Transcript Example
New Rules overview (3 hour presentation) User instructions • This powerpoint deck is designed to provide a basic presentation for internal use in your organisation. • 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. Training Presentation Government Rules of Sourcing New Rules training module This presentation provides information about: 1. Rules and Principles 2. Application of the Rules 3. Non-procurement activities, opt-out procurement and exemptions from open advertising 4. Response times, minimum time periods and allowable reductions 5. Notice of Procurement 6. Other new Rules 7. Existing Cabinet directives now part of the Rules Rules and Principles Section One Rules and Principles The Rules set out the standards we work to The Principles represent our values Why do we have Rules? To strengthen accountability To promote our values To encourage commercial practice To support economic development The Rules set out the government standards for all of the sourcing stages of the procurement lifecycle What are the values that underpin the Rules? The five principles of procurement A new rule sets out the five principles of procurement: You’ll learn more about these over the next few screens. Rule 1 Principle 1 Rule 1 Principle 1 Rule 1 Principle 2 Rule 1 Principle 2 Rule 1 Principle 3 Rule 1 Principle 3 Rule 1 Principle 4 Rule 1 Principle 4 Rule 1 Principle 5 Rule 1 Principle 5 Rule 1 The Principles Each agency must have in place policies that incorporate the five Principles The Principles apply to all procurements, even if the Rules don’t apply Each agency must make sure that: o o o all procurement staff have been trained in the Principles its procurement practices reflect the Principles for each procurement, it is able to show good planning and an appropriate market strategy Rule 1 Application of the Rules Section Two Who do the Rules apply to? • Government in New Zealand is made up of four ‘tiers’, each of which has different levels of responsibility and oversight by central government • Some agencies are required to apply the Rules • Other agencies are expected or encouraged to apply the Rules Who do the Rules apply to? continued Tier 1: Public Service Must apply the Rules} Ministries and Departments (includes NZ Police and NZ Defence Force) Who do the Rules apply to? continued Tier 2: State Services Expected to have regard for the Rules as good practice guidance eg ACC, DHBs, Crown Research Institute Who do the Rules apply to? continued Tiers 3 & 4: Encouraged to regard the Rules as good practice guidance eg universities, State Owned Enterprises, Regional Councils, local government Non-procurement activities, opt-out procurement and exemptions from open advertising Section Three When the Rules don’t apply The Rules don’t apply in two broad areas: Non-procurement activities Opt-out procurements In addition, there are exemptions from open advertising Rule 12 Rule 13 Rule 15 a. Non-procurement activities For the Rules, these activities are not considered to be procurement activities: employing staff (excluding contractors and consultants) disposals and sales by tender investments, loans and guarantees gifts, donations and any form of unconditional grants statutory appointments Ministerial appointments Category 1 Legal Services Rule 12 b. Opt-out procurements What is an opt-out procurement? If a procurement is covered by the Rules, in some circumstances an agency can opt-out of applying the Rules These circumstances are called ‘opt-out procurements’ Rule 13 b. Opt-out procurements continued The circumstances in which an agency can opt out of the Rules: between government departments, NZ Police or NZ Defence purchased overseas / for use overseas government offices overseas non-contractual arrangement purchasing or renting land and buildings conditional grant some forms of international development assistance Continued on the next screen Rule 13.3 b. Opt-out procurements continued The circumstances in which an agency can opt out of the Rules: international funding that is subject to another process international organisations’ procurement processes international agreements between countries public services, eg, certain types of health service government’s central financial control functions military and essential security interests Rule 13.3 Exemptions from open advertising Where a procurement can be exempt from open advertising all other Rules still apply An agency does not need to openly advertise a contract opportunity on GETS if an exemption from open advertising applies, for example: in an emergency following an open tender if there is only one supplier in the case of an unsolicited proposal Rule 15.9 Exemption to open advertising continued All other Rules still apply, even when an exemption to open advertising has been claimed These Rules include: the circumstances of the exemption must justify the exemption the agency must publish a Contract Award Notice when it has awarded the contract the Contract Award Notice must state the