New Zealand businesses will have a better shot at winning government contracts as a result of changes to government procurement rules.
Economic Growth Minister Nicola Willis said the new rules agreed to by Cabinet will take effect on the 1st of December. More than 900 submissions were received during consultation on the new rules earlier this year.
“Businesses shared that the lack of weighting for New Zealand’s interests in the evaluation criteria was holding them back. That’s why we’re introducing a new economic benefit to New Zealand test that will apply to every procurement to ensure we are creating value and jobs for Kiwis,” said Willis.
“We want to see taxpayer money supporting Kiwi businesses to grow, hire, and thrive. We also heard loud and clear that the paperwork, time and complexity were making it hard for small to medium-sized businesses to apply for government contracts. We’ve listened and these updated, simpler rules will make it easier for businesses to follow and apply the rules.”
She mentioned that Government contracts are collectively worth more than NZD 50 billion a year. The purpose of these changes is to make it easier for New Zealand businesses to win more of these contracts, either directly or as subcontractors in the supply chain.
In addition to the new economic benefit test, the number of rules has been slashed from 71 to 47, making them more accessible and easier to navigate.
The new rules will apply to all goods, services, and refurbishment contracts valued at more than NZD 100,000, and to all construction contracts valued at more than NZD 9 million. Contracts below these thresholds are expected to be awarded to capable local businesses.
“The economic benefit test is intended not only to support more Kiwi businesses to compete for government work but to encourage international companies bidding for government contracts to demonstrate a commitment to creating value in New Zealand,” said Willis.
“These changes not only help level the playing field but help ensure that taxpayer money is spent responsibly and efficiently and maintains public trust as well as supporting local businesses,” added Willis.
“New Zealand respects its international trade commitments and the settings in the Rules continue to uphold our obligations. This is important to ensure that Kiwi businesses continue to benefit from open access to large international markets.”
The 5th edition of the Government Procurement Rules is available on the New Zealand Government Procurement website.
Businesses can find Government procurement opportunities advertised on the Government Electronic Tenders Service (GETS) website.
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