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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
Government Rules of Sourcing
An overview
Meeting namemeeting date
Introduction
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
What do they cover?
Focus mainly on the
sourcing stages of
the procurement
lifecycle
rules
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
Who do the Rules apply to?
Required
Expected
Encouraged
Rule 6
Encouraged
When do they apply?
Type of procurement Value threshold•Goods•Services•Refurbishment works
$100,000 +
• New construction works $10 million +
Value thresholds have not changed.
Rules 7 & 8
What’s different?
Interpretation
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
Select this slide if
your agency is
REQUIRED to apply
the Rules and delete
slides 11 and 12.
Interpretation
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
Select this slide if
your agency is
EXPECTED to apply
the Rules and delete
slides 10 and 12.
Interpretation
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
Select this slide if
your agency is
ENCOURAGED to
apply the Rules and
delete slides 10 and
11.
Rule #1 apply the Principles
Rule 1
Non-procurement activities
Employing staff
Making investments
Gifts, donations and unconditional grants
Statutory & Ministerial appointments
Category 1 legal services
Rule 12
The rules don’t apply to activities that are deemed to be non-procurement
Opt-out procurements
Examples include:
Non-contractual arrangement
Purchasing/renting land or buildings
Conditional grants
Essential security interests
Rule 13 old Appendix 1
Sometimes you can opt out of applying the Rules
Basic rule: advertise
“Wherever possible an agency should use
open competitive procurement processes
to give all suppliers the opportunity to
compete.”
Rule 14
Government should openly advertise
Exemption from advertising
Emergency
Following an open tender
Only one supplier (eg for technical reasons)
Prototype or design contest
Unsolicited unique proposal
Rule 15
Certain procurements are exempt from advertising on GETS
‘Sufficient time’
Agencies must allow suppliers sufficient time to respond
Rule 26
Take into account:Nature and complexity of
procurementLevel of detail you needOpportunities for subcontractingLevel of risk
Minimum time period
“10 day” rule gone
New minimum time periods by process
Procurement process Minimum time period
• Request for Quote 13 business days
• Registration of Interest• Expression of Interest 20 business days
• Request for Tender• Request for Proposal 25 business days
Rule 27
Allowable reductions
Deductions for:
Prior listing in APP
All documents available
electronically
Suppliers’ responses
accepted electronically
Rule 28
Note: Different processes allow different numbers of days for reductions.
How does that work?
Example: one-step Request for Tender
Minimum Time Period 25 business days
Allowable reductions:
• Prior listing in APP• All documents available electronically• Suppliers’ responses accepted
electronically
- 3 business days
- 4 business days
- 3 business days
New Minimum Time Period 15 business days
What’s new?
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
Supporting better practice
Reviewing significant business cases
Applies to contracts:
- valued at $5M>
-with significant risk
- potential for collaboration
Rule 18 Rule 19
More collaboration
Extended procurement forecastsCommon 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
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
Help!
MBIE support to transition
Briefing sessions for agencies and suppliers
YouTube videos
‘Noticeboard’ regular features
Comms pack
Training module
Standard agency procurement policy
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
Questions?
?
