The new Government Model RFx templates

Training module for procurement officers

An introduction to the new simplified tender process and documents
 What will we cover today?

On the agenda:
• explain what the GM-RFx are
• explain how the GM-RFx work
• look at each GM-RFx template
• find out where to go for more information and support.

KEY MESSAGE: Please ask questions as we go – you do not have to wait until the end
of the presentation.
Government Model RFx

What are the GM-RFx?

 What are the GM-RFx?

The Government Model RFx:

• are a set of plain English tender templates
• are easily understood by non-lawyers
• establish conditions of tender that promote a fairer
balance of risk between the buyer and suppliers
• introduce consistency across government
• make it easy for suppliers and providers to work with us.

KEY MESSAGE: These templates have been developed by Ministry of Business,

Innovation and Employment (MBIE). They are model tender templates for use across the
whole of government.
 What are the new templates?

The GM-RFx suite comprises: [delete whichever RFQ template/s

you decide not to deploy – but you must deploy at least one!]

Request for Quote Registration of Interest Request for Proposal

(RFQ) (ROI) (RFP)
• RFQ • ROI • RFP
• RFQ-Lite • ROI Response Form • RFP Response Form
• RFQ Response Form
• RFQ Xtra-Lite
• RFQ Xtra-Lite Response Form

KEY MESSAGE: The GM-RFx forms the basis of our suite of tender templates [amend
to suite: In addition to the above templates, we only have bespoke templates for RFTs and
PPPs.]
 Why is there no EOI or RFT?

Expressions of Interest (EOI)

• an EOI is the same as a Registration of Interest (ROI)
• to avoid confusion we will only use ROIs going forward.
Request for Tenders (RFT)
• RFTs are rarely used because of the increased risk
• if you need to use a RFT then contact [the legal team /
procurement team] who will advise you on the approach and
provide a template.

Key message: We no longer use EOIs. Use the new ROI template instead. This is now
the standard across government agencies.
 Do we need to use the templates?

Yes!
We will:
• transition to the new templates on [insert date] and trial
them throughout 2015
• seek your feedback during the trial period
• collect feedback from suppliers and providers
• from 2016 onwards, we will be [required / expected /
encouraged] under the Rules to use the second edition GM-
RFx.

KEY MESSAGE: By trialing the templates we are in a better position to feedback on

their use – this will help shape the second edition templates due in 2016.
 What is in it for us?

After the initial transition to the new templates, the benefits

include:
• everyone in our agency using one common set of templates
• everyone using the same language and terminology
• adopting government standard Process, Terms and Conditions
• templates reflecting good procurement practice
• making it easier for our part-time buyers to tender
• creating efficiencies and greater effectiveness in our procurement.

Key message: The templates reflect good procurement practice as set out in the
Government Principles of Procurement and the Government Rules of Sourcing.
 Government Model RFx templates

How do the GM-RFx templates work?

 How do the GM-RFx templates work?
The GM-RFx templates:
• have a fixed structure with set headings
• include hyperlinks and icons to aid navigation
• include the option to insert an image on the cover page
• contain a high level snapshot called in a nutshell
• contain model Process, Terms and Conditions which are locked down
• introduce a limited process contract
• allow for an Advance Notice
• introduce a standard supplier Response Form.

Key message: The GM-RFx have a defined structure that is not to be changed. As we all
become familiar with the structure the templates will become easier to use.
 What is the fixed structure?

The fixed structure and headings (RFP example):

• In a nutshell
• Section 1: Key information
• Section 2: Our requirements
• Section 3: Our evaluation approach
• Section 4: Pricing information
• Section 5: Our proposed contract
• Section 6: RFx Process, Terms and Conditions.

Key message: The RFQ and RFP templates comprise six sections. The ROI only has four
sections, as there is no pricing information or proposed contract.
 Can I change the fixed structure?

