The proposed Code will likely apply to not only contracts suppliers have with the Government, but also to suppliers’ overall conduct. The Code will cover labour and human rights, health and safety, payment terms, environmental sustainability, ethical behaviour, and corporate social responsibility.
The proposed changes to the Rules include:
A draft Government Procurement Charter, which sets out the Government's expectations for how agencies should conduct their procurement activity, will also be included in the updated Rules.
The changes reflect the aim to achieve broader social, economic and environmental outcomes through the annual $41 billion the Government spends buying goods and services from third-party suppliers and providers.
Any supplier contracting with Government departments, NZ Police, NZ Defence Force and most Crown entities must follow the Rules if the procurement is worth more than $100,000 (or $9 million for new construction works). The Government is also encouraging other Government agencies to follow the Rules.
To continue to receive their share of the $41 billion, it will be important for businesses providing goods or services to the Government to ensure they have adequate policies in place to comply with the changes.
Submissions on the Supplier Code of Conduct and the Government Procurement Rules 4th edition close on 19 February and 5 March 2019 respectively.
For further guidance on Government Procurement and the consultation process please contact Hayden Wilson, Linda Clark, Paul Buetow or Campbell Featherstone.