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Policy
Procurement
Introduction
When to use
Fire and Emergency New Zealand is an All-of-Government (AoG) mandated agency
and we are therefore required to apply
the Government Procurement Rules (GPR).
This policy follows the New Zealand Government’s definition of ‘procurement’ as
set out in the GPR:
All aspects of acquiring and delivering goods, services and works. It starts with
identifying the need and finishes with either the end of a service contract or
the end of the useful life and disposal of an asset.
Source: Government Procurement Rules >
Definitions
Follow this policy whenever you procure goods or services, including planning,
sourcing, management and review.
Contents
This policy contains the following content:
About this policy
Definitions
Policy statements
Key accountabilities and responsibilities
Measures of success
Compliance management
Related Fire and Emergency policies and other documents
Relevant legislation and regulations
About this policy
Purpose
This policy sets out the expected behaviours and rules for procurement at Fire and
under the Official Information Act 1982
Emergency New Zealand.
Who it applies to
This policy applies to all personnel, secondees, Board members and contractors,
employed or engaged on any basis by Fire and Emergency, whether they are
casual, temporary or permanent, whether full time or part time and whether they
are in New Zealand or in any other country.
Scope
This policy applies to all procurement activities except those listed in ‘Out of scope’
Released below.
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Policy - Procurement
Out of scope
This policy does not apply to:
• recruiting permanent or fixed-term staff
• disposals and sales by tender
• investments, loans and guarantees
• gifts, donations and any form of unconditional grants
• statutory and Ministerial appointments, e.g. Board appointments
• core Crown legal matters
• public prosecutions as defined und
er section 5 of the Criminal Procedure Act
2011
1982
• the acquisition of office accommodation on behalf of the Crown (whether
owned or leased) by New Zealand Government Property as part of their
functional leadership role for property across government. (For more
Act
information, refer to
New Zealand Government Property.) This could include
the purchasing or renting of land, existing buildings or other immovable
property, as well as refurbishment works, or new construction works – noting
that the procurement of refurbishment works, and new construction works are
covered by Rules 6 and 7 of the Government Procurement Rules).
Gifts, donations
For guidance on gifts, donations and unconditional grants, refer t
o Public sector
and grants
purchases, grants, and gifts: Managing funding arrangements with external parties
and
Principles to underpin management by public entities of funding to non-
government organisations, which are guides published by the Office of the Auditor-
Information
General.
Help or enquiries
For any queries related to the Procurement Policy, please contact the Procurement
Team
at [email address]
Official
Definitions
Australian and New A clause added to New Zealand and Australian Fire jurisdiction contracts allowing
the
Zealand National
all other Australasian Fire jurisdictions to purchase off existing contracts.
Council for fire and
emergency services
(AFAC) syndicated
clause
under
All of Government
The mechanism used for combining the collective purchasing power of all
(AoG)
government agencies as a single customer. AoG contracts are managed by the
Ministry of Business, Innovation & Employment.
AoG Contracts and
This includes all AoG Contracts and Panels, Common Capability Contracts,
Panel Agreements
Contracting and Consultancy panels, ICT panels, Master Agreements and
Syndicated Agreements. Refer to procurement.govt.nz > Contracts >
Types of
Released
contracts.
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Policy - Procurement
Broader outcomes
Achieving wider social, economic, cultural and environmental outcomes that go
beyond the immediate purchase of the goods and services through Government
Procurement. Fire and Emergency must consider the Government’s four priority
outcomes when buying from designated contract areas:
• increasing access for New Zealand businesses
• improving conditions for New Zealand workers
• reducing emissions and waste and
• increasing the size and skill level of the domestic construction sector
workforce.
Construction works
A generic term which covers new construction works for a new build or
1982
refurbishment works to an existing construction.
Contract Manager
The person who is responsible for managing the operational delivery of the
Act
contract who has been assigned this responsibility by the Business Owner.
Contract
The Contract Management System is the system for recording all Contracts. It is
Management
administered by the Fire and Emergency Procurement Team. The Procurement
System (CMS)
Team is responsible for the administration and updating of the CMS with executed
contracts provided by the business.
