How does the government’s procurement reform agenda affect the Code?

Government procurement relates mostly to a commercial ‘purchasing‘ model. Contracting for services in the social sphere is exempt from some of the procurement ’rules‘ such as compulsory tendering. Many of the issues that affect the commercial world, however, are relevant to the contracting or funding of non-profit organisations: for example, the need for a shared understanding about the outcome or result, many standard terms and conditions, and the importance of relationship development and management over time.

The Ministry of Economic Development (MED) has issued model contracts with standard terms and conditions for services for use in government procurement (www.procurement.govt.nz). While specifically intended for ’routine‘ commercial procurement in the first instance, the model contracts provide guidance tools and templates that may in part be applicable to agencies and non-profit organisations in drawing up agreements for social services delivery. For details of the model contracts and associated guidance, see the government procurement pages on the MED website.

In the short term, the Office for the Community and Voluntary Sector will work with the Ministry’s procurement reform team to ensure we avoid duplication and find opportunities to develop shared resources including possible future amalgamation of the procurement and funding good practice guides.