Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Improving public procurement capability will deliver value

Improving public procurement capability will deliver value for NZ Inc.

Clever Buying and Infrastructure NZ

Recent surveys have found strong support for improved procurement capability in New Zealand at both supplier and client levels.

Feedback from companies bidding for major contracts in New Zealand identified a number of shortfalls in current procurement practice. These include unreasonable deadlines, too much emphasis on price, misaligned questions, incorrect information in Request for Tender documents, and multiple changes to information provided to bidders – sometimes just days before submission deadlines.

“Inefficient procurement processes add extra time and cost to public projects,” says Caroline Boot, Director of procurement specialist Clever Buying. “With the estimated value of goods and services tendered by central and local government in the tens of billions each year, there’s a signficant opportunity to improve value for all New Zealanders. If those who running procurement processes are obliged to be trained and qualified to spend it wisely, then millions or even billions of dollars of public money could be saved.”

The survey findings are consistent with a poll conducted in mid-2017 by Infrastructure New Zealand.

“A staggering 96 per cent of procurement experts responding to our survey believed we cannot continue to procure infrastructure the way we are,” says Infrastructure New Zealand’s Chief Executive Stephen Selwood.

"An independent procurement agency and committed project pipeline are essential to lifting capability. A dedicated, specialist procurement body will provide a career pathway for procurement expertise in the public sector. A clear project pipeline will encourage private sector companies to invest in skills and labour.

“The NZ Transport Agency is held in high regard by the industry, but other central and local government agencies have significant room for improvement. Raising national procurement capability would deliver a strong net benefit for our economy and better services for users,” Selwood notes.

Since the early 1990s, the NZ Transport Agency has required significant procurement projects to involve an NZQA-qualified tender evaluator.

Market feedback supports wider application of a procurement qualification that’s designed specifically for New Zealand. An overwhelming 98% of survey respondents across both supplier and clients agreed that there should be a generic NZQA procurement qualification that demonstrates capability relevant to all government procurement practitioners.

Boot adds, “If a generic NZQA-accredited procurement qualification were required for procurement practitioners of significant projects (like it is for the NZ Transport Agency), then the savings – both in procurement process efficiency and in delivering services and projects to our communities – would be immense.”

The call for better procurement practice was further echoed with 99% of survey respondents agreeing that the Government should make it mandatory for at least one tender evaluator for all significant public procurements to be NZQA qualified.

“With robust procurement procedures that are run by trained and qualified professionals, it’s no wonder that there’s more confidence in the Transport Agency’s procurement processes than any other public entity,” according to Boot.

Clever Buying is leading the development of a proposal to Government to broaden the application of the NZQA procurement qualification to all major public procurements. Those with interest in providing submissions are invited to contact Caroline Boot at Clever Buying (caroline.boot@cleverbuying.com).

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Marine And Freshwater Reports: EDS Calls For Urgent Action On Marine Management

“There are some big issues to address. These include many marine species and habitats that are in serious trouble. Of the sample investigated, the report finds that 22% of marine mammals, 90% of seabirds and 80% of shorebirds are threatened with or actually at risk of extinction..." More>>

ALSO:

$7.5 Billion Surplus: Government Accounts "Show Strong Economy"

“The surplus and low levels of debt show the economy is in good shape. This allows the Government to spend more on infrastructure and make record investments in health and education,” Grant Robertson says. More>>

ALSO:

New OIO Application Trumps Judicial Review: OceanaGold Cleared To Buy Land For Waihi Tailings Expansion

In a surprise turnaround, the government has given OceanaGold a greenlight to buy land to expand its Waihi mine after the application was previously turned down by Land Information Minister Eugenie Sage. More>>

ALSO:

Christchurch Rebuild: Fletcher Sued For $7.5m Over Justice Precinct

Fletcher Building is being sued for $7.5 million by utilities contractor Electrix, one of the subcontractors on the Christchurch Justice and Emergency Services Precinct. More>>

Three New Drugs: PHARMAC Signs Bundle Deal For More Cancer Medicines

420 New Zealanders with lung cancer, breast cancer, multiple sclerosis and respiratory disease will benefit each year from a bundle deal PHARMAC has finalised with a medicine supplier. More>>

ALSO: