Tendering and Procurement
The Tendering and Procurement compliance module was updated in August 2016 following legal review from Simpson Grierson.
The module provides a framework that promotes responsible processes for the purchase and management of goods, services, and works. It assists councils in understanding good practice and links to appropriate guidance material and legislation that will further assist this practice.
The key amendments made in 2016 are as follows:
- Reference to new legislation since the last review of the Module in 2014, including the Health and Safety at Work Act 2015 and Construction Contracts Amendment Act 2015 (which amendments the Construction Contracts Act 2002).
- Reference to the WTO Government Procurement Agreement (GPA) which will apply to certain councils procurement processes for transport projects which are funded by NZTA and which are over a certain threshold (approx NZD $370k for goods or services and NZD $8 million for construction services). A specific reference to the GPA in Preferred Supplier Status guidance has been included In Flow Diagram 3 - Procurement Planning. This is because the GPA (where councils are required to comply with this) will preclude any policy of "local preference" (i.e. no "buy local" policy will be allowed in the tender process).
- The addition of links to the documents being discussed (e.g. link to the WTO Government Procurement Agreement ("GPA") text and cabinet paper explaining the effect of the GPA (Flow Diagram 3, Activity Box 3), link to MBIE information about the Construction Contracts Act, Government Rules of Sourcing (Flow Diagrams 3, 10 and 11).
- Updates to relevant tendering case law and also re-ordering the case law from most to least recent.
- Amendments in respect of some of the tender processes / tender activities / contract completion requirements – e.g. how to handle distribution of requests for information that are commercially sensitive or confidential, acceptability of e-tendering, clarification of liquidated damages for late completion and payment of retentions.
- Changes to improve the readability of the Module.
Councils are advised also that the Ministry of Business, Innovation and Employment have produced guidance material titled Government Rules of Sourcing, Second Edition, 2014. This material provides guidance of procurement policies and while not mandatory for councils it does provide another approach to industry best practice. Some agencies are electing to also reference this material as part of their practice. It is important to note that much of what is said in the guidance is reflected in this legal compliance module produced by SOLGM and therefore both are complimentary. Specific links to this document have been added where applicable.
- Decision to Procure
- Procurement Scoping
- Procurement Planning
- Selection of Tender and Contract Methodology
- Tendering Activities
- Short-Listing Registrants
- Assessing Tender Conformance
- Tender Selection
- Establishment of Contract
- Contract Completion for Goods and Services
- Contract Completion for Physical Works
- Emergency Purchases
Please note this module includes a comprehensive glossary of terminology. Councils are advised to become familiar with terms used to assist their understanding when working through the module flow diagrams, supporting text and relevant legislation.
For information about 'Tendering and Contracting for Information Technology Projects' please see Flow Diagram 3 Procurement Planning and refer to Activity Box 13. The supporting information to this Activity Box includes a link to an attachment outlining 'Request for Proposal' information. Within this information there is commentary about 'Tendering and Contracting for Information Technology Projects'.