About the reform

In 2009 Cabinet initiated the Government Procurement Reform Programme, to reform State sector procurement policy and practice.

The agenda for the programme has four major themes:

• achieving cost savings;
• building procurement capability and capacity;
• enhancing New Zealand business participation; and
• improving governance, oversight, and accountability.

The four-year reform programme is led by the Government Procurement Solutions group, part of the Commercial Solutions Branch of the Ministry of Economic Development, with the support of Treasury and State Services Commission.

Cabinet’s Expenditure Control Committee (EEC) is overseeing implementation of the programme.

Why reform government procurement?

Some fundamental changes are needed to unlock the potential of government procurement to deliver better, smarter, public services and improve value for money from taxpayer funds. Government procurement needs to become a strategic activity to focus on outcomes, rather than the traditional focus on process compliance.

Some key achievements to date

The programme is coming to the end of its Year 2 programme of work. While this programme is in its early days it is already delivering results and supporting procurers in their jobs: 

• Negotiation of the first four All-of-Government contracts that have the potential to deliver cost savings in excess of $19.6 million in 2010/11 and a total of $115 million over five years;
• We are currently (May/June) going to market for additional All-of-Government contracts: Airline Travel, External Legal Services, and Energy Management Services. Further All-of-Government contracts will go to tender late 2011;
• Launch of the New Zealand Procurement Academy through which State sector procurers are benefitting from subsidised access to high quality training and education towards internationally recognised professional standards. These courses are also open to the private sector;
• A number of red-tape cutting initiatives that are making it easier for suppliers to do business with government; and
• Development of a wide range of best practice procurement tools, templates and guidance – for both public and private sector audiences.
   

Further information

To find out more about the reform programme, explore the Reform presentations and papers page.