On this page:
- Overview
- Support
- Stage 1: Initiate the procurement
- Stage 2: Identify the needs of the procurement and analyse the market
- Stage 3: Specify the Statement of Requirements
- Stage 4: Plan approach to market and evaluation
- Stage 5: Approach the market and select
- Stage 6: Negotiate and award
Overview
The processes set out on this page and in the associated guides and templates must be applied for all school property related procurement for projects including:
- boards of trustees acting as project managers when managing their own projects
- project managers managing projects on behalf of a board of trustees
- project managers engaged on Ministry-managed school property projects.
School property procurement includes procuring:
- property planning and project management services
- construction design, engineering and quantity surveying services
- construction works
- building services and facilities maintenance.
For each procurement, the person assigned the role of procurement officer (usually the project manager) is responsible for managing the procurement process.
Download the Quick Guide
You can also use this quick guide to procurement which is designed for anyone involved in school property procurement including project managers, property advisors, school principals and board of trustee members.
Support
For procurement support, email the Ministry’s Education Infrastructure Service Commercial Procurement Team:
eis.procurement@education.govt.nz
Stage 1: Initiate the procurement
1. Confirm that you need to undertake a procurement.
- Is there a genuine need for the procurement?
- Is there an existing contract or supply arrangement that could be used? (such as supplier panels).
2. Confirm that you have written approval to undertake the procurement (for example a business case or the school’s 10 Year Property Plan and approved 5 Year Agreement).
3. Prepare a high level description of what is required. This is called a Statement of Requirements.
4. Determine the procurement value. This is the maximum value of all spending that may result from the procurement.
Stage 2: Identify the needs of the procurement and analyse the market
5. Allocate roles for the procurement:
- Procurement officer – manages the procurement, for example the project manager.
- Procurement owner – represents the buyer, for example the school principal (or Ministry Case Manager if it is a Ministry-run project)
- Procurement sponsor – has overall responsibility for the procurement. This is the person, usually a board member, with the Delegated Financial Authority.
- Evaluation team – evaluates and scores responses and selects preferred respondent.
6. Identify conflicts of interest:
- Value of $50,000 or more: everyone involved must submit a Conflict of Interest and Confidentiality Agreement
- Value of less than $50,000: anyone with a conflict of interest must submit a Conflict of Interest and Confidentiality Agreement
Download: Conflict of Interest and Confidentiality Agreement
More information: Conflict of Interest on school property projects
7. It is important to have a clear understanding of what is required so that the market can deliver value for money and a solution that is fit for purpose.
Conduct a needs analysis which may include analysing the market by:
- consulting with internal stakeholders
- conducting market research
- engaging with potential suppliers to encourage participation.
Stage 3: Specify the Statement of Requirements
Develop a more detailed Statement of Requirements describing the:
- outcome sought and deliverables required, such as classroom space for 30 students
- capability and capacity required of the supplier
- intended contractual arrangement, such as the type of contract and key contract terms and conditions.
Stage 4: Plan approach to market and evaluation
9. Reconfirm the procurement value based on the detailed Statement of Requirements.
10. Select an appropriate ‘approach to market’ method.
The diagram below sets out the minimum thresholds (based on the procurement value).
| Procurement value | Minimum approach to market method |
|---|---|
| Under $10,000 | Non-competitive purchase: written quote not required. |
| $10,000 – under $50,000 | Direct source: one written quotation |
| $50,000 – under $100,000 | Closed tender: 3 written quotations |
| $100,000 or more | Open tender: advertised on the Government Electronic Tender Service (GETS) |
These are minimum requirements. You should use a higher than minimum approach to market method when warranted by the risk and complexity of the procurement.
The procurement value is the maximum potential value of all spend resulting from the procurement - including potential variations, extensions, further engagements and/or contracts.
If the cumulative value of under $50k spend with the same supplier exceeds $50k in 12 months, then a closed tender must be conducted (eg. $20k contract direct sourced 6 months ago + $25k contract direct sourced 2 months ago + current $10k procurement = $55k: closed tender). Procurements must not be structured in order to avoid a threshold.
You must get a procurement exemption if you want to use an approach to market method with a lower threshold (see: Procurement exemptions ).
11. For direct source and closed tender, identify the potential supplier or suppliers to be invited to submit a quote using a Request for Quote (RFQ).
12. For open tender, decide whether to use a:
- single stage open Request for Proposal (RFP), or
- 2 stage open Registration of Interest (ROI) and closed RFP to shortlisted respondents.
13. Draft the Procurement Plan, including the evaluation method to be used. You can download the appropriate Procurement Plan template at the end of this page. Send a copy of the Procurement Plan to the school’s property advisor not less than 2 business days before approval by the procurement sponsor.
14. Draft and get approval for your approach to market documents from the procurement owner, ie RFQ, ROI and RFP. You can download these templates at the bottom of this page.
15. The Procurement Plan and approach to market documents must be approved by the procurement sponsor before approaching the market (requesting quotes or advertising on GETS).
Stage 5: Approach the market and select
16. Approach the market:
- For open tender procurement, advertise the ROI or RFP on GETS website - www.gets.govt.nz . See the GETs Procurement Officer Guide at the end of this page.
- For direct source and closed tender procurement, invite the potential suppliers you have identified to submit a quote by sending each a copy of the RFQ and providing equal and sufficient time to respond.
17. Reply to any requests for clarification from potential suppliers. Update other potential suppliers with your response to ensure that all submissions are based on the same information.
18. Evaluate responses submitted by potential suppliers (respondents) using the Evaluation Workbook (download at the bottom of this page) and select a preferred respondent. For 2 stage open tenders, select a shortlist of respondents to be invited to take part in the subsequent closed RFP process. Download the Open Tender Evaluation Guide and the Works Price Evaluation Guide at the end of this page.
19. Draft the Recommendation Report to summarise the evaluation and recommend entering into contract negotiation with the preferred respondent. You can download the Report at the bottom of this page. A copy of the Recommendation Report must be sent to the school’s property advisor not less than 2 business days before approval by the procurement sponsor.
20. The Recommendation Report must be approved by the procurement sponsor before awarding a contract and/or notifying respondents whether they have been successful or unsuccessful.
Stage 6: Negotiate and award
21. As soon as practical, notify respondents whether they have been successful or unsuccessful. For procurement of $100,000 or more, you must notify respondents in writing and provide or offer a debrief. You may want to provide debriefs after the contract is awarded. Download a Preferred/Shortlisted Respondent Letter template and an Unsuccessful Respondent Letter template at the bottom of this page.
22. Negotiate a mutually acceptable contract with the preferred respondent. There are standard contract templates to use for different procurement types and values (see: Contracts for construction works and professional services ).
23. Get written approval from the procurement sponsor for the final form of contract.
24. Execute the contract:
- the preferred respondent and procurement sponsor must sign 2 copies of the contract.
- one copy of the signed contract is held by the buyer (the school or the Ministry) and one copy is returned to the preferred respondent.
25. For procurements with a procurement value of $100,000 or more, post an award notice on GETS.
26. Contract starts.
27. Provide debriefs as appropriate.
28. Keep all procurement documentation for 7 years on the project file (see: Project files and briefs ).