Key issues in current procurement practice

What’s hot & what’s not

Background

• Improvements in Government procurement identified as an initiative at 2009 Job Summit

• Reform targets transformation of procurement policy and practice

• Opportunity to enhance participation by NZ businesses

• Need to obtain supplier feedback on doing business with government

Government Objectives

• Better access for NZ businesses to govt opportunities

• Less red tape

• A standardised approach by agencies

• Better supplier management

• Increased capability & scale of industries supplying govt

• More projects delivered to time and budget

Perspectives & Perceptions

• Important to gain perspectives from business community

• Need to gain more specific information about supplier concerns

• Aim to check perceptions against reality

Approach

• Selection of NZ businesses & representative bodies invited to participate in survey

• Selection of government agencies interviewed

• Review of tenders listed on GETS

Plan

• Confidentiality agreed - identities protected

• Free and frank answers

• Based on direct experience and perceptions

• Results analysed to identify emerging themes

• Research helps shape the scope of the reform programme

Business community• Businesses who contract with government or would like to

• Mix of suppliers and industry bodies from around NZ

• Range included:

a. sole traders to multinationals

b. suppliers of both products & services

c. mix of manufacturers, resellers, prime contractors, sub- contractors and service delivery agents

Government Sector

• Agencies from across government sector

• Range included:

a. policy & operations

b. small & large

What we heard

• Common themes emerged

• Focus was more on process

What we heard (cont)

• Variety of contracting documents

• Short tender timeframes

• Variable forward notice of opportunities

• Processes sometimes unclear

• Difficulty balancing innovation against risk

What we heard (cont)• Supplier debriefing

• Opportunities to build business relationships

• Use of alternative procurement methods

• Procurers’ skills

• Suppliers’ skills

• Reluctance to complain

Focus for development

• Introduce standard documentation• Improve agency & supplier procurement capability• Improve procurement practice• Adopt strategic procurement approaches• Enhance approaches to risk management• Enable better business engagement• Improve contract management

Criteria: Benefit to Business• Delivering better value for govt• Better access for business• Less red tape• Standardised approach• Better supplier management• Increased business capability• More projects delivered on time &

budget• Overall benefit to businesses• Overall benefit to agencies

Criteria: Ease of Implementation

• MED resources: $• Acceptability to business• Acceptability to agencies• Resource implications for business• Resource implications for agencies

Also considered if there were FTA implications

Projects & Prioritisation

• Procurement Capability

• Standard conditions of contract

• Standard tools & templates

• Practice Guidance Notes

Initiatives - Year 1

•Forward planning by central agencies

•Suppliers Guides to doing business with government

•Review & consolidate procurement policies

Initiatives – Year 1 (cont)

Question & Answer Session

What’s hot & what’s not