A Guide to the new procurement environment covering Defence and other Agencies in New Zealand - New Zealand ...
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A Guide to the new procurement
environment covering Defence and
other Agencies in New Zealand
OCTOBER 2019
“NZDIA is the preeminent body
representing the commercial interests ofDefence
industry and its individual members.It is industry’s
main conduit into Defence and vice versa.”
NZ Government Defence Capability Plan 2019
1
Connecting Industry
with Defence and National
Security agencies for the
benefit of New Zealand
BENEFITS OF NZDIA MEMBERSHIP
• Introductions to potential supply chain partners in New
Zealand and overseas
• Introductions to defence and national security agencies
across New Zealand
• Networking opportunities at all our events
• Invitation to attend member only events such as the
annual Defence Executive Lunch with senior Defence
staff
• Named membership on the NZDIA member directory
www.nzdia.co.nz/members
• Initial onboarding meeting with CEO to identify which
new connections you want to make to support your
business development
• Preferential pricing at all NZDIA events
• Preferential pricing on all sponsorship opportunities
• Invitation to attend our regular member meetings,
generally alternating between Auckland and Wellington,
2020 will see some regional locations included
• Representation at International expos such as
LandForces, CIVSEC, PACIFIC and Avalon and/or
assistance and networking support for those who attend
themselves
Jennie Vickers
CEO NZDIA
Welcome to this new Guide from NZDIA bring substantial benefits to industry and
government and we are here to support
In the New Zealand Government
both.
Defence Capability Plan published in
July 2019 (DCP) it says in Chapter 9 This introductory guide is designed
‘Working with Industry’: “International to assist Primes and other businesses
prime companies submitting proposals to interested in pitching for work with
provide their capabilities outlined in this New Zealand government agencies, and
capability plan will be required to provide in particular with MOD and NZDF, to
activity reports setting out the steps they understand the new PR4 Rules. NZDIA
have taken to identify and use New Zealand is ready to assist businesses so they
industry to supply goods and services as have the best chance of success for their
part of their proposal..” (para 260). business and the New Zealand economy.
This new concept in a New Zealand Keep reading to understand the basics,
defence capability plan, reflects the see the interlinkages between policy and
changes being introduced wef 1 October delivery and to identify the key sources
2019, to procurement processes agency- of information.
wide across New Zealand. The new
As always a very good first step is to
Rules are captured in the Government
join NZDIA by going to www.nzdia.
Procurement Rules 4th Edition 2019
co.nz and click on the link Become
(“PR4”).
a Member. If already a Member we
Even in a small country like New Zealand, encourage you to engage even more.
public sector procurement exceeds NZDIA is the preeminent association in
NZ$41 billion per annum and the NZ connecting Defence and industry and
government is committed to increasing we are working hard to deliver value to
the engagement and opportunities for our Members and support New Zealand
New Zealand business to be involved Defence deliver to the Community,
in government procurement. This Nation and World.
commitment is recognised as having
the potential to “increase exports and
support NZ economic growth”. Regards
Jennie Vickers
These new requirements present both
CEO
challenges and opportunities to industry
NZDIA
from outside and within New Zealand.
October 2019
NZDIA believes that these changes will
3
government procurement rules 4th edition 2019
Key facts for all suppliers interested in providing
goods or services into NZ Government Agencies
• PR4 Rule Changes take effect on 1 agency’s practices must reflect the
October 2019; Five Principles and the Charter;
• The amendments to the previous • Business should also train their staff
rules are described as “essential in to ensure they play their part under
reforming government procurement the new rules;
to support broader social, economic, • Each Agency must be able to
cultural and environmental show how it has used sound
outcomes…”. “Through these Rules, research to plan an appropriate
government contracts will now be approach-to-market strategy that is
more explicitly leveraged to support proportionate;
broader outcomes.“ ”By seeking
• Expect more detail in Procurement
continual innovation and requiring
Plans:
high standards in the procurement
process, we are ensuring that those • They must:
who win contracts in New Zealand • contain all known or
can compete in the international anticipated contract
market.”; opportunities that the Rules
• Important new definitions in PR4 apply to (not just those
including those on the next page; driven by the Procurement
team);
• Agencies are working through how
to implement these changes; • be published 6 monthly
(March/October) including
• There is a new Supplier Code
for example, goods and
of Conduct with a Statement
services 100k plus, and
of Government Expectations of
recurrent contracts due for
Suppliers;
renewal;
• There is a new Government
• Do not expect the Procurement
Procurement Charter (GPR) setting
Plans to be a fixed commitment
out Government’s expectations of
to purchase goods or services;
how each agency should conduct
their procurement activity to • Read the PR4 in the knowledge
achieve public value, for example that the Rules are mandatory for
appropriate management of risk; Agencies and where it says must,
(These expectations follow down the Rule is compulsory and where
into relationships between Primes & it says should, this indicates good
their own supply chains); practice
• All agency staff engaged • Never been a better time for New
in procurement (ie not just Zealand businesses to also join an
procurement people) must be Australian defence project supply
trained in the Five Procurement chain NZTE can help.
