Key issues in current procurement practice What’s hot & what’s not

Background Improvements in Government procurement identified as an initiative at 2009 Job Summit Reform targets transformation of procurement policy and practice Opportunity to enhance participation by NZ businesses Need to obtain supplier feedback on doing business with government

Government Objectives Better access for NZ businesses to govt opportunities Less red tape A standardised approach by agencies Better supplier management Increased capability & scale of industries supplying govt More projects delivered to time and budget

Perspectives & Perceptions Important to gain perspectives from business community Need to gain more specific information about supplier concerns Aim to check perceptions against reality

Approach Selection of NZ businesses & representative bodies invited to participate in survey Selection of government agencies interviewed Review of tenders listed on GETS

Plan Confidentiality agreed - identities protected Free and frank answers Based on direct experience and perceptions Results analysed to identify emerging themes Research helps shape the scope of the reform programme

Business community Businesses who contract with government or would like to Mix of suppliers and industry bodies from around NZ Range included: a. sole traders to multinationals b. suppliers of both products & services c. mix of manufacturers, resellers, prime contractors, sub- contractors and service delivery agents

Government Sector Agencies from across government sector Range included: a. policy & operations b. small & large

What we heard Common themes emerged Focus was more on process

What we heard (cont) Variety of contracting documents Short tender timeframes Variable forward notice of opportunities Processes sometimes unclear Difficulty balancing innovation against risk

What we heard (cont) Supplier debriefing Opportunities to build business relationships Use of alternative procurement methods Procurers’ skills Suppliers’ skills Reluctance to complain

Focus for development Introduce standard documentation Improve agency & supplier procurement capability Improve procurement practice Adopt strategic procurement approaches Enhance approaches to risk management Enable better business engagement Improve contract management

Criteria: Benefit to Business Delivering better value for govt Better access for business Less red tape Standardised approach Better supplier management Increased business capability More projects delivered on time & budget Overall benefit to businesses Overall benefit to agencies Criteria: Ease of Implementation MED resources:   $ Acceptability to business Acceptability to agencies Resource implications for business Resource implications for agencies Also considered if there were FTA implications Projects & Prioritisation

Procurement Capability Standard conditions of contract Standard tools & templates Practice Guidance Notes Initiatives - Year 1

Forward planning by central agencies Suppliers Guides to doing business with government Review & consolidate procurement policies Initiatives – Year 1 (cont)

Question & Answer Session What’s hot & what’s not