[ Last Updated 29 August 2007 ]
Short Description
To provide leadership on sustainability and improve government procurement practice, the government has introduced new requirements covering sustainable procurement, syndicated procurement and the consideration of New Zealand tenders.
To provide leadership on sustainability and improve government procurement practice, the government has introduced new requirements covering:
Principles of sustainable government procurement – Australia and New Zealand Government Framework for Sustainable Procurement
New Zealand and Australian governments have developed a joint framework for sustainable government procurement. The Framework provides a set of guiding principles and best practice examples for public sector organisations.
For further information, see the Australia and New Zealand Government Framework for Sustainable Procurement.
Sustainable Procurement: New mandatory standards, guidelines and targets
On 30 August 2007, Hon. Lianne Dalziel announced that core government departments will now be required to purchase more environmentally friendly and sustainable goods and services (see the media release on the Beehive website).
Mandatory standards, guidelines and targets now apply to purchase and use of paper and timber products, light fittings, and travel arrangements - the first of a number of product and service categories to be reviewed in the coming months. Category reviews form part of the Sustainable Government Procurement Project being led by the Ministry of Economic Development.
These new requirements bring together recommendations made by Govt3 – a Ministry for the Environment programme that helps central government agencies become more sustainable – as well as other existing procurement policy.
For further information, see:
Use of Syndicated Procurement
Syndicated procurement is a well-established method of procurement collaboration. It involves agencies consolidating their procurement requirements to achieve improved outcomes through greater purchasing power and reduce tendering costs for market participants. When entering into syndicated procurement arrangements, agencies need to consider carefully the effect that this will have on the market.
A process for reviewing and endorsing Common Use Provision (CUP) arrangements has been introduced to protect the value of the CUP syndicated procurement model and in response to stakeholder concerns that agencies are increasingly inserting syndication clauses into tender documents and contracts as a matter of course.
From 1 September 2007, agencies may no longer approach the market with CUP syndicated arrangements without prior approval from the Syndicated Contracts Review Board and agencies may join only endorsed CUP contracts (except as provided for under transition arrangements).
For more information, including Frequently Asked Questions, visit the Syndicated Procurement page.
Consideration of New Zealand tenders
Cabinet has agreed that the policy of full and fair opportunity for domestic suppliers needs strengthening (CAB Min (07) 17/2B). Accordingly, departments are now required to ensure that their internal documentation of tender short-listing and contract award decisions (for contracts at or above $100,000) includes assurance of compliance with the government procurement policy, including justification for the rejection of any New Zealand tender, signed off at appropriate senior management level.
The intention of this measure is to not to mandate short-listing of New Zealand tenders in every case, but to ensure full and fair consideration, in accordance with existing policy.
Documentation must now include basic reasons for rejecting any New Zealand tender, after consideration of all relevant whole-of-life criteria, including any value-for-money benefits associated with local supply. Guidance on potential value-for-money advantages of local supply is given in the Ministry of Economic Development's publication Government Procurement in New Zealand: Policy Guide for Purchasers.
Departments are expected to apply this policy immediately, where contracts have not already been awarded.