State purchase contracts have been set up to combine demand for commonly used goods and services. This enables Government to make the most of economies of scale when buying from the marketplace.
Combining demand allows for a strong purchasing position to negotiate better value and terms and conditions. It also reduces the risk and administrative burden on buyers and suppliers.
Benefits of State purchase contracts
Benefits of state purchase contracts include:
better value for money using the State’s buying power
supply and service continuity
reduced risks through pre-negotiated contract terms and conditions
improved quality assurance
efficiency gains through a standard and consistent approach
increased accountability and governance
improved contract monitoring and reporting
ability to drive continuous improvement
access for suppliers through competitive tender processes.
Expansion Agencies transition to state purchase contracts will be staggered between 31 December 2021 and 31 December 2023, based on annual spend. Visit Victorian Government Purchasing Board expansion to find out more.
Who can use the contracts
In most cases, the following types of organisations can use these contracts:
a 'statutory corporation', as defined in the State Owned Enterprises Act 1992 (Vic), operating wholly or principally in the State of Victoria
a 'State owned company', 'State business corporation' or 'State body' as those terms are defined in the State Owned Enterprises Act 1992 (Vic)
a corporation limited by shares of which more than half are owned beneficially by the State, a statutory corporation or a State owned company or a State body
a company limited by guarantee, operating wholly or principally in the State of Victoria, the majority of directors of which are appointed by or on behalf of:
the State
a statutory corporation, referred to in paragraph (a)
a State owned company, 'State business corporation' or a State body, referred to in paragraph (b).
Government supported organisation means:
An organisation that is a charitable or not-for-profit organisation and receives funding from a Budget Sector Agency.
The Telecommunications Services Contract TPAMS2025 requires at least 25 per cent of the charitable or not-for-profit organisation's funding to be from a Budget Sector Agency.
Lead Agency forums
Lead Agency is responsible for ensuring appropriate representation and governance is maintained.
User reference group
The user reference group represents buyer feedback during the end-to-end contract lifecycle.
Terms of reference of the user reference group define the purpose of the meeting.
Purpose
The user reference group is an invitational only forum chaired by the Lead Agency to ensure stakeholder feedback is captured and appropriately represented during the end-to-end contract lifecycle of whole of Victorian Government procurement activities.
Consisting of individuals appointed by the responsible officers (for example chief procurement officer, chief information officer or equivalent as is appropriate), charged with representing the specific requirements and interests of their respective entities (member), such as ensuring:
the views of their constituency are known and considered.
alignment with government policies and user needs.
collaborative development and review of tender documentation, including specifications.
provision of supplier and contract performance feedback including identifying opportunities and risks to be managed.
The Lead Agency will assign an individual/s to manage the user reference group (Chair).
Roles and Responsibilities
Each member will:
Complete, sign and return a conflict of interest and confidentiality declaration/s, to the Chair and immediately advise the Chair in the event of any change to their conflict of interest circumstances, or should they become aware of any breach of confidentiality.
Represent the interests of their respective entities by:
identifying local/specific issues related to the contract
articulating the business needs
articulating the level of future demand
actively participate in supplier performance management activities and reporting
identifying opportunities and processes to raise standards
reporting back to the entity on all relevant matters
Assist with the development of tender documentation including the specifications that:
are compliant with procurement policy
meet the Government's policy requirements in procurement
provide optimum value for money and minimise administrative burden
support the development of quality assurance and continuous improvement procedures
Review and endorse the final technical and operational documentation including the specifications on behalf of their respective entities
Undertake any other pre-Request for Tender release activities as necessary
Maintain probity requirements
Support the whole of Victorian Government's procurement implementation activities
Be a channel for communications to decision makers, the wider contract user base, and liaise with relevant functional groups to onboard and offboard suppliers
Administrative arrangements
The user reference group will meet periodically during the contract lifecycle and at each milestone throughout the sourcing project, or as otherwise deemed necessary by the Chair.
During a sourcing project documentation can be endorsed and decisions registered out of session via email confirmation.
Secretariat support will be provided by the Lead Agency, and a documented record of the meeting including recorded actions and decisions taken (minutes) will be distributed by email within five working days. Minutes will also be stored in the electronic document and records management system – content manager.
The Chair will support the right of all members to engage in free discussion, and ensure that privacy, security, and confidentiality standards are met.
Representation
Members may delegate responsibility to another individual (delegate) to act on behalf of the member, including attending a meeting of the user reference group, by forward notification to the Chair, including the relevant period. The delegate must have completed the necessary conflict of interest and confidentiality declarations and have the authority to make informed decisions on the members behalf, including respond to out-of-session decision requests as required.
Delegation should be infrequent and should be avoided to the extent possible.
The responsible officer, as determined to be appropriate based on the greatest spend and risk estimates by the Lead Agency for the relevant category, has the right to nominate one member.
If the Lead Agency believes that it is necessary for additional representation from a specific entity or group of similar entities with specific needs or interest in the relevant goods and services, it may make a request in writing for such support, to the relevant entity relevant officer to action. Such representation will be considered a member for the duration such support is required, as determined by the Lead Agency.
Meetings can proceed with three or more members present, with decisions and/or endorsement actions carried as subject to a two third majority, calculated as follows:
where each member has an equal vote; with
absentees and abstaining members to be noted in the minutes, but not included in the result calculation
all individuals present, including their title and entity, must be documented in the minutes
Other
The user reference group may seek additional input in the form of stakeholder surveys, ‘town hall’ meetings, focus groups, targeted interviews or by whatever form or means it determines necessary to achieve an optimal representation of user’s requirements and subsequent view of supplier performance and contractual effectiveness.
Provides strategic guidance and endorsements during sourcing project establishment and execution phases. The project control board represents the interests of key stakeholders and ensures:
buyer community views are known and considered within the scope of the project.
the project aligns with government policies and Victorian government needs.
Terms of reference of the project control board define the purpose of the meeting.
Purpose
The project control board is an invitational only forum chaired by the Lead Agency to ensure that for whole of Victorian Government procurement activities:
Stakeholder feedback is captured and appropriately represented during the project planning stage.
Appropriate advice, support and endorsements are provided to the project team in a timely and orderly manner.
Consisting of individuals appointed by the responsible officers (for example chief procurement officer or chief information officer or equivalent as is appropriate), charged with representing the specific requirements and interests of their respective entities (member), such as ensuring:
the views of their constituency are known and considered.
alignment with government policies and user needs.
with consideration to the relevant user reference group feedback and recommendations.
opportunities and risks are identified and appropriately managed.
The Lead Agency will assign an individual/s to manage the project control board (Chair).
Roles and responsibilities
Each member will:
Complete, sign and return a conflict of interest and confidentiality declaration/s, to the Chair and immediately advise the Chair in the event of any change to their conflict of interest circumstances, or should they become aware of any breach of confidentiality.
Represent the interests of their respective entities by:
understanding the project objectives
provide strategic advice during the project plan development including the market approach
Actively contribute to the collective oversight and governance of the project, including but not limited to:
endorse the project plan
endorse tender documentation
provide guidance to the project team throughout the sourcing project
endorse milestone completions and project recommendations
Review and endorse the contract award recommendations
Undertake any other relevant project activities as necessary
Maintain probity requirements
Support whole of Victorian Government procurement implementation activities
Administrative arrangements
The project control board will meet periodically during the strategy development phase and at each milestone throughout the sourcing project, or as otherwise deemed necessary by the Chair.
During the sourcing project documentation can be endorsed and decisions registered out of session via email confirmation.
Secretariat support will be provided by the Lead Agency, and a documented record of the meeting including recorded actions and decisions taken (minutes) will be distributed by email within three working days. Minutes will also be stored in the electronic document and records management system – content manager.
The Chair will support the right of all members to engage in free discussion, and ensure that privacy, security, and confidentiality standards are met.
Representation
Members may delegate responsibility to another individual (delegate) to act on behalf of the member, including attending a meeting of the project control board, by forward notification to the Chair, including the relevant period. The Delegate must have completed the necessary conflict of interest and confidentiality declarations and have the authority to make informed decisions on the members behalf, including respond to out-of-session decision requests as required.
Delegation should be infrequent and should be avoided to the extent possible.
The responsible officer, as determined to be appropriate based on the greatest spend and risk estimates by the Lead Agency for the relevant category, has the right to nominate one member.
If the Lead Agency believes that it is necessary for additional representation from a specific entity or group of similar entities with specific needs or interest in the relevant goods and services, it may make a request in writing for such support, to the relevant entity responsible officer to action. Such representation will be considered a member for the duration such support is required, as determined by the Lead Agency.
Meetings can proceed with three or more members present, with decisions and/or endorsement actions carried as subject to a two third majority, calculated as follows:
where each Member has an equal vote, with:
absentees and abstaining Members to be noted in the Minutes, but not included in the result calculation.
all individuals present, including their title and entity, must be documented in the Minutes.
Other
The project control board may seek additional input in the form of stakeholder surveys, ‘town hall’ meetings, engagement of subject matter expertise, or by whatever form or means it determines necessary to achieve an optimal outcome.
Any involvement of a current Victoria Government Purchasing Board Member must be strictly limited to activities that do not compromise the project control board ability to execute its governance obligations, and such involvement does not constitute that individual being recognised as a project control board member at any time.
