Social Procurement Annual Report 2019-20

Mr Danny Pearson, Assistant Treasurer The Hon. Jaala Pulford, Minister for Employment

Government spending makes up a large proportion of Victoria’s economy, so it makes sense to use this power to distribute opportunity more fairly, and make further inroads towards a more inclusive and sustainable future.

Through the Social Procurement Framework, the Victorian Government is delivering on our commitment to a fairer society, while still delivering excellent value for Victorians.

Financial year 2019-20 is the first full year of reporting against the Framework’s 10 social and sustainable objectives. More than 275 entities were eligible to contribute to the report.

This report shows how the Framework has changed the conversation in Victorian government departments and agencies while bringing the dignity and empowerment of paid employment to a greater variety of people.

With a total spend of nearly $135 million and engagement of 459 social benefit suppliers, we are helping overcome the barriers some people face to finding work – disability, disadvantage or other social factors.

And with every procurement activity also requiring a consideration of sustainable outcomes under the Framework, we are yielding innovative solutions in waste reduction and recycling.

As Victoria turns its focus towards economic recovery, the Government is using every tool at its disposal to ensure all Victorians can share in the prosperity of the future.

We’ll deliver extra resources to make social procurement easier for government buyers. Suppliers and industry will also benefit from extra support to strengthen their capability to participate in social procurement opportunities.

And we’ll roll out a dedicated reporting tool to measure social procurement achievements across the State. This benchmarking will help us set targets to continue to deliver benefits.

The facts, figures and case studies presented in this report provide just a snapshot of the work undertaken and the achievements made across Victoria.

Through initiatives like the Social Procurement Framework, we are unlocking the vast potential of our state for the decades to come.

The Social Procurement Framework leverages the significant buying power of government to drive increased value for money in all the goods, services and construction we procure. By not solely focussing on the cheapest price, we can maximise social, economic and environmental benefits for all Victorians, and create Victorian jobs.

Social Procurement Framework objectives and outcomes

The Framework has 10 objectives, each with specific and measurable outcomes.

Opportunities for Victorian Aboriginal people

Outcomes sought:

• Purchasing from Victorian Aboriginal businesses
• Employment of Victorian Aboriginal people by suppliers to the Victorian Government

Opportunities for disadvantaged Victorians

Outcomes sought:

• Purchasing from Victorian social enterprises
• Job readiness and employment for:
  • long-term unemployed people
  • disengaged youth
  • single parents
  • migrants and refugees
  • workers in transition

Opportunities for Victorians with disability

Outcomes sought:

• Purchasing from Victorian social enterprises and Australian disability enterprises
• Employment of Victorians with disability by suppliers to the Victorian Government

Women’s equality and safety

Outcomes sought:

• Adoption of family violence leave by Victorian Government suppliers
• Gender equality within Victorian Government suppliers

Supporting safe and fair workplaces

Outcomes sought:

• Purchasing from suppliers that comply with industrial relations laws and promote secure employment

Sustainable Victorian social enterprise and Aboriginal business sectors

Outcomes sought:

• Purchasing from Victorian social enterprises and Aboriginal businesses

Sustainable Victorian regions

Outcomes sought:

• Job readiness and employment for people in regions with entrenched disadvantage

Environmentally sustainable outputs

Outcomes sought:

• Project-specific requirements to use sustainable resources and to manage waste and pollution
• Use of recycled content in construction works

Environmentally sustainable business practices

Outcomes sought:

• Adoption of sustainable business practices by suppliers to the Victorian Government

Implementation of Victoria’s Climate Change Policy objectives

Outcomes sought:

• Project-specific requirements to minimise greenhouse gas emissions
• Procurement of goods and services that are resilient against the impacts of climate change

'The Victorian Social Procurement Framework has been instrumental in changing the way businesses approach social procurement.'

Dan Renfrey
Regional / Sustainable Procurement Manager, Boral
Speaker - Social Enterprise World Forum 2020

Distribution of social procurement achievements featured in this report

The location of the case studies and short stories featured in this year’s report are:

• Mildura
• Birchip
• Mallee region
• Bendigo
• Melbourne
• Geelong
• Colac
• Port Campbell
• Yarra Valley region
• Maryvale
• Orbost

Message from the Minister

Gabrielle Williams MP, Minister for Aboriginal Affairs

The Victorian Government is working closely with the Aboriginal community to drive self-determination, progress the Treaty process in partnership with the First Peoples’ Assembly of Victoria, and create generational change and better outcomes for all Aboriginal Victorians.

The 2019-20 year has seen a significant increase of 35% in the number of Aboriginal businesses and organisations engaged, and a 176% increase in the purchase of goods, services and construction from Aboriginal businesses.

For too long, systemic and structural barriers and inequality has meant Aboriginal people have not had equal opportunities available to other Victorians. Our social procurement policies are a powerful tool to redress this injustice.

Through the Social Procurement Framework, the Government is connecting government buyers with Victorian Aboriginal businesses, providing Aboriginal Victorians with greater economic opportunities, which is critical to enabling self-determination.

Key achievements

In the 12 months from 1 July 2019 to 30 June 2020, Victorian government departments and core agencies directly spent:

• $36.9 million with 90 verified Victorian Aboriginal businesses
• $9.3 million with 37 other Aboriginal organisations

Compared to 2018/19¹:

• 176% increase total expenditure
• 35% increase business engaged

Nearly $1.5 million with Victorian Aboriginal businesses through state purchase contracts².