Principles and the Charter and the
4
PR4
PR4 - New and important definitions
Public Value (Rules 3, 12 and 46): Zealand (not being a New Zealand
means the best available result for subsidiary of an off-shore business), is
New Zealand for the money spent. It majority owned or controlled by New
includes using resources effectively, Zealanders, and has its principal place
economically and responsibly, and of business in New Zealand.*
taking into account:
Broader Outcomes (Rule 16) are
• the procurement’s contribution to the secondary benefits which are
the results you are trying to achieve, generated due to the way goods,
including any Broader Outcomes services or works are produced or
you are trying to achieve; and delivered. They include economic,
• the total costs and benefits of environmental, social and cultural
a procurement (total cost of outcomes.
ownership).
The principle of public value when Designated Contracts Include:
procuring goods, services or works • ICT services/computer software
does not mean selecting the lowest • Construction
price but rather the best possible • Security services
outcome for the total cost of
• Light vehicles
ownership (over the whole-of-life of
the goods, services or works). (These are contract categories
identified by Cabinet in which priority
Selecting the most appropriate outcomes must be included and
procurement process that is published online.)
proportionate to the value, risk and
complexity of the procurement will * References in the DCP to New Zealand
help achieve public value. industry includes all companies located in,
and employing people in, New Zealand.
New Zealand Business (Rule 17):
A business that originated in New
Panels
All of Government (AOG) and Agency goods and services work put out to
own panels will continue to be used Panels honours the new principles
by all agencies. Industry should watch like Public Value and delivering
out for opportunities to join Panels Broader Outcomes.
and watch out for guidance as to how
5Getting Involved at a Glance
PR4 Definition
NZ SME "NZ Business"
Major NZ Business
Identify Status
Australian SME under new
Not NZ Business or Procurement Rules
International Prime
business operating in NZ
Australian Prime
For DCP
Presence Business operating in NZ
Employment
What want to achieve Getting
Involved in
Who do you need to Supply to
engage with New Zealand
Agencies
What do you need to Develop Strategy
do to prepare
Who can help you
Join NZDIA
Protective Security
Requirements PSR
Defence Industry
Security Savvy
Security Programme
Defence Industry Links to all documents &
Security Guide sites can be found at
www.nzdia/Resources/
Getting Involved
6Strategic Defence Policy
Start Here Statement 2018
Defence Capability
Plan 2019
Understanding NZDF Statement of Intent
the Context Statements of Intent
MOD Statement of Intent
NZDF Framework for External and
MOD/NZDF Industry Engagement
Engagement
Frameworks MOD Defence Engagement Strategy
Smart Customers and Smart Suppliers
Procurement Rules 4th Edition Procurement Rules
NZDIA Guide to the new
procurement enviroment
Climate Crisis Defence
readiness & responsibilities
Join NZDIA www.nzdia.co.nz
Register on the Portal
Identify other interested
MOD Defence industry partners
Industry Portal
Deliver capability information
to MOD and NZDF
R&D Funding
Callaghan R&D Services
Innovation Access to Experts
Get Engaged callaghan.innovation.co.nz
and build Receive notifications
Relationships NZ Government Electronic
Identify opportunities
Tenders Service GETS
Join Panels
Register in Australia Agency
with the ICN Network AOG
7Operating under pr4
What to expect and do if you What to expect and do if you
are a Business (New Zealand, are a New Zealand Business
Australian or International)
interested in supplying Agencies
• Expect more opportunities to
arise from designated contracts,
because agencies must
consider how they can create
• Study the PR4 Rules; opportunities for New Zealand
• Check that the Agency you are businesses:
interested in is bound by the • Agencies must have regard to
Rules: eg MOD and NZDF must guidance published by MBIE
apply the Rules (subject to the on how to effectively involve
approved exceptions); New Zealand businesses in
• Watch out for the Annual contract opportunities;
Procurement Plans for all the • Agencies must conduct
Agencies (Expect to be given sufficient monitoring of
more time to prepare to respond designated contracts to
to tenders); ensure that commitments
• Study the DCP and Procurement made in contracts are
Plans from NZDF and MOD if delivered and reported on;
you are interested in Defence; • Expect more opportunities to
• Expect shorter and simpler participate in Agency tenders
tender documents; either from:
• Expect pre-conditions and • Approaches from others
mandatory requirements to eg Primes wanting you in a
be more proportionate eg supply chain; or
reasonable not dis-proportionate • From agencies encouraging
insurance requirements; joint bids; or
• Expect to be given more • As a result of agencies
opportunities to be a sub- chunking bigger
contractor, to be in a consortium opportunities into smaller
and to create new supply chains; manageable chunks;
• Expect risk to be managed by • Make sure you can be found by
agencies appropriately, with organisations looking for supply
responsibility for managing risks chain partners;
with the party best placed to • Never been a better time to
manage the risk (PR4-6); join an International defence
• Expect your bid to be evaluated project supply chain, to provide
based on best Public Value over economies of scale, NZTE can
the whole-of-life of the goods, help;
services or works. • Join NZDIA so that you can
connect to businesses who want
you in their supply chains.
