Promoting competition and avoiding anti-competitive behaviour in procurement helps to ensure that procurement meets procurers needs, achieves best value for money, and keeps the quality of goods and services high.
Our procurement pages aim to help organisations and businesses design procurement processes that:
result in open and effective competition
deter and detect anti-competitive conduct, including bid-rigging.
What is procurement?
Procurement is the process of purchasing goods or services by government or businesses. A key objective of procurement is to promote efficiencies by effectively allocating resources, achieving value for money and keeping the quality of goods and services high.
Procurement processes which encourage competition and deter anti-competitive conduct amongst suppliers lead to lower prices, better offerings and more innovation by suppliers which ultimately benefits the procurer and, in some cases, the wider market. This is because competitive processes encourage firms to successfully innovate, reduce costs and increase productivity.
Anti-competitive conduct, such as a cartel, can be difficult to detect as it is generally carried out in secret. There are no simple indicators that a cartel exists, but there are warning signs that, if picked up, may lead to early detection of a cartel.
Please contact the Commerce Commission if you suspect anti-competitive conduct or would like to provide the Commission with any information relating to anti-competitive conduct. The ways you can contact the Commission are outlined on the Commission's website.
The Commerce Commission held a webinar about competition in public sector procurement on 28 October 2020. This one hour webinar provided guidance on ways to help achieve effective competition in procurement, as well as guidance on how to protect procurement from anti-competitive conduct, with a particular focus on how COVID-19 has changed markets and the procurement environment.
The Commission has published the following guidance relating to procurement and competition: