VGPB engagement model: Goods and services guide

VGPB’s engagement model

Organisations are encouraged to engage with the VGPB at least annually regarding:

• procurement strategy
• forward procurement activity plans
• compliance
• matters for advocacy
• specific matters related to high risk or complex procurements

Chief Procurement Officers may collectively engage with the VGPB on procurement matters that affect multiple organisations.

The VGPB policy framework emphasises strategic planning of procurement activity and early and thorough market engagement to maximise value for money. Whilst accountability for procurement sits with the accountable officer of each organisation, the engagement model encourages organisations to engage with the VGPB on procurement strategy and complex procurements that are not covered by the mandatory requirements in the Market analysis and review policy related to state purchase contracts.

The purpose of engagement is for the VGPB to assist organisations with advice, consultancy and advocacy. It also provides the VGPB with insights that assist the VGPB in its leadership of WoVG procurement, particularly in setting policy, advocacy, and supporting capability.

The VGPB may from time to time, select different topics of focus e.g. contract management, depending on the current environment, issues and observations (e.g. from the audit program) and other matters identified by the Board.

Organisations can engage with the VGPB individually or collectively. Chief Procurement Officers engage with the VGPB directly or the engagement is arranged through them.

Engagement with individual organisations

There is no standard process or format for engagement and an organisation should contact the VGPB Governance Team to make arrangements. In practice, engagement typically occurs in the following areas:

• Strategy and plans
• Individual procurements
• Visits

Strategy and plans

Organisations are invited to present and discuss their annual procurement strategy and plans with the VGPB. Indicatively, such a presentation may describe the following:

• procurement strategy
• procurement profile (including number and total value of sourcing activities and current contracts by complexity quadrant)
• the risk profile (e.g. low/medium/high overall, lower/similar/higher than previous years) and specific strategic risks
• insights from category planning, including opportunities for aggregation within the organisation or across multiple organisations
• implications for the organisation arising from the volume, complexity and risk of the planned procurements (e.g. capability, capacity, organisational structure, process)
• strategic procurements that have been or will be initiated during the year but will be out to market beyond the current procurement activity plan
• any matters arising that the organisation would like to engage with the VGPB on during the year

Organisations are also encouraged to discuss in detail specific strategies and plans e.g. relating to improving capability (people, systems or processes), governance frameworks, risk management or application of government initiatives such as social procurement. Organisations should also be mindful of when proposed changes could impact their VGPB accreditation as mandated organisations, in which case there is an obligation to consult with the VGPB.

Individual procurements

On occasion, organisations may wish to seek the VGPB’s advice on specific aspects of individual procurements to take advantage of the VGPB’s independence, its broad view across government organisations, its private sector knowledge for comparison and benchmarking, or for assurance of compliance with VGPB policies.

Requests for engagement may be based on any or a combination of the following criteria:

• complexity
• capability of the organisation
• risk - political, reputational, economic etc
• scope of the project e. g. when impacting beyond the organisation
• compliance with VGPB supply policies

Visits

Organisations may invite the VGPB to have a member visit an organisation. Examples of this may be:

• to provide information about the VGPB and its policies (e.g. when significant reforms or changes are introduced, with the audience being procurement staff or the Internal Procurement Unit)
• to meet with the Internal Procurement Unit and/or other executives to discuss their organisation’s procurement strategy

Engagement with multiple organisations

Organisations may choose to engage collectively with the VGPB on matters that affect a number or all organisations. This may be to provide feedback on the application of policies and associated VGPB requirements or perhaps to seek VGPB leadership and advocacy for an initiative.

Where the matter for engagement affects many organisations, it may be advantageous to progress the engagement through the CPO Forum and have a representative(s) meet with the VGPB.

VGPB SPC pipeline information

To keep the VGPB informed of the status of SPC activities, the VGPB Governance Team maintains an SPC pipeline. The pipeline document is populated with information provided by the lead organisation.

In addition, the VGPB Secretariat will update the pipeline with details of consultation activities and outcomes regarding SPCs.

The following table describes the type of information required for the pipeline.

Using this guide

This guide accompanies the goods and services supply policies. There are 5 supplies policies:

• Governance policy
• Complexity and capability assessment policy
• Market analysis and review policy
• Market approach policy
• Contract management and disclosure policy

This guide supports the Governance policy.

Tools and support

Access a document version of this guide in the Toolkit and library.

For more information about the VGPB engagement model, please contact the goods and services policy team.