Ministry of Health Procurement Policy

The Procurement policy provides high-level principles that guide procurement at The Ministry of Health | Manatū Hauora (“the Ministry”) to ensure compliance with the Government Procurement Charter, the Government Procurement Principles, and the Government Procurement Rules.

The way we buy goods and services at the Ministry of Health will vary depending on the nature, value, risk and complexity of the buying requirement. We will use the most appropriate sourcing approach in the circumstances, within the following frameworks:

The Ministry of Health’s Procurement Policy
The Government Procurement Rules
The Ministry of Health’s contract management policy
The Ministry of Health’s Procurement guidelines and templates (where applicable)

You can find more information on the Principles of Government Procurement, the Charter and the Rules on the New Zealand Government Procurement website.

Full text of the policy

Purpose

This policy provides high-level principles that guide procurement at The Ministry of Health | Manatū Hauora (“the Ministry”) to ensure compliance with the Government Procurement Charter, the Government Procurement Principles, and the Government Procurement Rules.

Policy scope

This policy applies to all staff within the Ministry who are involved in the procurement of goods and services (services include contractors and consultants).

Definitions

Definitions related to terms used in this procurement policy can be found in the organisational policy glossary.

We are committed to:

Ensuring that the Ministry’s procurement delivers public value for all New Zealanders while supporting the delivery of better public services, considering how the procurement of goods or services can support New Zealand’s economic growth, and embedding the Government Procurement Charter through:

Seeking opportunities to collaborate internally and with other agencies where the enhanced buying power will achieve greater value for money
Conducting our procurement in accordance with the Government Procurement Rules
Creating opportunities for New Zealand businesses to participate in our procurement processes where they can deliver, including opportunities for Māori businesses and iwi organisations
Procuring goods and services that contribute to a low emissions economy and promote greater environmental responsibility
Looking for innovative solutions, making sure we don’t overprescribe the technical requirements of a procurement and give businesses the opportunity to demonstrate their expertise
Engaging with businesses to apply good employment practices, ensuring that they operate with integrity, transparency and accountability, and respect international standards relating to human and labour rights
Valuing te ao Māori by supporting economic opportunities for Māori businesses and iwi organisations
Managing risk appropriately.

We will achieve this by:

Using the following principles in our procurement, including the six Government Procurement Principles:

Plan and manage for great results – we will identify the need, include the right mix of skills and experience in the procurement process, and select the most appropriate process.
Be proportionate and right-size the procurement – We will make it easy to do business with Government by having efficient end-to-end processes that are proportional to value, complexity and risk.
Be fair to all suppliers – we will treat all suppliers equally and clearly explain how the proposals will be assessed. Unfair advantages, including those arising from incumbent arrangements, are to be identified and addressed.
Get the right supplier – we will be clear about what we need and fair in how we assess suppliers choosing a supplier that can deliver what we need, at a fair price and on time.
Get the best deal for everyone – we will use our resources effectively, and without waste, with due regard for the total costs and benefits of a procurement arrangement. The principle of best value for every dollar does not necessarily mean selecting the lowest price response but rather deliver the best possible outcome for the total cost of ownership (or whole of life cost).
Play by the rules – we will ensure the utmost integrity in the procurement of goods and services. Conflicts of interest will be identified and managed. Commercially sensitive information and intellectual property will be protected and kept confidential. Procurement processes will be transparent, well defined and documented.
Seek economic benefits to New Zealand – We will consider how the procurement of goods or services can support New Zealand’s economic growth by engaging New Zealand business where they can deliver.
Consider opportunities to deliver environmental benefits – we will support the procurement of low-emissions and low-waste goods, services, and work. Where relevant we will encourage innovation to significantly reduce emissions and waste impacts from good and services.

Monitoring staff compliance with this Policy

The Policy Owner has the overall responsibility for:

ensuring staff receive the appropriate training and awareness of this policy and supporting guidance and business rules.
carrying out periodic reviews to ensure compliance with the procurement policy, guidance and business rules, and overall principles is being achieved.

Measures of the policy’s effectiveness are:

Ministry staff find the procurement process and procedures cost effective and easy to use.
No complaints about the Ministry’s procurement processes are lodged with the Ministry, Ministers or Central Agencies, and no problems are noted during debriefings with tender participants.
Expected value, including sustainability outcomes, is delivered (in that Ministry staff are satisfied with the goods and services delivered, or otherwise verified) and the budget is not exceeded.

Providing guidance and rules to help good procurement practice

Additional guidance and business rules are in place and should be read in conjunction with this policy.

Roles and responsibilities

Person/Party	Responsibilities
Director-General of Health	Under section 34 of the Public Finance Act has responsibly for financial management of the departmental expenditure. Delegates financial authority to staff holding or acting in positions within the Ministry. Exercises financial delegations and signs contracts where appropriate.
Executive Leadership Team (ELT)	ELT oversees enterprise-wide governance and operational management decisions and ensures the running of the organisation is on track and tidy. Approves the Procurement Policy or provides delegation for DDG Corporate Services to approve.
Chief Financial Officer	Monitors, reviews, and reports on compliance with this procurement policy.
Deputy CFO, Corporate Finance	Implements procurement practice and processes in the Ministry. Monitors compliance with practices and processes. Approves any Opt-Out or Exemption from the Government Procurement Rules (after endorsement from Procurement).
Delegated Financial Authority (DFA) Holder	Approves the procurement (prior to approaching the market) and procurement plan, including the term of the contract and any renewal options. Endorses any request for an Opt-Out/Exemption from the Government Procurement Rules (prior to approval by Deputy CFO Corporate Finance). Signs the contract.
Procurement function within Corporate Services	Provides process documentation, templates, and advice to help with procurement. Advises on Opt-Out/Exemptions to the Government Procurement Rules. Reviews and endorses Opt-Out/Exemptions to the Government Procurement Rules.
Chief Legal Advisor	Provides advice and reviews contracts where conditions are different from the standard government contract documents. Provides advice and helps draft bespoke contract documents.
All other managers (Tier 3 and below)	Have an appropriate understanding of the Procurement Policy, rules and guidance to enable them to monitor procurement projects that are undertaken within their groups. Comply with the Ministry’s financial delegations.
All people involved in procurement recommendations and decisions	Comply with the Ministry’s procurement policy, guidance and business rules, and templates provided by the Ministry’s procurement team and New Zealand Government Procurement. Ensure there is an approved procurement plan and funding is available prior to approaching the market. See Procurement guidance and business rules for types of approvals and planning documents required for different cost and complexity levels of procurement. Ensure that the procurement plan is followed. Identify and manage conflicts of interest Comply with Ministry’s financial delegations Ensure that there is a process for assuring probity (scaled to the risk, value, and complexity of the procurement) throughout the procurement process. Keep accurate records documenting the procurement process and all key decisions leading to the contract being awarded, including entering all contracts into Kirimana, the Ministry’s Contract Register. Protect providers’ confidential or commercially sensitive information. Identify and manage risks at all stages of the procurement process. Ensure the procurement process is proportional to the value and complexity of the procurement. Escalate significant risks to their reporting Manager, Group DDG, Risk and Resilience team, or ELT as appropriate.

Guidance and rules to help good decision making

The following guidance and business rules are in place to support the implementation of this policy and should be read alongside this policy:

Procurement guidance and business rules.

Policy details

Policy Owner: Group Manager Corporate Finance
Last reviewed date: 9/12/2025
Next review date: 1/12/2028