Procurement principles, rules, policy and ethics

Government procurement is based on Principles, the Mandatory Rules of Procurement (where they apply) and good practice guidance. Collectively these provide a broad framework that supports accountability, sound practice and successful procurement results.

Procurement Principles

A refreshed statement of Principles of government procurement has been approved by Cabinet in July 2012 [Sec Min (12) 10/5]. The aim is to provide a plain English statement of Principles that is easier for both agencies and suppliers to understand and apply. It is essential that all government agencies take the Principles into account when buying goods and services. The new statement of Principles is as follows.

• View a more detailed explanation of the Principles [153 KB PDF]

The new statement of Principles forms the foundations of good procurement practice.

There is an expectation that the new Principles will be reflected in how agencies plan and manage their procurements and achieve best value-for-money results.

The Government Rules of Sourcing

The Government Rules of Sourcing (the Rules) [1.1 MB PDF] represent the government’s standards of good practice for procurement planning, approaching the market and contracting. They come in to effect from 1 October 2013.

• New Government Rules of Sourcing key messages [229 KB PDF]

Procurement rules

Public Service departments, New Zealand Police and New Zealand Defence Force are subject to the Mandatory Rules of Procurement for Departments [88 KB PDF]. These Rules set out minimum compulsory requirements for certain types of procurements.

The Rules replace the Mandatory Rules for Procurement by Departments. Cabinet has endorsed the Rules (CAB Min (13) 10/4A) and they come in to effect from 1 October 2013.

Procurement policy

OAG: Procurement Guidance for Public Entities

• MBIE: Guide to Mastering Procurement - Strategic Procurement [1 MB PDF]

Ethics and standards

OAG: Managing Conflicts of Interest

SSC: Guidance on gifts, benefits & gratuities

SSC: Standards of Integrity & Conduct
 

We have also produced a toolkit for agencies which you might find of interest.

Archived material

The Principles for Procurement are derived from the previous Principles found in Government Procurement in New Zealand: Policy Guide for Purchasers - August 2007 [133 KB PDF] and are consistent with the basic principles that govern all public spending. The new statement of Principles came into effect from 1 October 2012.