New Rules for Government Procurement

New Zealand business can expect to benefit from new procurement rules.

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Commerce Minister Lianne Dalziel announced new government procurement rules, which come into effect today, designed to ensure the Labour-led government gets value for money when purchasing goods and services.

"The rules are mandatory for all government departments and are designed to promote competition and improve information flows to suppliers. They also give departments greater certainty of government expectations," said Lianne Dalziel.

The rules have been introduced to ensure departments comply with New Zealand's new commitments on government procurement procedure under the Trans-Pacific Strategic Economic Partnership Agreement with Brunei, Chile and Singapore, which also comes into effect today.

"Because the commitments are mutual, New Zealand businesses can expect to benefit not only in New Zealand but also in the government procurement markets of our partners," Lianne Dalziel said.

The rules support the principles of value for money, and open and effective competition (including full and fair opportunity for domestic suppliers), which are the basis of New Zealand's existing government procurement policy. They are also consistent with a commitment to the principles of non-discrimination and transparency under existing bilateral agreements with Australia and Singapore.

"While these rules introduce new procedural requirements, and limit the current freedom of departments to choose the most appropriate procurement method, they are not excessively prescriptive, and retain a degree of flexibility," said Lianne Dalziel.

The Government Electronic Tenders Service (GETS) www.gets.govt.nz is the official government portal for globally open advertising of tender opportunities. Departments will now be required to publish Annual Procurement Plans on GETS at the beginning of each financial year.

"I regard this as a significant step towards improved early market information for business," said Lianne Dalziel.

ENDS

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