reasons for the exemption to open advertising an agency must offer each unsuccessful supplier a de-brief Rule 45.2.h Rule 45.1 Rule 46 Response Times, Minimum Time Periods and Allowable Reductions Section Four Sufficient time How much time should I give suppliers to respond? • An agency must allow Sufficient Time for suppliers to respond to a Notice of Procurement • Unrealistic time periods introduce unnecessary risk • Don’t jeopardise your results with a rushed process • Put yourself in the suppliers’ shoes to work out how much time is Sufficient Time Rule 26 Sufficient time continued Ask yourself: how long it will take to: • obtain, read and analyse all tender documents? • ask questions to clarify the requirements and get answers? • prepare a meaningful response including accurate pricing information? • develop, check and submit a response including delivering it on time? Rule 26 Sufficient time continued • An agency must act in good faith and use sound judgement when calculating Sufficient Time What is considered to be Sufficient time will always vary, depending on the nature and complexity of the procurement Rule 26 Sufficient time continued The key factors to take into account when calculating Sufficient Time include: • the nature and complexity of the procurement • the amount of information and level of detail that suppliers must provide in their responses • the type of goods, services or works • how simple or hard it is to describe deliverables • the level of risk • the extent of any possible subcontracting • how critical the procurement is to the agency’s success • the time it takes for domestic and foreign suppliers to submit tenders Rule 26 Sufficient time continued Example 1: Simple one-step Request for Quote • The request is for a large quantity of an off-the-shelf product at short notice • You need a fixed price and a guaranteed delivery date Rule 26 Sufficient time continued Example 2: One-step Request for Proposal • You need a review of a social policy programme • This requires experts who will provide their own methodology, work plan, budget quote and timeline for delivery Rule 26 Minimum time periods Minimum Time Periods • The Rules set Minimum Time Periods for different procurement processes • The Sufficient Time that an agency sets for a procurement must not be less than: o the Minimum Time Period, or o the new Minimum Time Period, after Allowable Reductions The ten-day rule no longer applies! Rule 27 Rule 26 Rule 31 Minimum time periods continued The following Minimum Time Periods apply: One-step processes: Multi-step processes: Process Minimum time period RFQ 13 business days RFT or RFP 25 business days Step / process Minimum time period Step one: ROI, EOI, ITP 20 business days Step two: RFT, RFP 25 business days Rule 31 Allowable Reductions • In some circumstances reductions to the Minimum Time Period are allowable • If any of these Allowable Reductions apply, you can deduct them from the Minimum Time Period • The result is the new Minimum Time Period Rule 28 Allowable Reductions continued An agency can claim Allowable Reductions if it complies with the requirements in any of the following circumstances: • a prior listing in Annual Procurement Plan • all documents are made available electronically • responses are accepted electronically Rule 28 Allowable Reductions continued Minimum time period and allowable reductions for a one-step process: Business Days One-step process RFQ RFT / RFP 13 25 • Prior listing in an Annual Procurement Plan -1 -3 • All tender documents available electronically on GETS -3 -4 • Suppliers’ tenders or proposals accepted electronically -1 -3 8 15 Minimum time period (Rule 27) Allowable Reductions (Rule 28): Minimum time period allowed, if allowable reductions apply Rule 28 Allowable Reductions continued Minimum time period and allowable reductions for step one of a multi-step process: Step one of a multi-step process Business Days Minimum time period (Rule 27) 20 Allowable Reductions (Rule 28): • Prior listing in an Annual Procurement Plan -3 • All tender documents available electronically on GETS -4 • Suppliers’ tenders or proposals accepted electronically -3 Minimum time period allowed, if allowable reductions apply 10 Rule 27 Rule 28 Allowable Reductions continued Minimum time period and allowable reductions for step two of a multi-step process: Step two of a multi-step process Minimum time period (Rule 27) Business Days 25 Allowable Reductions (Rule 28): • All tender documents available electronically on GETS -5 • Suppliers’ tenders or proposals accepted electronically -5 Minimum time period allowed, if allowable reductions apply 15 Rule 28 Notice of Procurement Section Five Notice of procurement What is a Notice of Procurement? A notice published on GETS that advertises a new contract opportunity, eg, a Registration of Interest or a Request for Tender It includes all the information that suppliers need to know in order to prepare and submit a meaningful response Rule 34 Notice of procurement continued