Who in my agency needs to know and engage on the PCI Framework?

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2 An agency s ability to procure goods and services, manage suppliers and providers, and work with markets and sectors is an essential part of an effective agency. The Procurement Capability Index (PCI) Framework helps you to evaluate and build your agency s procurement capability through self-assessment of your agency s procurement capability. The PCI Framework enables you to identify areas where additional focus may be required and put in place procurement capability improvement plans. The PCI Framework is managed and run by New Zealand Government Procurement (NZGP) with input from the ICR team at Treasury. Who does the PCI Framework apply to? The PCI Framework is a tool for Chief Executives and their Senior Leaders. It provides an agency view of procurement capability and a pathway to increase procurement capability in critical areas to support your agency s business. Agencies covered by the Government Rules of Sourcing are required to apply this Framework and report annually. However, we encourage all agencies to implement the PCI Framework as it provides you with an opportunity to identify capability opportunities that will deliver better outcomes. Who in my agency needs to know and engage on the PCI Framework? The PCI Framework requires your to self-assess the whole agency, including all parts of your agency, particularly those areas interacting with and undertaking procurement functions. This could be contract management teams, ICT teams, service delivery, policy and procurement teams. The PCI Framework is about the whole agency, if there are multiple procurement units or multiple business units that complete the self-assessment, results must be combined to provide a true agency-wide view.

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4 Use the self assessment tool to identify your agency s procurement capability The heart of the PCI Framework is the PCI tool. You use this tool to identify your current procurement capability against 27 capability elements, across eight capability categories, to determine how the agency is tracking against the expected capability levels set for your agency. These expected capability levels have been set in consideration of whether your agency is an investment intensive agency (subject to The Treasury ICR process), is part of central government and your agency's reliance on procurement to deliver your outcomes. The expected capability levels will be reviewed after the first reporting period, considering the overall results from agencies. Your PCI self-assessment needs to be completed annually and submitted each year to procurement@mbie.govt.nz by 30 September. If you have any questions or are seeking clarification, please contact us at procurement@mbie.govt.nz. Assessing your agency against procurement capability expectations For each capability element, choose one statement that best describes your current procurement capability status Your agency must meet the whole statement you select Use the Guidance and Evidence to support and provide assurance for your selection If you do not meet any of the capability statements, select The statements above do not describe our agency's current status Additional instructions on how to complete the tool and supporting guidance are detailed in the PCI tool.

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7 Ensuring your agency has the right things in place to support your self assessment Your self assessment must be based on an objective measure of your agency s current capability status, that is why evidence is so important. Evidence has been provided as part of the capability elements and in the guidance in the PCI tool. The evidence information detailed in the PCI tool is not intended to be prescriptive, evidence statements typically identify possible types of evidence you should be seeking. Please collate your evidence as you complete your self-assessment in preparation for the accountability stage.

8 External checks to ensure confidence in your agency s self assessment Agencies are required to complete the PCI self-assessment annually and submit their results to NZGP each year, by 30 September. The results will be used to identify significant procurement capability improvement areas across government and identify opportunities to support agencies. Reported procurement capability information will also be used to keep Cabinet informed on overall government procurement performance. Reviews and Moderation Your agency s self-assessment will be reviewed to provide government wide confidence that your self-assessment is an accurate picture of your procurement capability. If you are an ICR agency your results will also be moderated to determine an ICR procurement result which will feed into your agency s ICR rating. ICR agencies The PCI self-assessment results will be reviewed (evidence checked) and moderated every other year in line with an agency's ICR assessment. This will involve a review of the agency's self-assessment by an independent external consultant and moderated by a subgroup of the Procurement Functional Leadership Advisory Group, NZGPP and the ICR team. Non-ICR agencies For medium to large agencies, the PCI self-assessment results will be reviewed (evidence checked) every two years. This will involve a review of the agency's self-assessment by an independent external consultant. For small agencies, the PCI results will be reviewed (evidence checked) by a Senior Practitioner in government, at least once every five years.

9 Setting your agency capability targets You set your agency targets by deciding Which capability categories and elements are the most important for the delivery of your outcomes, in consideration of your self-assessment results and agency benchmarks What is a realistic target and where your efforts are best spent over the next twelve months

10 Tools and systems to drive capability development in your agency and across the system Growing your agency s capability Your agency should use your PCI self-assessment results to develop strategies for improvement and your agency capability improvement plan. The evidence requirements and guidance in the PCI tool will identify the elements you need to put in place to grow your capability. NZGPP support includes Helping you to implement the PCI Framework and meet your targets, by using existing communications channels to share information on capability development opportunities and good practice Supporting you to develop your capability improvement plans and activities Developing appropriate guidance and tools and making training options available to meet your procurement capability needs