Key issues in current procurement practice
What’s hot & what’s not
Background
• Improvements in Government procurement identified as an initiative at 2009 Job Summit
• Reform targets transformation of procurement policy and practice
• Opportunity to enhance participation by NZ businesses
• Need to obtain supplier feedback on doing business with government
Government Objectives
• Better access for NZ businesses to govt opportunities
• Less red tape
• A standardised approach by agencies
• Better supplier management
• Increased capability & scale of industries supplying govt
• More projects delivered to time and budget
Perspectives & Perceptions
• Important to gain perspectives from business community
• Need to gain more specific information about supplier concerns
• Aim to check perceptions against reality
Approach
• Selection of NZ businesses & representative bodies invited to participate in survey
• Selection of government agencies interviewed
• Review of tenders listed on GETS
Plan
• Confidentiality agreed - identities protected
• Free and frank answers
• Based on direct experience and perceptions
• Results analysed to identify emerging themes
• Research helps shape the scope of the reform programme
Business community• Businesses who contract with government or would like to
• Mix of suppliers and industry bodies from around NZ
• Range included:
a. sole traders to multinationals
b. suppliers of both products & services
c. mix of manufacturers, resellers, prime contractors, sub- contractors and service delivery agents
Government Sector
• Agencies from across government sector
• Range included:
a. policy & operations
b. small & large
What we heard
• Common themes emerged
• Focus was more on process
What we heard (cont)
• Variety of contracting documents
• Short tender timeframes
• Variable forward notice of opportunities
• Processes sometimes unclear
• Difficulty balancing innovation against risk
What we heard (cont)• Supplier debriefing
• Opportunities to build business relationships
• Use of alternative procurement methods
• Procurers’ skills
• Suppliers’ skills
• Reluctance to complain
Focus for development
• Introduce standard documentation• Improve agency & supplier procurement capability• Improve procurement practice• Adopt strategic procurement approaches• Enhance approaches to risk management• Enable better business engagement• Improve contract management
Criteria: Benefit to Business• Delivering better value for govt• Better access for business• Less red tape• Standardised approach• Better supplier management• Increased business capability• More projects delivered on time &
budget• Overall benefit to businesses• Overall benefit to agencies
Criteria: Ease of Implementation
• MED resources: $• Acceptability to business• Acceptability to agencies• Resource implications for business• Resource implications for agencies
Also considered if there were FTA implications
Projects & Prioritisation
• Procurement Capability
• Standard conditions of contract
• Standard tools & templates
• Practice Guidance Notes
Initiatives - Year 1
•Forward planning by central agencies
•Suppliers Guides to doing business with government
•Review & consolidate procurement policies
Initiatives – Year 1 (cont)
Question & Answer Session
What’s hot & what’s not