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Rule 16:
Broader outcomes

Explains what broader outcomes are, and where agencies must incorporate them in their procurement activities.

  1. Each agency must consider, and incorporate where appropriate, broader outcomes when purchasing goods, services or works.
  2. Broader outcomes are the secondary benefits that are generated from the procurement activity. They can be environmental, social, economic or cultural benefits.
  3. Where contracts have been designated by Cabinet and/or Ministers of Finance and State Services to achieve a specific priority outcome (Rules 17-20), agencies must include requirements relating to that outcome in their procurement. Agencies can choose to incorporate other outcomes if appropriate.
  4. Each agency must ensure that broader outcomes are incorporated in a way that does not discriminate against any supplier or result in any offsets (Rule 3).
  5. Agencies must conduct reasonable due diligence and manage the contract to ensure incorporated priority outcomes are delivered.

What are broader outcomes?

Broader outcomes are the secondary benefits that are generated by the way a good, service or works is produced or delivered. These outcomes can be social, environmental, cultural or economic benefits, and will deliver long-term public value for New Zealand.

Broader outcomes require you to consider not only the whole-of-life cost of the procurement, but also the costs and benefits to society, the environment and the economy.

Priority outcomes

Cabinet has taken a targeted approach to leveraging broader outcomes and is placing greater requirements on agencies to leverage a priority set of broader outcomes. These areas are:

  • increase New Zealand businesses’ access to government procurement: increasing the number of New Zealand businesses contracting directly to government, and within the supply chain. This includes Māori businesses and Pasifika businesses
  • increase the size and skill level of the domestic construction sector workforce: the government is leveraging procurement through construction to encourage businesses to increase the size and skills of their workforces
  • improve conditions for workers and future-proof the ability of New Zealand businesses to trade: this priority protects workers from unfair and unsafe behaviour, and incentivises well-performing firms while ensuring they are not undercut by firms who have reduced costs through poor labour practices
  • support the transition to a net zero emissions economy and assist the Government to meet its goal of significant reduction in waste by 2020 and beyond.

To maximise the effects of these priorities, government will designate contracts or sectors where one or more of the priority outcomes must be implemented.

For example, the All-of-Government motor vehicles contract is a designated contract for the priority: Support the transition to a net zero emissions economy. This means that agencies must take this priority into account when purchasing new vehicles.

To view which contracts have been designated by Cabinet and Ministers of Finance and State Services for each priority outcome, visit broader outcomes.