User instructions • This ppt deck is designed to provide a basic presentation for internal use in your organisation. It includes notes for each slide as well. • You can customise it to suit your agency and your audience. • Please read carefully through the slides and make any changes you feel are appropriate. • You will need to add information on slide 2 “the meeting name & date” • You will need to select the right slide from slides 9, 10 or 11 • Delete this slide once you are done 3 rd Edition Rules overview (1 hour presentation)
Transcript
User instructions
• This ppt deck is designed to provide a basic presentation for internal use in your organisation. It includes notes for each slide as well.
• You can customise it to suit your agency and your audience.
• Please read carefully through the slides and make any changes you feel are appropriate.
• You will need to add information on slide 2 “the meeting name & date”
• You will need to select the right slide from slides 9, 10 or 11
• Delete this slide once you are done
3rd Edition Rules overview(1 hour presentation)
Government Rules of SourcingAn overview of the Rules 3rd Edition 2015
Meeting namemeeting date
Rules and Principles
What are the Rules?
GOVERNMENT RULES OF SOURCING
The Rules are the government’s standards of good practice for government procurement.
• The Rules were first published 1 October 2013
• The current version was endorsed by Cabinet on 30 March 2015 and applies from 1 July 2015.
The whole procurement lifecycle!
While the Rules focus mainly on the sourcing stages of the procurement lifecycle, you must plan properly to be able to comply with the Rules
What do the Rules cover?
Why are the Rules Important?
• Strengthen accountability
• Promote our values
• Encourage commercial practice
• Support economic development
• Build high-performing public service
Rule 6
Who do the Rules apply to?
Public Service departments are thecore departments and ministrieslisted in the State Sector Act 1988,Schedule 1.
State Services 1 is the StateServices agencies covered by theWhole of Government Direction.These include:› Crown Agents› Autonomous Crown Entities› Independent Crown Entities› Crown Entity companies› Public Finance Act Schedule
4A companies
State Services 2 includes:› School Boards of Trustees› Crown Entity subsidiaries› Public Finance Act Schedule
4 companies› Reserve Bank of New Zealand
Interpretation
Our agency is required to apply the Rules
All ‘must’ rules are mandatory
All ‘should’ rules are good practice
Select this slide if your
agency is REQUIRED to
apply the Rules and
delete slides 10 and 11.
Context to assist interpretation
(These do not form part of the Rules.)
more information
definitions guides tools
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examples
Interpretation
Our agency is expected to apply the Rules
All ‘must’ rules are good practice
All ‘should’ rules are good practice
Select this slide if your
agency is EXPECTED to
apply the Rules and
delete slides 9 and 11.
Context to assist interpretation
(These do not form part of the Rules.)
more information
definitions guides tools
templates
examples
Interpretation
Our agency is encouraged to apply the Rules
All ‘must’ rules are good practice
All ‘should’ rules are good practice
Select this slide if your
agency is ENCOURAGED
to apply the Rules and
delete slides 9 and 10.
Context to assist interpretation
(These do not form part of the Rules.)
more information
definitions guides tools
templates
examples
The Five Principles of Government Procurement
Rule 1
When do they apply?
Rules 7, 8, 9 & 11
Type of procurement Value threshold
• Goods• Services• Refurbishment works
$100,000 +
• New construction $10 million +
The Rules apply to all types of contracts!
The RulesWhat do you need to do?
Follow good practice
Rule 2
Act, and demonstrate you have acted, in accordance with your agency’s policies (e.g. Conflicts of Interest)
Planning procurement
Agencies reporting requirements have been changed to:
Streamline reporting between Annual and Significant Procurement Plans
Reduce Extended Procurement Forecasts to four years to align to the government’s planning cycle
Annual Procurement Plans, Significant Procurement Plans and Extended Procurement Forecasts
Rules 17, 18, 19 & 57
Document your procurement activity
Develop a CLEAR TECHNICAL SPECIFICATIONRule 24
Rule 25 Only include ESSENTIAL PRE-CONDITIONS
Rule 35 Decide on your EVALUATION CRITERIA
Rule 39 Stick to your EVALUATION CRITERIA
Decide on your procurement process
Rules 31 & 42
One
-Ste
p Pr
oces
s Request for Quote (RFQ)
Request for Tender (RFT)
Request for Proposal (RFP)
Mul
ti-St
ep P
roce
ss
Registration of Interest (ROI)
Request for Tender (RFT)
Invitation to Participate in Competitive Dialogue
Request for Proposal (RFP)
E-Auctions
Basic Rule: Advertise
“Wherever possible an agency should use open competitive procurement processes to give all suppliers the opportunity to
compete.”
