A guide for government agencies Edition 3: August 2013

Office Consumables
All-of-Government Contract
Buyers Guide
Procurement driving better value for money


Acknowledgements and Thanks :
Members of the Client Advisory Group
Members of the Collaborative Procurement Advisory Group

Feedback on this guide:
We want to ensure that this guide provides you with all the information you need to use the Office
Consumables All-of-Government (AoG) contract. Were interested in your views on what works well and what
we could improve and would welcome your feedback. Please send your comments to
office.coe@mbie.govt.nz.


Office Consumables Centre of Expertise (CoE) contact details:
Office Consumables CoE
Government Procurement Branch
Ministry of Business, Innovation and Employment
PO Box 1473
Wellington 6140.
If you have any questions in relation to the operation of this contract, please contact the Office Consumables
CoE office.coe@mbie.govt.nz.











First Published July 2010
Government Procurement Development Group | Ministry of Economic Development
PO Box 1473 | Wellington 6140 | New Zealand | www.mbie.govt.nz | www.procurement.govt.nz

Crown
Copyright

This work is licensed under the Creative Commons Attribution-Noncommercial-Share Alike 3.0 New Zealand License. In
essence you are free to copy, distribute and adapt the work non-commercially, as long as you attribute the work to the
Crown and abide by the other licence terms.
To view a copy of this licence, visit www.creativecommons.org.nz. Please note that no departmental or governmental
emblem, logo or Coat of Arms may be used in any way that infringes any provision of the Flags, Emblems, and Names
Protection Act 1981. Attribution to the Crown should be in written form and not by reproduction of any such emblem, logo
or Coat of Arms.


This guide is one in a series of guides that has been developed under the New Zealand Government
Procurement Reform Programme. Individual buyers guides have been developed for each All-of-
Government contract.




4

Buyers Guide to the Office Consumables All-of-Government contract

Contents page
Introduction ......................................................................................................................... 5
Overview of the contract ..................................................................................................... 6
The benefits of using this contract .................................................................................... 6
What you can buy off this contract .................................................................................... 9
How to transition to this contract ..................................................................................... 11
How to buy off this contract ............................................................................................. 11
Roles and responsibilities ................................................................................................ 11
Relationship management ................................................................................................ 12
Key contract terms explained ........................................................................................... 13
FAQs .................................................................................................................................. 17
Related publications, documents and links .................................................................... 18

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Buyers Guide to the Office Consumables All-of-Government contract

Introduction

This guide provides you, as an Eligible Agency, with information on the AoG Office Consumables
contract that has been put in place for a wide range of products. This contract isnt just about
pens and pencils but covers the following broad products:
Print and Toner Cartridges;
Photocopier Paper;
Cafeteria supplies (e.g. coffee, sugar, etc);
Health and Hygiene (e.g. detergent, toilet paper, etc);
Data Storage Media (e.g. memory sticks, DVDs, etc);
General Stationery; and
Computer Accessories (e.g. computer keyboards, mouse, etc).

The Office Consumables Centre of Expertise (CoE) at the Ministry of Business, Innovation and
Employment (MBIE) has negotiated, and will manage, this contract on behalf of the Crown as part
of the Government Procurement Reform Programme (Reform).
The contract has been awarded to two suppliers:

OfficeMax New Zealand Ltd; and
Staples New Zealand Ltd (formally known as Corporate Express New Zealand Ltd)

Each supplier has been selected to supply the full range of office consumable products offered
under this contract.
You will select one of these suppliers as your sole supplier for the duration of the contract. The
contract commenced in July 2010 for an initial term of three years, expiring on 30 June 2013, with
two rights of renewal for 12 months each. The first right of renewal has been exercised
commencing on 1 July 2013.
This guide provides you with an overview of:
the key benefits;
what you can buy off the contract;
how you can transition to the contract;
how the contract relationships will work; and
frequently asked questions.

For general information on who can use AoG contracts including roles and responsibilities
between the buyer, supplier and the CoE as well as a glossary of terminology, please visit:
http://www.business.govt.nz/procurement/all-of-government-contracts/about-all-of-government-
contracts


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Buyers Guide to the Office Consumables All-of-Government contract

Overview of the contract
This contract overview provides a description of key aspects of the contract. For further
information on the contract, you should contact the Office Consumables CoE. Please note that
contract details are commercial and in confidence and that pricing arrangements must not be
discussed or disclosed with third parties outside the participating agency (see note on
confidentiality below).