Under the rail industry's Training for the Future skills program, 10 Aboriginal people completed the GROW³ and TRANSIT⁴ programs.

To date⁵, across the major road⁶ and rail projects:

• a total of $124.5 million has been spent indirectly through contractors with Victorian Aboriginal businesses
• has recorded 1,150,204 total Aboriginal employment hours

In 2019-20, the major road and rail projects (delivered by the Level Crossing Removal Project, Major Road Projects Victoria, North East Link Project, Rail Projects Victoria and the West Gate Tunnel Project) indirectly spent through their contractors $58.3 million with Victorian Aboriginal businesses⁷ and organisations.

All Major Transport Infrastructure Authority projects⁸ have a target of 2.5% Aboriginal employment hours as a proportion of total hours. 11 of the 20 relevant projects had met or exceeded this target as at 30 June 2020, the remaining projects are still in progress. This target is a point-in-time target, based on actual hours worked.

Kinaway Chamber of Commerce is the peak Aboriginal organisation supporting Victorian Aboriginal and Torres Strait Islander business owners and entrepreneurs. Since its official launch in October 2018, the number of certified businesses listed on its directory has increased from 15 in September 2018 to 195 businesses by 30 June 2020.

In 2019-20 the major road and rail projects recorded 573,315 Aboriginal employment hours, comprised of:

• Level Crossing Removal Project 99,354
• Major Road Projects Victoria 43,904
• North East Link Project 844
• Rail Projects Victoria 193,643
• West Gate Tunnel Project 235,572

1. This comparison includes only limited State Purchase Contracts data.

2. Due to system and reporting limitations, not all spend across all state purchase contracts categories may be included in this total.

3. Gain Real Opportunities in the Workforce (GROW) GROW provides training and employment opportunities in the transport and construction industries to people from marginalised or disadvantaged backgrounds.

4. TRANSIT program showcases employment opportunities in transport to workers from declining industries, including former automotive workers.

5. Reporting commenced in 2016 and includes data up to 30 June 2020.

6. Please note in relation to all references throughout the document to the Major Roads Projects Victoria projects, not all data was available.

7. This figure may include spend with Aboriginal organisations that do not meet the current definition of Victorian Aboriginal Businesses in the Framework.

8. With the exception of former VicRoads projects that transferred to Major Road Projects Victoria.

'The Victorian Aboriginal and Torres Strait Islander business sector has grown substantially in the past 12 months on the back of the Social Procurement Framework. This is only the beginning – as business capabilities and capacities increase, so will the opportunity for larger and long-term contracts that will provide the economic benefits to our Aboriginal and Torres Strait Islander businesses and people.'

Scott McCartney
Chief Executive Officer
Kinaway Chamber of Commerce

Case studies

Supporting the Coronavirus (COVID-19) pandemic response

Aboriginal businesses have risen to the challenge of providing personal protective equipment (PPE) to support Victoria’s coronavirus (COVID-19) pandemic response.

Panku and Energy Principle are Aboriginal-owned businesses certified with Kinaway Chamber of Commerce and Supply Nation.

Together, they contributed to the provision of $1.1 million of PPE to our first responders. Together, they helped to provide our first responders with $1.1 million of PPE, often meeting demands with only 24-hours’ notice, all while complying with the Victorian Government Purchasing Board's critical incidents requirements under the declared State of Emergency.

Working with Emergency Management Victoria, a division of the Department of Justice and Community Safety, which manages the supply of PPE to Victoria’s first responder agencies, these companies helped to ensure that critical supplies were available.

The recipient agencies included Victoria Police, our fire services, Victoria State Emergency Service, Life Saving Victoria, Ambulance Victoria and the Victorian Institute of Forensic Medicine.

This important but often thankless work was undertaken during a particularly challenging time, with disruptions to normal supply chains and low levels of available stock.

The process has also given these businesses the chance to demonstrate their capability and value, and to build trusting relationships within government – unlocking greater opportunities for Aboriginal Victorians now and in the future.

Victorian Aboriginal people providing traditional knowledge to build new landscapes

Across Victoria, government buyers are collaborating with Victorian Aboriginal businesses and businesses employing Victorian Aboriginal people to benefit from a full range of services, including professional services.

VEC Civil Engineering won the contract to undertake the design and construction of Barongarook Creek Bridge in Colac, which allowed them to recruit and train Aboriginal workers and provide more than 5,370 hours on the project for Aboriginal people.

When Aboriginal ancestral remains were found during construction, Major Road Projects Victoria undertook a process to better understand the site’s cultural significance.

As a result, the project team worked closely with the Eastern Maar Aboriginal Corporation to develop a commemorative space that acknowledges Traditional Owners and pre-colonial history.

The work includes an Indigenous landscaping scheme, with a mixture of native plants, grasses, shrubs and trees, including river red gums, that reflect the site’s cultural significance.

The project has become a prominent town feature – a community space for everyone to enjoy and explore.

And in central Victoria, the Department of Justice and Community Safety contracted the local Dja Dja Wurrung Clan Aboriginal Corporation to design the focal point and associated landscaping work for the Malmsbury Youth Justice Centre expansion.