Government should openly advertise
Rules 14 & 32
Advertising
• List the opportunity on GETS
• Use a NOTICE OF PROCUREMENT
• All participating suppliers MUST BE NOTIFIED of any change to the process or requirements in the Notice of Procurement
Rules 33, 34 and 39
Allow ‘sufficient time’
Take into account: Nature and complexity of procurement Level of detail you need Opportunities for subcontracting Level of risk
Agencies must allow suppliers sufficient time to respond
Rule 26
Minimum time period
“10 day” rule gone
New minimum time periods for advertising by process
Procurement process Minimum time period• Request for Quote 13 business days
• Registration of Interest
• Expression of Interest 20 business days
• Request for Tender
• Request for Proposal25 business days
Rule 27
Dealing with responses
Rules 40 & 41
Treat suppliers fairly
Awarding the contract
Award the contract to the supplier/s who:• Demonstrates a full understanding and capability to deliver the contract• Can meet the contract conditions • Offer either
• Best ‘value for money’• Lowest price
Make sound decisions based on ‘value for money’, without discrimination
Rules 2, 40 & 41
Informing suppliers
Once decisions have been made:
• Inform the unsuccessful suppliers
• Publish a Contract Award Notice
Rule 46
Debriefing suppliers
All suppliers must have the opportunity to be debriefed!
• You must offer each unsuccessful supplier a debrief
• If a supplier asks for a debrief, you must debrief that supplier within 30 business days
Rules 44 to 46
Managing complaints
Rule 47
• An agency must manage complaints by considering and responding promptly and impartially to the complaint received.
• Suppliers who may complain include suppliers that have not submitted a response to a Notice of Procurement, they may have good reason for making a complaint.
Managing your contract
Good contract management includes:
• Paying suppliers promptly
• Maintaining records (Public Records Act 2005)
• Ensuring records are available for audit
Rules 48 to 50
The RulesWhen the Rules do not apply
Non-Procurement Activities
• Employing staff
• Disposals and sales by tender
• Investments, loans and guarantees
• Gifts, donations and any form of unconditional grants
• Statutory and ministerial appointments
• Core Crown Legal Matters.
The rules don’t apply to activities that are deemed to be non-procurement
Rule 12
Non-Procurement Activities
Examples include:
• Non-contractual arrangements
• Arrangements between government agencies
• Purchasing/renting land or buildings
• Conditional grants
• Essential security interests
Rule 13
Sometimes you can opt out of applying the Rules
Exemption from Advertising
• Emergency
• Following an open tender
• Only one supplier (eg for technical reasons)
• Prototype or design contest
• Unsolicited unique proposal
Certain procurements are exempt from advertising on GETS
Rule 15
Allowable Reductions
Different processes allow different numbers of days for reductions.
Deductions for:
• Prior listing in APP
• All documents available electronically
• Suppliers’ responses accepted electronically
Rule 28
How Does that Work?
Note: Different processes allow different numbers of days for reductions.
Example: one-step Request for Tender
Minimum Time Period 25 business daysAllowable reductions:
• Prior listing in APP• All documents available electronically• Suppliers’ responses accepted electronically
- 3 business days
- 4 business days
- 3 business days
New Minimum Time Period 15 business days
The RulesSome other matters
Suppliers
Types of Supplier Lists • Registered Supplier Lists
• Pre-qualified Supplier Lists
• Panel of Suppliers (including Syndicated Contracts and Collaborative Contracts)
Rules 51, 52, 53, 54
• All-of-Government Contracts
• Syndicated Contracts
• Common Capability Contracts
Supplier Contracts
Rules 55, 56, 57
References other government requirements eg:• Web standards
• Geospatial information
• Intellectual property
• Better business cases and investment decisions
• Investment reviews
• Gateway assurance
• Employee transfer costs
Other Rules you need to know
Rules 58 to 66
What’s New?Government Rules of Sourcing 3rd Edition
3RD EditionKey changes:• extending the mandatory application of the Rules to a wider range of
agencies (Rule 6)
• applying certain Rules to opt-out procurements (Rule 13)
• extending the opt-out for procurement between departments to a wider range of agencies (Rule 13)
• making it clear that when a government agency is using weighted evaluation criteria to select a supplier, it must include the weightings in its Notice of Procurement (Rule 35)
The Rules have also been modified to clarify particular issues and provide additional guidance to support you to interpret and apply the Rules.
