As a large organisation spread geographically throughout New Zealand, the NZFS procures a wide range of services and supplies in support of its operational goals. As an organisation with high integrity, the NZFS procurement practices adhere to Government procurement policy, and in particular our procurement practices ensure that we:
- Maintain high ethical standards
- Purchase based upon on a value for money over whole of life;
- Undertake procurement in an open and competitive manner, that provides a full and fair opportunity for domestic suppliers; and
- Give full recognition to New Zealand's bilateral obligations.
NZFS sources of supply, in preference order, are:
- national contracts and national standing offers, including syndicated procurement options
- regionally based contracts
- competitive tender/quote
- ad hoc procurement.
Limitations and restrictions on the method of purchase are detailed within the procurement process flowchart. It should be stressed that only individuals who hold a delegated financial authority may commit the NZFS to expenditure. Whenever an NZFS staff member requests goods or services from an organisation that will require settlement of an invoice by NZFS, and does not provide reference to an NZFS purchase order, it is important that the supplier clearly establishes whether the individual staff member has the necessary financial authority.
The default method of tendering is open and competitive with all elements of the market made aware of the tender opportunity. In some cases, however, a selective tender process, issued to a restricted number of prospective suppliers, may be used for contracts under $100k in total value. In these cases an analysis is completed that includes:
- Analysis of the different procurement options, and why selective tendering is preferred;
- Analysis of the current and potential capability of the market to supply the item/service;
- Assessment of the industry or market expectation with regard to the tendering opportunity;
- Analysis of key risks specifically associated with the proposed selective tender;
- Analysis of current provider performance where an existing supplier is being recommended for reappointment. This does not cover where an existing supplier's contract is being extended within existing contractual provisions, but where the supplier is being reappointed without a full open competitive tender process; and
- A cost benefit analysis where cost is a key factor in seeking selective tendering
- An NZFS senior manager must approve the use of any restricted tendering.
NZFS tenders are almost exclusively published on the Government Electronic Tenders (GETS) site, publishing in any other media is rare. Supplier registration and use of the site is free and suppliers who wish to be advised of NZFS tender opportunities, or for that matter any other Government tender opportunities, are strongly encouraged to complete the online registration process. For items of a low value, or for purchases made when a contract has not been established, a paper-based purchase order is utilised. Standard terms and conditions relating to these purchases are attached. Acceptance of an order by a Supplier acknowledges acceptance of these term and conditions.
Two key directions the NZFS is actively following are the increase in awareness of health and safety, and the development of sustainable procurement practices. In this regard the NZFS will seek to ensure that suppliers have effective Health and Safety plans in place, and that they perform contracted services or supply goods in a sustainable manner. It will be essential that this sustainable approach considers what products are made of, where they have come from and who has made them and the incorporation of these considerations in a way that ensures that there is the least impact on society and the environment throughout the full life cycle of the goods or services.
NZFS aims for sustainable procurement are:
- To avoid adverse environmental impacts within the NZFS and throughout the supply-chain
- To make more efficient use of public resources
- To comply with environmental legislation and regulatory requirements;
- To promote environmental awareness amongst suppliers and contractors;
- To consider more environmentally friendly products;
- To consider environmental factors when making procurement decisions;
- To develop awareness of environmental issues within the NZFS.
- To stimulate the market to innovate and to produce more cost effective and sustainable options for all purchasers and
- To set an example for business and increase public confidence, that the NZFS is serious about sustainable procurement.
Any questions or queries relating to NZFS procurement should be addressed to: The National Procurement Manager, National Headquarters, PO Box 2133, WELLINGTON. Or questions can be submitted via email to email@example.com - please note 'For National Procurement Manager' in the subject area.