No mandate for all-of-government tender

Agencies that opt out of all-of-government PC tender will have to explain why

The government cannot compel any public-sector agencies to acquire computer equipment through new all-of-government procurement contracts, says the Ministry of Economic Development.

Agencies have been told, however, there are “clear expectations” that they will take part and they will be asked to give reasons for not doing so, says MED spokeswoman Emilia Mazur.

---

See also: PC assemblers eye massive govt tender
$30 billion reform kicks off with huge PC tender

---

A tender for the first computer hardware contract with the new all-of-government Centre of Expertise for IT equipment was issued last week. It seeks to appoint preferred suppliers for desktop, laptop and tablet computers and “basic” associated value-added services such as asset tagging and writing a standard image to a computer.

More sophisticated services such as creation of the images and computer installation are out of the scope for the new procurement scheme.

Some reports have said government departments would be required to move to the new contract arrangements before July 2012. However, the strongest term used in the tender and associated documents is “expected”.

“The Centre of Expertise for IT equipment cannot legally mandate government departments to take part in the all-of-government contracts,” says MED’s Mazur. “However ministers have set clear expectations that core government agencies will take part. The Ministry of Economic Development has written to all agency chief executives to seek their approval to go to market on their behalf for pricing and their support of the outcomes of this process.

“MED has been directed by the Expenditure Control Committee to report back with reasons, any agency that wishes to opt out of all-of-government contracts in order to assess the impact of individual decisions on the reform programme.”

Core government agencies (those defined as such in the State Sector Act and others such as the Police and Defence Force) are “expected” to participate; non-core agencies such as Crown Entities and the Reserve Bank are “encouraged” to do so and others such as local authorities are allowed to avail themselves of the scheme.

The Centre of Expertise was established as part of the Government Procurement Reform programme announced in June 2009 and led by the MED. According to the RFP, the objectives of the programme include: providing value for money and a reduction in total cost of ownership of products; reducing the complexity and cost of procurement for agencies, and; for suppliers to perform their obligations in accordance with best standards and practices currently applied in their industry.

The Government Procurement Reform Agenda is based around four key themes, says Commerce Minister Simon Power: cost savings, building procurement capability and capacity; enhanced business participation; and improved governance, oversight and accountability.

According to an associated Cabinet Paper, the all-of-government procurement arrangement will result in between 5 percent and 10 percent savings on government computer purchases.