Delegated Financial As outlined in the Authorisations and Statutory Delegations Policy, which sets out
Authority
the rules for authorisation of persons to perform or exercise functions, duties and
Information
powers under th
e Fire and Emergency New Zealand Act 2017 and regulations
made under it, and the delegation of statutory functions, duties and powers of
Fire and Emergency New Zealand or the Board. Financial limits are set out in the
Delegated Financial Authority Schedule.
Information,
ICT Products and Services refers to the infrastructure, networks (both
Official
Communication
telecommunications and data), hardware and software that enable users to
and
communicate, gather, store data, create, secure and control access and
Telecommunication transmission of electronic information. ICT professional services include those
the
(ICT) Product and
related to the design, development and support of ICT solutions.
Services
Market approaches Finding a supplier of goods, services or construction works, typically through
requesting quotes or proposals from supplier(s) where the process does not rely
under
on any AoG Contracts and Panel Agreements.
Procurement
The process of acquiring, delivering and disposal of goods, services and
construction works. Procurement activity includes planning, sourcing, managing,
disposal and review activities. This includes services ranging from engaging
contractors and consultants, purchase of ICT products or services, sourcing
external legal advice, establishing and purchasing from corporate shared services
contracts, conditional grants, through to engaging building design and
Released construction suppliers and disposal of assets.
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Policy - Procurement
Procurement plan
A plan to document the decision-making process for selecting the most
appropriate procurement approach to meet the specific need for goods, services
or construction works and the outcome that Fire and Emergency wants to
achieve. It should include, an overview of the requirement, market analysis,
confirmation of budget availability, indicative costs, specifications of requirement,
indicative timeline, evaluation approach and an explanation of the Broader
Outcomes we will seek to achieve through the procurement, along with internal
approvals.
Procurement Team
The team responsible for guiding and managing the organisation in its
procurement.
1982
Public value
Achieving the best available result for the money spent. It includes using all our
resources effectively, economically, and responsibly, and considering:
• the procurement’s contribution to the outcomes and results we are trying to
Act
achieve
• delivery of any broader outcomes we are trying to achieve
• the total costs and benefits of a procurement.
RFx
A generic term to describe procurement methods and includes Request for quote
(RFQ), Registration of interest (ROI), Request for proposal (RFP) or Request for
tender (RFT), which are ways to seek information or bids from potential suppliers.
Secondary
A process used to select suppliers from existing agreements (i.e. AoG Contract or
Information
procurement
Panel) that have already been established through a market approach.
process
Whole-of-life cost
The value of a contract, or where relevant, a Statement of Work (SOW), including
(WoLC)
all costs associated to deliver the contract or SOW, over its entire life. Therefore,
the Whole of Life Cost (WoLC) calculation would include purchase costs, one-off
Official
costs, disposal costs and should include the value of the full term of the contract
or SOW including any renewal or extension periods.
the
Policy statements
Introduction
Fire and Emergency will conduct all procurement, commercial and supplier
management activities in accordance with this policy including th
e Government
under
Procurement Rules, the Five Principles and th
e Government Procurement Charter,
and must consider Public Value an
d Broader Outcomes.
The Five
The Five Principles must apply to all Fire and Emergency procurement activity no
Principles
matter what the value of spend. The aim of applying these principles is to ensure
that the delivery of Public Value is a primary focus in all our procurement activity.
They are:
Released 1. Plan and manage for great results
2. Be fair to all suppliers
3. Get the right supplier
4. Get the best deal for everyone
5. Play by the rules.
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Policy - Procurement
Our values
This aligns to our values:
• We do the right thing – Kia Tika
• We serve and support – Manaakitanga
• We are better together – Whanaungatanga
• We strive to improve – Auahatanga
Public Value
Public Value is achieved by Fire and Emergency following the government’s
expectations of how we conduct our procurement activity by adhering to the
Government Procurement Charter. The Charter expects Fire and Emergency to,
where practical:
1982
• seek opportunities to include New Zealand businesses
• undertake initiatives to contribute to a low emissions economy and promote
greater environmental responsibility
Act
• look for new and innovative solutions
• engage with businesses with good employment practices
• promote inclusive economic development within New Zealand
• manage risk appropriately
• encourage collaboration for collective impact.