No. You cannot change:

• the section headings
• the order of the sections
• Section 1, sub-headings and paragraph numbers.
Why?
Because each RFx has a model set of Process, Terms and Conditions
(GM-RFx Terms), which cross-references specific sections. If the
section headings or sequence are changed, the document will no
longer align with the GM-RFx Terms.

Key message: It is important not to change the fixed structure of the templates.
 What can I do?

Working within the fixed structure you can:

• include an image on the front cover - optional
• complete the details of the key information in Section 1
• write the content, including your own sub-headings in:
- sections 2 to 5 for RFPs and RFQs
- sections 2 and 3 for ROIs
• write the content of the supplier Response Form
• insert additional tables in the Response Form, if appropriate.

Key message: For tips to help you write your RFx see the Guide to Mastering
Procurement, by visiting www.procurement.govt.nz .
 Do I need to use an image?

No. This is optional.

But, if you do use an image:
• select an image from:
- our communication team’s stock of images; or
- internet search
• choose an image that is relevant to your procurement
• ensure that we have a license to use the image.

Key message: Images can be a powerful communications tool. They can also make your
document look more interesting to suppliers and providers.
 What is ‘in a nutshell’?

The in a nutshell at the beginning of each RFx is your chance to

to sell the opportunity to suppliers.
Tips for writing in a nutshell are:
• make it short, snappy and succinct – no more than two pages
• avoid jargon and acronyms
• aim to quickly inform the market about what you need
• motivate suppliers to bid – e.g. what difference can they make?

Key message: The content of in a nutshell forms the basis of an Advance Notice. It is a
reverse marketing tool to sell the opportunity to suppliers and providers.
 What are the GM-RFx Terms?

Each RFx is supported by its own Process, Terms and

Conditions called GM-RFx Terms.
The GM-RFx Terms:
• apply consistent processes to routine tenders
• establish terms and conditions that are fairer to all parties
• introduce a limited process contract
• provide suppliers with certainty when dealing with government.

Key message: The GM-RFx Terms set government’s standards for procurement. An
agency may vary the GM-RFx Terms where there is a good business or legal reason to do so.
 Can we vary the GM-RFx Terms?

Yes. But variations must be carefully controlled because of the

legal risk. Here are the rules:
• variations must have the prior written approval of [the legal /
procurement team]
• all variations are to be recorded in Section 1, paragraph 1.6 of the
RFx template
• variations can only be made where there is a good business or
legal reason
• variations that reflect a preferred word or style of language are
not permitted.

Key message: Do not try to vary the GM-RFx Terms yourself. You need specialist help to
do this. All variations need prior approval.
 Have we varied the GM-RFx Terms?

To make the templates fit-for-purpose for our agency we

have made the following variations to the GM-RFx Terms: :
• list the variation here
• list the variation here.

Key message: These variations are reflected in the templates that we have launched
within the agency.
 Can I vary the GM-RFx Terms?

No. Not without the prior agreement of [the legal team /

procurement team].
There must be a good business or legal reason to vary the GM-RFx
Terms.
Some variations that may be appropriate include:
• you are open to alternative proposals
• you are open to joint or consortium bids.

Key message: The GM-RFx Terms should meet most of our needs. There needs to be a
good reason before these will be varied.
 What is a process contract?

A process contract can arise during a tender. It is:

• a contract between all interested suppliers and the buyer
• relates to legitimate expectations that arise from the
tender process
• expectations arise from the terms of the tender and can
be implied
• if established, parties can enforce aspects of the tender
process as a matter of contract law.

Key message: A standard default position is for the buyer to include a clause to the
effect that no process contract arises from the terms of the tender.
 Why allow a process contract?

If a buyer states that no process contract exists, no-one can

legally enforce any aspect of the tender. This can be a
problem where a party wants to be able to rely on an aspect
of the process. For example:
• both the buyer and suppliers may want assurance that
their confidential information will be protected
• the buyer may want to enforce a respondent’s
representations as to the performance of the goods or
services.

Key message: A limited process contract introduces certainty for both the buyer and
suppliers. It makes it clear which elements of the process can be relied upon and enforced
as a matter of contract law.
 What is in the limited process contract?

The limited process contract clearly states which elements of

the process can be legally enforced. These include:
• protection of confidential information
• IP and ownership of documents
• conflict of interest
• a respondents representations and declaration
• the buyer’s Evaluation Approach
• the application of New Zealand law.

Key message: The buyer and suppliers have certainty as to the parts of the process
that can be relied upon, and if necessary, enforced legally.
 What is an Advance Notice?

Purpose: An Advance Notice is a document published on GETS

(sometime before the ROI, RFQ or RFP) that gives the market
early warning of a contract opportunity. It contains the same
content as the in a nutshell section.
Use: It is recommended where:
• your requirements are complex
• there is an opportunity for suppliers to collaborate
• suppliers need time to explore sub-contractors in the supply chain
• there is an opportunity for innovation and new ideas.

Key message: Put yourself in the shoes of a supplier. Would you benefit from getting
advance notice of a contract opportunity? Will this give you the time you need to plan and
collaborate in preparing your bid?
 What are Response Forms?

Purpose: Each type of RFx has an equivalent Response Form.

Response Forms standardise how we ask respondents for
information. This makes it easy for respondents to bid.
Tip: Where additional information is sought check out the pre-
prepared tables in the Response Form Optional Extras document.
Use: Use Response Forms along with the appropriate RFx
templates. Modify the Response Form to reflect the content in your
RFx. Aim to make it as easy as possible for suppliers to bid.

Key message: Only ask respondents to provide information that is relevant, important
and reasonable to request in relation to a particular procurement. Use the Response Form
Optional Extras sparingly.
Government Model RFx templates

The templates
 When do you use a RFQ?

Purpose: A RFQ seeks quotes from suppliers for specific goods

or services that are easy to describe e.g. an off-the-shelf item.
Use: Use a RFQ when price is the main factor.
Template options: [optional - insert hyperlink to the templates]
RFQ-Xtra-Lite: [insert criteria for use e.g. value threshold]
RFQ-Lite: [insert criteria for use e.g. value threshold]
RFQ: [insert criteria for use e.g. value threshold]
 When do you use a ROI?

Purpose: A ROI allows you to identify and shortlist potential

suppliers. The ROI seeks basic information from interested
suppliers to allow an initial evaluation of their suitability. No
pricing information is sought at this stage.
Use: Use a ROI as the first step in a multi-step tender process.
Shortlisted suppliers are invited to submit full proposals.
Template: [optional - insert hyperlink to the template]
RFP: [insert criteria for use e.g. value threshold]
 When do you use a RFP?

Purpose: A RFP seeks full proposals for goods or services

without a shortlisting stage. Use when we are open to
innovation and new ideas. It is important to define the
outcomes that you are seeking. Interested suppliers provide full
proposals including pricing.
Use: Use a RFP when the quality of the solution and value-for-
money over the whole-of-life are important.
Template: [optional - insert hyperlink to the template]
RFP: [insert criteria for use e.g. value threshold]
Government Model RFx templates

Support and more information

 Tips for using the templates
Some tips for using the new templates include:
• base your content on the business case and/or procurement
plan e.g. cut and paste the evaluation methodology
• delete text in red font – this is user instruction to help you write
the document
• remove yellow highlight from text
• check all hyperlinks are working
• update the contents page
• get a peer review.

Key message: If you would like support in using the new templates please contact
[insert details of the team or person to contact].
 Where can I get more information?

The following information is available at:

• templates: [insert e.g. intranet site details]
• user guidance: [insert e.g. intranet site details]
• questions: [insert e.g. name of team that fields questions]
• peer review of your draft tender document: [insert details].

Key message: You are not to download GM-RFx templates directly from the MBIE
website. This is because they need to be customised before they can be used. Only access
templates from [insert location of templates].
 That’s all folks

Questions?