Achievements in 2022-23

Achievements since the launch of the Framework in 2018

Since 2018, Victorian Government departments and agencies⁶ have continued to directly invest in Victoria’s social benefit suppliers with expenditure of:

Achievements in this reporting period (1 July 2022–30 June 2023)

Victorian Government departments and agencies⁶ have directly spent:

Victorian Government departments and agencies indirectly spent⁹:

Suppliers to the Victorian Government employed¹⁰:

In FY2022-23 significant increases have been made in comparison to the benchmarks set in the inaugural 2018–19 annual report:

Case Study: The Victorian Government helps to create regional excellence in education and Aboriginal procurement

The Munarra Centre for Regional Excellence on Yorta Yorta Country in Shepparton will deliver culturally responsive education, employment, health and wellbeing programs to drive broad, long-term benefits for the region and Victoria. Thanks to social procurement, the construction of the centre has created jobs for Aboriginal people and work opportunities for Aboriginal businesses.

First Peoples State Relations and the Victorian School Building Authority (VSBA) have partnered with Munarra Limited to deliver the Munarra Centre for Regional Excellence, which was designed through a self-determined Aboriginal-led decision-making process. The campus will welcome Aboriginal and non-Aboriginal peoples of Australia and be home to the Munarra Academy. It will include programs from the University of Melbourne’s Academy of Sport Health and Education, which offers meaningful pathways to learning and work for students experiencing disadvantage, as well as the Goulburn Murray Indigenous Business Hub, the Kaiela Institute, the Rumbalara Aboriginal Football Netball Club, the Rumbalara Aboriginal Cooperative health services, and other partners.

The Munarra Centre is not only historic for what it is, but also for how it is being delivered. With over $36 million in funding to deliver the centre, the project represents one of the largest Victorian Government projects ever awarded directly to an Aboriginal-owned business based in Victoria.

The contract was awarded to TVN On-Country, a Kinaway certified 70% Aboriginal-owned commercial builder that is also passionate about helping Aboriginal youth gain ‘meaningful employment’.

The project has committed to ambitious social procurement targets and is on track to exceed them. The achievements between December 2022 and August 2023 include:

The project is also on-track to hit the target of 10% of total contract value spend with Aboriginal businesses (suppliers and subcontractors).

As a ground-breaking Aboriginal-led project, the Munarra Centre for Excellence highlights how social procurement can drive economic development and support Aboriginal-led initiatives and self-determination.

Construction on the centre commenced in February 2023, with the centre expected to open to the community in 2024.

Case Study: Social enterprise gains access to Victorian government business through State Purchase Contract

By combining demand for commonly used goods and services through the use of State Purchase Contracts (SPCs), government can harness greater economies of scale when negotiating with suppliers. Aggregating purchasing power allows organisations to negotiate better terms and conditions. It also reduces risk and the administrative burden on buyers and suppliers. Incorporating social benefit suppliers in SPCs improves social value created through government spending.

The mail and delivery services SPC was released to market this year with an aim to include a social benefit supplier. This is the first time a certified social enterprise has been appointed as one of only four suppliers on a whole-of-government SPC alongside national and multinational suppliers.

Local Transit is a Social Traders certified social enterprise which specialises in providing transport to people with disability, as well as providing regular courier services within metropolitan Melbourne. Local Transit focuses on providing employment to migrants and refugees experiencing disadvantage, especially those from East Africa. They aim to help migrants and refugees secure meaningful and sustainable work which will, in turn, help with community integration.

In 2022–23, Local Transit entered into their first contract with Melbourne Water through the state purchasing contract to provide a courier service. This first contract was valued at $20,000 for the year. Melbourne Water reports the social enterprise has been very supportive, actively coming up with ideas around extra services they might need and ways to deliver additional.

The procurement process featured some flexibility for certified social benefit suppliers as well as a reserved place on the panel. For example, social benefit suppliers had the opportunity to nominate their geographic coverage, rather than meeting the requirement to service the whole of Victoria. In the case of Local Transit, this was focused on transit and deliveries around Melbourne.

Local Transit hopes that this contract will be the first of many future engagements with the Victorian Government through the State Purchase Contract.

_{6: Departments and agencies included are Department of Energy, Environment and Climate Action (DEECA), Department of Education (DE), Department of Families, Fairness and Housing (DFFH), Department of Health (DH), Department of Justice and Community Safety (DJCS), Department of Jobs, Skills, Industry and Regions (DJSIR), Department of Transport and Planning (DTP), Department of Premier and Cabinet (DPC), Department of Treasury and Finance (DTF), Victoria Police, Major Transport Infrastructure Authority (MTIA) and CenITex.}

_{7: Certified Aboriginal businesses refers to Victorian Aboriginal businesses that are certified by Kinaway or Supply Nation. For the 2022-23 reporting period, only spend with Victorian Aboriginal businesses certified by Kinaway or Supply Nation has been reported to ensure alignment with the Framework definitions.}

_{8: Certified Victorian Social Enterprises refers to organisations that are certified by Social Traders and operate and have business premises in Victoria. There was a policy change to discontinue use of the Map for Impact database as a source to identify and verify social enterprises. The Map for Impact will no longer be included under the operational definition of ‘social enterprise’ for Framework purposes.}

_{9: Only 2022-23 reporting period spend data associated with a social benefit supplier and approved by departments or agencies by August 2023 was extracted from the Victorian Management Centre (VMC) and included in this report. The Victorian Government departments and agencies that provided this data via the VMC includes: Community Safety Building Authority, Victorian Health Building Authority, Major Road Projects Authority, Melbourne Water Corporation, Southern Rural Water, Rail Projects Victoria, Greater Western Water, DTP, Level Crossing Removal Authority, West Gate Tunnel Project, North East Link Project, Parks Victoria, Court Services Victoria, Victorian School Building Authority, V/Line Pty Ltd, Alfred Health and Development Victoria.}

_{10: Only 2022-23 reporting period employee data approved by departments or agencies by August 2023 was extracted from the VMC and included in this report. The Victorian Government departments and agencies that provided this data via the VMC includes: Major Road Projects Authority, Bendigo Kangan Institute, Development Victoria, Rail Projects Victoria, Level Crossing Removal Authority, North East Link Project, Victorian Health Building Authority, Vertic Agency, Court Services Victoria, Victorian School Building Authority, Greater Western Water, Melbourne Water Corporation, Community Safety Building Authority, Homes Victoria, Alfred Health, Parks Victoria, DTP and DH.}