On the 1st December 2025, the 5th edition of the Government Procurement Rules goes live. These rules providethe guidance and best practice for government agencies when they run procurement processes. They set the expectations of how agencies will behave when spending public money, seeking suppliers, and awarding and managing contracts.
The update of the Rules has come about as a result of a couple of years of consultation. Transparency International New Zealand is pleased to see that several recommendations from our 2024 submission have been included in the published version.
Increased focus on Transparency and Accountability
The rules have been updated to be easier to read, as well as some rules being merged or moved into guidelines. The new edition of the Rules has an increased emphasis on transparency at all points of the procurement lifecycle.
There is now a mandatory requirement for agencies to make their procurement policies publicly available. This will help improve understanding about how agencies make their procurement decisions, and support the ability to hold agencies to account in how they run their processes.
Integrity is brought to the fore, not only for agencies, but for suppliers, through integrating the Supplier Code of Conduct (or an equivalent) into all contracts. This requires suppliers to act ethically and with integrity. There are also expectations that suppliers manage their subcontractors and supply chain to the same standards.
We are pleased to see a rule explicitly focused on transparency and accountability. Agencies are now required to take steps to enable appropriate scrutiny of their procurement activities, meaning documentation should be made available when appropriate. There is also a new requirement to have suitable governance and management arrangements in place to oversee procurement activities. This will allow for improved oversight of individuals involved in procurement planning, sourcing and contract management, and ensure risks and outcomes are managed at the appropriate level within the organisation.
Economic Benefit to New Zealand
A major change in this edition of the Rules is the requirement of Economic Benefit to New Zealand, which replaces Broader Outcomes. The economic benefit a supplier brings must be assessed during the procurement phase, and then integrated into any resulting contract. Agencies will also be required to include the economic benefits in the contract award notice on the New Zealand Government Electronic Tenders Service (GETS), enabling scrutiny of the outcomes throughout the contract lifecycle.
In addition, for below-threshold contracts (below $100,000 for goods, services and refurbishments, and below $9 million for new construction), agencies are expected to award the contract to a New Zealand business who can demonstrate capability and capacity to deliver.
Agencies still don’t have to publish an award notice for below-threshold contracts, so we shall watch with interest as to whether the New Zealand Procurement Branch requests this from agencies, and then makes data publicly available on below-threshold contract awards to demonstrate how this rule is being implemented.
Information for Suppliers
A small change, but one which will make a big difference, is the new requirement to include an expected budget in the Notice of Procurement (Request for Proposal, Request for Tender etc). This transparency will help suppliers understand the scale of the contract, helping them bid appropriately, thereby reducing the risk of presenting a response which either undersells or is significantly over budget.
Similarly, for closed procurement processes, there is now an expectation that agencies will let suppliers know how many organisations have been invited to bid. This will support suppliers in their decision as to whether or not to bid because there is a big difference between being one of three invited and being one of ten!
Due Diligence
In the due diligence section, there is a new requirement for agencies to verify a supplier’s beneficial ownership before awarding contracts. This will improve the transparency of organisations receiving public funds and delivering goods or services for government agencies.
Publication of Information
There are additional requirements on agencies to publish information on contracts awarded via opt-out, and those from secondary procurement processes worth more than $100,000, including All of Government. This change closes a significant gap in the transparency of how contracts are awarded. However, we caution that as agencies currently do not always publish the required award notices for open tenders, or for contracts awarded under exemptions, there will be an onus on the New Zealand Procurement Branch to take an active role in monitoring and supporting agencies to increase their transparency.
We are disappointed there are still no requirements to publish information on procurement processes, suppliers and spend for contracts under the thresholds ($100,000 for goods, services and refurbishment works, $9 million for new construction works). This is a missed opportunity to improve the transparency for a significant portion of public expenditure.
Implementation will be key
Overall, we are pleased with the increased focus on transparency in the 5th edition of the Rules. Transparency International NZ will look forward to seeing the improvements in transparency which will result from the changes. We will continue to hold agencies to account for their procurement decision-making.
Joanne Toon
Joanne Toon FCIS is a procurement professional with over 13 years of expertise in NZ public sector procurement. More recently, she has started her own businesses helping suppliers navigate the competitive procurement process. She is a TINZ Member with Delegated Authority for Procurement.