Products
The office consumables contract for the provision of core workplace office supplies
includes seven different categories:
Ink/Toner cartridges
Photocopy paper
Cafeteria supplies
Health and hygiene
Data storage media
General stationery
Computer accessories
Panel
OfficeMax New Zealand Ltd; and
Staples New Zealand Ltd
Term Three years from July 2010, with two 12-month extension options.
Pricing Up to 5% and 30% discounts.
Delivery in
full on time
OfficeMax New Zealand Ltd:
On Catalogue: 99% up to two working
days
Off Catalogue: 100% up to four working
days
Staples New Zealand Ltd:
On Catalogue : 99% next day
delivery
Off Catalogue: 95% next day
delivery
Other
services
Sourcing of required products
Call centre support
Catalogue management
Invoicing services
Comprehensive reporting
Product rationalisation
Recycling
Improving of environmental impacts





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Buyers Guide to the Office Consumables All-of-Government contract

The benefits of using this contract
The Office Consumables contract offers you a range of benefits:


Weve used the collective buying power of the whole State sector to
negotiate a best price contract so that all pay the same, reduced price.


The CoE will manage the contract throughout its lifetime in a way that
will complement the running of your own procurement processes.


Youll have a choice between two suppliers who are ready and keen to
impress.


Helping to drive better value for money across all of government so that
even the smaller agencies benefit.


We will provide information and regular updates to help improve your
buying behaviour.

You can also request reports from suppliers directly which will allow you
to identify where further savings can be made.




Suppliers have the technological capability to integrate with ERP
systems allowing for a smooth B2B connection that will improve
efficiencies and reduce errors.




Suppliers can provide more environmentally friendly product options.


Encouraging better purchasing practices.

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Buyers Guide to the Office Consumables All-of-Government contract


Achieving cost savings is not just about buying the same products for lower prices.

Thinking about what you buy, how you buy and when you buy can also make a significant
difference, e.g. focussing on what you actually need to do the job, as opposed to the preferred
brands you habitually buy. This table outlines the efficiencies that you can take advantage of:



Current
Practice
Issue Better Practice Benefit Example
Process orders
through fax or
phone.
Suppliers may
misread a fax or
misunderstand a
phone call.
High risk of errors
with corrective
action to follow.
Process orders
electronically.
Order placed
accurately.
Items delivered on
time.
Accuracy for
reporting.
No corrective
action.
Less transactional
costs.
Supplier had misread a
faxed order. Corrective
action included Agency
X sending back the
item, reissuing another
order, supplier sending
a credit note, Agency X
checking the credit note
is correct.
Process orders
everyday with
most being less
than $50.
Freight fee
charged.
Risk that same
order is placed
multiple times
and loss of
control /
coordination.
Process orders
weekly / fortnightly
to give staff a
chance to add to
the shopping cart.
No freight fee.
No corrective
action.
Less transactional
costs.

Last year an agency
raised 3,000 orders less
than $50 resulting in
$20,010 in freight fees.
Process many
invoices to one
supplier.
High workload. Process one
invoice per month
to one supplier.
Less invoices to
process.
Less transactional
costs.

Last year an agency
raised 7,000 orders
each generating an
individual invoice.
Process many
invoices to many
suppliers.
High workload. Purchase all
contracted items
from one supplier.
Less invoices to
process.
Less transactional
costs.
Expected
deliveries the
same as
stationery orders.
An agency had
purchased coffee, tea
and sugar from different
suppliers requiring
processing of separate
invoices going to
multiple suppliers.






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Buyers Guide to the Office Consumables All-of-Government contract

What stays the same?
On a day-to-day basis, using the contract will feel pretty much like business as usual for buyers in
agencies.
Youll still deal directly with suppliers to place your orders and pay for them.

Youll still deal directly with suppliers if you have goods to return for whatever reason but
the management of the contract is taken care of by the CoE.

Youll still have an extensive range of goods to choose from but it will cost less.


