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Tendering Procedures


Mandatory Rules for Procurement by Departments

[ Last Updated 30 August 2007 ]


Tendering Procedures8

Within this section…

Tendering to Be the "Default" Method

23. Procurement covered by these Rules is normally9 to be conducted by way of open tendering procedures in the course of which any interested supplier may submit a tender or apply to meet conditions for participation10 in a procurement process.

Notice of Intended Procurement to Be Published on GETS11

24. Departments must publish on GETS a notice inviting interested suppliers to submit a tender or apply to meet conditions of participation in the procurement process. The notice must be accessible on GETS during the entire period established for tendering or submission of an application (whether or not also published in other print or electronic media).

Content of Notices of Intended Procurement

25. The information in notices of intended procurement must include:

  1. a description of the intended procurement;
  2. any conditions that suppliers must fulfil to participate in the procurement process;
  3. the time limits for submission of tenders or applications to participate; and
  4. contact details for obtaining of all relevant documents.

Time Limits

26. Departments must publish notices of intended procurement on GETS sufficiently in advance to provide all interested suppliers with a reasonable period of time, in light of the nature, circumstances and complexity of the procurement, to obtain the full tender documentation and to prepare and submit responsive tenders by the closing date, or to apply to participate in the procurement process, where applicable.

27. The time provided between the date of publication of the notice on GETS and the final date for submission of tenders or applications to participate must in no case be less than 10 working days. (N.B. - this is to be regarded as the absolute minimum, not the norm).

Tender Documentation

28. The tender documentation must contain all information necessary for suppliers to prepare and submit responsive tenders, including the essential requirements and evaluation criteria for the award of the procurement contract.

29. Departments must either:

  1. offer direct access to the entire tender documents and any supporting documents by electronic means; or
  2. promptly make the tender documentation available at the request of a supplier who is invited to submit a tender.

Further Information

30. Departments must endeavour to reply promptly to any reasonable request for explanation or relevant information made by a supplier, provided that such information does not give that supplier an advantage over its competitors in the procedure for the award of the contract. The explanation or information provided to a supplier may be provided to all suppliers that are invited to tender.

Modifications

31. Where a department, during the course of a procurement, modifies the essential requirements and evaluation criteria of the tender documentation, it must publish such modifications on GETS or transmit them in writing to all suppliers who have requested tender documentation at the time the criteria are modified, in the same manner the original information was transmitted, and in adequate time to allow such suppliers to modify and resubmit their tenders, as appropriate.

Conditions for Participation in a Procurement Process

32. Publication on GETS of a notice inviting suppliers to apply to satisfy conditions for participation in an intended procurement process, must be sufficiently in advance for interested suppliers to prepare and submit responsive applications, and for the department to evaluate and make its determinations based on such applications.

33. Departments must consider for a particular procurement process those suppliers that request to participate and are not yet registered or qualified, provided there is sufficient time to complete the registration or qualification procedures before the award of the contract.

34. Departments must limit any conditions for participation, including financial guarantees, technical qualifications and information necessary for establishing the financial, commercial and technical capacity of suppliers, as well as the verification of qualifications, to those which are essential to ensure the firm's capability to fulfil the contract in question.

35. Departments must judge the financial, commercial and technical capacity of a supplier on the basis of both that supplier's global business activity and its activity in New Zealand, taking due account of the legal relationship between the supply organisations (e.g. in assessing resources available to the supplier).

36. Nothing in this section of the Rules precludes a department from excluding a supplier from a procurement on grounds such as bankruptcy, liquidation or insolvency, false declarations relating to a procurement, or significant deficiency in the performance of any obligation under a prior contract.

Lists of Registered or Qualified Suppliers ("Preferred Supplier Lists")

37. A department may establish for continuing use a list of suppliers registered or qualified to participate in a procurement process.12

38. A department using such a list must:

  1. make the current updated list of registered or qualified suppliers publicly available;
  2. ensure that suppliers may apply to join the list at any time; and
  3. include all qualifying applicants within a reasonable period of time, taking into account the conditions for participation and the need for verification.

39. Where a department requires suppliers to qualify for such a list before being permitted to participate in a particular procurement process, and a supplier that has not previously qualified submits an application, the department must promptly start the registration or qualification procedures and must allow such supplier to participate in the procurement process, provided there is sufficient time to complete the procedures within the time period established for the award.

40. The department must make available continuously on GETS a notice inviting interested suppliers to apply for inclusion on the list. The notice must include:

  1. a description of the goods and services for which the list of suppliers may be used; and
  2. the conditions to be satisfied by suppliers for inclusion on the list of registered or qualified suppliers.

41. Departments must notify registered or qualified suppliers of the termination of, or of their removal from the list, and state the reason for this action.

Panel Contracts

42. A department may establish, by means of a contract awarded according to these Rules, a panel of alternative suppliers from any of whom the department may at its option purchase, as and when required, identified goods or services meeting minimum requirements, including indicative or set prices or rates as appropriate, specified for provision of the goods or services over the term of the contract.

Awarding of Contracts

43. Departments must receive, open and evaluate all tenders under procedures that guarantee the fairness and impartiality of the procurement process.

44. Departments must consider for award only those tenders which, at the time of opening, conform to the essential requirements of the notice of intended procurement or tender documentation and are submitted by a supplier who complies with the conditions for participation.

45. Unless the department determines that it is not in the public interest to award a contract, it must award the contract to the supplier that has been determined to be fully capable of undertaking the contract and whose tender is determined to offer the best value for money in terms of the essential requirements and evaluation criteria set forth in the tender documentation.

46. A department must not cancel a procurement or terminate or modify an awarded contract in order to circumvent these Rules.

8 Departments choosing to make procurements under a "syndicated” contract containing a common use provision (CUP) (which provides that goods and services will be available to other government agencies on the same terms and conditions as the original contract) will be considered to have met the requirements of the Tendering Procedures section (paragraphs 23 -46), provided the syndicated contract has been awarded by a department or departments consistently with these Rules, including Valuation of Contracts (paragraph 11 above) and has been reviewed and endorsed by the Syndicated Contracts Review Board. Departments choosing to use a syndicated contract option must take steps to satisfy themselves that this represents the best value for money for their particular needs in the current market circumstances.

9 For a list of the circumstances in which open tendering need not be used, see Appendix 2: Exceptions to Open Tendering Requirement.

10 Conditions for participation means any registration, qualification or other pre-requisites that interested suppliers must meet in order to participate in a procurement process i.e. to be invited to tender or to have submissions considered.

11Government Electronic Tenders Service website

12 NB: use of such a list does not remove the requirement to publish a notice of intended procurement inviting interested suppliers not already listed to apply to meet conditions of participation in the procurement process, as in paragraph 24 above.


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