Introduction
1. These Rules set out mandatory standards and procedural requirements for the conduct of procurement by government departments (defined for this purpose as the "public service departments" listed in the Schedule to the State Sector Act 1988, plus New Zealand Defence Force and New Zealand Police). The Rules reflect and reinforce New Zealand's established policy of openness and transparency in government procurement. They are based on, but not limited to, the treaty obligations of New Zealand under Chapter 11 of the Trans-Pacific Strategic Economic Partnership Agreement with Brunei, Chile and Singapore (TPSEPA, also known as the P4 Free Trade Agreement). The Rules are to be applied by departments in their procurement globally to facilitate competitive participation by domestic and foreign suppliers in New Zealand's government procurement market.
Pre-Existing Commitments to Australia and Singapore
2. The Australia New Zealand Government Procurement Agreement (ANZGPA) establishes a single ANZ market for government procurement, without limitation by value threshold. While these Rules have general application, they must not be interpreted as reducing the scope of departments' wider obligation under the ANZGPA to accord Australian suppliers non-discriminatory treatment and equal opportunity to compete, on a value for money basis in their procurement generally.
3. New Zealand has similar non-discriminatory obligations to Singapore under the existing bilateral Closer Economic Partnership Agreement (CEP). In this case however, a value threshold applies, as under these Rules. Departments conducting their procurement within the existing policy and good practice framework (see paragraph 4 below) and applying these Rules will generally meet our CEP obligations to Singapore. Should any conflict arise in practice, advice should be sought from the Ministry of Economic Development.
Continuing Policy and Good Practice Framework
4. The Government continues to expect its departments to conduct all their procurement within the framework of the policy principles1 set out in the Policy Guide for Purchasers issued by the Ministry of Economic Development , and the good practice guidelines set out in "Procurement: a Statement of Good Practice" issued by the Office of the Auditor-General. For construction procurement, departments should note that the Auditor-General also encourages use of the document "Principles of Best Practice: Construction Procurement in New Zealand", issued by the New Zealand Construction Industry Council.
5. Although these Rules are more prescriptive, they are designed to be generally consistent with the policy and good practice principles mentioned above. Should any points of conflict arise, however, the Rules must prevail.
6. Departments are also reminded that in all their procurement activities they continue to be accountable for observing the relevant minimum standards of behaviour (e.g. in relation to integrity and confidentiality of information) required by law or government direction (e.g. the Code of Conduct issued by the State Services Commissioner).
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