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

Explains that the Rules apply to procurement processes for goods, services and refurbishment works that meet or exceed the relevant value threshold.

  1. The Rules apply:
    1. to the procurement of goods or services or refurbishment works, or a combination of goods or services or refurbishment works, when
    2. the maximum total estimated value (Rule 8) of the procurement meets or exceeds the value threshold of $100,000 (excluding GST).
  2. To estimate the maximum total estimated value (Rule 8) for goods or services or refurbishment works an agency must take into account:
    1. all related services (eg installation, training, servicing, and management consultancy services)
    2. all types of goods (eg operating consumables)
    3. all subcontracted goods or services or works.
  3. This rule does not apply to goods, services or refurbishment works that are purchased for commercial resale.

Value thresholds

New Zealand is party to a number of Free Trade agreements that include government procurement and Te Tiriti o Waitangi Exceptions. To ensure alignment with obligations made in these agreements, the value thresholds in the Rules are reviewed on an annual basis and may be adjusted if there are significant changes in the value of the New Zealand dollar. As of 1 October 2019, the threshold for goods or services or refurbishment works is $100,000 (excluding GST). As the Rules represent good practice, agencies can apply the Rules for procurements under this threshold.

More information on refurbishment works

In the context of the Rules, refurbishment works relates to the renovating, repairing or extension of an existing works, including an existing building, road, bridge or dam.

It does not include replacing an existing construction as this is deemed to be new construction works (Rule 7).

Example of goods purchased for commercial resale

An example of goods purchased for commercial resale could be items that a museum purchases for resale in its gift shop.

More information on disposals

Disposals at the end of the useful life of an asset are not commercial goods, services or works purchased for resale. Disposals are not subject to these Rules.

Below threshold procurement

Where procurement is below the threshold, agencies should consider if there is a capable New Zealand business, including Māori businesses, Pasifika businesses and social enterprises, that could fulfil the contract opportunity.