The ‘Yarning Circle’ incorporates Indigenous plants and native vegetation, as well as cultural artwork significant to the Dja Dja Wurrung tradition.

Orana Commercial Relocations relocates Bendigo Kangan Institute to its new offices

In July 2018, Charlie Maynard, a proud Bunurong man with descendants from the Ben Lomond mob in Tasmania, and Jason Baird started Orana Commercial Relocations, with the aim to ‘close the gap’ between Aboriginal and non-Aboriginal communities and help break the cycle of unemployment.

Orana is an Aboriginal-owned business that provides sustainable employment opportunities for Aboriginal people, as well as mentoring, training and pathways to upskill Aboriginal people from entry level to professional roles.

For Charlie, co-founding Orana was a significant milestone on a journey in the industry that had begun when he was sixteen. It started when Charlie was living in a hostel and was offered the opportunity to work with his uncle Greg on a furniture removal truck. From there, he worked his way through the industry, progressing to national and international removals. Now he and Jason work together from their Dandenong South head office, managing operations across Melbourne, Canberra, Sydney and Brisbane.

Recently Bendigo Kangan Institute engaged Orana to provide office relocation services during the Bendigo City Campus Revitalisation. This project alone resulted in the employment of 36 Victorian Aboriginal people, with 30 of these staff employed from the Bendigo region, and six from Melbourne.

One of the staff to benefit from Orana’s mentoring and skills development programs is Bowden Gwin, a proud Aboriginal man from the Narrungga tribe. Bowden says:

'I’ve been working for Orana for the last two years and it has been a great opportunity, working six days a week learning and progressing in the removalist world and becoming a great leader with the leadership roles as crew leader. Charlie and Jason have done such a wonderful job trying to get us younger indigenous men into the work force and I can only see it getting better.'

Together with a significant relocation project for CenITex (which included pre-move activities, packing, storage, technology fit-out and relocation services for 450 staff to 80 Collins St, Melbourne) and staff relocation services for 35 Worksafe staff and ongoing concierge services, government buyers have greatly benefited from the depth and breadth of services offered by Orana.

Short stories

Moogji, an Aboriginal Health Organisation Creating a Healthy Ecosystem

Moogji is an Aboriginal Community Controlled Health Organisation that provides services to the East Gippsland community.

While predominantly a health organisation, Moogji has also established an environmental works team, which has become a major part of their economic development.

For over 15 years now, Moogji has had an association with the East Gippsland Catchment Management Authority where it provides weed control and revegetation works, and is currently working on the Snowy Rehabilitation project.

Gerrbik Laundry Services supplying dry cleaning services to a Melbourne icon

Melbourne Convention and Exhibition Centre has a dry-cleaning bill of around $550,000 a year.

For Gerrbik Laundry Services, Australia’s first Aboriginal-owned and operated commercial laundry, winning the contract meant it could expand its business and provide more employment opportunities.

'Our staff are our extended family. That’s where Gerrbik derives from – it means family in the Taungurung tongue, which our mob belongs to.'

Nicole Stewart
Gerrbik Laundry Services.

Message from the Minister

The Hon. Jaala Pulford, Minister for Employment

Getting a job is hard enough at the best of times, but many Victorians, through no fault of their own, face additional barriers to finding work and gaining the social, emotional and economic benefits that come with being engaged in work.

One of the Social Procurement Framework’s key objectives is to create opportunities for people who need a boost to find work, including long-term unemployed people, disengaged youth, single parents, migrants and refugees and workers affected by structural changes in our economy.

The dignity of work is one of the cornerstones of a fair and equitable society, a society in which we all have a stake.

It’s great to see enterprises from across the State developing innovative solutions to deliver real employment outcomes for disadvantaged Victorians.

Through initiatives like the Framework, the Victorian Government is building a future all Victorians can be a part of, no matter what their circumstances.

Key achievements

In the 12 months from 1 July 2019 to 30 June 2020, Victorian government departments and core agencies directly spent:

• $14.1 million with 79 certified social enterprises
  • Of this, $9.2 million was spent with 38 certified social enterprises with a mission for disadvantaged people
• $29.8 million with 213 social enterprises identified by the Map for Impact project¹
  • Of this, $20.5 million was spent with 33 social enterprises identified by Map for Impact with a mission for disadvantaged people

For the full financial year 2019-20, the Government spent $21 000² with Victorian social enterprises through state purchase contracts.

In 2019-20 Rail Projects Victoria recorded:

• 66,619 employment hours for refugees and asylum seekers
• 79,412 hours for long-term unemployed
• 33,381 hours for disengaged young people

To date³, across the major road and rail projects, $23.2 million has been spent indirectly through contracts with social enterprises in total.

The major road and rail projects (delivered by Level Crossing Removal Project, Major Road Projects Victoria, North East Link Project, Rail Projects Victoria, West Gate Tunnel Project) indirectly spent through their contractors $15.3 million with social enterprises⁴ in 2019-20.

Social Traders, Australia’s leading organisation supporting social enterprises, experienced strong demand for certification in 2019-20, with 370 enterprises certified at 30 June 2020, an increase of 28% on the previous year. Victorian social enterprises accounted for 49% of the growth, increasing from 165 certified enterprises to 204 at 30 June 2020.

