(15 minute presentation) Rules summary (15 minute presentation) User instructions This ppt deck is designed to provide a basic presentation for internal use in your organisation. You can customise it to suit your agency and your audience. Please read carefully through the slides and make any changes you feel are appropriate. You will need to add information on slide 2 “the meeting name & date” You will need to customise slide 10 “our implementation plan”

An overview A whole of Government Approach to Procurement Meeting name Meeting date

Whole of Government Approach to Procurement The Ministers of State Services and Finance have issued a direction to support a whole of government approach to procurement. This direction extends the mandatory application of the Government Rules of Sourcing (Rules) to cover Crown entities. The direction comes into force on 1 February 2015.

What are the Rules? The Government Rules of Sourcing are the minimum standard of procurement practice endorsed by Cabinet. The Government Rules of Sourcing are the government’s minimum standards of procurement practice for the planning, sourcing and awarding stages of the procurement lifecycle. They were endorsed by Cabinet (CAB Min (13) 10/4A) were launched in April 2013.

Why are the Rules important? Set the standard for procurement Strengthen accountability More consistent process Encourage commercial practice Get more suppliers involved in delivering to government Set the standard The Rules set the standard for procurement across government. By applying the Rules we demonstrate that our government is open, transparent and accountable. This will build greater public trust that our spending is well planned and well executed. Strengthen accountability Government agencies must account for how they spend taxpayers’ money. The Rules, along with other procurement guidance, provide a framework that promotes responsible spending. Consistency The Rules also establish processes that are consistent and predictable, making it easier for agencies and suppliers to engage with each other. To encourage commercial practice The Rules aim to encourage better commercial practice by promoting early market engagement and continued open dialogue with suppliers. They introduce Competitive Dialogue. The Rules help us to design processes that are robust, and build confidence in government procurement practices. To support economic development The Rules are aimed to encourage NZ business participation in government contract opportunities. More NZ suppliers delivering to government is good for our economy and helps suppliers to build capacity and capability to deliver internationally. The Rules incorporate New Zealand’s international treaty obligations. Free Trade Agreements provide increased export opportunities for NZ businesses.

Who do the Rules apply to? State Services (1) are those entities covered by the whole of government approach to procurement. These are: Crown agents Independent Crown entities, Autonomous Crown entities Crown entity companies Crown Research Institutes must have regard to the Rules. Application The Rules are mandatory for Public Service departments, New Zealand Police, New Zealand Defence Force and crown entities covered by the Whole of Government Approach to procurement (state services 1). Crown Research institutes must have regard to the Rules. For these agencies, except Crown Research Institutes, where the Rules use the term must the Rule is mandatory where the Rules use the term should this indicates good practice. Other agencies in the wider Public Sector are encouraged to apply the Rules as good practice. These agencies can interpret ‘must’ rules as ‘should’. Rule 6

When do they apply? Type of procurement Value threshold Goods Services Refurbishment works $100,000 + (Excludes GST) New construction works $10 million + If you are unable to estimate the value you must assume that the Rules apply. Rules 7 & 8

What does this mean for us?

From 1 February 2015 we will need to apply the Rules From 1 February 2015 we will need to apply the Rules. This means following requirements under the Rules including: Rule 14 Requirement to openly advertise on the Government Electronic Tenders Service (GETS) over relevant value thresholds Rule 27 minimum time periods for notices of procurement Rule 43 requirement to award contracts based on value over whole of contract life (which is not always the cheapest price) Rule 35 inclusions of evaluation criteria and, where weightings are to be applied, the inclusion of weightings in the notice of procurement Rule 45 publication of a Contract Award Notice on GETS Rule 46 offer debriefs to suppliers Rule 19 review of significant business cases Rule 59 use Government Model Contracts and any other Approved Government Model Templates

Our implementation plan Action Date Attend training date Notify staff – intranet campaign Update our policy Brief managers Train procurement staff Rules ‘go live’ Please customise this slide to reflect your agency’s implementation plan.

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