What should I include in my Notice of Procurement? Everything to help suppliers prepare meaningful responses Which procurement process is being used, eg, RFQ or RFP Contact details and descriptions of the goods / services Any conditions, including any pre-conditions or standards Any limits on the number of shortlisted suppliers The evaluation criteria and their importance / ranking The deadline and address for submitting responses Rule 34 Notice of procurement continued What should I include in my Notice of Procurement? Any limits on how suppliers can send responses Any other conditions relating to the procurement process The proposed contract conditions If procurement will be done electronically, all information suppliers will need to participate electronically The rules of an e-auction and info suppliers need to participate, if applicable Rule 34 Delivery date When identifying a delivery date take into account: how complex the procurement is how much sub-contracting there might be how long it will take to produce and transport goods how long it will take to deliver services Rule 23 E-auction An e-auction is an online reverse auction - it gives suppliers the opportunity to bid against each other to improve their offers An agency must notify suppliers in advance if it intends to run an e-auction This advance notice must be in the Notice of Procurement which must include: o a summary of the rules that will apply to the e-auction o the specific criteria that will be used in the e-auction Rule 42 Types of supply lists If an agency regularly purchases a specific type of product, service or works it may establish a list of suppliers Common types of lists include: Registered Suppliers List Pre-qualified Suppliers List Panel of Suppliers Rule 52 Rule 53 Rule 54 Types of supply lists continued Registered Suppliers List: A list of suppliers who have registered an interest in supplying specific types of goods, services or works Pre-qualified Suppliers List: A list of suppliers who have been preapproved by an agency as capable of delivering specific types of goods, services or works Panel of Suppliers: A list of suppliers who have been preapproved by an agency, and who have agreed to the terms and conditions for supply Rule 52 Rule 53 Rule 54 Other new Rules Section Six New Rules Several Rules have been added since the Procurement Rules were last released The new Rules include: o o o Rule 18: Extended Procurement Forecast Rule 19: Significant Business Cases Rule 57: Common Capability contracts Rule 18 Rule 19 Rule 57 Extended Procurement Forecast An Extended Procurement Forecast (EPF) is a list of forecast contract opportunities over the next 5 years Agencies must give an EPF to MBIE for review, for all procurements that: o have a value of $5million or more, or o pose significant risk, or o have the potential for collaboration EPFs are for cross-government planning purposes only Agencies must update their EPF at least once a year Updated EPFs are due by 1 October each year Rule 18 Significant Business Cases An agency must give to MBIE for review its Business Case for any procurements that fall into one or more of these categories: o have a value of $5million or more, or o pose significant risk, or o have the potential for collaboration This is a supportive peer review An agency should take note of MBIE’s advice Rule 19 Significant Business Cases continued This requirement doesn’t apply where a Business Case is subject to review under another governance process, for example: o the Better Business Cases process o the Syndicated Contract process, or o the Common Capability contract process Rule 19 Rule 63 Rule 56 Rule 57 Common Capability contracts Common Capability contracts (CCs) are a type of approved collaborative contracts between government and approved suppliers Rule 57 Common Capability contracts continued There are two types of CC contracts: • Mandatory CC contracts o an agency must purchase from these contracts where the contract reasonably meets the agency’s needs o an agency that wants to opt-out of purchasing from this type of contract must seek the approval of the relevant Functional Leader • Voluntary CC contracts o an agency should purchase from these contracts where the contract meets the agency’s needs Rule 57 Common Capability contracts continued CC contracts differ from other contracts: The lead agency may charge a participating agency an admin fee A supplier acting for an agency may purchase from a CC contract Before approaching the market for goods, services or works an agency should check if there is an existing CC contract that meets its needs Rule 57 Existing Cabinet directives now included in the Rules Section Seven Existing Cabinet directives now included There are several cabinet directives that are now included in the Rules The Rules provide links to other websites where details can be found Prompt payment Each agency should ensure prompt payment of suppliers’ invoices At a minimum, invoices must be paid in accordance with their contract terms