For rail industry skills programs in 2019-20:

• 31 refugee/asylum seekers completed the GROW and TRANSIT programs
• 43 long-term unemployed people completed the GROW and TRANSIT programs

1. The Map for Impact identifies and maps Victoria's social enterprises and explores their social characteristics.

2. Due to system and reporting limitations, not all spend across all state purchase contracts categories may be included in this total.

3. Reporting commenced in 2016 and includes data up to 30 June 2020.

4. This figure may include spend with Social Enterprises that do not meet the current definition of Victorian social enterprises in the Framework.

'Victoria’s Social Procurement Framework is really starting to have an impact across the State, as well as influencing other state governments to include social enterprise in their procurement policies. There are increasing numbers of business members, big and small, joining Social Traders because of the Framework, and certified social enterprises are winning more work. As Australia endures the worst recession in a century, there has never been a more important time for social procurement to ensure that the recovery is for everyone.'

Mike McKinstry
Chief Executive Officer
Social Traders

Case studies

Helping to restore the dignity of people sleeping rough

The One Voice mobile shower provides a safe, positive and dignified service for people without a home.

South East Water has partnered with the Victorian One Voice shower bus to help restore the dignity of homeless people in Melbourne’s south east.

As well as providing people with a hot shower in a safe place, One Voice also links service users with other services who can help them move out of homelessness.

One Voice CEO, Joshua Wilkins, says:

'Long-term, it might be that One Voice connects a person to the right support service at the right time, which allows them to take the first step up and away from sleeping on the streets.'

In 2019–20, One Voice supported 17,092 people in Cheltenham, Cranbourne, Dandenong, Frankston, Hampton Park, Melbourne City and Mitcham.

South East Water has a contract worth $15,000 with One Voice in 2019–20 to help provide this vital community service, and it has donated $60,000 over the past four years.

YMCA Rebuild at Yarra Valley Water

YMCA Rebuild is a social enterprise that provides support, training, mentoring and employment opportunities for young ex-offenders at risk of being trapped in a recurring cycle of crime and imprisonment.

Yarra Valley Water engaged YMCA Rebuild to undertake a number of maintenance work programs, including landscaping with local indigenous trees, car park works, construction of a new pedestrian path, and paving repair works.

Chris (name changed) is one of the participants in YMCA Rebuild project. He says it’s made a huge difference to his life.

'When I got out, I had no licence, nothing. Rebuild has helped me and supported me to get my life back. Now I’ve got my licence and I’ve got skills. They get you to do a range of things with landscaping and maintenance, so I’ve learned a bit of everything.

Now I’ve got goals and a plan for the next five years. I want to do an apprenticeship in landscaping so I can start my own business.'

The work with YMCA Rebuild is just one part of Yarra Valley Water’s social procurement strategy, which mandates that for relevant procurement categories, procurers are required to include Victorian Aboriginal businesses and social enterprise businesses in all RFQ processes.

Yarra Valley Water’s Chief Financial Officer Natalie Foeng says:

'We take a broad view of our role and consider we have a responsibility to contribute to making a positive difference in our community. We are proud to be doing our bit to help close the gap.'

Short stories

Engineering pathways to success

Engineering Pathways Industry Cadetship is an initiative to transition refugee and asylum seeker engineers on to major transport projects. 32 cadets are completing the 18 month cadetship which includes funded studies of a customised Graduate Certificate in Infrastructure Engineering Management.

Employment is provided through 11 different program partners, including the major transport project delivery agencies, constructors, transport delivery agencies and consultancies.

Cadets in the program hold qualifications ranging from civil engineering to electrical engineering, and come from countries including Ethiopia, South Sudan, Iran, Syria, Somalia and Iraq businesses and social enterprise businesses in all RFQ processes.

Message from the Minister

The Hon Luke Donnellan MP, Minister for Disability, Ageing and Carers

The Victorian Government believes that a broad and diverse labour market reflects a healthy and equitable society, and that anyone who wants a job should be able to get one.

This belief is at the core of the Social Procurement Framework, and the case studies and achievements reflected here show the power of employment to transform lives, as well as delivering value to Victorian taxpayers.

Victoria’s thriving social enterprise economy is testament to the success of this policy.

In two short years, we have ensured that more Victorians with disability can find employment, learn new skills and take home a pay cheque to their families at the end of the week.

Key achievements

In the 12 months from 1 July 2019 to 30 June 2020 Victorian government departments and core agencies directly spent:

• $5.8 million with 38 Australian Disability Enterprises or social enterprises led by a mission for people with disability¹
• A further $3.3 million was spent with 17 social enterprises that support people with a disability², identified by the Map for Impact

For rail industry skills programs in 2019-20:

• Two people with disability completed the GROW and TRANSIT programs
• 12 people with disability completed the GEN44 program

In 2019-20 the major road and rail projects recorded 3 560 employment hours for Victorians with disability, comprised of:

• Major Road Projects Victoria 3,327
• North East Link Project 233

1. Figures for Australian Disability Enterprises and social enterprises led by a mission for people with disability are a subset of the total spend and engagement figures for social enterprises as included in Key Achievements for Opportunities for disadvantaged Victorians.

2. Figures for social enterprises that support people with a disability are a subset of the total spend and engagement figures for social enterprises as included in Key Achievements for Opportunities for disadvantaged Victorians.