What you can buy off this contract
The catalogue we have negotiated with suppliers offers you a wide range of choice, reduced
prices and opportunities to make further savings if you choose to buy non-branded items.
The following table provides examples of what you can buy within the categories that is covered
under this contract:

Category name Example items available
Ink/Toner cartridges Inkjet cartridges, laser cartridges.
Photocopy paper Coloured and non-coloured photocopy paper, specialty paper.
Cafeteria supplies Biscuits, coffee, cups, Milo, plastic plates and cutlery, soup,
sugar, tea.
Health and hygiene Cleaning products, cloths and cleaners, first aid supplies, paper
towels, rubbish bins, soaps and disinfectants, tissues serviette
and toilet, wipes.
Data storage media CDRs, Flash Drives, diskettes, media storage.
General stationery Acetate pockets, adhesives, adhesive notes and flags, batteries,
binding consumables, books and maps, correction products,
envelopes, fax rolls, filing accessories, highlighters, indices,
labels, laminating consumables, lettering consumables and
accessories, lever arch binders and accessories, line flow, mailing
accessories, manila folders, markers, memo cubes, notice and
white boards, office pads, OHP accessories, organisers, overlay
binders, pads, pencils and accessories, pens, pins clips and
fasteners, postage stamps, prepaid envelopes, presentation
display books and packets, punches and perforators, PVC
binders, rubber bands and tags, scissors, stamps pads and ink,
staplers and staples, suspension filing and accessories,
telephone and business card files, whiteboard accessories.
Computer accessories Computer cleaning products, copy holders, monitor stands,
labels, mouse mats, OHP film.



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Buyers Guide to the Office Consumables All-of-Government contract

In addition to this, the catalogue is structured in three groupings:
AoG On-Catalogue
We have negotiated prices on a similar basket of goods with each supplier. This
catalogue consists of no more than 1,500 items and has been identified as the most
commonly purchased and cost effective including non- branded products.
The greatest discounts can be found in this catalogue.

AoG Off-Catalogue
This includes the remaining list of items made available to agencies.
Within this catalogue, savings are possible as the contract is set up to ensure you never
pay more than the agreed cost plus factor over a 12 month period.

Everything Else
Any items provided by the supplier that fall outside of the contract e.g. furniture, protective
clothing, digital cameras, etc.


The catalogue structure is illustrated in the following diagram:





Rationalised / Personalised Catalogue
The suppliers are happy to meet with you to look at how you can rationalise the catalogue so that
it is specific to your needs. If, for example, the supplier reports that you are buying 50 different
types of blue pens, you can look to rationalise it so that this is reduced. The catalogue can also
be designed to include items that are unique to you.
Please note that:
pricing differs between suppliers;
there are no special deals or promotional prizes;
for the AoG On-Catalogue, prices may change from time to time but only if suppliers can
demonstrate a compelling reason for the change and if the CoE agrees; and
you will need to select one supplier for the duration of the contract period

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Buyers Guide to the Office Consumables All-of-Government contract


How to transition to this contract
1. After selecting a supplier, you become a participating agency when you:
Sign a Letter of Accession to the Memorandum of Understanding between you
and the CoE

2. CoE will contact the supplier who will:
Contact you to arrange a transition meeting which will clarify the following
details for you:
purchasing process;
delivery details;
payment process;
the catalogue of items; and
Reporting requirements.

How to buy off this contract
We recommend using the suppliers purchasing solution because this offers:
easy access to the catalogues, providing buyers with the latest available product range,
pricing and product descriptions;
lower purchase-to-pay procurement costs especially for high volume, low transaction
value items (such as office consumables);
order consolidation and reduced delivery costs;
reducing paper transactions, speeding up delivery and making audits easier;
an automated cap on spend you can assign spend limits to individual buyers;
the supplier maintaining and managing the catalogue; and
improved reporting on expenditure and usage reducing inappropriate or improper spend
activity.

The suppliers have the technological capability to integrate with your systems and work with you
to complement your business workflows.

Roles and responsibilities

You will be responsible for managing the operational relationship with the supplier including the
fulfilment of each purchase order.

We are responsible for managing of:
the suppliers performance against contracted service levels;
the strategic supplier relationship;
category strategy;
the product catalogue(s) including any changes;
review and validation of pricing;
the eligibility of agencies, and
disputes escalated to us by either the supplier or you.

