State purchase contracts in 2023-24

Learn about the benefits of combining demand for common goods and services.

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By combining demand for commonly used goods and services, government can harness greater economies of scale when negotiating with suppliers. Aggregating purchasing power allows organisations to negotiate competitive pricing and better terms and conditions. It also reduces risk and the administrative burden on buyers and suppliers.

The Victorian Government has numerous State Purchase Contract (SPCs) and registers for commonly purchased goods and services. Some SPCs are mandatory meaning they must be used by all Victorian Government departments and agencies under the remit of the VGPB framework. More than 200 organisations benefit from the time and cost savings offered by SPCs, with total annual spend under SPCs estimated to be about $2.6 billion in 2023–24.

The transition to SPCs under the expansion program began with the largest agencies transitioning to mandatory SPCs from the end of 2021. The final group of smaller agencies began transitioning at the end of 2023 or as existing contracts expired.

Greater use of SPCs across a wider range of government agencies provides a range of benefits from greater aggregation, including more consistency, streamlining, risk reduction and economies of scale.

Visit About goods and services contracts on the Buying for Victoria website for more information on SPCs.

The role of the VGPB

The Victorian Government Purchasing Board (VGPB) reviews and endorses business cases for establishing new SPCs before approval by the relevant Minister. The VGPB is also consulted on replacements and variations to SPCs.

Consultation with the VGPB is not required when exercising existing contractual options.
In 2023–24, the VGPB reviewed and endorsed eight business cases for new SPCs. The procurement process commenced for six of these in 2023–24, including travel management services, security services, stationery and workplace consumables, multifunction devices and printers, Microsoft Unified, and end user computing equipment. The remaining business cases were for two potential new SPCs being considered.

The VGPB were also consulted on six SPC variations in 2023–24. These variations may have extended the contract term or agreed material changes to the contract. This can include adjustments to the contract price, scope of work, or terms and conditions:

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