Te Puni Kōkiri and the Ministry of Business, Innovation and Employment (MBIE) are developing a progressive procurement approach to increase the diversity of government suppliers, starting with Māori businesses.
Procurement diversity in action
Progressive procurement is about buyers of goods and services looking beyond price to wider social and public value. It combines elements of social procurement, supplier diversity, indigenous procurement, and wellbeing measures.
The joint programme between Te Puni Kōkiri and the MBIE aims to spread the benefits of the Government’s $51.5 billion spend per year on procurement of goods and services to the wider community.
We are trialling ways to reduce the barriers to Māori businesses engaging with government procurement processes. We are also supporting government agencies to engage with Māori businesses and meet the requirement to diversify their spend.
This mahi is supported by a $7.3 million Budget 2020 investment to create procurement opportunities for Māori enterprise.
Te Kupenga Hao Pāuaua
The partnership project between Te Puni Kōkiri and the Ministry of Business, Innovation & Employment (MBIE) to lead the progressive government procurement policy is called Te Kupenga Hao Pāuaua. Translated it means cast the fishing net wide and be enterprising.
Te Kupenga Hao Pāuaua project team is prototyping different approaches over the next two years to support Māori businesses to be tender ready and working with government agencies to shift their usual buyer practices.
Progressive procurement primary features:
- The definition of a Māori business is a Māori authority (as classified by the Inland Revenue Department) or a minimum 50% Māori ownership.
- A target of 5 percent of the total number of buyer (mandated government agencies) procurement contracts are awarded to Māori businesses.
- Intermediary organisations to act as a broker, matching and connection buyers and suppliers to realise procurement opportunities. Further, to assist with verifying supplier businesses as meeting the definition of Māori business.
- Supporting sustainable, long term behavioural change of government agencies and businesses procurement practices.
- Procurement Case Studies
- Media Release – Government to increase supplier diversity through new procurement targets
- Cabinet Minute – Supporting the Māori Economy and Achieving Economic and Social Outcomes through Te Kupenga Hao Pauaua.
- Joint Minister’s Release – Procurement to promote jobs, Māori and Pasifika businesses and sustainability
Buyers (government agencies)
Access specific information for buyers about the progressive procurement policy, how government agencies can become match-fit to implement the policy, and where to find support.
Suppliers (Māori businesses)
Find specific information for Māori businesses wanting to learn how their business can benefit from progressive procurement opportunities, become tender-ready to bid for government contracts, and where to go for support.
Procurement case studies
Read stories showcasing examples of progressive procurement in action between Māori businesses and government agencies here.