The New Zealand government's recent procurement reforms are set to significantly impact local manufacturers by enhancing their opportunities to secure government contracts. These changes aim to streamline processes and prioritize economic benefits to New Zealand.
Introduction of the Economic Benefit Test: From December 1, 2025, government agencies will be required to assess the wider economic benefits of procurement proposals. At least 10% of the evaluation will focus on factors such as local job creation, skills development, and the use of New Zealand businesses in delivery.
Simplification of Procurement Rules: The number of procurement rules has been reduced from 71 to 47, making them more accessible and easier to navigate.
Increased Access to Government Contracts: With government contracts collectively worth more than $50 billion annually, these reforms aim to make it easier for New Zealand businesses, including manufacturers, to win contracts directly or as subcontractors in the supply chain.
Emphasise Economic Contributions: Manufacturers should highlight how their proposals contribute to local employment, skills development, and the use of local suppliers to align with the new evaluation criteria.
Simplify Tender Responses: With the reduction in procurement rules, manufacturers should find it easier to navigate the tender process, potentially reducing the time and complexity involved.
Monitor Upcoming Opportunities: Stay informed about government procurement opportunities through platforms like the Government Electronic Tenders Service (GETS) to capitalize on the increased focus on local businesses.
These reforms represent a significant opportunity for New Zealand manufacturers to engage more effectively with government procurement processes, fostering growth and innovation within the sector.
Beehive press release - https://www.beehive.govt.nz/release/procurement-reboot-helps-kiwi-businesses
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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