1. Rules overview (1 hour 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” and 29 “internal contact.” You will need to select the right slide from slides 9 and 10.

2. Government Rules of Sourcing An overview Meeting name meeting date

3. Introduction

4. What are the Rules? The Government Rules of Sourcing are a minimum standard of procurement practice endorsed by Cabinet.

5. What do they cover? Focus mainly on the sourcing stages of the procurement lifecycle

6. 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

7. Who do the Rules apply to? Rule 6 State Services (1) are those entities covered by the whole of government approach to procurement: Crown agents Independent Crown entities, Autonomous Crown entities Crown entity companies Crown Research Institutes must have regard to the Rules.

8. When do they apply? Type of procurementValue threshold Goods Services Refurbishment works $100,000 + (Excludes GST) New construction works$10 million + (Excludes GST) Value thresholds: Rules 7 & 8

9. Interpretation Our agency is required to apply the Rules All ‘must’ rules are mandatory All ‘should’ rules are good practice more definitions guides examples information tools templates Select this slide if your agency is REQUIRED to apply the Rules and delete slide 10.

10. Interpretation Our agency is required to “have regard” to the Rules. This means taking account of the good practice standards and other requirements in the Rules, unless there is a good reason not to. more definitions guides examples information tools templates Select this slide if your agency is a Crown Research Institute and delete slide 9.

11. Rule #1 apply the Principles Rule 1

12. Estimating value Include: everything required for full delivery options to purchase more / to extend contract all contracts that may result from the procurement Fees, commissions etc Exclude GST Estimate the maximum total value over the whole life of the contract Rule 9

13. Basic rule: advertise “Wherever possible an agency should use open competitive procurement processes to give all suppliers the opportunity to compete.” Rule 14 Government should openly advertise

14. ‘Sufficient time’ Agencies must allow suppliers sufficient time to respond Rule 26 Take into account: Nature and complexity of procurement Level of detail you need Opportunities for subcontracting Level of risk

15. Minimum time period Minimum time periods by process: Procurement processMinimum time period Request for Quote13 business days Registration of Interest Expression of Interest 20 business days Request for Tender Request for Proposal 25 business days Rule 27

16. Allowable reductions Deductions for: Prior listing in APP All documents available electronically Suppliers’ responses accepted electronically Rule 28 Note: Different processes allow different numbers of days for reductions.

17. How does that work? Example: one-step Request for Tender Minimum Time Period25 business days Allowable reductions: Prior listing in APP All documents available electronically Suppliers’ responses accepted electronically - 3 business days - 4 business days - 3 business days New Minimum Time Period15 business days

18. Contents of a Notice of Procurement Each notice of procurement must contain all the information that suppliers need to prepare and submit meaningful responses. This includes: Essential details such as the agency’s name and address and a description of the goods or services Evaluative Criteria the agency will use to assess responses, and; If weightings are to be applied these must be published in the notice.

19. Choosing supplier(s) Award contract to the supplier that:  demonstrates capability to deliver  can meet contract conditions  offers value for money (not always lowest price) Inform and debrief unsuccessful suppliers Publish contract award notice Rules 43 - 47

20. Other requirements

21. Procurement processes RFIs are not a tender process Other options:  E-auctions: shortlisted suppliers bid on price or quality.  Competitive Dialogue: shortlisted suppliers work with buyer to develop solutions and specifications Rules 42

22. Collaboration All-of-government contracts  mandatory Syndicated contracts  use if they meet your requirements Common capability contracts  mainly ICT, may be mandated for some agencies Rules 55- 57

23. Planning Annual procurement plans Extended procurement forecasts MBIE review of significant business cases :  $5M+ and/or  significant risk and/or  potential for collaboration Rules 16 - 19

24. Other rules you need to know Existing Cabinet mandates are incorporated eg:  Web standards  Geospatial information  Intellectual property  Public private partnerships  Better business cases (capital projects)  Gateway assurance Rules 58, 60 - 67

25. Opt-outs and exemptions

26. Open advertising exemptions Examples: Additional good services or works (criteria apply) Following unsuccessful open tender (eg no responses met requirements) Only one supplier (eg for technical reasons) Prototype or design contest Emergency Unsolicited unique proposal Rule 15

27. Verify and document rationale Get appropriate level of approval for exemptions Publish contract award notice for exempt procurement, including reason for exemption Opt-outs & exemptions cont’d Rule 45Rule 15 Use opt-outs and exemptions judiciously not automatically

28. Help!

29. Where can I get more information? Contact (insert internal contact) Find the Rules and procurement guidance, tools and templates at: www.procurement.government.nz.www.procurement.government.nz Sign up to the government’s procurement notice board for regular features.

30. Questions? ?