Why are we working on this?
According to IDC, in 2019 the public sector accounted for 29.6 percent of all IT spending in New Zealand. Procurement is therefore a significant lever that government can use to support the growth of the sector.
However, the Government procurement system remains one of the biggest pain points for the sector. Feedback we have received from the sector includes: Even though the Government has procurement rules, they have not made the process any easier for smaller suppliers; the procurement process is slow, expensive and onerous for companies; the Government is too risk averse and needs to be more entrepreneurial and agile when procuring tech solutions; New Zealand businesses consider it difficult to compete against large international firms; the process should be more open and decisions more transparent.
What are we trying to achieve?
This workstream will seek to understand what short- and long-term changes can be made to the procurement system to improve outcomes for tech firms. The ITP provides a vehicle to understand industry views and work with NZGPP and DIA to implement actions.
Relevant work underway
The 4th edition of the Government Procurement Rules came into effect in October 2019. The new rules require Government agencies to consider broader environmental, social, economic or cultural outcomes when purchasing goods, services or construction works. It also requires Government agencies to consider how they can create opportunities for New Zealand businesses through their procurement opportunities.
An industry workshop was held on 10 September to gather views on what could be done to improve the procurement process for the digital technologies sector. We will be looking to understand what short-term actions can be taken to improve the process now, as well as what long-term changes could be made to the procurement system. This workshop will inform decisions regarding specific initiatives to be progressed as part of the ITP.
Anything out of scope?
We will not be looking to significantly change the Procurement Rules, given that they have recently been updated.