The Defence procurement process
Through successful industry partnerships Defence is able to deliver a range of capabilities required by Government, from combat capability through to equipment for tasks such as search and rescue, and humanitarian and disaster relief operations.
The Defence White Paper 2016 signalled investment of around $20 billion over the next 15 years in new capability and infrastructure for the Defence Force. This includes replacing our aged C-130 Hercules, P-3 Orions and Boeing 757 aircraft, ANZAC frigates, and investment in associated infrastructure for the Defence Force. These capabilities are vital so that NZDF can, for example, help during disasters such as earthquakes and extreme weather events, both at home and offshore, provide search and rescue services and protect the natural resources of our precious Exclusive Economic Zone (EEZ).
The majority of equipment the Ministry of Defence purchases for the Defence Force is outlined in the Defence Capability Plan.
See more information about delivering Defence capability.
The New Zealand Defence Force (NZDF) purchases:
- assets with a life cost of under $15 million
- every day goods and services, such as clothing, food, medical gear and supplies
- products and services to help run the Defence Force’s camps and bases.
The Defence Logistics Command (DLC) is responsible for providing logistic support to the three Services and deployed personnel. Defence Commercial Services (DCS) is part of DLC and works with suppliers to support the Defence Force through a coordinated approach by managing contracts and procurement. Read more about DCS(external link).
Better Business Cases
All capital projects are developed using the Government's Capital Asset Management regime including the Better Business Case model. The Better Business Case process leads to:
- better informed decisions
- better value for money
- achievement of better outcomes.
Any business case needs to address five key questions:
- Is there a compelling case for change?
- Does the preferred investment option optimise value for money?
- Is the proposed deal commercially viable?
- Is the spending proposal affordable?
- How can the proposal be delivered successfully?
To better understand the alignment between the procurement and Better Business Case processes, and where you can provide value and engage with Defence early in the procurement process, see the example guidance for the construction procurement lifecycle diagram(external link).
More information on the procurement process
- For information on Better Business Cases see the Treasury's website(external link) and their Better Business Cases: Quick reference guide(external link).
- View guidance on understanding the Government procurement process(external link).
- The SmartProcure website(external link) provides suppliers and NZDF personnel with a simple, secure and efficient means of procurement.
- For information on New Zealand's trade agreements and the control of weapons and controlled substances, see the Ministry of Foreign Affairs and Trade (MFAT) website(external link).
- Find out how to engage with the Ministry and NZDF throughout the procurement process.
Criteria for evaluation of tenders
Core criteria/principles for evaluating tenders:
- Does the solution meet Defence needs?
- Has the solution been tested in service?
- Can the solution be delivered on time?
- Can we afford the solution? (We include ongoing costs throughout the life of the asset).
In line with the Government rules of sourcing and our free trade agreements we cannot use country of supply as a criterion for evaluating the tender. Read the Government Rules of Sourcing(external link).
Suppliers for all new contracts over $15 million are required to track and report other spending on subcontractors in New Zealand.
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Whether you are a small to medium business or a large domestic or international supplier, register your interest by subscribing to our events calendar and we will notify you of upcoming events and release of tenders that your company may be interested in.