Glossary

Approving authority is the person or persons responsible for approving different types and levels of procurement.

Commercial in confidence (CIC) is a description applied to confidential information provided for a specific purpose that is not to be used for any other purpose.

Common use provision (CUP) clause is a clause included in procurement and contract documents to enable eligible public entities to join the contract during its term. The clause is used in syndicated procurement arrangements.

Cluster refers to a group of public sector entities that collaborate before going to the market and approach the market collectively (that is, they aggregate their requirements). This arrangement is used in syndicated procurement.

Expression of interest (EOI) is similar to a registration of interest (ROI) in that it is used to identify suppliers interested in, and capable of, delivering the required goods or services. Potential suppliers are asked to provide information on their capability to do the work. It is usually the first stage of a multi-stage tender process.

Government Electronic Tender Service (GETS) is a government website (www.gets.govt.nz) that provides information about New Zealand Government business opportunities.

Market, in the context of these guidelines, means the sellers of a good or service who are potentially available as suppliers to a public entity.

Panel contracts are a contractual arrangement with a group of suppliers to provide goods or services as and when required, under a schedule of rates for each supplier or on a quotation basis.

Procurement is all the business processes associated with purchasing, spanning the whole cycle from the identification of needs to the end of a service contract or the end of the useful life and subsequent disposal of an asset.

Procurement cards are charge cards that work in a similar way to credit cards.

Public entity and entity have the same meaning as in section 5 of the Public Audit Act 2001. This includes schools, State-owned enterprises, government departments, Crown entities, and local authorities, as well as any subsidiary or other controlled entity of the principal entity.

Public sector means, collectively, all public entities in central and local government.

Registration of interest (ROI) is similar to an expression of interest (EOI) in that it is used to identify suppliers interested in, and capable of, delivering the required goods or services. Potential suppliers are asked to provide information on their capability to do the work. It is usually the first stage of a multi-stage tender process.

Request for information (RFI) is a formal request for information to gain a more detailed understanding of the supplier market and the range of solutions and technologies that may be available.

Request for proposal (RFP) is a formal means of seeking proposals from the market for goods or services where the public entity is open to supplier innovation – that is, where the outputs and outcomes are important, rather than the process the supplier follows to deliver them.

Request for quotation (RFQ) is a formal means of seeking quotations from the market for goods or services where price is the main selection criterion, the requirement is for “stock standard” or “off the shelf” goods or services, and the procurement is low risk.

Request for tender (RFT) is a formal means of seeking tenders from the market to provide goods or services where the public entity's specification or requirements are clearly defined and there is little room for flexibility or innovation.

Staff means all members, trustees, office holders, managers, and employees of a public entity.

Syndicated procurement involves groups of public entities aggregating their procurement requirements to achieve improved outcomes through greater purchasing power and reduced procurement costs. The two most widely used syndicated procurement models are the common use provision and cluster.

Sustainability is about meeting the needs of today, without adversely affecting the needs of tomorrow. In a business sense, the key messages of sustainability tie in with what are considered sound business practices, such as building efficiency, minimising waste, and maximising resources.

Value for money means using resources effectively, economically, and without waste, with due regard for the total costs and benefits of an arrangement, and its contribution to the outcomes the entity is trying to achieve. In addition, the principle of value for money when procuring goods or services does not necessarily mean selecting the lowest price but rather the best possible outcome for the total cost of ownership (or whole-of-life cost). Value for money is achieved by selecting the most appropriate procurement method for the risk and value of the procurement, and not necessarily by using a competitive tender.

We, us, and our refer to the Office of the Auditor-General, including the Auditor-General's appointed auditors.