What is Progressive Procurement?

    • What is procurement?

    • What is social procurement?

    • What is progressive procurement?

    • What are the benefits of progressive procurement?

    • What are some of the barriers to accessing government contracts?

What is procurement?

The process of buying products and services.

What is social procurement?

The process of buying products and services that creates some kind of positive social impact.

What is progressive procurement?

What the NZ government has termed their initiative to achieve broader outcomes through procurement.

What are the benefits of progressive procurement?

  • Supplier diversity - The government spends approx. $51.5b a year on buying goods and services. They have signaled that 8% of all mandated government agency contracts must go to diverse suppliers, such as Māori and Pasifika.

  • Broader outcomes - Government agenices are looking at how they can use their spending to create wider benefits to our communities, such as employment, skill development, cultural revitatlisation etc.

  • Social return investment - Approx. $1 of Revenue = $4.41 average social return on investment.

  • Supporting local - An opportunity to reinvest pūtea into local communities to stimulate economic development.

What are some of the barriers to accessing government contracts?

Systemic Barriers

  • Current procurement delivery modes only appeal to large national corporations.

  • The lions share is procured well before award. 

  • Lack of engagement & notice of opportunities. 

  • You have to be pre-qualified (H&S) to tender. 

  • Priced attributes are often evaluated before non-price attributes.

  • The dictator always has their needs addressed. 

  • Rarely provided feedback as to why unsuccessful.

Readiness Barriers

  • Māori businesses are generally smaller in size.

  • Lack of awareness around tendering/pricing.

  • Struggle to articulate value proposition.

  • Pre-qualification process is costly and lengthy.

  • Legal requirements in relation to health and safety and insurance.

  • Managing costs, pricing, forecasts, debt and financial risks.

  • There are little to no advisors that understand how Māori do business.