Scalable approach to social procurement
The framework is to be applied to procurement of all goods, services and construction, based on a scalable approach linked to procurement activity expenditure. The thresholds outlined are consistent with those used across government to determine requirements under policies such as Local Jobs First Victorian Industry Participation Policy and Major Projects Skills Guarantee.
The Government does not expect every procurement to pursue all of the recommended actions in Table 3 Individual procurement activity requirements for government buyers.
Government buyers are expected to decide which social and sustainable objectives are to be pursued and prioritised in each procurement. While this permits flexibility for government buyers, the recommended approaches are expected to achieve greater commonality across government.
The framework is supported by guidance, tools and templates for the benefit of government buyers and suppliers.
Individual procurement activity requirements for government buyers
The following table outlines buyer requirements and the recommended approach for the inclusion of social and sustainable objectives into procurement planning processes within each expenditure threshold.
Table 3 - Individual procurement activity requirements for government buyers
Thresholds (Values exclusive of GST) | Below threshold Regional under $1 million Metro or State-wide under $3 million | Lower band Regional $1 to $20 million Metro or State-wide $3 to $20 million | Middle band $20 to $50 million | Upper band Over $50 million |
|---|---|---|---|---|
| Planning requirements for government buyers | Incorporate Social Procurement Framework objectives and outcomes into regular procurement planning | Incorporate Social Procurement Framework objectives and outcomes into regular procurement planning | Complete a Social Procurement Plan during procurement planning | Complete a Social Procurement Plan during procurement planning |
| Described approach | Encouraged Seek opportunities where available to directly or indirectly procure from social enterprises, Australian Disability Enterprises or Aboriginal businesses | Proportionate Use evaluation criteria (5 to 10 per cent weighting) to favour businesses whose practices support social and sustainable procurement objectives | Targeted Include performance standards and contract requirements that pursue social and sustainable procurement objectives | Strategic Include targets and contract requirements that pursue social and sustainable procurement objectives |
Recommended actions for government buyers:
Social procurement output (Values exclusive of GST) | Below threshold Regional under $1 million Metro or State-wide under $3 million | Lower band Regional $1 to $20 million Metro or State-wide $3 to $20 million | Middle band $20 to $50 million | Upper band Over $50 million |
|---|---|---|---|---|
Social enterprises Australian Disability Enterprises Aboriginal businesses | Seek opportunities to directly or indirectly procure from social enterprises, Australian Disability Enterprises or Aboriginal businesses | Consider whether part of the procurement can be unbundled for delivery from social enterprises, Australian Disability Enterprises or Aboriginal businesses | Set targets for supplier expenditure with social enterprises, Australian Disability Enterprises or Aboriginal businesses and ask suppliers to demonstrate how they will meet targets | Set targets for supplier expenditure with social enterprises, Australian Disability Enterprises or Aboriginal businesses and ask suppliers to demonstrate how they will meet targets |
| Disadvantaged communities | No recommended action | No recommended action | Set supplier targets for employment and training for Victorian priority jobseekers | Set supplier targets for employment and training for Victorian priority jobseekers |
| Gender | No recommended action | Ask suppliers to demonstrate gender equitable employment practices in weighted framework criteria | Include performance standards on labour hours performed by women | Include industry-appropriate targets for labour hours to be performed by women |
| Disability | No recommended action | Ask suppliers to demonstrate inclusive employment practices for Victorians with disability in weighted framework criteria | Include performance standards on labour hours performed by Victorians with disability | Include targets for labour hours to be performed by Victorians with disability |
| Family violence leave | No recommended action | Ask suppliers whether they offer family violence leave in weighted framework criteria | Ask suppliers whether they offer family violence leave in weighted framework criteria | Ask suppliers whether they offer family violence leave in weighted framework criteria |
| Fair and safe workplaces | No recommended action | Ask suppliers to demonstrate compliance with industrial relations laws | Ask suppliers to demonstrate compliance with industrial relations laws | Ask suppliers to demonstrate compliance with industrial relations laws |
| Environmental sustainability | No recommended action | Ask suppliers to demonstrate environmentally sustainable business practices in weighted framework criteria | Include requirements as relevant on recycled content, waste management and energy consumption | Include requirements as relevant on recycled content, waste management and energy consumption |
| Climate change | No recommended action | No recommended action | Where procurement includes a design component, include requirements on greenhouse gas emissions and climate change resilience | Where procurement includes a design component, include requirements on greenhouse gas emissions and climate change resilience |
Government department and agency planning requirements
The following table outlines the requirements for each department and agency to be consistent with the framework’s objectives
Table 4 - Government department and agency planning requirement
| Element | Description |
|---|---|
| Social Procurement Strategy | Each department and agency is to prepare a Social Procurement Strategy, which includes consideration of the following areas: |
| Planning |
a. meeting the required 1 per cent Aboriginal business procurement target b. social enterprise expenditure target (percentage or amount) c. targets for gender equality, family violence leave and employment of Victorians with disability d. target for job creation from priority disadvantaged communities e. target for proportion of suppliers with environmentally sustainable business practices.
|
| Staff and stakeholder communication and education | Communication and education for staff and key stakeholders in delivering against the framework, including:
|
| Supplier communication, education, and development | Supplier development and education, including:
|
| Measurement and reporting | Development of a reporting and management framework that includes:
|
Tools and support
This content on this page is taken from Victoria’s Social Procurement Framework. Access a PDF in the social procurement document library.
For more information about social procurement, please contact the Social Procurement team.
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