Explains the requirement not to intentionally avoid applying the Rules.
- An agency must not intentionally avoid applying the Rules when planning for, valuing or undertaking a procurement.
- When calculating a procurement's maximum total estimated value (Rule 8), an agency must not intentionally avoid applying the Rules by either:
- designing, structuring or dividing a procurement into separate parts
- using a non-standard or alternative valuation method to lower the estimated value.
Number of contracts
After conducting market analyses, you might decide to restructure the work into separate lots and publish a tender with multiple subcategories. You should then indicate in your Notice of Procurement the possibility, or your intention, that the procurement may be awarded in separate lots.
Restructuring large contracts into smaller lots can be helpful for small New Zealand businesses that may not be able to compete for one large contract. For instance, instead of choosing one supplier who is able to deliver a national contract, you could split a contract by region and contract with multiple small regional businesses. However, you must not split a procurement with the intent to avoid applying the Rules.
Third-party commercial supplier or broker
You can’t avoid applying the Rules by purchasing through a third-party commercial supplier.