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Competitive pricing procedures manual - volume 1 Physical works and professional services (Manual No. PFM3)

Volume 1 of the Competitive pricing procedures (CPP) manual is to be replaced with a new Procurement manual in mid 2009. This new manual is the main output from the NZ Transport Agency (NZTA) review of its procurement procedures.

NZTA is seeking feedback on an interim version of the new procurement manual. To view this interim manual and to learn about the NZTA review of procurement procedures, together with the implementation process that is underway go to the procurement page.

CPP volume 1

CPP volume 1 contains procurement procedures approved by NZTA (formerly Land Transport NZ) for use by approved organisations when purchasing physical works and professional services. In addition to the mandatory procedures, which must be followed to be eligible for NZTA funding, the manual provides guidance on the application of these procurement procedures. 

In circumstances where these procurement procedures are unsuitable NZTA will consider approval of either a variation to the procurement procedures published in the manual or a special procurement procedure.

CPP volume 1 is out of print. A replacement for the manual is being prepared as part the review of all procurement procedures and will be available during the second half of 2009.

The current manual, less the Appendices, can be downloaded using the first of the three links below. The second and third links allow you to download Appendices E and L (these Appendices are particularly relevant to the evaluation of tenders) and Appendix F, which addresses contract price adjustment for fluctuation. If you need one of the other CPP manual Appendices contact procurement@nzta.govt.nz.

Download

Amendments to CPP volume 1

The last amendment to the manual was No 39 dated June 2002. The general circulars listed below (issued since June 2002) have amended the manual:

  • 02/09 - Price Quality Method CPP for Physical Works (Word doc, 87 KB)
  • 03/01 - Qualified Tender Evaluator Mandatory Requirement (Word doc, 61 KB)
  • 03/04 - Inconsistency in Physical Works & Professional Services CPP Manual (Word doc, 55 KB)
  • 03/06 - Price Quality Method CPP for Professional Services (Word doc, 76 KB)
  • 03/07 - Compliance with the CPP Requirement to use a Qualified Tender Evaluator (Word doc, 54 KB)
  • 05/08 - Increase in the dollar limits on ‘expedited’ procurement procedures for professional services (PDF, 33 KB)

CPP manual volume 1 Appendix F - contract price adjustment for fluctuation

NZTA strongly advises that, wherever the risk of cost fluctuation is significant, contracts specify that the price will be adjusted to compensate for this.

Appendix F to CPP volume 1 (see download above) provides indices to be used for contract price adjustment for various work types. These indices are used to calculate cost adjustment factors (CAFs). 

Tables of the latest CAFs plus the Statistics NZ indices and the NZTA bitumen price index (on which the CAFs are based) can be downloaded using the links below. 

These tables are updated quarterly, usually in February, May, August and November.

Download

Price quality method (PQM) of tender evaluation

General circulars 02/09 and 03/06 (see above) introduced the price quality method (PQM) of supplier selection (tender evaluation) for physical works and professional services respectively.

Spreadsheets to assist with evaluating tenders using PQM are available for download. We strongly advise use of these spreadsheets. They help with the calculations and assist evaluators who are new to PQM to understand the process. They are also designed to help with incorporating the alternative tender evaluation process into the total process.

Download

Page created: 1 October 2008