Standard
Fire and Emergency staff are required to follow this procurement policy unless you
Procurement
have approval to deviate from this as outlined in ‘Deviation from this policy’ below.
Information
Approach
Detailed procedures, guidelines and templates are o
n the Portal > How do I >
Purchases, contracts and claims
> Procure goods and services. All procurement
activities must:
1. be properly planned and approved by the Delegated Financial Authority
2. use the corr
ect Delegations to approve any commitment to a contract or
Official
expenditure before funds are committed
3. complete
a Conflict of interest form
4. consider and apply appropriate levels of risk management across the
the
procurement including any safety, health and wellbeing, and security and
privacy risks
5. where they exist, use AoG Contracts and Panel Agreements for the goods,
services or construction works that they cover
under
6. where they exist, consider AFAC contracts
7. engage with the Fire and Emergency Procurement team early in the planning
phase:
o for all high-risk procurement activity regardless of value
If you are unsure whether the contract is high risk, talk to the Procurement
team
o where the WoLC is likely to be over $50,000 for Market Approaches
Released 8. when procuring contractors, temps and consultants, comply with the
Contractor and temps hiring guidelines and Consultant engagement guidelines
9. have an executed contract (This could be a Purchase Order (PO) linked with our
standard terms and conditions) approved in accordance wi
th Delegated
Financial Authority Schedule
10. if the contract is over $25,000 WoLC, be registered in the Contract
Management System before the supplier starts to deliver the goods, services or
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Policy - Procurement
construction works. This includes all secondary procurement process involving
AoG Contracts and Panel Agreements.
Procurement
Where goods and services are not available on AoG Contracts and Panel
thresholds for
Agreements, the procurement method for purchasing is as follows:
approaching the
market
WOLC (NZ$
Procurement
Contract
excluding GST)
method
Up to $4,999
Direct
No contract required; refer to the
Business
purchase from
expenditure policy and the
Delegated Financial
a supplier.
Authority Schedule for how to pay for the goods and
services and who can approve.
1982
Note: You must consult the ICT procurement team
before purchasing any ICT products or services on
your P-Card.
Act
$5,000–
Direct source
PO linked with our standard terms and conditions; or
$49,999
The Government Model Contract for Goods or
Services
$50,000–
Obtain quotes
Government Model Contract for Goods or Services
$99,999
from three or
www.procurement.govt.nz/procurement/templates/
more suppliers
or Fire and Emergency contract suitable for Goods or
(at the
Services and Deliverables tendered for.
discretion of
the DFA).
Information
$100,000+
Open tender
Government Model Contract for Goods or Services
process by
www.procurement.govt.nz/procurement/templates/
openly
or Fire and Emergency contract suitable for the
advertising on
Goods/Services and Deliverables tendered for.
the
Government
Electronic
Official
Tendering
Service (GETS).
the
$100,000+ for
Competitive:
CCCS for Professional Services (Procurement.govt.nz
Construction
open tender to
> Contracts
> Construction consultancy services,
Works
market
NZS3910 (build only), NZS3916 (design and build) or
NZS3917 (fixed term)
Secondary
Fire and Emergency’s expectations for secondary procurement are:
under
procurement
• Where goods and services and construction works are available on an existing
approach using
agreement, the procurement approach must be a secondary procurement
AoG Contracts
process outlined in the relevant Contract or Panel Agreement.
and Panel
Agreements
• If a secondary procurement process is
not outlined within the relevant Contract
or Panel Agreement, contact the Procurement team, who will advise you of
possible options.
Released
Variations and
Fire and Emergency’s expectations for variations and extensions are:
extensions
• When a Direct Source approach has been undertaken to engage the supplier
and a contract variation or extension would cause the contract to cross the
Market Approach threshold of a WoLC of over $50,000, consult the
Procurement Team for advice as typically this will require an open tender
process for ongoing goods, services or construction works.
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Policy - Procurement
Contract
Fire and Emergency’s expectations for contract management are as follows:
management
• Business Owner is responsible to ensure all contracts are recorded in the
Contract Management System.
• For high-risk/high-value contracts, a Contract Management Plan must be
documented. You must engage with Procurement Team when determining the
risk and value metrics.
