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A list of words and what they mean.
A generic term used in the Rules to refer to New Zealand government entities across the Public Sector.
A type of collaborative contract that has been approved by the Procurement Functional Leader (the Chief Executive of MBIE).
AoGs are usually panel contracts established by MBIE or other agencies that are approved centres of expertise for common goods or services (eg vehicles, laptops, and recruitment services).
Rule 58: All-of-Government Contracts
An agency may reduce the minimum time period for tender response deadlines in three circumstances, namely if:
The number of business days for each allowable reduction is specified in Rule 31.
Rule 39: Other tender documents
An agency's list of planned contract opportunities that meet or exceed the value threshold. It is a rolling list covering at least the next 12 months.
Rule 21: Annual procurement plans
An application by a supplier to be included in an agency’s pre-qualified suppliers List. A supplier must prove it has the capability and capacity to deliver specific types of goods, services or works to be included in the list.
Rule 56: Pre-qualified suppliers list
The formal process of giving notice of a contract opportunity to potential suppliers and inviting them to respond. An example of an approach to the market is a Request for Tender published on GETS.
A type of price-fixing, or collusive tendering, where there is an agreement between competitors about which of them should win a bid.
Rule 14: Exemption from open advertising
Rule 44: Reasons to exclude a supplier
Broader outcomes are the secondary benefits which are generated due to the way goods, services or works are produced or delivered. They include economic, environmental, social and cultural outcomes.
Any activity that is performed with the goal of running a business. For the private sector, these are activities associated with making a profit (eg operations, marketing, production or administration).
A management tool that supports decision-making for an investment. It sets out the reasons for a specific project, considers alternative solutions and identifies assumptions, constraints, benefits, costs and risks.
Rule 63: Intellectual property
Any weekday in New Zealand, excluding Saturdays, Sundays, New Zealand (national) public holidays and all days from Boxing Day up to and including the day after New Year’s Day.
One full business day from 9am to 5pm.
A tender process where an agency asks a limited number of known suppliers to tender for a contract opportunity. The contract opportunity is not openly advertised.
Rule 14: Exemption from open advertising
A secret agreement or cooperation between two or more parties to cheat or deceive others by illegal, fraudulent or deceitful means.
Rule 33: Fair application of time
Information that, if disclosed, could prejudice a supplier’s commercial interests (eg trade secret, profit margin or new ideas).
Rule 4: Protection of suppliers' information
A legally-regulated exchange (market) where raw goods or primary products, such as agricultural produce, metals and electricity, are bought and sold using standardised contracts (eg the London Metal Exchange and the Chicago Board of Trade).
Rule 14: Exemption from open advertising
A type of collaborative contract that has been approved by the Procurement Functional Leader.
CCs establish various supply agreements (eg for ICT goods or services purchased across government with approved suppliers).
CCs differ from All-of-Government and Syndicated Contracts because, in a CC:
Rule 60: Common capability contracts
Rivalry between suppliers for sales, profits and market share. Competitive tension in the market and can produce innovation, better-quality goods or services, better value and better pricing.
Rule 4: Protection of suppliers' information
Rule 14: Exemption from open advertising
A type of open procurement process often used where there is no known solution in the market place. It involves a structured dialogue phase with each shortlisted supplier who invents a possible solution to meet the agency's needs. Shortlisted suppliers are often paid for their participation in the dialogue phase. All shortlisted suppliers are invited to respond to a Request for Proposal or Request for Tender.
Guide to Competitive Dialogue [PDF, 430 KB]
Rule 37: Notice of Procurement
A conflict of interest is where someone’s personal interests or obligations conflict, or have the potential to conflict, with the responsibilities of their job or position or with their commercial interests. It means that their independence, objectivity or impartiality can be called into question.
Managing conflicts of interest and confidentiality
A notice containing the information listed in Rule 48.2.
Rule 14: Exemption from open advertising
Rule 48: Contract award notice
An opportunity for suppliers to bid for a contract for goods, services or works.
Rule 14: Exemption from open advertising
Rule 43: Treatment of responses
Rule 44: Reasons to exclude a supplier
Rule 56: Pre-qualified suppliers list
Companies established under the Crown Research Institutes Act 1992.
State Services Commission website has a full list of Crown Research Institutes.
New Zealand's State sector - the organisations - State Services Commission
The closing time and date for responses to a Notice of Procurement or any other call for tenders. If a tender is submitted after the closing date, it is deemed to be late and may not be accepted by the agency.
These are contract categories identified by Cabinet in which priority outcomes must be included and published online.
Rule 17: Increase access for New Zealand businesses
Rule 18: Construction skills and training
Rule 19: Improving conditions for New Zealand workers
Rule 20: Transitioning to a net zero emissions economy and designing waste out of the system
A tender process where the agency asks a single supplier to tender for a contract opportunity, and the contract opportunity is not openly advertised.
