This page relates to the 2024–27 National Land Transport Programme.
The Land Transport Management Act 2003 (LTMA) requires, with some exceptions, that all funds used to procure goods and services to deliver approved activities be expended through a procurement procedure that has been approved by NZ Transport Agency Waka Kotahi (NZTA) as investor and procurement procedure approver (LTMA section 25).
Land Transport Management Act 2003(external link)
This page sets out the requirements relating to procurement for activities funded through the National Land Transport Programme (NLTP), including following approved procedures and having an endorsed procurement strategy.
Approved organisation and NZTA (for its own activities) must follow the NZTA Procurement manual for activities they procure. It contains a number of standard procurement procedures covering most routine procurement by approved organisations and NZTA (for its own activities).
Wherever better value for money would be obtained by departing from one or more rules in one of these standard procurement procedures, we (NZTA as investor) encourage the approved organisation or NZTA (for its own activities) to seek our approval to vary the standard. Some procurements will demand use of an advanced procurement procedure component or a customised procurement procedure, for which our specific approval must be obtained.
The LTMA establishes outsourcing as the default method of procurement. Almost all the exceptions to this outsourcing rule also provide an exemption to the requirement that the funds be expended through an approved procurement procedure.
Section 26 of the LTMA lists types of payments that are exempt from procurement procedure requirements and therefore also exempt from the requirement to outsource. These exemptions include:
Land Transport Management Act section 26(external link)
For further information about the funding of administration and in-house professional services see our Professional Services and Administration Funding Policy.
Professional Services and Administration Funding Policy
Every approved organisation and NZTA (for its own activities) must have an overall procurement strategy that has been endorsed by us. The strategy will document the organisation’s long-term integrated approach to the procurement of transport sector activities, how the organisation will establish and maintain its outsourced commercial relationships and describe in broad terms what the organisation will be purchasing over the next 3 years or more.
