1. User instructions This ppt deck is designed to provide a basic presentation for internal use in your organisation. It includes notes for each slide as well. 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 select the right slide from slides 9, 10 or 11 Delete this slide once you are done 3 rd Edition Rules overview (1 hour presentation)

2. Government Rules of Sourcing An overview of the Rules 3 rd Edition 2015 Meeting name meeting date

3. Rules and Principles

4. What are the Rules? GOVERNMENT RULES OF SOURCING The Rules are the government’s standards of good practice for government procurement. The Rules were first published 1 October 2013 The current version was endorsed by Cabinet on 30 March 2015 and applies from 1 July 2015.

5. The whole procurement lifecycle! While the Rules focus mainly on the sourcing stages of the procurement lifecycle, you must plan properly to be able to comply with the Rules What do the Rules cover?

6. Why are the Rules Important? Strengthen accountability Promote our values Encourage commercial practice Support economic development Build high-performing public service

7. Rule 6 Who do the Rules apply to? Public Service departments are the core departments and ministries listed in the State Sector Act 1988, Schedule 1. State Services 1 is the State Services agencies covered by the Whole of Government Direction. These include: ›Crown Agents ›Autonomous Crown Entities ›Independent Crown Entities ›Crown Entity companies ›Public Finance Act Schedule 4A companies State Services 2 includes: ›School Boards of Trustees ›Crown Entity subsidiaries ›Public Finance Act Schedule 4 companies ›Reserve Bank of New Zealand

8. Interpretation Our agency is required to apply the Rules All ‘must’ rules are mandatory All ‘should’ rules are good practice Select this slide if your agency is REQUIRED to apply the Rules and delete slides 10 and 11. Context to assist interpretation (These do not form part of the Rules.) more information definitions guides tools templates examples

9. Interpretation Our agency is expected to apply the Rules All ‘must’ rules are good practice All ‘should’ rules are good practice Select this slide if your agency is EXPECTED to apply the Rules and delete slides 9 and 11. Context to assist interpretation (These do not form part of the Rules.) more information definitions guides tools templates examples

10. Interpretation Our agency is encouraged to apply the Rules All ‘must’ rules are good practice All ‘should’ rules are good practice Select this slide if your agency is ENCOURAGED to apply the Rules and delete slides 9 and 10. Context to assist interpretation (These do not form part of the Rules.) more information definitions guides tools templates examples

11. The Five Principles of Government Procurement Rule 1

12. When do they apply? Rules 7, 8, 9 & 11 Type of procurementValue threshold Goods Services Refurbishment works $100,000 + New construction$10 million + The Rules apply to all types of contracts!

13. The Rules What do you need to do?

14. Follow good practice Rule 2 Act, and demonstrate you have acted, in accordance with your agency’s policies (e.g. Conflicts of Interest)

15. Planning procurement Agencies reporting requirements have been changed to:  Streamline reporting between Annual and Significant Procurement Plans  Reduce Extended Procurement Forecasts to four years to align to the government’s planning cycle Annual Procurement Plans, Significant Procurement Plans and Extended Procurement Forecasts Rules 17, 18, 19 & 57

16. Document your procurement activity Develop a CLEAR TECHNICAL SPECIFICATION Rule 24 Rule 25 Only include ESSENTIAL PRE-CONDITIONS Rule 35 Decide on your EVALUATION CRITERIA Rule 39 Stick to your EVALUATION CRITERIA

17. Decide on your procurement process Rules 31 & 42 One-Step Process Request for Quote (RFQ) Request for Tender (RFT) Request for Proposal (RFP) Multi-Step Process Registration of Interest (ROI) Request for Tender (RFT) Invitation to Participate in Competitive Dialogue Request for Proposal (RFP) E-Auctions

18. Basic Rule: Advertise “Wherever possible an agency should use open competitive procurement processes to give all suppliers the opportunity to compete.” Government should openly advertise Rules 14 & 32

