Manage social procurement commitments

Understand how to manage and report on social procurement commitments agreed to in contracts.

Manage social procurement commitments

Agencies manage social procurement commitments from:

  • when the contract is executed
  • until the expiry, termination, or renewal of the contract

Agencies must ensure that:

  • parties to the contract meet their respective obligations as effectively and efficiently as possible
  • the Agency achieves value for money through the course of the contract.

For direct social procurement, contract management may include providing appropriate support to social benefit suppliers to help ensure they successfully meet all of their obligations.

For indirect social procurement, contract management activities may include:

  • maintaining records related to social procurement commitments and delivery
  • regulating change in social procurement commitments (e.g. variations)
  • checking social procurement reporting
  • ensuring the supplier’s delivery of social procurement commitments is contributing to value for money
  • monitoring social procurement deliverables / performance
  • managing social procurement risks and issues

Monitor performance

Performance monitoring provides assurance that the supplier is performing in accordance with contract requirements.

Performance monitoring:

  • gives surety that the supplier is performing in accordance with contract requirements
  • can provide early warning of problems
  • supports risk mitigation strategies
  • supports performance improvement

An important first step in monitoring is to review the social procurement commitments response to identify:

  • the supplier’s social procurement commitments
  • the monitoring requirements, such as periodic reporting activities.

Different monitoring requirements may apply depending on the nature of each social procurement commitment. For example, the frequency for monitoring each commitment may vary.

Monitoring activities for social procurement commitments may include:

  • creating and maintaining records that will support monitoring activities of the supplier’s contractual social commitments. See, Monitor contract performance.
  • tracking how the supplier is progressing with the delivery of social procurement commitments, and supporting the supplier to address any barriers to delivery
  • ensuring that the scope and quality of delivery of social procurements commitments meets the supplier’s contract requirements

Contract managers are responsible for ensuring social procurement commitments are successfully delivered and reporting is completed.

Suppliers should maintain accurate records to show that they are meeting their targets against social procurement commitments in their contract, which the supplier may need to produce in the case of a review or audit.

Tools and support

For more information about social procurement, please contact Buying for Victoria.

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