• Contract managers are required to manage contracts and suppliers to ensure
they deliver business benefits, efficiencies and Public Value.
• Contract managers are required to manage the operational delivery of the
contract, including tracking and monitoring performance, spend and risks, 1982
identifying areas for improvement, and ensuring suppliers comply with the
Government
’s Supplier Code of Conduct.
• Contract managers must ensure that for any contracts that are due to expire,
Act
there is a strategy in place for any future or ongoing requirements for the
goods, services or construction works covered. Contract Managers should
manage this in consultation with the Procurement team.
Deviation from
You must document any deviation from this policy, including:
this policy
• exemptions
• emergency procurement
• opt-outs from the Government Procurement Rules
•
Information
when requesting an alternative procurement approach to using an AoG
Contracts and panel agreement
In addition, for all deviations, you must get approval from the National Manager
Finance and Procurement or the Chief Executive if the procurement is deemed high
value/high risk.
Official
Key accountabilities and responsibilities
the
Governance and oversight
Chief Executive
• Has overall responsibility for ensuring Fire and Emergency meets its obligations
(CE)
under this policy.
under
Deputy Chief
• Maintains overall oversight of the status of this policy.
Executive, Finance
• Approves major amendments to this policy.
and Business
Operations
Business groups
Identify and manage risks in day-to-day operations (first line):
Released
Deputy Chief
• Ensures their business groups comply with this policy.
Executives (DCEs)
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Policy - Procurement
Managers
• Ensure their staff are aware of and comply with this policy.
(Business Owner)
• Ensure that they assign a Contract Manager to each of their contracts and that
the Contract Manager understands and undertakes the contract management
responsibilities.
All staff
• Comply with this policy and procedures as applicable to their role.
• Obtain support and advice early in the process from the Procurement Team
and appropriate subject matter experts, including legal, safety, health and
wellbeing, security and privacy, as relevant to the activity, its value and its
associated risk. You must get this advice before approaching the market for the
provision of any services, including advisory services that relate to a
procurement.
1982
• Consult with the Procurement team when sourcing goods, services or
construction works if over $50,000 WoLC.
Act
• Comply with this and all other relevant AoG policies and guidelines.
Delegated
• Ensure they are familiar and comply with the policy and use the associated
Financial Authority
procedures and guidelines.
(DFA)
• Approve Procurement Plans, exemptions and opt-outs for market approaches,
AoG Contracts and Panel Agreements.
• Approve contracts, variations and renewals.
Contract Manager
• Work with the Procurement team to create a Contract Management Plan.
• Ensure the contract is registered, loaded and maintained on the Contract
Information
Management System.
• Manage and monitor contract delivery, performance and costs.
• Identify and manage risks and areas for improvement.
• Develop and maintain robust relationships with suppliers, include conducting
contract progress reviews, resolving problems, and recording overall
Official
performance and reporting on the Contract Management System.
• Take responsibility for contract variations and renewals.
the
• Ensure a strategy is in place for all contracts expiring where there is a
requirement for any future or ongoing services.
Risk oversight functions
under
Set policies and monitor compliance (second line):
Manager
• Provide advice and support to business groups about the policy.
Procurement
• Endorse all exemptions or opt-outs including AoG Contracts and Panel
Services
Agreements.
• Endorse all proposed Procurement Plans above the $100,000 threshold.
• Assist business groups with any breach management/mitigation activities as
required.
Released • Regularly monitor compliance with the policy.
• Ensure the policy is reviewed and updated by the agreed review date.
• Maintain and update associated procedures and templates so that they remain
fit for purpose.
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Policy - Procurement
Procurement team • Ensure that any sourcing activity is conducted in accordance with the
Government Procurement Rules and this policy.
• Review and if is appropriate, endorse any valid exemption from open
advertising (for any closed or direct source tender or contract extension).
• Provide advice and guidance to personnel on the application of the
Procurement policy and Government Procurement Rules.
• Lead the procurement sourcing strategy and process for all high-risk
procurement activity regardless of value and market approaches over
$100,000.
• Provide professional, qualified procurement expertise, commercial advice and
services.
1982
• Training staff on all procurement activity.
