Procurement: A Whole of Government Approach Building capability and driving performance across government Workshop for Crown entity Monitoring Departments 28/11/13 The Proposal for Change • Ministers propose a whole of government approach to extend the mandatory application of the Government Rules of Sourcing (the Rules). • The direction would cover all Crown Entities, excluding School Boards of Trustees, a total of 109 entities. • Consultation begins in December and will continue into early 2014. The Rules and Value Creation Government procurement accounts for $30 Billion annually, that spend can shape the competitive landscape in New Zealand. If used wisely it can contribute to growth of the export sector and domestic economy. Stakeholder International Supplier Agency Domestic Supplier Stakeholder Agency The Rules and Value Creation Procurement policy can change the way market participants engage with one another. The Rules are an important part of creating value and aligning New Zealand with best practice internationally. International Supplier Domestic Supplier Agency Stakeholder Agency Stakeholder Advantages of Applying the Rules • A clear and consistent framework which: Builds supplier confidence Improves market performance Supports collaboration Reduces duplicated effort Ensuring agencies get the most out of the procurement process. Impacts on Agencies A transition period in which: • Agencies will need to align internal policy with the Rules. The impact of this will depend on the extent to which they already comply. • An understanding of the framework will need to be fostered and staff capability developed. Training and advice will be provided by MBIE throughout this period. Impacts of Direction in Agencies Leading to Sizable Benefits Including: • Reduced procurement effort Adoption of AoGs and standard approaches will minimize the cost involved for agencies. • Improved value Early market engagement will improve the quality of market offerings and the value which can be gained from the procurement process. • Savings through shared learning Collaboration provides opportunities to reduce cost and share knowledge, building procurement capability within agencies. Impacts on Monitoring Agencies • Monitoring Agencies should be aware of the changes: Taking advantage of opportunities to become informed and engaged in the process. • Act as facilitators to support agencies through the transition period: Recognizing their valuable role in encouraging and supporting the change. Should Monitoring Agencies become aware of issues associated with the change they should not hesitate to contact MBIE. Agencies: Creating Value and Driving Best Practice • Agencies continue to drive the procurement process. • Every agency has the opportunity to contribute to creating best practice. Where to from here? The Consultation Process Consultation will commence in December and continue over the early part of 2014. A range of mechanisms will be used to obtain the views of entities and other parties effected by the changes. Targeted discussion Workshops Training Briefings Views will be accepted orally or in writing for the duration of the consolation period.