Victoria’s Social Procurement Framework (Australia)

Government departments and agencies are required to develop a Social Procurement Strategy. Reporting against the framework and delivery on priority outcomes is required for individual contracts and at the department or agency level. Government buyers are expected to decide which social and sustainable objectives are to be pursued and prioritised in each procurement activity.

For public buyers, the framework provides the guidance to embed social and sustainable procurement into existing processes, using a scalable approach based on expenditure (by threshold: AUD <1 million (EUR ~670 000), AUD 1 to 20 million (EUR ~13.4 million), AUD 20 to 50 million (EUR ~33.4 million), above 50 million) and scope of procurement activity (e.g. regional or state-wide procurement). At the lower thresholds, social objectievs are to be included into regular procyurement planning through encouragement for social procurement where desirable or inclusion of proportionate evaluation criteria to favour social and sustainable business practices (5-10%). At the higher thresholds, a social prcurement plan needs to be completed during the planning, including targeted or more comprehensive performance standards and contract requirements. For suppliers, the framework informs them of the methods to deliver government objectives, while continuing to grow their business by participating in government procurement. The framework further supports departments and agencies aligning and enabling their strategies for reconciliation, gender equality, supplier diversity, sustainability and inclusive employment. It also provides clear thresholds for the application of recommended social procurement activities.

The framework distinguishes between a direct and indirect social procurement approach. The direct approach includes the purchasing of goods, services or construction from ‘social benefit suppliers, i.e. verified Victorian social enterprises, Aboriginal businesses or Australian Disability Enterprises. In the indirect approach, departments or agencies purchase from a ‘mainstream supplier’ using invitations to tender and clauses in contracts to influence the delivery of social and sustainable outcomes (e.g. maximising recyclable/recovered content, minimising waste and greenhouse gas emissions). This includes subcontracting social benefit suppliers in supply chains (e.g. purchasing from Victorian Aboriginal businesses or Victorian social enterprises).

To facilitate the implementation of the framework, a social procurement library was established providing buyers with practical guides on key concepts, planning, individual procurement activity requirements, evaluation and contract management. Additionally, a social procurement toolkit contains templates for social procurement strategies, self-assessment, evaluating offers, contract clauses and other related documents. At the end of 2021, a Social Procurement Community of Practice was established to create a broad government forum for information sharing and presentation of case-studies to promote peer to peer learning and exchange. A social procurement newsletter is regularly published aimed at communicating policy changes and impacts and show-casing success stories to promote and inspire best practices.

Additionally, a reporting programme was launched in April 2021 that allows government buyers to record procurement that include social and or sustainable commitments, and suppliers to report their achievements against those commitments. An annual Whole of Victorian Government report is published to demonstrate the outcomes and impact of the Social Procurement Framework which includes case studies illustrating the narrative of these achievements.