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About Victorian Government procurement

An overview of which Victorian Government organisation looks after which aspects of government procurement.

Areas responsible for government procurement:

  • car and other motor-vehicle procurement: VicFleet
  • construction procurement: Department of Treasury and Finance
  • construction partnerships: Partnerships Victoria
  • goods and service procurement: Victorian Government Purchasing Board
  • health-related goods and services procurement: Health Purchasing Victoria
  • ICT procurement: Department of Premier and Cabinet
  • jobs and industry development: Department of Jobs, Precincts and Regions

Victorian Government Purchasing Board

The VGPB sets the policies that govern procurement of non-construction goods and services across all Victorian government department and some specified entities.

When purchasing goods or services, buyers must comply with the relevant procurement policies of their lead organisation. This may include applicable broader government policies and Australian Standards where relevant, including but not limited to any supplier charters or codes of conduct.

Read more about the Victorian Government Purchasing Board

Health Purchasing Victoria (HPV)

HPV looks after procurement of health-related goods and services, including equipment.

HPV works with the health sector to reduce costs through strategic procurement.

HPV is responsible to the Minister for Health and works with the DHHS. The aim is to provide healthcare that is:

  • safe
  • affordable
  • sustainable

Work with hospitals

Working with public hospitals and health services, HPV:

  • facilitates tenders
  • manages contracts
  • identifies opportunities for collective procurement
  • improves procurement capability
  • provides procurement training

Legislative functions

HPV has key legislative functions under the Health Services Act 1988 to:

  • supply or help supply of goods and services
  • give advice and support
  • track compliance
  • foster improvements in use of systems and e-commerce
  • maintain useful data and share that with health services
  • ensure probity is maintained in the purchasing, tendering and contracting of public hospitals

Department of Jobs, Precincts and Regions

The Department of Jobs, Precincts and Regions drives economic development and job creation in Victoria. The focus is on programs and procurement policies for employment and industry development.

The Department of Jobs, Precincts and Regions administers the Local Jobs First Act 2003. Local Jobs First includes:

  • Major Projects Skills Guarantee (MPSG)
  • Victorian Industry Participation Policy (VIPP)

Major Projects Skills Guarantee

The Major Project Skills Guarantee is about growing the next generation of skilled workers. It means construction projects over $20 million need to use Victorian:

  • apprentices
  • trainees
  • engineering cadets

for at least 10% of the labour. This gives young people the chance to work on Victoria's biggest construction projects.

Read more about the MPSG

Victorian Industry Participation Policy

The Victorian Industry Participation Policy is an industry development procurement policy. It means local businesses have a fair chance to compete for government contracts. This helps local projects create opportunities for Victorian businesses.

The Victorian Industry Participation Policy applies to all projects valued at:

  • over $1 million in regional Victoria
  • over $3 million in metropolitan Melbourne, or for state-wide activities

Partnerships Victoria

Partnerships Victoria facilitates Public Private Partnerships (PPP) between government and the private sector. This means working together to deliver public infrastructure and services.

The Partnerships Victoria team in the Department of Treasury and Finance:

  • advises the Treasurer on PPP policy
  • connects private sector and government
  • develops and publishes PPP guidelines
  • helps with the tendering process and managing long-term contracts

Under the PPP model, the government contracts the private sector to:

  • design
  • build
  • finance
  • maintain
  • provide services

This is different to privatisation. The PPP asset goes back to the government at the end of the contract.

PPPs always have a private finance element. PPP contracts have a clear and enforceable risk allocation.

Read more about Public Private Partnerships in infrastructure

Department of Premier and Cabinet

The Department of Premier and Cabinet's Technology Procurement Team is responsible for information and communication technology (ICT) procurement for whole of Victorian Government.

The team has the responsibility to set up, manage and give advice on effective ICT whole-of-Victorian-Government contracts (also known as state purchase contracts) categories.

This includes the ongoing management of government contracts for:

  • hardware
  • IT infrastructure
  • telecommunications
  • software contracts

The team also looks after the eServices Register.

For enquiries, email cpt@dpc.vic.gov.au

Read more about government contracts

Department of Treasury and Finance (DTF)

The DTF gives advice to the Minister for Finance about public construction policy. DTF also helps organisations with construction procurement.

Public Construction Procurement Committee (PCPC)

The DTF also manages and administers the PCPC. This committee is set up by the Secretary of the DTF.

The PCPC gives advice to the Minister and Secretary about the Minister's Directions.

The PCPC makes recommendations on:

  • Victorian Public Construction Contracts
  • commercial positions and limited tendering
  • construction policy and procurement best practice

They also:

  • look at how other Government policies might impact construction procurement
  • share information to improve construction policy and procurement

High Value High Risk Framework (HVHR)

The HVHR Framework is the responsibility of the DTF. This framework covers infrastructure and ICT projects identified as high value or high risk. These projects need more scrutiny, approval processes and ongoing involvement by DTF.

A project will be HVHR if it is:

  • considered high risk using DTF’s risk assessment tool, the Project Profile Model (PPM)
  • considered medium risk using the PPM and has a TEI of between $100 million and $250 million
  • considered low risk using the PPM but has a TEI over $250 million
  • identified by DTF as needing the attention given to HVHR investments

Areas of extra scrutiny under the HVHR framework may include the requirement for the Treasurer to approve:

  • procurement document before release to market
  • referred bid contracts before they are signed
  • any major variations

Read more about the High Value High Risk Framework

Project Assurance Reviews (PAR)

PARs aim to provide timely independent advice to the sponsoring organisation and DTF on the current progress of the program. They enable government to learn of any concerns about the program’s progress and receive recommendations to improve program deliverability.

Read more about the Gateway Review Process

    For more information about DTF's role in procurement visit their website .

    VicFleet's role in vehicle procurement

    VicFleet looks after car and other motor-vehicle services across the Victorian Government.

    VicFleet gives advice to the Minister for Finance about our fleet issues and policy. It manages:

    • Standard Motor Vehicle Policy (SMVP)
    • Finance Lease Facility
    • Motor Vehicle government contract
    • Motor Vehicle Disposals government contract

    Read more about motor vehicles, vehicle policy and fleet disposals

    Standard Motor Vehicle Policy (SMVP)

    The SMVP makes sure vehicle use meets the government's service delivery needs. It focuses on:

    • vehicle efficiency
    • safety
    • sustainability

    Lease and management services

    VicFleet’s lease and management services include:

    • procurement
    • registration
    • maintenance
    • advice
    • education
    • reporting

    Reviewed 05 July 2019

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