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Procurement planning

Procurement planning is a critical step in the end-to-end procurement life-cycle. Effective procurement planning helps agencies achieve their objectives and deliver value for money. Procurement planning supports agencies with their budget and resource planning as well as in managing effective supply market engagements and subsequent sourcing processes.

The Government Rules of Sourcing support the following four step procurement planning process:

[image] Procurement planning - Click to view full screen version.

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In this page:

 


Who do the rules apply to?

  • Public Service Departments, the NZ Police and the NZ Defence Force are required to apply the rules;
  • Agencies in the wider state services are expected to apply the rules; and
  • Agencies in the wider state sector and public sector are encouraged to apply the rules.

 

Strategic Procurement Outlook (SPO)

A SPO is a high level summary of an agency’s purpose, goals and overarching procurement objectives. It gives suppliers an overview of the agency’s purpose and business requirements. Under the Government Rules of Sourcing all Public Service departments, NZ Police and NZ Defence Force are required to publish an SPO every year. Other agencies are encouraged to do so.

 

Extended Procurement Forecast (EPF)

An Extended Procurement Forecast (EPF) is an agency's list of planned procurements for the next 12 to 60 months that:

  • have whole-of-life contract value that is $5 million or more; and/or
  • are high-risk; and/or
  • may benefit from collaboration with other agencies.

An EPF is a planning tool providing an indication of an agency’s future procurement activities. It’s not a commitment to go to market for the forecast goods or services.

EPFs are due annually on 1 October.

EPFs are submitted to MBIE in confidence and are not published.

 

Annual Procurement Plan (APP)

An Annual Procurement Plan (APP) is an annual forecast of any procurements an agency has planned for the next 12months. It gives suppliers advance notice of possible contract opportunities.

The APP is a planning document and not a commitment for the agency to purchase the goods or services listed in the APP. All forecast procurements listed in an agency’s APP are subject to change or cancellation.

Agencies do not need to include goods and services they plan to procure under an All-of-Government or Common Capability contract in their APP. All-of Government and Common Capability contracts are to be listed on the APP submitted by the relevant Centre of Expertise.

APPs are due twice a year by 1 March and 1 October.

Current APPs

Once an agency submits its APP to MBIE, MBIE collates all APPs into a master spreadsheet. This information is available to both agencies and suppliers.

 

Significant Business Cases (SBC)

A Significant Business Case (SBC) is any planning document that details how an agency has decided to engage with the external supplier market. This will often be a procurement plan, a sourcing plan or similar. It covers projects that:

  • have whole-of-life contract value that is $5 million or more; and/or
  • are high-risk; and/or
  • may benefit from collaboration with other agencies.

MBIE will review all planning documentation and provide feedback. The agency should consider MBIE’s feedback as recommendations only. Our feedback is provided to support you get the best outcome from the procurement.

SBCs are submitted to MBIE in confidence and are not published.

 

Approach to market

When an agency is ready to formally approach the market, by way of Request For Tender for example, and wishes to advertise the opportunity on GETS, it should complete a ‘New Listing’ form and submit this along with its tender documents to GETS.

 

Last updated 17 December 2013