• Home
• Doing Business in NZ
• Government Procurement
• Policy

• Government Procurement

• Policy

• Policy Guide - August 2007
• A-NZ Govt Framework
• International Context

Current Policy Framework

The Government expects its departments, and encourages other public sector agencies, to be guided in their procurement by the following principles:

• best value for money over whole of life;
• open and effective competition;
• full and fair opportunity for domestic suppliers;
• improving business capabilities, including e-commerce capability;
• recognition of New Zealand's international trade obligations and interests; and
• requiring sustainably produced goods and services wherever possible, having regard to economic, environmental and social impacts over their life cycle.

The Government has also endorsed the APEC Non-Binding Principles (NBPs) on Government Procurement as revised in 2006 (value for money, open and effective competition, fair dealing, accountability and due process, and non-discrimination) incorporating the 2004 APEC Transparency Standards on Government Procurement.

Note: The Ministry is currently revising this framework to emphasise that sustainability considerations should be taken into account when making value for money over whole of life decisions

Application

Under the current approach, established by Cabinet direction in 2001 [CAB Min (01) 11/18], Public Service Departments [link to SSC website], New Zealand Police and the New Zealand Defence Force are expected, and other public sector agencies (including state owned enterprises and local government) are encouraged to be guided in their procurement of goods and services by the principles of the Government Procurement Policy.

In May 2007, Cabinet agreed in principle that a single procurement policy be extended to agencies beyond core departments [CAB Min (07) 17/2B] (part of the Sustainable Business: Government procurement, Economic Transformation and Sustainability Cabinet paper - May 2007). The Ministry is currently developing proposals for the application of a single procurement policy across government, for report back to the Cabinet Economic Development Committee by November 2007.

• Government Procurement in New Zealand: Policy Guide for Purchasers - August 2007
  This guide explains the principles above and is intended to help government departments and other taxpayer-funded agencies to support the Government's Procurement Policy.
• Australian and New Zealand Government Framework for Sustainable Procurement
  Framework providing a set of high-level national principles to assist the governments of Australia and New Zealand to integrate the principles of sustainability into the procurement of goods, services and construction.
• International Context
  Documents and links relating to the government procurement aspects of New Zealand’s trade obligations and objectives.