The 4th Edition is not a complete re-write of the 3rd Edition. For instance, large sections of the 3rd Edition remain substantively untouched, including in particular the processes to be followed by agencies when procuring under the Rules. However, four key themes have emerged from the changes proposed to the 3rd Edition and our view is that they have the potential to shift the landscape of public sector procurement and industry behaviours. These four themes are:
Theme One: a greater focus on achieving “public value”, including Broader Outcomes The most prevalent feature of the 4th Edition is MBIE’s drive to leverage procurement activities to achieve ‘Broader Outcomes’ and other “secondary benefits” from a procurement. Previous editions of the Rules placed emphasis on achieving “value for money” and, while value for money can have different meanings to those in the industry, this term is embedded in both public and private sector procurement vocabulary. The 4th Edition no longer refers to “value for money”; in fact, this term no longer exists in the 4th Edition. Instead, “value for money” has been replaced with “public value”. However, swapping out these terms has not been a simple “copy and paste” exercise. The 4th Edition goes much further. While the 4th Edition retains that “public value” is about getting the best possible result from your procurement, public value now expressly includes “considerations that are not solely focused on price, for instance what benefit a procurement could bring to the local community or environment” or, in other words, the “secondary benefits” from a procurement. The key mechanisms under the 4th Edition that enable and/or mandate these “secondary” procurement benefits to be achieved are: • First and foremost, through the introduction of new Rule 16, making it mandatory for each agency to consider, and incorporate where appropriate, ‘Broader Outcomes’ when purchasing goods, services or construction works. Broader Outcomes are defined as the secondary benefits which are generated from a procurement activity and can be