The framework for planning, procuring, and delivering public transport services is anchored in the Land Transport Management Act 2003 (LTMA). This framework is then supported by requirements, policies and guidance that are developed by the NZTA in accordance with its statutory functions and powers.
Land Transport Management Act 2003(external link)
This module outlines the statutory framework for procurement of public transport services and infrastructure and includes links to relevant NZTA requirements, polices, guidance and tools.
Part 5 of the LTMA regulates public transport. People exercising powers or performing functions under Part 5 must be guided by each of the principles set out in LTMA s115(external link) to the extent relevant to their power or function.
The LTMA requires NZTA to take account of the principles when:
Section 116(external link) of the LTMA requires planning, procurement, and operation of public transport services to be carried out in an open and transparent manner. Specifically, openness and transparency are required in relation to operating costs, service performance, vehicles and vessels, financial performance of operators and aggregate terms, and conditions of the workforce.
Under the LTMA all integral public transport services in New Zealand must be delivered by or under contract to a public transport authority (PTA), unless exempt or excluded (LTMA s116A(external link)).
Further information on public transport authorities and public transport service types
Integral services are identified in Regional Public Transport Plans (RPTPs). RPTPs are developed by PTAs in accordance with the LTMA and guidelines published by NZTA.
Under the LTMA, regional public transport plans must allocate all integral services into units. Units provide a logical structure for procurement, monitoring, reporting, and enabling transparency of information.
Regional public transport plans must also include polices on:
A subsidy may only be provided to a public transport service that is identified in a regional public transport plan as being integral to the region’s public transport network and operated in a unit (LTMA s116B(external link)).
In relation to public transport, section 5(external link) of the LTMA defines subsidy as any funding from local authorities (including public transport authorities) and the NLTF.
NZTA guidelines for developing regional public transport plans set out for requirements and guidance relating to integral services, arranging services into units, and subsidy.
Development guidelines for regional public transport plans
In all cases, section 25(external link) of the LTMA requires NZTA to approve procurement procedures that are designed to obtain best value for money for activities funded from the National Land Transport Fund (NLTF). Procurement procedures must specify how procurement is to be carried out.
Procurement procedures can be summarised into two key parts.
First, PTAs must assess the strategic context in which procurement activity is to take place. This is documented within a procurement strategy endorsed by NZTA.
The strategy must take a long-term strategic view and outline how an approved organisation will deliver a programme of activities in a way that obtains best value for money.
Secondly, activities must be procured in accordance with an NZTA approved procurement procedure and encompass:
These four elements are related: the strategic context informs the selection of the delivery model, which in turn informs the choice of a supplier selection method from which a contract is established to purchase the required outputs.
Further guidance on procurement procedures is set out in the NZTA Procurement Manual.
Public transport planning and procurement are tightly coupled under the LTMA. The following diagram provides a high-level overview of key dependencies across network planning, regional public transport plans and procurement procedures.
Planning and procurement overview diagram [PDF, 76 KB]
The following sections provide links to key NZTA documents that are relevant to procurement and the delivery of public transport services and infrastructure.
This manual includes guidance and requirements for developing procurement strategies, as well as standard approved procurement procedures for purchasing infrastructure, planning and advice, and public transport services (including Total Mobility).
NZTA has developed and maintains a range of tools to support procurement procedures. These include supplier selection tools and methods and tools for adjusting the price of an infrastructure or public transport contract for cost fluctuation (indexation).
The RUB is a New Zealand-wide vehicle quality standard for bus contracts. Public transport authorities must adhere to the RUB to be eligible for funding from the NLTF. The RUB:
Requirements for Urban Buses in New Zealand (the 'RUB')
To support openness and transparency, it is a NZTA requirement that approved organisations (including public transport authorities) publish their transport procurement strategies online.
Current public transport procurement strategies prepared by public transport authorities can be found at their respective websites here:
This section will be updated as and when current public transport procurement strategies become available online.
We are currently developing further policy and guidance related to:
This section of the website will be updated once this policy and guidance is available.
