Winning Government Work

Winning Government Work: Preparing for the NZ Government Procurement Reset

14th October 2025

The rules for winning government contracts in New Zealand are changing fundamentally. From 1 December 2025, agencies must apply a minimum 10% weighting to the "Economic Benefit to New Zealand" when evaluating tenders over $100,000. This shift moves procurement beyond just price and quality, forcing agencies to actively seek public value that supports local jobs, skills, and capability.

For independent consultants and boutique firms, this is not a compliance exercise; it is a strategic opportunity. You already deliver local value, but now you must quantify and articulate it clearly to secure the contract. The government wants taxpayer money supporting Kiwi businesses to grow, hire, and thrive.

Ignoring the new economic benefit test means you risk losing contracts to competitors who simply articulate their local value better. If your proposal treats the 10% weighting as a minor add-on, you will fail to differentiate yourself.

The reward for proactive preparation is significant. You gain a level playing field against larger, often international, competitors. By quantifying your local impact, you position your firm as a values-aligned partner. This preparation increases your win rate and secures long-term government revenue by making your firm the low-risk, high-value local choice.

Steps to Build into Your Practice

You must integrate the economic benefit criteria into your standard operating procedures, not just your proposal writing.

1. Confirm Your NZ Business Status: Ensure your firm meets the official definition: originated in New Zealand, majority owned or controlled by New Zealanders, and has its principal place of business here. This identity is your primary advantage. Place this message clearly on materials, responses and marketing.

   1. • Example: State "100% NZ ownership" and "All consultants based in NZ."

2. Quantify Your Local Economic Impact: Identify and measure the portion of your operations that benefits New Zealand directly. Turn this into clear, reusable metrics.

• Example: Calculate the percentage of your supplier spend that goes to other NZ firms.

3. Develop a Standard Benefit Statement: Draft a reusable paragraph explaining how your work supports NZ jobs, skills, and capability. This statement must include specific numbers (e.g., FTEs supported, training days provided, or subcontracting percentage). Keep this ready to drop into any Request for Proposal (RFP).

4. Gather Specific Proof of Local Value: Collect short, outcome-focused case studies that highlight local delivery. Procurement teams need evidence, not just claims.

   1. • Example: "We delivered the X project in Wellington using all local staff and suppliers, ensuring onshore knowledge retention."

      • Example: Highlight how your project included training or upskilling for agency staff, developing long-term NZ capability.

5. Align with Ethical Frameworks: Explicitly reference recognised ethical practice frameworks (like the NZBCA Ethical framework) in your proposals. This demonstrates responsible, transparent practice aligned with public-sector expectations, positioning you as a low-risk supplier.

6. Form Strategic Collaboration Groups: If you are a small firm, partner with complementary consultancies. Agencies increasingly prefer collaborative suppliers who can scale responsibly. Create consortia now to combine capability for larger bids. Consider joining the NZBCA and you can meet other suppliers who are keen to work with you.

7. Engage Procurement Managers Early: Do not wait for a tender to drop. Reach out to key agencies and introduce your firm as a NZ-owned boutique aligned with the new Rules. Ask how they plan to interpret and measure "economic benefit" so you can tailor future bids precisely.

8. Display Your Local Identity: Register with organisation such as BuyNZ and use their branding to prominently on your website, proposals, and email signatures. This provides procurement teams with an immediate, credible shorthand for your firm’s value proposition.

Reader’s Questions

1. If an agency asked for three measurable economic benefits your firm provides, could you answer immediately with specific data points?

2. Beyond your core service delivery, what specific, measurable training or upskilling initiatives do you offer that develop long-term New Zealand worker capability?

3. Are you actively seeking collaboration partners to bid on larger contracts, or are you limiting your firm to opportunities you can handle alone?

Key Actions

Familiarise yourself with the new edition of the Government Procurement Rules

Develop and document your firm’s standard, measurable Economic Benefit Statement today, ensuring it includes at least three quantifiable metrics ready for immediate use in your next proposal.