Approaching the market in property procurement

Learn how to conduct market research and engage with suppliers.

Level of compliance Main audience Other

Required

  • Project Managers
  • Property Managers
  • Principals and Tumuaki
  • Boards
  • Proprietors

Aspects of the property procurement process are mandatory and must be completed.

Complete market research

Market research provides buyers with knowledge about market conditions. This knowledge can be drawn on when engaging with suppliers and evaluating offers.

Market research is particularly valuable when not publishing an open request for tender. It provides an understanding of what good value looks like.

Use information gained through:

  • personal knowledge/experiences
  • the knowledge/experiences of other schools
  • the Ministry’s school property advisor
  • local trade directories
  • online research.

Research factors such as:

  • the degree of competition amongst suppliers (supply)
  • the number of buyers currently on the market (demand)
  • regional differences
  • the availability of alternatives
  • current market trends and factors influencing price
  • predicted future market behaviours.

Approach the market

Schools must follow the approach to market method that was confirmed in the procurement plan.

See Select an approach to market

Non competitive purchases

Complete market research to understand what good value in the purchase will look like.

No written quotes are required (unless the procurement will result in an asset with a value of $5,000 or more that will need to be added to a school asset register). It is still recommended that a written quote is received, as it will help with invoicing, or in the event of a dispute.

Select a preferred supplier and complete the purchase.

Direct source procurements

Complete market research to understand what good value in the purchase will look like.

Issue a Request for Quote (RFQ) directly to potential supplier(s). A minimum of one quote must be received.

Evaluate the quote(s), select a preferred supplier and complete the purchase.

Closed tenders

Complete market research to understand what good value in the purchase will look like.

Issue a Request for Quote (RFQ) directly to potential suppliers. A minimum of three quotes must be received from three suppliers. More than three suppliers may need to be approached, in case some do not respond.

Evaluate the quotes, select a preferred supplier and complete the purchase.

Open tenders

Complete market research to understand what good value in the purchase will look like.

In a single-stage process, issue a Request for Tender (RFT) or Request for Proposal (RFP) on the Government Electronic Tender Service (GETS).

Evaluate the tenders/proposals, select a preferred supplier and complete the purchase.

In a two-stage process, issue a Registration of Interest (ROI) on the Government Electronic Tender Service (GETS).

Evaluate responses and prepare a shortlist of suppliers to invite to submit a tender/proposal in the second stage.

Issue a closed Request for Tender (RFT) or Request for Proposal (RFP) on the Government Electronic Tender Service (GETS) to only the suppliers shortlisted in the first stage.

Evaluate the quotes, select a preferred supplier and complete the purchase.

Using either a single-stage or two-stage open tender

A two-stage process is appropriate when market research has shown that six or more suppliers are likely to bid for the contract.

When following a two-stage process:

  • schools are required to evaluate fewer full offers
  • suppliers do not need to prepare a full offer unless they have been shortlisted (which has indicated to them that they have a reasonable chance of being awarded the contract).

Advertising on GETS

To gain the ability to advertise on GETS, email EIS.procurement@education.govt.nz.

Also contact EIS Procurement for guidance on advertising on GETS or use the guides below.

GETS Procurement Officer Guide [PDF, 681 KB]
School Property Procurement GETS Manual Tender Process Guide [PDF, 133 KB]

Use an RFx document

RFx is a term used to describe ‘Request for’ documents including ROIs, RFQs, RFPs and RFTs.

Each document is used for a different purpose.

Document Description

ROI

 

Registration of Interest

 

Used only in the first round of a two-stage open tender.

 

Suppliers are asked to express their interest in completing the project and indicate both their capability and capacity to complete it.

 

Based on their replies, some suppliers are shortlisted and asked to prepare an RFP of RFT in the second round.

 

An open ROI must be advertised on GETS for a minimum of 13 full business days (9am-5pm).

 

RFQ

 

Request for Quote

 

Used when schools have a specific idea of what must be purchased in order to deliver the overall project outcome.

 

Suppliers’ offers in response to RFQs differ only in price. They do not allow suppliers to be creative and differ in how they will achieve an overall outcome.

 

RFP

 

Request for Proposal

 

Used when schools are seeking consultancy services such as project management, construction design, engineering or quantity surveying.

 

Suppliers’ offers in response will differ in price and the method of meeting the school’s requirements.

 

Can be used alone in a single-stage process, or in the second stage of a two-stage process (after an ROI is used in the first round to shortlist suppliers).

 

In a single-stage process, an RFP must be advertised on GETS for a minimum of 18 full business days (9am-5pm).

 

In a two-stage process, a closed RFP must be advertised on GETS for a minimum of 15 full business days (9am-5pm).

 

RFT

 

Request for Tender

 

Used when schools are seeking construction works, such as demolition, repairs or refurbishment.

 

Suppliers’ offers in response will differ in price and the method of meeting the school’s requirements, as stated in the RFT.

 

Can be used alone in a single-stage process, or in the second stage of a two-stage process (after an ROI is used in the first round to shortlist suppliers).

 

In a single-stage process, an RFT must be advertised on GETS for a minimum of 18 full business days (9am-5pm).

 

In a two-stage process, a closed RFT must be advertised on GETS for a minimum of 15 full business days (9am-5pm).

 

RFx templates

When preparing and issuing an RFx document, schools must use the relevant template from the options below.

Procurement Value Template

Less than $50,000

 

Request for Quote – Lite [DOCX, 97 KB] (use of this template is optional)

 

$50,000 - $99,999

 

For consultancy/professional services use:

Professional services Request for Quote [DOCX, 467 KB]

 

For construction/contract works use:

Contract works Request for Quote [DOCX, 486 KB]

 

$100,000 or more

 

For a two-stage process for consultancy/professional services, first use:

Professional services Registration of Interest [DOCX, 475 KB]

 

For a single stage process (or the second stage of a two-stage process) for consultancy/professional services use:

Professional services Request for Proposal [DOCX, 510 KB]

 

 

For a two-stage process, for construction/contract works, first use:

Contract works Registration of Interest [DOCX, 411 KB]

 

For a single stage process (or the second stage of a two-stage process) for construction/contract works use:

Contract works Request for Tender [DOCX, 161 KB] and

Contract works Schedule of Prices [XLSX, 28 KB]

 

See more on Construction works and consultancy services

The below document explains the Ministry’s process for responding to any RFQ, RFT, RFP or ROI and the standard terms and conditions that suppliers must meet to take part in the process. It is referenced in the template RFx documents.

RFx Process Terms and Conditions (Conditions of Tendering) [PDF, 543 KB]

Review the RFx document

After the procurement officer has drafted the RFx document, it is passed on to the procurement leader for endorsement. It is then passed to the procurement owner for approval.

See more on Roles in property procurement.

The RFx can then be issued.

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