Suppliers are required to perform all obligations required of it under the AoG contract, fulfilling
purchase orders, account management and the provision of a transition plan.

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Buyers Guide to the Office Consumables All-of-Government contract

Relationship management

The diagram below summarises the various working relationships for the contract. Please see the
All-of-Government Contracts Buyers Guide for more details on roles and responsibilities.












Mike Patterson, Supply Manager Department of Internal Affairs
Value for money case study:
Department of Internal Affairs

Since signing up to the office consumables contract back in December 2011, the Department for Internal
Affairs (DIA) has managed to achieve massive cost savings in its stationery and office consumables
management. For the first six months of 2012, DIA had achieved 42% savings on the previous period, in
the first six months of 2013 a further 56% in savings was achieved!

DIA says its success in this area is down to two major initiatives that accompanied the implementation of
the Staples online ordering system (NetXpress) in December 2011:
1. centralised stationery rooms at DIAs major sites all staff are able to use and take the items
they need for their work
2. stocking of generic stationery items rather than branded products staff were first consulted in
determining the stocking of cost-effective, fit-for-purpose items; specialist items are requested
via DIAs purchasing officer.
The changes and the new system have had multiple benefits. These include the reduction of the number
of orders and invoices generated and related administration work; elimination of time-consuming and
costly manual handling by the accounts payable team; and greater clarity and control over business unit
spend. The ordering systems also capture point-of-sale GL coding which allows more targeted budget
reporting.

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Buyers Guide to the Office Consumables All-of-Government contract

Key contract terms explained
Purchase Order:
The buyer places an order via a purchase order. There is no minimum volume of goods that
needs to be ordered. However, delivery fees are charged to the buyer for each purchase order if
it is less than $50.
The Purchase Order authorises the purchase and describes the goods, quantity, price and
delivery date. If the supplier cannot deliver against the Purchase Order, it must tell the buyer
within two days.
Supply of goods:
The supplier must deliver the goods specified in the purchase order. The goods must be new and
fit for purpose. The goods must be delivered to the address specified by the buyer within the
agreed timeframe for delivery. If there is a delay in the delivery, the supplier must tell the buyer
and state the cause of the delay, the effect it has had on delivery and when the delivery may be
expected.
Ownership and risk:
Ownership (title) of the goods will pass to the buyer on whichever is earlier the delivery of the
goods to the buyer or payment of the invoice.
This means that the buyer can use the goods as soon as they are delivered. Risk in the goods
will pass to the buyer on delivery. This means that the supplier is responsible for any damage to
the goods up until the point that they are delivered. After that the buyer is responsible.
Acceptance of goods:
When goods are delivered, the buyer must inspect them to check that:
they are what has been ordered
they meet the standard or specification required.

The buyer accepts the products by notifying the supplier that they have been accepted; or 10
business days pass; or the products are used. However, this does not prevent the buyer notifying
the supplier of a problem and having that problem resolved appropriately. Under its product
warranty the supplier must fix any faults in the goods.
Payment:
The supplier will invoice the applicable product charges based upon the purchase order. Invoice
payment arrangements are organised directly between the participating agency and the supplier
and they must be made within the terms and conditions of the AoG contract. Please note that the
CoE will be monitoring payments as part of its contract management obligations.
The supplier will issue one invoice at the end of the month for all goods purchased that month. In
this case the buyer must pay the invoice by the 20th day of the month following the invoice date.
Confidentiality:
It is important to protect confidential information. This is information that is commercially sensitive
or relates to a partys financial position, customer base, internal management, structure or
personnel. Both the supplier and the buyer must safeguard confidential information and not
disclose it to any third party or use it for their own benefit.


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Buyers Guide to the Office Consumables All-of-Government contract

Dispute resolution:
Both parties must use their best efforts to resolve a dispute or difference that arises. This means
they must negotiate in good faith to find a solution. Under the Agreement there is a formal
escalation process for disputes as follows:
Timeframe Escalation
The day the dispute arises Both parties attempt to resolve the dispute.
If not resolved within 10 business days Buyer escalates to agency senior representative.
Supplier escalates to supplier Lead Representative.
If not resolved within 10 business days Buyer escalates to CoE Representative.
Supplier stays with Lead Representative.
If not resolved within 10 business days Buyer escalates to Category Leader, Procurement Reform Group.
Supplier escalates to General Manager, National and Strategic
Accounts.
If not resolved within 10 business days Buyer escalates to General Manager, Procurement Reform Group.
Supplier escalates to suppliers Executive General Manager.