8What to expect and do
if you are an International or New Zealand Prime
• Read Chapter 9 of the DCP and • Read the Supplier Code of Conduct
be aware that MOD and the and identify risk areas where your
NZ Government believes value acts or omissions could offend
for money is enhanced when against the Supplier Code of
International prime suppliers partner Conduct and be a reason to exclude
with New Zealand-based companies you from participation in a contract
and when relevant, local scientific opportunity (PR4-44);
and tertiary institutions, when • Expect questions about your
delivering and supporting military endeavours to involve more Maori
capability (DCP-251); and Pacifica businesses in your
• Expect NZ to continue to honour supply chain;
the International commitments to • Expect to be required to provide
trading partners; activity reports setting out the
• Expect at least two structured steps your organisation has taken
engagements with the market for all to identify and use New Zealand
Defence led-Projects under the DCP industry to supply goods and
(DCP-254); services as part of all proposals for
• Expect bids to be evaluated on DCP Projects; (DCP-260);
best Public Value which includes an • Expect to be asked for activity
evaluation of their quality, price and reports specifying the names,
the Broader Outcomes you can help addresses of the New Zealand
achieve; companies approached, to describe
• Consider being more open to New the good and services to be supplied
Zealand businesses as your sub- over the life of the proposed
contractors; contract and to quantify the value of
those goods and services;
• Expect more explicit requests
from Agencies for information • Expect Defence to use New Zealand
on how you are encouraging the engagement information when
development of NZ supply chains; considering best value for money
over the life of contracts;
• Expect some tenders to encourage
joint tenders; • Expect more industry days and other
opportunities for direct engagement
• Expect obligations imposed on you and expect more RFIs; and
to pay sub-contractors in 30 days
or less; • Consider the ways an New Zealand
business can be included in your
• Expect more scrutiny of your terms supply chains in other parts of the
imposed on sub-contractors and world.
your behaviour towards them
(PR4-25);
Whatever your size of business, if your expectations of change in Agency
procurements are not met and you can identify Rule non-compliance,
the NZ Procurement team at MBIE wants to know.
See the form at www.procurement.govt.nz
9Graphic created by NZDIA to support the Strategic Defence Policy Statement 2018
NZ National
Security Agencies
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10Opportunities for business with National Security Agencies
The New Zealand Government describes national security as ‘the
condition which permits the citizens of a state to go about their
daily business confidently free from fear and able to make the
most of opportunities to advance their way of life. It encompasses
the preparedness, protection and preservation of people, and of
property and information, both tangible and intangible.’
The National Security System Handbook 2016 which launched
this definition, is the go to guide on New Zealand’s approach to
National Security.
The Handbook also identifies all the agencies which work together
and are identified as National Security Agencies. For ease of
reference NZDIA has created the graphic on the facing page to
allow industry to quickly identify all these agencies. NZDIA has
also reflected the key role of each agency working alongside NZDF
and MOD to deliver on New Zealand’s Strategic Defence Policy
Statement across the areas of Community, Nation and World.
The focus of NZDIA in 2019 and into 2020, beyond working
to support industry in engaging with MOD and NZDF, is to
work increasingly with industry and other associations
in engaging with these other agencies. Together
we can collaborate to achieve the New Zealand
Government’s national security strategy
outcomes.
Connecting Industry
with Defence and National
Security agencies for the
benefit of New Zealand
11Defence
capability
Government plan
Procurement Rules 2019
The ClimaTe
Rules for sustainable and inclusive procurement Crisis:
DefeNCe
reaDiNess aND
respoNsibiliTies
November 2018
G.4 SOI (2019)
G.4 SOI (2019)
G55 SOI (2018)
THE NEW ZEALAND DEFENCE
CAPABILITY MANAGEMENT SYSTEM
NOVEMBER 2016
NZDF
FRAMEWORK 2018/19–2021/22
STATEMENT OF INTENT
FOR EXTERNAL & INDUSTRY ENGAGEMENT MINISTRY OF DEFENCE
Manatῡ Kaupapa Waonga
for the period ending 30 June 2022
STATEMENT
OF INTENT SMART CUSTOMERS AND
SMART SUPPLIERS
2019-2023 OUR STRATEGY FOR
ENGAGING WITH INDUSTRY
OCTOBER 2018 defence.govt.nz
NZDF Framework for External and Industry Engagement 2018 1
defence.govt.nz
To access all these documents & sites go to
www.nzdia.co.nz/Resources
12You can also read
