Presentation on theme: "New Rules overview (1 hour presentation) User instructions This ppt deck is designed to provide a basic presentation for internal use in your organisation."— Presentation transcript:
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 name meeting date
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 procurementValue threshold Goods Services Refurbishment works $100,000 + New construction works$10 million + Value thresholds have not changed. Rules 7 & 8
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 dont 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 procurement Level of detail you need Opportunities for subcontracting Level of risk
Minimum time period 10 day rule gone New minimum time periods by process Procurement processMinimum time period Request for Quote13 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 Period25 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 Period15 business days
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 42Rule 35Rule 54Rule 45
Supporting better practice Reviewing significant business cases Applies to contracts: - valued at $5M> - with significant risk - potential for collaboration Rule 18Rule 19
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
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 42Rule 35Rule 54Rule 45
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