Administration expenses:
Participating Agencies will benefit from substantial cost savings negotiated through the AoG
contracts. Cabinet has decided that participating agencies should retain those savings, but has
agreed that a small administration charge be applied to each order placed as a means of funding
the on-going reform. This will enable the on-going management of existing AoG contracts as well
as the development of additional AoG contracts that will save Participating Agencies even more
money.
An administration charge of 1.5% will be applied to all orders placed by Participating Agencies
and collected by the supplier at point of sale (whether this is by credit card, P-card or invoice).
The supplier will then remit this to MBIE on a quarterly basis.










The All-of-Government system is working well for us. There were a few teething
problems as our heads of department got used to using the system but these are
now long gone. Some had difficulty with being directed to buy from OfficeMax (to
meet the conditions of the system) as it meant severing connections with long
term suppliers.
Now, however, the ease of operation and the reduced compliance load for our
staff has won them all over. From an administrative point of view, it was really a
no brainer. We have reduced the number of suppliers we deal with less paper to
push, both in and out and we are enjoying decreased costs thanks to significant
savings and increased discounts offered by the AoG.
Chris Foote, Executive Officer Otahuhu College

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Buyers Guide to the Office Consumables All-of-Government contract

Outline contract conditions by supplier
Here we provide you with supplier details and a brief outline of contract conditions specific to
each supplier.

Staples
Contact: Eva Heron Help Desk
Site Address: 1088 Victoria Street
Hamilton
Hours: 8:00am to 5:00pm
Monday to Friday
Postal Address: PO Box 7126
Auckland 1141
- -
Telephone: 0800 402 070 Contact Centre: 0800 800 547
E-mail: eva.heron@staplenz.co.nz E-mail: nasanz@staplesnz.co.nz
Internet: www.staplesnz.co.nz - -

Staples offers a cooling-off period on catalogue purchases, whereby you can return any product
supplied within 14 days following delivery (without limiting the product warranty).

Conditions for returned products are:
the product must be unused;
the manufacturers packing (excluding pallet shrink-wrap) must be intact;
the product must otherwise be in the condition in which it was delivered;
the product must be received by Staples within 14 days; and
the return is at the customers risk and expense.

Warranties/Guarantees

Staples guarantees products against faulty workmanship and materials for 12 months from
purchase.

If you buy something from Staples that does not comply with this warranty, you may return it free
of charge for repair or replacement. Staples will also pass on to you the full benefit of any
manufacturers warranty.

Simply contact Customer Services on 0800 800 547 to arrange for the free collection and credit of
the goods. Goods will be uplifted within 48 hours and returned to Staples.


Staples Return addresses


Auckland NZ Group Office
49 Waiouru Road
Highbrook Business Park
East Tamaki
Auckland 2013

155 Hutt Park Road
Gracefield
Lower Hutt 5010

46 Main Street
Blenheim 7201
3 Desi Place
Hillsborough
Christchurch 8022

43 Otaki Street
Dunedin 9012



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Buyers Guide to the Office Consumables All-of-Government contract


OfficeMax
Contact: Blair Horsfall Help Desk:
Site Address: 196 Middleton Road
Johnsonville
Wellington
Hours: 8:30am to 5:00pm
Postal Address: PO Box 64
Wellington 6140
- -
Telephone: 04 477 7961
021 958 057
Contact Centre:
Online Helpdesk:
0800 426 473
0800 682 638
E-mail: Blair.horsfall@officemax.co.nz E-mail: online@officemax.co.nz
Internet: www.officemax.co.nz - -

OfficeMax offers a money-back guarantee on any catalogue product purchased and returned
within 14 days of delivery.
Conditions for returned products are:
the product must be unused;
the manufacturers packing (excluding pallet shrink-wrap) must be intact;
the product must otherwise be in the condition in which it was delivered;
the product must be received by OfficeMax within 14 days; and
the return is at the customers risk and expense.