Case studies

genU partners with Barwon Water

genU is an Australian disability enterprise that provides a number of different services for Barwon Water, including nursery services.

genU gives people with disability the chance to work in a supported environment, as well as providing accredited and non-accredited training.

The contract with Barwon Water involves indigenous seed collection and propagation (around 45,000 plants each year).

It also provides for community engagement services, maintaining indoor plants and outdoor garden beds at Barwon Water’s head office and mowing services, as well as Landcare maintenance at various sites.

The direct benefits of this contract include employment for nine supported employees.

genU’s relationship with Barwon Water also includes kitchen replenishment services at Barwon Water’s head office, and a lease on the basement café space that serves Barwon Water employees and the public.

These arrangements allow genU to provide further work for supported employees, who benefit from improved wellbeing, social inclusion and the satisfaction that comes from having a meaningful job.

Ability Works Australia supplies metalwork services for the Mordialloc Freeway Upgrade

Ability Works Australia (AWA) is a social enterprise that employs 140 people with disability and those who need support in employment.

AWA was engaged through McConnell Dowell Decmil JV, the head contractors for the Mordialloc Freeway project, to provide settlement plates used in freeway construction.

The staff took great pride in working on such a large project.

Tamsin Ashdown, General Manager Commercial at AWA says projects like this make a big difference in the lives of people with disability.

'The work we provide gives people purpose, meaning and social connection. We’ve been operating for 55 years and some employees have been with us for 30 or 40 years. They feel valued and supported, and get the opportunity to work on a variety of jobs, as well as receiving training and learning new skills.'

Tamsin Ashdown
General Manager
Commercial at Ability Works Australia

Short stories

Around and Aroundagain

When Mallee Catchment Management Authority needs secure document destruction services, they call Aroundagain, a division of the Christie Centre, a leading social enterprise in the Mallee region.

Located in Mildura, Aroundagain has 17 supported employees who assist residential customers, small, medium and large businesses and government departments with secure document shredding. The output of the shredding process can then be recycled.

Message from the Minister

Gabrielle Williams MP, Minister for Women

Despite the gains we have made, we are still missing out on the economic benefits that equal participation of women in the workforce brings to our economy and our community.

We know that gendered discrimination is still the primary contributor to workplace inequality. This limits the potential of women and the Victorian economy – we need to address the barriers that act as a disincentive for the full participation of women in workplaces across our state.

The Victorian Government is committed to using a variety of levers to drive change. The Social Procurement Framework is one of these levers, supporting improved gender equality within the Victorian Government supply chain by seeking to ensure women have the opportunity to contribute to the labour market and share an equal stake in our future.

As a result of these concerted efforts, we’ve seen the development of policies that promote gender equality in the workplace and leave arrangements for those encountering family violence.

The Victorian Government is making such considerations ‘business as usual’, introducing these requirements as a pre-requisite for eligibility across a number of state purchase contracts.

The Victorian Government is committed to a community that values the work of men and women equally. Government procurement processes are one way we can help to bring about this change.

Key achievements

Victoria’s major road and rail projects are providing opportunities for women in traditionally male dominated industries such as construction, through programs including Women in Construction. In 2019-20:

• 20 women participated in the GROW program (representing 21% of participants)
• 518 women participated in the Women in Transport mentoring program
• 7 women (representing 22% of cadets) are participating in the Engineering Pathways Industry Cadetship, an initiative to transition refugee and asylum seeker engineers onto major transport projects

Since late 2017, 37 women have been employed as part of the alliance project delivery team on the Ballarat Line Upgrade in roles including engineering, finance, safety, traffic management and construction.

• This constitutes approximately 28% of the project delivery team of 130 employees

For rail industry skills programs in 2019-20, 31 women completed the GROW and TRANSIT programs.

In 2019-20, 15 women were actively employed in the alliance delivery team, contributing 10,014 hours.

'We want to see people grow and succeed, and creating new entry pathways for people from diverse backgrounds provides jobs, which turn into careers.'

Julian Kinder
Contract Executive for Water
Programmed Facilities Management

Case studies

Getting more women into non-traditional roles

Programmed Facilities Management (PFM) has a strategic partnership with City West Water (CWW) to provide maintenance services for the water network.

PFM is actively boosting the diversity of its workforce to foster a safe and inclusive environment, where people are treated equally and are free from discrimination.

Part of this commitment is a strong focus on gender equity.

In particular, PFM is focusing on recruiting and retaining women in skilled trade roles that are traditionally male dominated.

Together, PFM and CWW have also developed a cadet program for young women leaving school.

The program aims to build a workforce with different backgrounds, experiences and perspectives – because solving problems is all about looking at things from different angles.

This work has resulted in the percentage of women employed on the CWW contract growing from 9% (all of whom were engaged in business support roles) at the end of 2016 to 19% (with 7% in field-based roles) in 2020.

More importantly, there is now a process in place to guarantee the ongoing recruitment of a diverse workforce for the water industry.

This work will reduce the gender pay gap, improve financial independence for women and create a better society for all Victorians.

Julian Kinder, Contract Executive for Water at Programmed Facilities Management, says:

'Our approach to diversity, inclusion and equality focuses on creating a workplace that represents the communities in which we work. We want to see people grow and succeed, and creating new entry pathways for people from diverse backgrounds provides jobs, which turn into careers.'

