New Rules overview (1 hour presentation) User instructions This ppt deck is designed to provide a basic presentation for

1. New Rules overview • (1 hour presentation) • User instructions • This ppt 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. • You will need to add information on slide 2 “the meeting name & date” • You will need to select the right slide from slides 10, 11 or 12

2. Government Rules of Sourcing An overview Meeting name meeting date

3. Introduction

4. What are the Rules? Government Rules of Sourcing New Rules replace the Mandatory Rules of Procurement by Departments (2006) Endorsed by Cabinet Come into effect 1 October 2013

5. What do they cover? Focus mainly on the sourcing stages of the procurement lifecycle rules

6. Why are the Rules important? Set the standard for procurement Strengthen accountability More consistent process Encourage commercial practice Get more suppliers involved in delivering to government

7. Who do the Rules apply to? Required • Expected • Encouraged • Encouraged Rule 6

8. When do they apply? Value thresholds have not changed. Rules 7 & 8

9. What’s different?

10. Interpretation Select this slide if your agency is REQUIRED to apply the Rules and delete slides 11 and 12. Plain English format that is easier to understand Our agency is required to apply the Rules All ‘must’ rules are mandatory All ‘should’ rules are good practice more definitions guides examples information tools templates • More context to assist interpretation

11. Interpretation Select this slide if your agency is EXPECTED to apply the Rules and delete slides 10 and 12. Plain English format that is easier to understand Our agency is expected to apply the Rules All ‘must’ rules are good practice All ‘should’ rules are good practice more definitions guides examples information tools templates • More context to assist interpretation

12. Interpretation Select this slide if your agency is ENCOURAGED to apply the Rules and delete slides 10 and 11. Plain English format that is easier to understand Our agency is encouraged to apply the Rules All ‘must’ rules are good practice All ‘should’ rules are good practice more definitions guides examples information tools templates • More context to assist interpretation

13. Rule #1 apply the Principles Rule 1

14. Non-procurement activities Employing staff Making investments Gifts, donations and unconditional grants Statutory & Ministerial appointments Category 1 legal services The rules don’t apply to activities that are deemed to be non-procurement Rule 12

15. Opt-out procurements Examples include: Non-contractual arrangement Purchasing/renting land or buildings Conditional grants Essential security interests Sometimes you can opt out of applying the Rules Rule 13 old Appendix 1

16. Basic rule: advertise “Wherever possible an agency should use open competitive procurement processes to give all suppliers the opportunity to compete.” Government should openly advertise Rule 14

17. Exemption from advertising Emergency Following an open tender Only one supplier (eg for technical reasons) Prototype or design contest Unsolicited unique proposal Certain procurements are exempt from advertising on GETS Rule 15

18. ‘Sufficient time’ Agencies must allow suppliers sufficient time to respond Take into account: • Nature and complexity of procurement • Level of detail you need • Opportunities for subcontracting • Level of risk Rule 26

19. Minimum time period “10 day” rule gone New minimum time periods by process Rule 27

20. Allowable reductions Deductions for: Prior listing in APP All documents available electronically Suppliers’ responses accepted electronically Note: Different processes allow different numbers of days for reductions. Rule 28

21. How does that work? Example: one-step Request for Tender

22. What’s new?

23. New requirements E-auctions Evaluation criteria published in the tender Rank or weight criteria Better information on Panel Contracts Contract Award Notice published in 30 days Rule 42 Rule 35 Rule 54 Rule 45

24. Supporting better practice • Reviewing significant business cases • Applies to contracts: • valued at $5M> • with significant risk • potential for collaboration Rule 18 Rule 19

25. More collaboration • Extended procurement forecasts • Common capability contracts • new Government approved collaborative contract • lead agency may charge admin fee • a supplier acting on behalf of an agency may be able to purchase from this type of contract Rule 57

26. Other rules you need to know References other government requirements eg: Web standards Geospatial information Intellectual property Better business cases (capital projects) Gateway assurance Employee transfer costs Rule 42 Rule 35 Rule 54 Rule 45

27. Help!

28. MBIE support to transition Briefing sessions for agencies and suppliers YouTube videos ‘Noticeboard’ regular features Comms pack Training module Standard agency procurement policy

29. More guidance Maximising value & optimising results Total cost of ownership Constructive market engagement Competitive Dialogue Unsolicited unique proposals Extended procurement forecasts Review of significant business cases Common capability contracts Jargon Buster

30. More information website: www.procurement.govt.nz email queries: procurement@med.govt.nz

31. ? Questions?