Source: BusinessNZ
Recently announced changes around procurement have come into effect today, with an added measure to ensure the revised rules remain effective. BusinessNZ says the focus on outcomes is refreshing.
Director of Advocacy Catherine Beard says tracking the compliance and impact of recently announced changes to the government procurement process is a new, and logical, step in the process.
“Instead of doing things the way we’ve always done them, these changes are focused on desired outcomes – more Kiwi businesses being considered for government contracts, and greater benefits to New Zealand’s economy.
“The news today that Officials will need to report every six months on the impact these changes have had will be a boost to business confidence.”
Beard says government spending and procurement can be a powerful economic lever.
“For a long time, BusinessNZ advocated for procurement rules that emphasise greater economic value to New Zealand, as well as the value provided over the lifetime of a contract, rather than a lowest-cost procurement model.
“Starting today, the economic benefit test should result in more kiwi bidders winning contracts, and will ensure international companies have considered the wider value they provide to New Zealand as part of the application process.
“If local companies can more easily participate in bigger contracts, either directly or via subcontracting to an international lead supplier, then we will be growing larger companies, employing more people, paying more tax and potentially having more products to export.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