Rule 14: Exemption from open advertising
Making an unfair and prejudicial judgement for or against a person or product.
An online reverse auction that takes place in real time. It gives suppliers the opportunity to bid against each other to improve their offers.
A generic term for public education services provided by government that includes:
The criteria that are used to evaluate responses. These include measures to assess the extent to which competing responses meet requirements and expectations (eg criteria to shortlist suppliers following a Registration of Interest or criteria to rank responses in awarding the contract).
Rule 38: Content of notice of procurement
The recognised circumstances (eg a procurement in response to an emergency) where an agency does not need to openly advertise the contract opportunity.
Usually used in relation to panel contracts. It is the umbrella agreement that governs the relationship between the agency and the supplier(s). It sets out the terms and conditions (including pricing) that the parties agree to contract on in the event that the supplier is allocated a contract for supplying the covered goods, services or works.
When the agency wants to buy something under the framework agreement, the parties then enter into a separate contract that refers to the terms and conditions contained in the framework agreement.
A government Chief Executive appointed by Cabinet to drive performance across the State Services in a particular area, eg procurement, ICT and property.
Rule 48: Contract award notice
Rule 58: All-of-Government contracts
Rule 60: Common capability contracts
An acronym for Government Electronic Tenders Service. GETS is a website managed by New Zealand Government Procurement. It is a free service that advertises New Zealand government contract opportunities and is open to both domestic and international suppliers. All tender information and documents are made freely available through GETS.
The summary of a contract opportunity that is published on GETS. It includes key information such as the:
Items which are capable of being owned. This includes physical goods and personal property as well as intangible property such as Intellectual Property (eg a software product).
Rule 6: When the Rules apply – goods or services or refurbishment works
Rule 7: When the Rules apply – new construction works
The Charter sets out government’s expectations of how agencies should conduct their procurement activity to achieve public value.
Rule 1: Principles and the Government Charter
This relates only to the acquisition of fiscal agency or depository management services, liquidation and management services for regulated financial institutions, and sale and distribution services for government debt.
These are central banking control functions on behalf of government such as those carried out by the Reserve Bank and Crown debt management functions such as those carried out by Treasury.
Ordinary commercial banking and financial services are not covered by this definition and are not valid opt-out procurements.
Financial assistance in the form of money paid by the government to an eligible organisation with no expectation that the funds will be paid back.
It can be either:
Rule 11: Non-procurement activities
Goods and Services Tax (GST) is a tax on most goods and services produced in New Zealand, most imported goods, and certain imported services. GST is added to the price of taxable goods and services.
A generic name for a range of New Zealand government good procurement practice guides, tools and templates.
A generic term for health services provided by government for the public good including:
An invitation to suppliers, published on GETS, to apply to be included in a competitive dialogue process.
Rule 34: Minimum time periods by process
An invitation to suppliers, published on GETS, to apply to be included in an agency's pre-qualified suppliers list.
Market engagement is a process that allows you, at all stages of procurement, to:
A genuine estimate of the total cost that an agency will pay over the whole-of-life of the contract. It covers the full contract cost of goods or services, and any other expenses such as maintenance and repairs, and the cost of disposing of the goods at the end of the contract.
The least amount of time, set by the Rules, that an agency must allow suppliers to respond to a particular contract opportunity.
Rule 34: Minimum time periods by process
A procurement process with more than one step, (eg a Registration of Interest followed by a Request for Proposals).
In the context of the Rules, the term relates to goods and services associated with developing new civil or building construction works. This includes buildings, roads, rails, bridges and dams. It covers new builds and replacement of an existing construction. This also includes related services such as design, architecture, engineering, quantity surveying, and management consultancy services. It includes various stages in the project such as:
Rule 7: When the rules apply - new construction works
A business that originated in New Zealand (not being a New Zealand subsidiary of an off-shore business), is majority owned or controlled by New Zealanders, and has its principal place of business in New Zealand.
Rule 17: Increase access for New Zealand businesses
The document published on GETS that advertises a new contract opportunity (eg a Registration of Interest or a Request for Tender).
A New Zealand law that sets out the information that government must make freely available to the New Zealand public.
Rule 4: Protection of suppliers' information
Within the context of the Rules, an offset is a condition or undertaking intended to develop the local economy or improve the balance-of-payments accounts that a supplier must fulfil in order to be awarded the contract.
Rule 3: Non-discrimination and offsets
Publishing a contract opportunity on GETS and inviting all interested domestic and international suppliers to participate in the procurement.
Rule 13: Requirement to openly advertise
Specific types of procurement activities where agencies can choose to opt out of applying most of the Rules.
