as how it relates to your particular procurement.
Exemptions from the Rules
Note: If your project is worth less than $100,000 (or less than $10 million for a new construction), you don't have to follow the Rules even if your agency is mandated, but you still have to follow the Principles.
In some circumstances, you can get an exemption or opt out of following some of the Rules.
If you're not sure whether an exemption or opt-out applies, check with us or with a procurement specialist at your agency. You must document your reasoning for the exemption and get approval from a senior manager.