Providing opportunities for Aboriginal women through culture

Chisholm Institute recently engaged Djirri Djirri to play a major role at the 2020 'Join the Dots’ annual celebration of Aboriginal and Torres Strait Islander culture.

Through dance, language awareness and cultural workshops, Djirri Djirri connects young Aboriginal women to their culture and empowers them to share that culture with others.

Djirri Djirri was established in 2013 after founder Mandy Nicholson saw a need for a female dance group that would give cultural confidence to Wurundjeri women and girls, as well as other girls in out-of-home care.

Beginning with just eight girls, there are now around 15 dancers who are all proudly of the Wurundjeri bloodline. Djirri Djirri is the only active Traditional Custodian dance group of Narrm (Melbourne) and the only group that sings in Woiwurrung.

'I saw some of our young girls struggling by not having a cultural grounding. Dancing, coming together, celebrating and expressing our culture gave these girls confidence that resonates through their local communities.'

Mandy Nicholson, whose ancestry is Wurundjeri, Dja Dja wurrung and Ngurai illum wurrung.

Djirri Djirri dancers perform for smaller personal gatherings, community groups, large public events such as Rainbow Serpent Festival and large scale sporting events like AFL Dreamtime at the G and T20 World Cricket.

Central to Djirri Djirri activities is breaking down stereotypes relating to Australia’s Aboriginal peoples, forming connections with other cultures and providing information about the history and complexity of Aboriginal culture.

They make culture relevant to everyone by showing it is dynamic and alive.

For Mandy, the greatest reward is watching the girls grow up culturally grounded and strong, taking on their roles and responsibilities and standing proud of their unique culture. Mandy explains:

'I also love to connect with multicultural student groups, as they have a deep understanding of culture. They understand on a different level how discrimination can impact on lives. Often they don’t know much about First Australians, but they absorb everything that we tell them as they realise our journeys are so similar.'

Short stories

Helping women succeed on and off the field

The Metropolitan Roads Program Alliance has partnered with Richmond Football Club’s Australian and Victorian Football Leagues for Women (AFLW and VFLW) programs to offer flexible work arrangements for the clubs' players to develop a career, while focussing on the requirements of being an elite sportswoman. Employed by alliance partner Fulton Hogan, the trainees work part time during the AFLW/VFLW season and full time during the off season.

Beyond providing the financial means for players to focus on their dreams of playing football at an elite level, the initiative enables the players to pursue a meaningful career outside of sport. This not only benefits the players, but also provides industry and the existing workforce with positive female role models. This helps to increase the numbers of women choosing to work in the industry.

Message from the Minister

Tim Pallas, Minister for Industrial Relations

Safe and fair workplaces provide the foundation for social inclusion and economic prosperity in Victoria.

Everyone deserves to work in a job with fair wages and conditions – and any workplace injury is one injury too many.

That’s why the Victorian Government is making sure every employer who does business with the Victorian Government adheres to these principles.

Government buyers are adopting these principles with positive outcomes for employees. Using the spending power of the government to encourage good industrial practices, we are building a safer and fairer Victoria.

The Victorian Government's Supplier Code of Conduct

The Victorian Government's Supplier Code of Conduct applies to all contracts, agreements and purchase orders from 1 July 2017. It outlines minimum ethical standards in behaviour, including in relation to labour and human rights, that suppliers are expected to meet when conducting business with, or on behalf of, the Victorian Government.

The Victorian State Government is committed to ethical, sustainable and socially responsible procurement. All suppliers need to comply with their legal obligations under applicable legislation and regulations, industrial awards and agreements, court and tribunal decisions and contracts of employment.

Case studies

Arts Centre Melbourne only works with suppliers who provide safe and fair workplaces

As a direct result of the implementation of the Social Procurement Framework, Arts Centre Melbourne will only do business with suppliers who provide safe and fair workplaces.

In order to win a tender, the supplier must provide all the relevant ISO, safety and other industry standards that demonstrate it meets the Victorian Government's Supplier Code of Conduct.

This work has been supported by an updated procurement policy, supplier questionnaires and internal training sessions for procurement staff.

Actions like this ensure employers know that providing a safe and fair workplace is not negotiable, and especially if they want to do business with the Victorian Government.

Mandating safe and fair working conditions for suppliers' workforces

Suppliers who work with Lower Murray Water must demonstrate they provide safe and fair working conditions for their workforces.

This means that any supplier engaged under a formal contract of any value must provide a formal letter of commitment to the standards in the Victorian Government's supplier code of conduct.

These standards must be applied to all employees and any subcontractors engaged for the contracted works.

With some of the most disadvantaged areas in Victoria in its service area, this is one way that Lower Murray Water can help to foster fair, ethical and safe workplaces, where workers receive the wages and conditions they are entitled to.

Procurement practices like this help the whole community by providing equal employment opportunities and secure jobs that allow employees to grow and extend their skills.

Message from the Minister

Jaclyn Symes, Minister for Regional Development

Victoria’s regions are its lifeblood. Our state is renowned for its food and fibre, advanced manufacturing and tourism industries – all of which make a major economic contribution.

You can see from the geographical breadth of the case studies in this report that social enterprises and social procurement opportunities are not just limited to Melbourne.