A type of framework agreement that governs the relationship between the agency and each panel supplier. It sets out the terms and conditions that the parties agree to contract on in the event that the panel supplier is allocated a contract to provide specific goods, services or works.
Rule 58: All-of-Government contracts
A list of suppliers an agency has pre-approved to supply particular goods or services and who have agreed to the agency's terms and conditions for supply.
A supplier included in a panel of suppliers.
A condition that a supplier must meet to be considered for a particular contract opportunity.
A supplier included in a pre-qualified suppliers list.
Rule 56: Pre-qualified suppliers list
A list of suppliers an agency has pre-approved as having the capability and capacity to deliver specific goods or services. It is the New Zealand government equivalent of the World Trade Organization agreement on government procurement’s 'multi-use list'.
Rule 56: Pre-qualified suppliers list
Short for the principles of government procurement. The five principles are:
Rule 1: Principles and the Charter
The following four priority outcomes have been identified by Cabinet to be leveraged by government procurement:
Each priority outcome is targeted at specific focus areas. You can find these focus areas on broader outcomes.
Rule 17: Increase access for New Zealand businesses
Rule 18: Construction skills and training
Rule 19: Improving conditions for New Zealand workers
Rule 20: Transitioning to a net low emissions economy and designing waste out of the system
All aspects of acquiring and delivering goods, services and works. It starts with identifying the need and finishes with either the end of a service contract or the end of the useful life and disposal of an asset.
The Chief Executive of the Ministry of Business, Innovation and Employment, who has been appointed by the Commissioner for State Services as the Functional Leader for procurement activities across government.
Rule 48: Contract award notice
A plan to analyse the need for specific goods, services or works and the outcome the agency wants to achieve. It identifies an appropriate strategy to approach the market, based on market research and analysis, and summarises the proposed procurement process. It usually includes the indicative costs (budget), specification of requirements, indicative timeline, evaluation criteria and weightings and an explanation of the broader outcomes an agency will seek to achieve through the procurement.
Rule 15: Annual procurement plans
An early sample, model or pilot study used to test a concept or process.
Rule 14: Exemption from open advertising
This includes agencies in the:
State Services Commission website has a full list of New Zealand's State sector organisations.
New Zealand's State sector - the organisations - State Services Commission
Rule 5: Who the Rules apply to
The New Zealand government public service departments and ministries listed in Schedule 1 of the State Sector Act 1988.
State Services Commission website has a full list of New Zealand's State sector organisations.
New Zealand's State sector - the organisations - State Services Commission
Rule 6: Who the Rules apply to
A long-term contract for the delivery of a service, involving building a new asset or infrastructure (eg a prison) or enhancing an existing asset. The project is privately financed on a non-recourse basis and full legal ownership is retained by the Crown.
Public value means the best available result for New Zealand for the money spent. It includes using resources effectively, economically and responsibly, and taking into account:
The principle of public value when procuring goods, services or works does not mean selecting the lowest price but rather the best possible outcome for the total cost of ownership (over the whole-of-life of the goods, services or works).
Selecting the most appropriate procurement process that is proportionate to the value, risk and complexity of the procurement will help achieve public value.
In the context of the Rules, the term relates to goods or services or works associated with delivery of refurbishment works in relation to an existing construction. Construction means buildings, roads, bridges and dams. Refurbishment works cover renovating, repairing or extending an existing construction.
Refurbishment works does not include replacing a construction. That is deemed to be new construction works.
Rule 6: When the Rules apply – goods or services or refurbishment works
Also known as an Expression of Interest. A formal request from an agency asking potential suppliers to:
It's usually the first formal stage of a multi-step tender process.
Rule 34: Minimum time periods by process
A market research tool. A formal request from an agency to the market, for information that helps identify the number and type of suppliers and the range of solutions, technologies and products or services they can provide.
It is not a type of Notice of Procurement. It must not be used to select or shortlist suppliers.
Rule 34: Minimum time periods by process
A formal request from an agency asking suppliers to propose how their goods or services or works can achieve a specific outcome, and their prices.
An agency may be open to innovative ways of achieving the outcome.
Rule 34: Minimum time periods by process
A formal request from an agency asking potential suppliers to quote prices for ‘stock standard’ or ‘off-the-shelf’ goods or services or works, where price is the most important factor.
Rule 31: Minimum time periods by process
A formal request from an agency asking for offers from potential suppliers to supply clearly defined goods or services or works.
Often there are highly-technical requirements and a prescriptive solution.
Rule 34: Minimum time periods by process
A supplier's reply to a Notice of Procurement. Examples include:
Rule 37: Notice of Procurement
A short name for the Government Procurement Rules, which are the Rules 1 to 71 and the definitions in this section. Information in boxes and diagrams accompanying the Rules are not part of the Rules but may be used to help with understanding the Rules.
