Increase access for New Zealand businesses
Explains the circumstances where agencies must incorporate priority outcome 1.
- For designated contracts, agencies must consider how they can create opportunities for New Zealand businesses.
- Agencies must have regard to guidance published by MBIE on how to effectively involve New Zealand businesses in contract opportunities including Māori, Pasifika, and regional businesses, as well as social enterprises.
- Agencies must conduct sufficient monitoring of designated contracts to ensure that commitments made in contracts are delivered and reported on.
Find out what the designated contracts for this Rule are, on the broader outcomes page.
For large procurements, consider if the procurement can be structured into separate parts and published as a tender with separate subcategories.
Structuring large contracts into smaller parts 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.
Structuring larger contracts into smaller parts also helps enable Māori businesses and Pasifika businesses to participate as they, like most New Zealand businesses, are often smaller and not able to compete for large contracts. However, you must not split a procurement to avoid applying the Rules.
If you cannot structure a large contract into smaller parts and only large businesses are able to tender for the contract, consider engaging with suppliers on how smaller New Zealand businesses can be included in the supply chain.
You should also engage with your suppliers on larger contracts about how they can incorporate Māori businesses and Pasifika businesses in their supply chains, or provide opportunities for Māori and Pasifika workers.
How Rule 3 works with Rule 17
You can create opportunities for local, small Māori and Pasifika businesses to participate, but these opportunities must not preclude other suppliers. The decision on contract award must be determined by which supplier provides best public value.