This policy outlines the approach Te Ara Ahunga Ora Retirement Commission takes to procuring goods and services and managing procurement contracts.
The Retirement Commission is an autonomous Crown Entity that applies the Principles of Government Procurement (Principles), the Government Procurement Charter (Charter), and the Government Procurement Rules when they apply.
This policy provides a structure for how the Retirement Commission procures goods and services. It reflects government guidance and the standards required by law, and follows the procurement life cycle. Procurement covers all the processes around buying the goods, services or works we use to run our organisation and deliver our public service objectives.
Effective procurement is important. It helps us deliver more projects on time and within budget. It means less cost of doing business for all involved and reduces our exposure to commercial risk. Effective procurement can also improve productivity and support supplier innovation.
Purpose and scope
This policy and the Retirement Commission's procurement procedures outline the approach we will take to planning, sourcing and managing our procurement. They must be followed by all our temporary and permanent employees. Any departure from this approach must be approved by the Retirement Commissioner.
This policy does not apply to the procurement of employees on fixed-term and permanent employment contracts.
We will review this policy annually, or as required by staffing and legislation changes.
Government Procurement Framework
The Principles apply to all government procurement activity and provide the foundations of good procurement practice.
The Principles are:
- Plan and manage for great results
- Be proportionate and right-size the procurement
- Be fair to all suppliers
- Get the right supplier
- Get the best deal for everyone
- Play by the rules.
The rules are available at Government Procurement Rules | New Zealand Government Procurement.
The Charter sets out Government's expectations for how agencies should conduct procurement activity to achieve public value. This Policy incorporates the Principles and the Charter.
The New Zealand Government procurement Charter directs agencies to:
- Deliver economic benefits to New Zealand
- Look for new and innovative solutions
- Engage with businesses with responsible business practices
- Promote inclusive economic development within New Zealand
- Manage risk appropriately
- Encourage collaboration for collective impact.
Our approach
The Retirement Commission aims to get the best results from our spending, including sustainable value for money over the lifetime of the goods, services or works we buy. We take a proportionate approach, using the procurement methods and processes that are best suited to each individual procurement, having regard to the type of procurement and the value, complexity and risk involved. In aligning with New Zealand Government Procurement Rules, we will consider economic benefits to New Zealand within our procurement activity.
All of Government contracts
The Retirement Commission's preference, and starting point for any procurement, is to purchase from existing All of Government contracts (AoG Contracts) whenever they meet the Retirement Commission's needs.
Value for money
The Retirement Commission focuses on achieving value for money through procurement activities. This means getting the best possible outcome from the procurement, using resources effectively, economically, and without waste, and having regard to the total costs and benefits of the procurement. It does not mean selecting the lowest price but seeking the best overall outcome having regard to suitability, quality, quantity, timeliness, and price.
Government model templates
In line with Rule 47, the Retirement Commission uses Approved Government Model Templates (AGMTs) for their procurement activities, regardless of whether the Rules apply to the procurement.
High standards of probity
The Retirement Commission demonstrates high standards of probity throughout its procurement activities by:
- clearly recording procurement planning, processes and decisions;
- retaining procurement records for at least three years (as required under Rule 46);
- documenting and managing any actual or perceived conflicts of interest; and
- acting lawfully, ethically and responsibly.
Buying goods services and works
When we buy goods, services or works, we will:
- give all suppliers a fair opportunity to compete – by treating all suppliers within the process equally
- choose suppliers that have demonstrated their ability to meet our requirements and offer value-for-money over the lifetime of the goods/services/works, taking into account:
- all the costs of ownership over that lifetime
- suppliers' ability to deliver what we need at a fair price and on time
- the economic benefits to New Zealand
Supplier Code of Conduct
The Retirement Commission requires suppliers and their subcontractors to comply with the NZGP Supplier Code of Conduct (Supplier Code). The Supplier Code outlines the Government's expectations for sustainable and inclusive procurement.
Effective relationships
To build effective relationships with suppliers, we will:
- treat suppliers fairly and with respect;
- be consistent, transparent, fair and accountable;
- be clear about what we require and how we will assess suppliers before going to market;
- give suppliers sufficient response time to respond to requests;
- protect suppliers commercially sensitive information and intellectual property;
- offer feedback to unsuccessful bidders; and
- pay invoices within the timeframes set out in the Government Procurement Rule 36.
Staff expectations
All staff are responsible for applying our procurement policy and procedures. Staff must apply the Delegated Financial Authorities policy with regards to approval of procurement and contracts.
Thresholds
Our standard procurement processes are detailed in the Retirement Commission's Policies and Procedures document on the intranet and are based on monetary thresholds and existence of panel agreements.
Goods, services and refurbishment works
For procurements under $100,000 we expect to procure from New Zealand companies that have the capability and capacity to deliver on the contract, where this also represents good public value. Where the rules apply, we will follow the following process:
- Under $30,000 – buy directly from a suitable supplier or three quotes process where market rate is not known.
- $30,001 to $100,000 – three quotes or closed tender.
- Over $100,000 – open tendering, using the Government Electronic Tender Service (GETS).
Emergency procurement
The Retirement Commission recognises that in an emergency, we may need to depart from usual procurement processes in order to respond effectively. Emergency means a sudden unforeseen situation which could result in loss of life or critical damage to property or infrastructure. Such a situation can arise from natural disasters, failures of critical infrastructure, critical health emergencies, political emergencies or critical security emergencies.
We will still follow best practices for emergency situations including:
- documenting our emergency procurements during the event, or as soon as possible afterwards
- acting within existing delegated authority, where possible
- if there is no existing delegated authority, and no time to obtain an approval, exercising good judgement and being prepared to provide a rationale for procurements
- if a procurement involves a major expense, obtaining verbal approval, at the very least, from an officer with sufficient delegated financial authority – followed up in writing – before making a commitment.
Secondary procurement
Secondary Procurement means purchases of goods, services, or works from a Panel of Suppliers, under an AoG Contract, Common Capabilities Contract, or Syndicated Contract.
Secondary Procurement is exempt from the Rules.
AoG Contracts are a type of Secondary Procurement and are exempt from the Rules.