Where an agency purchases goods, services or works from a panel of suppliers, an All-of-Government Contract, Common Capabilities Contract or Syndicated Contract.
Rule 14: Exemption from open advertising
Rule 21: Annual procurement plans
Rule 48: Contract award notice
Rule 55: Types of supplier lists
Acts or work performed for another party, eg accounting, legal services, cleaning, consultancy, training, medical treatment, or transportation.
Sometimes services are difficult to identify because they are closely associated with a good (eg where medicine is administered as a result of a diagnosis). No transfer of possession or ownership takes place when services are sold, and they:
Rule 6: When the Rules apply - goods or services or refurbishment works
The parts of the procurement lifecycle that relate to planning, market research, approaching the market, evaluating responses, negotiating and contracting.
This includes:
A list of these agencies is available on New Zealand's State sector organisations page of the State Services Commission website.
Rule 5: Who the Rules apply to
This includes:
A list of these agencies is available on New Zealand's State sector organisations page of the State Services Commission website.
Rule 5: Who the Rules apply to
The time a government agency must give suppliers to respond to a Notice of Procurement, to support:
A person, business, company or organisation that supplies or can supply goods or services or works to an agency.
The Code of Conduct provides a minimum set of expectations that government expects of all its suppliers. Agencies may have their own codes of conduct for suppliers and these can exist simultaneously.
Rule 44: Reasons to exclude a supplier
Information an agency provides to a supplier who has been unsuccessful in a particular contract opportunity, that explains:
A type of collaborative contract that has been approved by the Procurement Functional Leader.
Syndicated contracts typically involve a group of agencies aggregating their needs and collectively going to market for common goods, services or works.
If the contract includes a common use provision (CUP), to allow other agencies to contract with the supplier on the same terms later, it is an open syndicated contract.
If the contract is limited to a group of named agencies, it is a closed syndicated contract.
A tendering requirement that either:
Rule 27: Technical specifications
Codes used on GETS to classify goods, services and works. They are based on the United Nations Standard Products and Services Code (UNSPSC). You can find these codes on the GETS website.
New Zealand is party to international agreements that include specific provisions preserving the pre-eminence of Te Tiriti o Waitangi. Te Tiriti o Waitangi exception provides flexibility for the government to implement domestic policies in relation to Māori, including in fulfilment of the Crown’s obligations under the Treaty. Pursuant to this provision New Zealand may adopt measures it deems necessary to accord favourable treatment to Māori, provided that such measures are not used as a means of arbitrary or unjustified discrimination or as a disguised restriction on trade in goods, trade in services and investment.
The short name for 'the Sovereign in Right of New Zealand' as the bearer of government rights, powers, privileges and liabilities in New Zealand.
A party who is contracted to manage a procurement process on behalf of an agency. The agency remains responsible and accountable for ensuring that the procurement complis with the Governement Procurement Rules.
A estimate of the total cost of the goods, services or works over the whole of their life. It is the combination of the purchase price and all other expenses and benefits that the agency will incur (eg installation and training, operating and maintenance costs, repairs, decommissioning, cost associated with disposal and residual value on disposal). It is a tool often used to assess the costs, benefits and risks associated with the investment at the business case stage of a procurement.
An approach initiated by a supplier proposing a solution which is not available in the market place.
Guidelines for market-led proposals – The Treasury
Government procurement is now focussed on achieving the best public value rather than the best value for money. This allows the money being spent to contribute to achieving broader outcomes.
See public value.
The minimum New Zealand dollar value at which the Rules apply to a particular procurement type. It excludes GST.
Rule 6: When the Rules apply - goods or services or refurbishment works
A generic term for public welfare services provided by government, which includes:
The whole of government direction regarding procurement functional leadership, given by the Ministers of Finance and State Services on 22 April 2014, under section 107 of the Crown Entities Act 2004 (notified in New Zealand Gazette No. 65 on 19 June 2014).
This direction requires certain types of State Services agencies to apply the Rules. A list of these agencies is available on the public sector agencies page.
The direction is available on the State Services Commission website.
Rule 5: Who the Rules apply to
See total cost of ownership (TCO)
Read construction related whole-of-life costs:
Whole-of-life - Construction procurement [PDF 858KB]
A generic term which covers new construction works for a new build or refurbishment works to an existing construction.
Rule 6: When the Rules apply - goods or services or refurbishment works
Rule 7: When the Rules apply - new construction works
Also known as the GPA. A free trade agreement established by the World Trade Organization (WTO). It is a legally -binding treaty between participating countries, based on the principles of openness, transparency and non-discrimination, and sets out detailed Rules for good procurement processes.
The main aim of the GPA is to improve access to government procurement markets and remove barriers to international trade.