“Broader outcomes” is a government wide initiative that seeks to achieve wider social, economic, cultural and environmental outcomes through the acquisition of goods, services and works. The initiative was mandated by the government in the Rules and is being rolled out through the Waka Kotahi broader outcomes programme.
The broader outcomes mandate requires us to think about what additional secondary benefits we can generate in addition to the core scope of a project, in order to achieve greater value across several areas. Waka Kotahi is committed to partnering with our suppliers, industry, communities, iwi and other government agencies to ensure meaningful and long-term positive outcomes for Aotearoa are achieved through this programme. As one of New Zealand’s largest crown agency procurers of services, we know we have an important role to play by incorporating these broader outcomes to our current procurement process.
We are proud of our leadership role in bringing broader outcomes to life across the public sector and our ability to lead the way in developing and implementing the cross-government framework which has already been activated on tenders.
Activating broader outcomes is a key expectation and deliverable for ourselves and our supply chains, and it is critical that all parties collaborate on shared values, target outcome areas and wider economic recovery objectives.
Our strategy establishes four target outcome areas for our procurement activities, in alignment with various strategic and operational directives (including but not limited to, Toitū te Taiao, Te Ara Kotahi, Environmental and Social Standard; Construction Sector Accord, COVID-19 Response Plan).
The four target outcome areas are environment and sustainability; Māori business and Tangata whenua; economic and employment; and community and culture.
See how the Te Aha a Turanga project has successfully implemented broader outcomes into their work:
The government framework for delivering broader outcomes is the cross-government developed framework to support public sector organisations with the implementation of broader outcomes in their procurement activities.
The framework can also be used by industry and suppliers to provide guidance and understanding of how broader outcomes will be imbedded into procurement activities.
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The Waka Kotahi broader outcomes strategy is the foundational document for the pursuit of broader outcomes through procurement at Waka Kotahi. It sets out the four target outcome areas Waka Kotahi has prioritised to pursue, how these may be embedded through procurement, and what success looks like for Waka Kotahi, our suppliers, partners, and communities.
Procurement is such a critical lever for positive impact and achieving public value, and Waka Kotahi is passionate about bringing broader outcomes to life in our organisation to support our journey of Moving. Together.
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All additional broader outcomes related resources will soon be available on the broader outcomes hub that is under-development, to be launched externally in late-2021.
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Broader outcomes are the secondary benefits that are generated by the way a good, service or works is produced or delivered (eg ‘how’ we deliver our projects, in addition to ‘what’ is being delivered). The how can substantially impact the local community, workforce wellbeing, our construction sector, the environment and many others. These outcomes are in addition to the core scope of the project or contract and can include social, environmental, cultural or economic benefits, delivering long term public value locally, regionally or nationally. Broader outcomes requires Waka Kotahi to consider not only the whole-of-life cost of the commercial activities, but also the costs and benefits to society, the environment and economy.
In addition to having long-term social, environmental, cultural and economic benefits to Aotearoa New Zealand communities, as a government agency, it is a mandatory requirement that Waka Kotahi considers and incorporates these broader outcomes when purchasing goods, services or works. This is captured in our broader outcomes vision, mā te mahi tahi, ka ora ai tātou – together we prosper.
Procurement is a critical lever for driving and rewarding commitment and innovation in the pursuit of broader outcomes and has been recognised by government as a key activator in leveraging Crown spend to achieve wider public value.
All Waka Kotahi projects will be expected to consider and evaluate what broader outcomes they can achieve through their procurement activities. In 2021, Waka Kotahi will be formally launching the broader outcomes programme on all tenders for NZUP projects, championing and leading the way for other projects to follow as part of the NZUP Delivery Improvements (step change) programme. We will also work with other NLTP and non-NLTP spend projects. The potential cumulative impact of NZUP projects in the next few years as we recover from Covid-19, in addition to our NLTP works and corporate commercial projects coming to fruition around the motu, means that it’s important we ensure great outcomes and a step change in delivery.
As with any new requirement there may be additional costs attributed to achieving broader outcomes. As a commercial practice that is still evolving, current and near-feature projects will help inform cost implications, effective cost-models and how benefit measures can be utilised to ensure broader outcomes can create maximum public value. Any potential additional costs will need to be addressed on a project by project basis and factored into the business case process or form part of the procurement strategy. Where appropriate pre-established funding, grants or programmes exist, these should be utilised – for example Ministry of Social Development funded employment placements.
Contracts will incorporate broader outcomes through quantitative and qualitative metrics that will be specific to each commercial activity and project. As outcomes are pursued on projects, whether this be an increase in employment levels in regions, or an increase in educational opportunities for school leavers, or the development of a more diverse and resilience business sector, Aotearoa has the potential to realise significant value through Waka Kotahi projects and public sector spend.
The broader outcomes programme aligns with and compliments other key Waka Kotahi policies, strategies and plans. Approved Organisations are encouraged to develop their own approach to broader outcomes; however, this strategy can serve as a guide to those AOs wanting further direction or support. The Waka Kotahi Procurement manual states the requirement for AOs to consider broader outcomes in their NLTP funded procurement activities, and the Waka Kotahi procurement team can share resources to support this pursuit as part of our cross-sector collaboration efforts.