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Covid-19: Government Procurement extends key contracts

Covid-19: Government Procurement extends key contracts

New providers could be added to extended all of government IT hardware contract

Credit: Photo 1804908 © Chrishowey - Dreamstime.com

New Zealand Government Procurement and Property is planning to extend some all-of-government contracts that were set for expiry or renewal in 2020.

The extensions will be for a further 12 months at least from expiry or renewal, but with a view to returning to market "once things have returned to normal". 

A return to market may be earlier than the full period of extension, the agency said in a notice yesterday.

The agency has also decided to cancel some current sourcing activity related to accommodation projects for government agencies and has given notice that, while proceeding, the timeframes of an all of government media procurement's could be affected.

While most of the categories to be extended are not tech related -- covering advertising and design services, electricity and alternative risk financing, the IT hardware contract, due to expire in September, is included.

"We intend to seek an extension to current arrangements for at least 12 months, and allow the option of seeking to appoint additional panel providers, if considered necessary," the notice said.

Earlier this month, Procurement warned agencies of the potential impact of Covid-19 on hardware supply chains and asked agencies to limit their demand.

"With this in mind we are asking that you limit work with your supplier to urgent requirements you have, or any planned procurements you have already in progress. 

"Please don’t send in large orders as this will only cause more issues."

To ease the requirements on suppliers, Procurement has also decided delay the collection of quarterly reports from them for quarter 3, 2019/20. 

"This means we will also not be collecting the administration fee due under those contracts at this time," the notice said.

"We expect to collect reporting, and suppliers will be invoiced for the Quarter 3 and 4 administration fee, at the end of Quarter 4."


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