I’m proud that so much of our State is represented in these stories, and that Victorians who live in country communities are now benefiting from new economic opportunities thanks to social procurement.

As we recover from coronavirus, the devastating bushfires, drought and industry transition, the Government will continue to take active steps to support employment and businesses in regional Victoria.

Key achievements

In 2018-19 the Social Procurement Framework applied to Victorian Government departments and core agencies. In 2019-20 this number grew significantly to include more than 275 eligible agencies, extending our knowledge and understanding of the initiatives being undertaken throughout Victoria's regions.

The regional location of reported social procurement case study initiatives for 2019-20 are:

• Mildura
• Birchip
• Mallee region
• Bendigo
• Melbourne
• Geelong
• Yarra Valley region
• Malmsbury
• Lower Ovens region
• Maryvale
• Wodonga
• Orbost
• Colac
• Warrnambool
• Port Campbell
• Lake Tyers
• Western Port region

Case studies

Birchip Cropping Group Provides Field Trial Services for Agricultural Research

Birchip Cropping Group is a non-profit agricultural research organisation led by farmers from the Wimmera and Mallee regions of Victoria.

It provides evidence, support and tools to improve farm management practices and profitability, and it has been particularly active in providing agricultural research field trial services for Agriculture Victoria Research projects.

This work led to a spend of more than $110,000, which has supported Birchip Cropping Group’s mission to improve the prosperity of farmers and agricultural communities through research and innovation.

Fiona Best, Chief Executive Officer of Birchip Cropping Group, says:

'The work we do with the Department is an important component of the annual program for 12 Birchip-based staff, who are directly involved in researching and extending the learnings with departmental staff across the Wimmera, Mallee and North Central regions.'

Paddock to plate principles at Peppergreen Farm

Access Australia Group (AAG) helps regional Victorians who may struggle to find work in the mainstream labour market. AAG runs three social enterprises, PepperGreen Farm, PepperGreen Farm Catering and Access Employment Enterprises (AAG), which together employ around 100 people from our regions under a supported employment model.

PepperGreen Farm is a five-acre fruit and vegetable farm in North Bendigo. Produce from the farm is harvested for PepperGreen Farm Catering, a commercial catering business that also provides employment opportunities for people with disability or disadvantage.

All profits generated are put back into the business – and thus our regions – to support employees on their journey of social connectedness, skills uptake and personal growth.

Employees gain practical training in horticulture, propagation and harvesting, paddock to plate principles, as well as hospitality in the café and retail space.

PepperGreen ensures that people in our regions who face barriers to education and training have the opportunity to develop their skills in a supportive and appropriate environment.

One of the many projects undertaken by Access Employment Enterprises (AAG) at PepperGreen was a contract to supply Coliban Water with nesting boxes for mammals (including sugar gliders) and birds in the One Tree Hill National Park and the Bendigo Regional Park.

One participant in particular, Joel McNeil, showed exceptional skill and enthusiasm during the project, which led him to obtain a carpentry apprenticeship at PepperGreen Farm.

Speaking through his interpreter, Joel says:

'Coming to PepperGreen Farm to work on the nesting boxes was something I really enjoyed. ‘I met people who were all really supportive, which made me enjoy being here and want to come back. They also helped me to get my apprenticeship at the farm.'

This example shows the breadth of work undertaken under the PepperGreen umbrella, from horticulture to retail and hospitality – and even room hire and catering for the Adult, Community and Further Education Board.

Message from the Minister

The Hon. Lily D’Ambrosio, Minister for Energy, Environment and Climate Change and the Minister for Solar Homes

As one of the leading players in the Victorian economy, the Government has a significant role to play in reducing our ecological footprint as a state.

As a direct result of government buyers’ focus on sustainable outcomes, we’re seeing a marked shift from non-sustainable materials and practices, to the use of sustainable content, design and innovative processes across our major infrastructure projects.

This brings value for money for Victorian taxpayers, lowers our carbon emissions, and provides new opportunities for suppliers across the State.

Even in the midst of a global pandemic, it’s important not to lose sight of the environmental impacts of our activities.

Through social procurement, we’re helping to pass on a healthy environment to our kids and grandkids.

Key achievements

Major road and rail projects provide many recycling and sustainability opportunities. In cooperation with our delivery partners, we have used the following over the life of these major projects:

972,804t of crushed concrete located at the following sites:

• Monash Freeway Stage 2
• O’Herns Road Stage 2
• Hallam Road and Narre Warren North
• Furlong Main, Blackburn, Heatherdale
• Kororoit Creek, Abbotts Road
• Melton Highway
• Mernda Rail Extention
• Mordialloc Freeway
• Melbourne Metro
• West Gate
• Western Roads Upgrade

155,283t of slag/fly ash located at the following sites:

• Mordialloc Freeway
• Western Highway
• Bourke, North, McKinnon, Centre
• Furlong, Main, Blackburn, Heatherdale
• Camp Road, Skye Road & Frankston Station
• Bayswater Level Crossing
• Hurstbridge Line Upgrade
• Kororoit Creek, Abbotts Road
• Melton Highway
• Mernda Rail Extension
• West Gate

156,053t of reclaimed asphalt product located at the following sites:

• Mordialloc Freeway
• Monash Freeway Stage 2
• Drysdale Bypass
• Hallam Road and Narre Warren North
• Western Roads Upgrade
• Bayswater Level Crossing
• West Gate