19. Advertising List the opportunity on GETS Use a NOTICE OF PROCUREMENT All participating suppliers MUST BE NOTIFIED of any change to the process or requirements in the Notice of Procurement Rules 33, 34 and 39

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

21. Minimum time period “10 day” rule gone New minimum time periods for advertising by process Procurement processMinimum time period Request for Quote 13 business days Registration of Interest Expression of Interest 20 business days Request for Tender Request for Proposal 25 business days Rule 27

22. Dealing with responses Rules 40 & 41 Treat suppliers fairly

23. Awarding the contract Award the contract to the supplier/s who: Demonstrates a full understanding and capability to deliver the contract Can meet the contract conditions Offer either Best ‘value for money’ Lowest price Make sound decisions based on ‘value for money’, without discrimination Rules 2, 40 & 41

24. Informing suppliers Once decisions have been made: Inform the unsuccessful suppliers Publish a Contract Award Notice Rule 46

25. Debriefing suppliers All suppliers must have the opportunity to be debriefed! You must offer each unsuccessful supplier a debrief If a supplier asks for a debrief, you must debrief that supplier within 30 business days Rules 44 to 46

26. Managing complaints Rule 47 An agency must manage complaints by considering and responding promptly and impartially to the complaint received. Suppliers who may complain include suppliers that have not submitted a response to a Notice of Procurement, they may have good reason for making a complaint.

27. Managing your contract Good contract management includes: Paying suppliers promptly Maintaining records (Public Records Act 2005) Ensuring records are available for audit Rules 48 to 50

28. The Rules When the Rules do not apply

29. Non-Procurement Activities Employing staff Disposals and sales by tender Investments, loans and guarantees Gifts, donations and any form of unconditional grants Statutory and ministerial appointments Core Crown Legal Matters. The rules don’t apply to activities that are deemed to be non- procurement Rule 12

30. Non-Procurement Activities Examples include: Non-contractual arrangements Arrangements between government agencies Purchasing/renting land or buildings Conditional grants Essential security interests Rule 13 Sometimes you can opt out of applying the Rules

31. Exemption from Advertising Emergency Following an open tender Only one supplier (eg for technical reasons) Prototype or design contest Unsolicited unique proposal Certain procurements are exempt from advertising on GETS Rule 15

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

33. How Does that Work? Note: Different processes allow different numbers of days for reductions. 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 Period 15 business days

34. The Rules Some other matters

35. Suppliers Types of Supplier Lists Registered Supplier Lists Pre-qualified Supplier Lists Panel of Suppliers (including Syndicated Contracts and Collaborative Contracts) Rules 51, 52, 53, 54

36. All-of-Government Contracts Syndicated Contracts Common Capability Contracts Supplier Contracts Rules 55, 56, 57

37. References other government requirements eg: Web standards Geospatial information Intellectual property Better business cases and investment decisions Investment reviews Gateway assurance Employee transfer costs Other Rules you need to know Rules 58 to 66

38. What’s New? Government Rules of Sourcing 3 rd Edition

39. 3 RD Edition Key changes: extending the mandatory application of the Rules to a wider range of agencies (Rule 6)Rule 6 applying certain Rules to opt-out procurements (Rule 13)Rule 13 extending the opt-out for procurement between departments to a wider range of agencies (Rule 13)Rule 13 making it clear that when a government agency is using weighted evaluation criteria to select a supplier, it must include the weightings in its Notice of Procurement (Rule 35)Rule 35 The Rules have also been modified to clarify particular issues and provide additional guidance to support you to interpret and apply the Rules.

40. Help

41. Maximising value & optimising results Total cost of ownership Constructive market engagement Competitive dialogue Unsolicited unique proposals Extended procurement forecasts Review of significant business cases Common capability contracts Jargon Buster More guidance

42. More Information Website: procurement.govt.nz Email: procurement@mbie.govt.nz

43. Questions?