Can government agencies negotiate directly with a supplier without tendering?
  • Home
  • Questions
  • Can government agencies negotiate directly with a supplier without tendering?

Can government agencies negotiate directly with a supplier without tendering?

1 answer

Answer to the question

0
0
9

28.08.2026

We are a small technology firm, and a government agency approached us about building a system without a public process. Some competitors are complaining. When can an agency lawfully award a contract directly?

Site Administration 02.09.2026
reply date: 02.09.2026

The Government Procurement Rules generally require open advertising for contracts above the threshold, but there are limited exceptions that permit direct source procurement. These may apply in circumstances such as extreme urgency, where there is only one possible supplier for technical or intellectual property reasons, where an earlier procurement failed, or for additional deliveries of an existing contract where a change of supplier would cause incompatibility. Agencies must document the justification, and are encouraged to consider whether a direct appointment is genuinely the best approach. Non-compliance may lead to complaints, audit findings by the Office of the Auditor-General or Ombudsman review. As a supplier, you should ask the agency to confirm the basis for the direct approach, and make sure that any contract complies with the Rules, since agreements found to be improper can attract criticism and reputational risk.

Похожие вопросы

What happens if a supplier breaches a public contract?

1 answer
07.07.2026
I manage a contract with a supplier that has repeatedly missed deliverables for our agency. We are concerned about the impact on public services, but we do not want to face a legal fight. What are our options and how should we proceed?
0
0
12

What is a conflict of interest in a procurement process?

1 answer
12.09.2026
I work for a council and I have been asked to sit on a panel evaluating a tender. One of the bidders is owned by someone I used to work with, and I have a personal friendship with them. Do I have to declare it, and what happens if I do not?
0
0
12

Can I complain to a watchdog about government procurement practices?

1 answer
25.07.2026
I believe a local government body has been consistently favouring one supplier and ignoring its own rules. Is there an independent body I can complain to and what would it investigate? I would appreciate some clarity on what the law actually requires here.
0
0
10

What are broader outcomes in government procurement?

1 answer
12.08.2026
A government tender I am reading mentions broader outcomes and asks me to describe my approach to employment, Māori business participation and environmental impact. Is this compulsory and how will it affect my bid?
0
0
17
Show all