Introduction
This policy guide is intended to help government departments1 and other taxpayer-funded agencies to support the Government's procurement policy. It is hoped that State-Owned Enterprises (SOEs) and local authorities will also base their procurement approach on this guide. It complements, and should be read in conjunction with, the detailed good practice guidance offered in the Auditor-General's June 2001 publication Procurement: A Statement of Good Practice [link to OAG website].
In New Zealand's state sector management context, Chief Executives are responsible and strictly accountable for the efficient and effective operation of their agencies, and have substantial managerial discretion in operational matters such as procurement. Accordingly, this guide generally does not set down prescriptive purchasing rules or procedures.
Government departments are now, however, required by Cabinet to follow the Mandatory Rules for Procurement by Departments which have been in effect since 1 May 2006, and other agencies are encouraged to adopt the same procedures.
At the same time, managerial support of the procurement policy is crucial for its success. CEOs are asked to ensure that this policy guide is reflected in their agencies' internal procedures and purchasing manuals. Procurement managers should take similar steps to ensure that consultants, prime contractors and other agents engaged to advise on or assist with procurement are aware of the Government's policy and help the agency to support it.
The procurement policy has general application to acquisition by purchase, hire, lease, rental, exchange and competitive tendering and contracting (outsourcing) arrangements. In this guide the focus is on purchasing by agencies of goods and services either directly or through a third party, and the terms "procurement" and "purchasing" are used interchangeably.
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