State purchase contracts have been set up to combine demand for commonly used goods and services. This enables Government to make the most of economies of scale when buying from the marketplace.
Combining demand allows for a strong purchasing position to negotiate better value and terms and conditions. It also reduces the risk and administrative burden on buyers and suppliers.
Benefits of State purchase contracts
Benefits of state purchase contracts include:
- better value for money using the State’s buying power
- supply and service continuity
- reduced risks through pre-negotiated contract terms and conditions
- improved quality assurance
- efficiency gains through a standard and consistent approach
- increased accountability and governance
- improved contract monitoring and reporting
- ability to drive continuous improvement
- access for suppliers through competitive tender processes.
Who must use the contracts
All goods and services mandated Agencies must use state purchase contracts.
Expansion Agencies transition to state purchase contracts will be staggered between 31 December 2021 and 31 December 2023, based on annual spend. Visit Victorian Government Purchasing Board expansion to find out more.
Who can use the contracts
State purchase contracts are primarily established for use by departments and public bodies subject to the VGPB supply policies.
Other public bodies under the Financial Management Act 1994 and some non-government entities may apply to the lead agency to use a state purchase contract. Each state purchase contract agreement will specify which entities can use the contract.
Applications to use a state purchase contract must be submitted to the lead agency, by contacting the relevant state purchase contract category manager.
For more information on how to apply, see:
Lead Agency forums
Lead Agency is responsible for ensuring appropriate representation and governance is maintained.
User reference group
The user reference group represents buyer feedback during the end-to-end contract lifecycle.
Terms of reference of the user reference group define the purpose of the meeting.
Project control board
Provides strategic guidance and endorsements during sourcing project establishment and execution phases. The project control board represents the interests of key stakeholders and ensures:
- buyer community views are known and considered within the scope of the project.
- the project aligns with government policies and Victorian government needs.
Terms of reference of the project control board define the purpose of the meeting.
Exemptions
Limited grounds apply if an Agency believes that it cannot use a contract. These grounds are set out in Market analysis and review – goods and services policy.
Find out how to apply for an exemption from using a state purchase contract.
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