and conditions or earlier if possible Rule 48 All-of-Government Contracts (AoGs) An All-of-Government contract (AoG) is a type of approved collaborative contract AoGs establish a single supply agreement between the Crown and approved suppliers for the supply of selected common goods, services and works purchased across government Examples of the types of common goods and services are office consumables, vehicles and travel Rule 55 All-of-Government Contracts (AoGs) continued All agencies must purchase from the AoGs, unless there is a good reason not to Before approaching the market an agency should check if there is an existing AoG which meets their needs Rule 55 Syndicated Contracts Syndicated Contracts typically involve a ‘cluster’ of agencies combining their needs and going to market together They typically include a Common Use Provision (CUP) clause in the contract, to allow other agencies to join the contract later Agencies wishing to establish a Syndicated Contract with a CUP clause must get approval from MBIE before publishing a Notice of Procurement Before approaching the market an agency should check if there is already a Syndicated Contract that meets their needs Rule 56 Web Standards If an agency outsources web development work, it must include a requirement in its Notice of Procurement, and contract for the work to comply with the latest version of the New Zealand Government Web Standards Rule 58 Approved Government Model Templates From time to time, the Chief Executive of MBIE, as the Procurement Functional Leader, issues Approved Government Model Templates (A-GMTs) Agencies must use these templates in their procurement activities, regardless of whether or not the Rules apply to the procurement An example of an A-GMT is the Government Model Contract (GMC) Rule 59 Geospatial Information and Services If an agency intends to procure geospatial information or services it must first contact the New Zealand Geospatial Office (NZGO) (www.linz.govt.nz/geospatial-office) before: o approaching the market or o publishing a Notice of Procurement Rule 60 Intellectual Property If a procurement involves creation by the supplier of new Intellectual Property, the agency should advise its intentions about: o ownership, o licensing, and o future commercialisation of that Intellectual Property Agencies should take these guidelines into account Rule 61 Public Private Partnerships (PPPs) The PPP Team in the Treasury oversees all Public Private Partnership (PPP) arrangements All capital projects of $25 million or more must consider PPP Rule 62 Public Private Partnerships (PPPs) continued If an agency wishes to do a Public Private Partnership (PPP): o the agency must consult the PPP Team early in the development of the PPP proposal o the PPP Team should be involved in the economic and financial assessment and advice on the PPP o , and the agency should give the PPP Team the chance to make an experienced officer available to the project steering and working groups Rule 62 Capital Business Cases Capital Business Cases Cabinet approval is required for some capital expenditure, lease or asset disposal proposals from Departments, Crown agents or other Crown entities A capital asset project that meets one of more of the criteria shown on the next slide must: o consult with the Treasury, and o use the Treasury’s Better Business Cases (BBC) methodology Rule 63 Capital Business Cases continued The criteria are: o any project that requires new Crown funding o any project that is a potential PPP o any project with a whole-of-life cost of $25 million or more o any project identified as high risk in the Gateway Risk Profile Assessment o any programme / project involving asset disposals with significant policy decisions Rule 63 Gateway assurance Gateway is an assurance review process for major investments It examines programmes and projects at key decision points in their lifecycle to provide assurance that they can proceed successfully to the next stage Gateway assurance is part of Treasury’s Capital Asset Management regime and is managed by the State Services Commission Rule 64 Timber and wood products When procuring timber and wood products, agencies must apply the New Zealand Timber and Wood Products Procurement Policy Rule 65 Employee transfer costs In certain situations an agency must disclose the costs relating to the transfer of employees due to a restructuring The circumstances are contained in the the Employment Relations Act 2000, Part 6A and Schedule 1A In relation to a procurement activity the disclosure costs must be made available to prospective suppliers (new employers) who ask for them if: o the restructuring is the subject of a tender, and o the type of employees affected falls within a category listed in the Act Rule 66 Property Services Industry Agencies must recognise the Principles for a Sustainable Property Services Industry in their procurement of property services Rule 67 For further information about procurement, go to: www.procurement.govt.nz Questions?