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Procurement policy changes – goods and services

Find out how goods and services policies have changed to support the VGPB expansion initiative

Goods and services policies changed on 28 January 2021 to support agencies transitioning to the policy framework under the expansion initiative. The changes make the policies more scalable, to suit agencies large and small.  Agencies can apply the rules to match their size, risk and complexity of spend.

The changes also make it clear which agencies must comply with the rules. 

Agencies should consider these changes when:

  • Setting up procurement governance
  • Planning and carrying out procurement 
  • Establishing reporting requirements

Agencies that must apply the new policy rules are listed in goods and services mandated agencies

Changes to goods and services policies include:

Governance – goods and services policy

Two changes under Context:

This change makes it clear which agencies do not need to comply with the rules:

  • However, this policy and other VGPB supply policies are not mandatory for any public body which is wholly exempt from compliance with the Standing Directions made under Section 8 of the Financial Management Act 1994. 

This change allows for agencies that must follow the policies to adapt the rules in a way that suits their procurement profile: 

  • In meeting the VGPB mandatory requirements, the level of detail in the organisation’s procurement policies and processes will be determined by the Chief Procurement Officer or equivalent and will be commensurate with the organisation’s procurement profile.

Change to lead sentence under Section 2.1 Mandatory requirements:     

  • The VGPB may require that an organisation:
    • make a submission and presentation to the VGPB using the assessment tool to demonstrate that their organisation is fully capable of managing their own procurement activities; and
    • have the submission supported by the relevant accountable officer.

Complexity and capability assessment – goods and services policy

Two changes under Context:

This change makes it clear which agencies do not need to comply with the rules (same as Governance Policy):  

  • Except where supply policies are not mandatory for a public body in accordance with Policy One (Governance). 

This change allows for agencies that must follow the policies to adapt the rules in a way that suits their procurement profile: 

  • In meeting the VGPB mandatory requirements, the level of detail in the organisation’s procurement policies and processes will be determined by the Chief Procurement Officer or equivalent and will be commensurate with the organisation’s procurement profile.

Market analysis and review – goods and services policy

Two changes under Context:

This change makes it clear which agencies do not need to comply with the rules (same as Governance Policy):  

  • Except where supply policies are not mandatory for a public body in accordance with Policy One (Governance). 

This change allows for agencies that must follow the policies to adapt the rules in a way that suits their procurement profile: 

  • In meeting the VGPB mandatory requirements, the level of detail in the organisation’s procurement policies and processes will be determined by the Chief Procurement Officer or equivalent and will be commensurate with the organisation’s procurement profile.

New text in Section 2.1.1 Establishment of and reporting for SPCs. Agencies will be guided by the SPC lead agencies on thresholds:

  • … or the entity's spend does not meet the threshold determined by the lead agency.

Market approach – goods and services policy

Two changes under Context:

This change makes it clear which agencies do not need to comply with the rules (same as Governance Policy):  

  • Except where supply policies are not mandatory for a public body in accordance with Policy One (Governance). 

This change allows for agencies that must follow the policies to adapt the rules in a way that suits their procurement profile: 

  • In meeting the VGPB mandatory requirements, the level of detail in the organisation’s procurement policies and processes will be determined by the Chief Procurement Officer or equivalent and will be commensurate with the organisation’s procurement profile.

Contract management and disclosure - goods and services policy

Two changes under Context:

This change makes it clear which agencies do not need to comply with the rules (same as Governance Policy):  

  • Except where supply policies are not mandatory for a public body in accordance with Policy One (Governance). 

This change allows for agencies that must follow the policies to adapt the rules in a way that suits their procurement profile: 

  • In meeting the VGPB mandatory requirements, the level of detail in the organisation’s procurement policies and processes will be determined by the Chief Procurement Officer or equivalent and will be commensurate with the organisation’s procurement profile.

Tools and support

Review Aligning with the goods and services supply policies for more information on the VGPB expansion initiative.

For more information regarding policy changes, contact the goods and services policy team.

Reviewed 27 January 2021

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