Warranties/Guarantees

OfficeMax guarantees products against faulty workmanship and materials for 12 months from
purchase.

If you buy something from OfficeMax that does not comply with this warranty, you may return it
free of charge for repair or replacement. OfficeMax will also pass on to you the full benefit of any
manufacturers warranty.

In the event that a product becomes faulty outside the manufacturers prescribed warranty period,
OfficeMax will facilitate the products return or replacement via the manufacturer.
To make a return there are two methods:
Online through OrderMax (www.officemax.co.nz): users simply fill out the request return
authority form and OfficeMax will e-mail the requester with a return advice
By phone (0800 426 473), via the OfficeMax National Contact Centre, which will ensure the
product is collected promptly and credit applied to the requesters account.






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Buyers Guide to the Office Consumables All-of-Government contract

FAQs

What types of product are available under the Office Consumables Agreement?
Core workplace consumables such as paper, stationery, health/hygiene, toner and inkjet
cartridges, data storage media, computer accessories and canteen supplies are available to
purchase under this agreement. Refer to page 13 and 14 of this document.

How will we access the office consumables catalogues?
As part of your transition to the contract, the supplier will provide you with access to the web
based catalogue.


Can I change my supplier if my current supplier is OfficeMax or Staples?
Yes, once your contract with your existing supplier ends or is terminated (if commercially
beneficial to do so), you can choose either OfficeMax or Staples to be your supplier for the
duration of the AoG contract.

How will my agency select a supplier?
You will need to select a single supplier from the panel to be its sole source of office
consumables for the duration of the contract. To help you make this decision, we have compiled a
list of attributes for the two suppliers. This Attributes Model will be provided to you as part of an
information package when you are ready to consider and sign up to the contract.

Will users see much change in the products they receive?
The new contract offers the core range of office consumable products necessary for running an
office. The contract offers branded, generic and environmentally friendly products. The
catalogues have been put together by subject-matter experts to ensure that they meet the needs
of agencies.

What if the supplier doesnt have the product I need?
The office consumables catalogues should offer all items necessary for the running of an office.
However, there will be some exceptions and if you cant find the item or a suitable alternative in
the catalogues, you will be able to purchase an off-catalogue product.

Are we guaranteed the best prices?
The contract provides all agencies with a single unit price, per supplier, per item. This means that
all Participating Agencies will pay the same price for items bought under similar circumstances
(e.g. size of order, delivery timeframe). The Most Favoured Nations clause ensures suppliers
cannot provide agencies with pricing that is better than AoG.

Can I negotiate discounts?
No. Product and price negotiations can only be conducted by the CoE. Participating Agencies
cannot enter into negotiations with panel suppliers directly. You are welcome to provide any
feedback or suggestions to the CoE.

Is there a cheaper alternative to the branded items weve bought under previous
contracts?
The office consumables contract offers both branded and non-branded options. If you choose
non-branded over branded products, you will save even more money.







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Buyers Guide to the Office Consumables All-of-Government contract

Related publications, documents and links

Buyers guides:
Guide to All-of-Government Contracts
Buyers Guide, All-of-Government Contract for Travel
Buyers Guide, All-of-Government Contract for Laptop &
Desktop Computers
Buyers Guide, All-of-Government Contract for Single and
Multi-function Print Devices
Buyers Guide, All-of-Government Contract for Passenger
Vehicles
Buyers Guide, All-of-Government Contract for Mobile
Voice & Data Services
Buyers Guide, All-of-Government Contract for External
Legal Services
Buyers Guide, All-of-Government Contract for Utilities


Important links:
www.procurement.govt.nz the place to go for information on:
other government contracts (AoG and syndicated)
Government Model Contracts for low-value, low-risk,
common goods and services
Government procurement policy, Mandatory Rules and
related guidance
Best practice guidance
Templates and tools for everyday use
Building a professional procurement career: core
competencies, training needs analysis, subsidised training
and education opportunities
The latest developments in the Reform
And a whole lot more.
The following documents will
be provided to agencies as
they assess the benefit to
transition to the AoG office
consumables contract:
Attributes Model

Letter including Benefits
Statement

Supply Agreement
(contract) for Office
Consumables

Memorandum of
Understanding and Letter
of Accession (for Chief
Executives to sign).