Government streamlines procurement rules

Economic Development Minister Steven Joyce today announced the release of new rules on Government procurement that will make it easier for smaller New Zealand companies to tender for Government contracts and provide better value for money for taxpayers.

The new rules are the culmination of a major reform programme the Government launched in 2009 to introduce a more user-friendly procurement policy.

“We have consulted widely with the business community, and the message they have been giving us is they want a framework that makes it easier for them to do business with the Government,” Mr Joyce says.

“Government procurement accounts for around $30 billion each year and comprises a significant portion of our economy. This new framework is user-friendly for companies, transparent, and is in-line with our international trade obligations.

“Introducing greater efficiency and transparency into Government procurement will help us deliver on our priority of building a stronger economy and delivering better public services within tight fiscal constraints.”

The new set of rules replaces 44 different pieces of legislation, Cabinet directives, and miscellaneous guidance released by a multitude of Government agencies over many years.

The emphasis will shift from who can deliver the lowest upfront costs to who can deliver the best value for money and other direct financial benefits over the life of a contract.

“By making it easier to compete for Government contracts and making the tendering process consistent across the public service, we expect to make our procurement business more accessible to smaller local firms who previously may have been discouraged by the process,” Mr Joyce says.

“We expect the rules will make a big difference in Canterbury by making it easier for small businesses to demonstrate their capabilities and get on with contributing to the rebuild.

“What Government procurement needs to come down to is who can deliver the best value for taxpayers’ money rather than who is best at dealing with Government officials and this is what these new rules will deliver.”

The new procurement rules start on 1 October and will apply to all Public Service departments, the New Zealand Police and the Defence Force. Other State Sector agencies and the broader Public Service will also be encouraged to adopt them.

The new procurement rules are available at: www.business.govt.nz/procurement/news/newrules

ENDS

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