NZ DEFENCE Procurement has three aspects:
- Capital Equipment: This is procured by the Ministry of Defence, using the processes listed below. You should also check the MOD web site, www.defence.govt.nz which lists all capital projects and the processes for developing them.
- Minor Capital Equipment: This is capital equipment procured by the NZDF. It is generally items or projects below $NZ7 million.
- Operating Requirements: These are day to day needs to keep the NZDF, its equipment and its people functioning. It includes basic necessities such as fuel, food, clothing etc, and a wide range of other specialist items to meet particular needs.
This section of our site details the procurement processes used by the New Zealand Defence Force, including how to access tenders and who to contact for information on upcoming procurements.
Procurement of Operating Goods and Services
This section of procurement contains a number of aspects:
Prime Vendoring: For items of low value and high usage, the NZDF has entered into standing contracts with potential suppliers. All stationery, for example, is purchased from a single company, under a nationwide contract. Other goods and services procured under such arrangements include office furniture, clothing and reprographic services. Companies seeking such business are advised to approach the prime vendors with a view to supplying them.
Outsourcing: Historically, armed forces have provided most of the goods and services they require from within their own resources. Today there is an increasing trend towards purchasing services (and the material associated with those services) from civilian contractors. Business opportunities can therefore arise for prime contractors, or suppliers or sub contractors to those prime contractors. Such contracts may involve supply of a service across several bases, and more than one Service. Examples include: facilities management, catering, travel services, and provision of engineering maintenance services.
Tendering : The NZDF adheres to the NZ Government’s procurement policy, which requires, amongst other things, that New Zealand companies must have full and fair opportunity to tender for any goods and services required. Small purchases not made through prime vendors will be offered to the local market except for certain items such as proprietary spare parts which are available only from the original equipment manufacturer.
Small purchases will use the "three quote" system, but, depending on the requirement, larger ones in the "under $100,000 category" may require more formal quotations, or be the subject of tenders. Information on tendering is to be found in the section Offering your Goods or Services to Defence.
The Minor Capital Equipment Programme: Projects under $7million for the NZDF and under $20 million for the ADF are handled as capital projects, modified to reflect the size of the projects. The Australian Defence Force (ADF) publishes its Minor Capital Equipment Programmes for the next five year period, to provide the opportunity for suppliers to consider their supply strategy. The ADF projects are on the ADF web site. All NZDF capital projects are on the GETS site www.gets.govt.nz
New Zealand’s Defence Industry: New Zealand has a small defence industry in the purest sense, but a number of companies have developed a relationship with the NZDF which is mutually beneficial. Some of these companies have banded together to share their knowledge of this market, arrange joint ventures where appropriate, and pool resources for domestic and export promotion.
The New Zealand Defence Industry Association is an association of about 40 companies, most of whom supply the NZDF, and are interested in exports to other defence forces. Activities of the Association include regular meetings with NZDF and MoD personnel, trade missions overseas, lobbying the NZ Government on defence industry matters and an annual Defence Industry Forum which is the only NZ opportunity for industry and defence to meet face to face outside of specific activities such as discussing contracts.
The Manawatu Defence Cluster is a group of companies in the Manawatu region specifically formed to improve business access to the central North Island NZDF bases, and to increase local business understanding of the needs of the NZDF.
These two organisations, as well as individual companies, are actively supported by NZ Trade and Enterprise in its role of industry development.
Offering your Goods or Services to the NZDF: Outside of the formal tender process explained in these pages, the NZDF is happy to accept approaches from entrepreneurs offering good products or ideas. For a variety of reasons some of these cannot be adopted, and some will be referred to outsourcing contractors or prime vendors.
The general advice is to watch the GETS web site .