• Monitor Fire and Emergency procurement activity and practices and
Act
recommend improvements.
• Support the business with contract management of high-risk/high-value
contracts.
Legal team
• Procurement will advise when Legal review is required.
ICT Procurement
• Advise on all procurements that have an ICT component, regardless of value.
team
Information
Measures of success and compliance management
Measures of
The National Manager Finance and Procurement/Manager Procurement Services
success
will assess the effectiveness of this policy. The following measures of success
outline what we expect to see if the policy is working:
Official
• Procurement Plans are documented and recorded.
• Contract Management Plans and reporting are in place for all significant service
contracts that are high-value or high-risk contracts.
the
• Contract renewals or variations to contracts are actively managed and updated
on the CMS.
• Fire and Emergency uncontracted spend is limited to low-value, one-off
purchases that are less than $5,000.
under
Released
2 February 2022
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Policy - Procurement
Compliance
The National Manager Finance and Procurement/ Manager Procurement Services
management
will monitor compliance with this policy as follows:
• Biannual monitoring and reporting on significant service contracts, including
reporting overall performance and relationship status
• Quarterly monitoring and reporting trends on contracts that are due to expire
within the next six months
• Quarterly monitoring and reporting of uncontracted spend, including any
spend that should be contracted
• Monitoring of all known actual and potential breaches of this policy. (The
National Manager Finance and Procurement and Manager Procurement 1982
Services will notify the relevant business group’s DCE of an actual or potential
breach)
• Significant breaches will be reported when they occur to the Executive
Act
Leadership Team and Chief Executive.
Compliance
Compliance information regarding the performance of this policy will be provided
information
to the relevant business group.
Non-compliance
Failure to comply with this policy may be considered a breach of the
Standards of
conduct policy and could result in disciplinary action. The manager is responsible
for ensuring that all staff reporting directly or indirectly to them are aware of and
abide by this policy and report and investigate any breach or alleged misconduct.
Information
Related policies and other information
Policies
Authorisations and Sets out the rules for authorising persons to perform or exercise functions, duties
Official
statutory
and powers under th
e Fire and Emergency New Zealand Act 2017 and regulations
delegations policy
made under it. the
Business
Sets out the rules for claiming reimbursement of expenditure incurred on behalf of
expenditure policy
Fire and Emergency.
Conflicts of
Sets out the expected behaviours and rules that apply when you identify a conflict
interest, gifts and
of interest or receive an offer of a gift, prize or hospitality.
under
hospitality policy
Standards of
Sets out the minimum standards of behaviour expected of all personnel.
conduct policy
Travel and
Set out the rules for organising, undertaking, or authorising business-related travel
accommodation
on behalf of Fire and Emergency.
policy
Released
How do I
Procure goods and services
Plan a procurement
Source a supplier
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Policy - Procurement
Manage a procurement and contract variations
Hire a contractor or temps
Report and manage conflict of interest
Report and manage gift, prize or hospitality
Guidelines
Managing probity during a procurement
Procurement quick reference guide
Tool
1982
Delegated
The standard delegated financial authority of personnel for operating and capital
Financial Authority
expenditure and monthly purchase card limits.
Act
Schedule
Relevant legislation and regulations
Commerce Act
Relevant if Fire and Emergency represents a large proportion of purchases within a
1986
relevant market; Fire and Emergency must not abuse its market position.
Health and Safety
Key consideration in procurement activity as a Person Conducting a Business
at Work Act 2015
Undertaking (PCBU). For more information, go to the WorkSafe page
Information
https://www.worksafe.govt.nz/laws-and-regulations/acts/hswa/
Privacy Act 2020
Relevant if the procurement involves the management or transfer of personal
information (for example staff or clients).
Public Finance Act
Underpins funding for procurement activities.
Official
1989
the
under
Released
2 February 2022
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Policy - Procurement
Document information
Owner
DCE Finance and Business Operations
Last reviewed
2 February 2022
Review period
Every second year
Record of amendments
Date
Brief description of amendment
May 2022
Added links to Related policies and other information section
February 2022
Updated as part of regular content review; updated content owner
1982
July 2018
Updated content owner
Act
Information
Official
the
under
Released
2 February 2022
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