1,210,100t of reused fill located at the following sites:

• Mordialloc Freeway
• Monash Freeway Stage 2
• O’Herns Road Stage 2
• Drysdale Bypass
• Yan Yean Road Stage 1
• Western Highway
• Western Roads Upgrade
• Melbourne Metro

16,997t of glass sand located at the following sites:

• O’Herns Road Stage 2
• Western Roads Upgrade
• West Gate

377,920t of crushed rock/brick/ballast located at the following sites:

• O’Herns Road Stage 2
• Western Roads Upgrade
• West Gate

100t of crumb rubber located at the following site:

• Drysdale Bypass

Sustainability requirements on major projects

Our large projects also include significant sustainability requirements, which cover both the delivery of the project and where appropriate, the on-going operation of the infrastructure. These requirements include:

• Energy-efficient lighting at construction sites and site facilities.
• Use of high efficiency diesel generators.
• Use of green power and carbon offsets.
• Energy efficient lighting and hot water systems.
• Use of solar panels where possible.
• Waste management practices to maximise diversion from landfill.
• Regenerative drives on escalators which enable the capture, storage and reuse of otherwise wasted braking energy.

These activities have had a real impact by reducing greenhouse gas emissions.

To date (from 2015 onwards), a total of 138,058 tonnes CO₂e has been reduced across all Level Crossing Removal Program projects, including:

• Burke Road, North Road, McKinnon Road, Centre Road project
• Furlong Road, Main Road, Blackburn Road, Heatherdale Road project
• Bayswater
• Melton Highway
• North West Program Alliance (Buckley Street)
• Mernda Rail Extension
• Southern Program Alliance (Initial Works Package)
• North East Program Alliance (Hurstbridge Stage 1)
• North West Program Alliance (Camp Road, Skye Road and Frankston Station)
• Western Program Alliance (Kororoit Creek Road, Abbotts Road)

For financial year 2019-20 alone, a total of 20,944 tonnes CO₂e has been reduced¹ across three major infrastructure projects:

• Melton Highway
• North West Program Alliance (Buckley Street)
• Southern Program Alliance (Initial Works Package).

1. The stated consolidated CO₂e reduction incorporates both realised construction and projected operational phase reductions across the projects for a period of 50 years (as informed by the Australian Transport Assessment and Planning Guidelines for Rail Projects).

Did you know?

If you are looking for products with recycled content, there is a new Victorian Government directory to help you find suppliers: Sustainability Victoria’s Buy Recycled.

Recycled First is a new Victorian Government policy requiring:

• bidders on all road and rail construction infrastructure projects to demonstrate how they will optimise their use of recycled and reused materials
• contractors report on the types and volumes of recycled and reused products they used

Case studies

Re-purposed timber Port Campbell Creek pedestrian bridge

Parks Victoria commissioned a new pedestrian bridge for Port Campbell Creek that uses re-purposed timber. The project:

• used 1,132 lineal meters of recycled timber used
• 400t of ballast rock recycled for use on future projects

The work was undertaken by Simpson Construction Company, which specialises in recycling construction products, such as recycled wood, plastic and aggregate.

The decking for the bridge is constructed of ironbark and spotted gum recycled from the Norco Co-op building in Lismore, New South Wales.

Nearby steps leading to the beach will be built using wire-brushed ironbark recycled from the Australian Navy base on Garden Island at Potts Point in New South Wales.

Simpson Construction Company’s mission to reduce Australia’s carbon footprint and move the construction industry towards a circular economy has led it to purchase a large block of land in East Gippsland.

Over the next five years, the company will return this land to its natural state by re-planting native vegetation.

Parks Victoria’s partnership with Simpson Construction Company has opened up new possibilities for the use of recycled materials in other projects.

Harvesting stormwater for urban greening

City West Water (CWW) worked with six local councils and sporting precincts to build stormwater harvesting projects that create green urban spaces in Melbourne’s west, while reducing the use of drinking water to maintain parks and gardens.

This part of Melbourne has a hot, dry climate, with lower rainfall than most metropolitan regions, and it is also home to a number of communities with low socioeconomic status.

The stormwater projects address both these issues by providing greener urban spaces that people can gather in and enjoy better health and wellbeing through passive and active outdoor recreation.

In addition, the projects provide community assets that are resilient to the impacts of climate change.

Together, the six projects have reduced drinking water demand by 100 megalitres a year, as well as improving waterway health and vegetation and minimising flooding and erosion.

They have also created wetland habitat for local plants, birds and animals.

The project at Edinburgh Gardens in North Fitzroy involved the installation of a fully recycled polypropylene stormwater harvest system that captures and distributes stormwater to irrigate this iconic parkland.

The project will deliver savings of 20 million litres of drinking water a year, and even after its 50-year service life, the plastic used in the installation can still be recycled.

Improved site and environment:

• Increased visitations and activation of open space.
• Enhanced amenity and greening of high-profile open space.
• Improved waterway health and vegetation.
• Improved wetland habitat and local fauna.
• Minimised flooding and erosion impact on site and downstream.

Saving to energy and resourcing:

• Reduced demands on potable water – 100ML/year.
• Reduced water bills for the customer – $240 000/year.
• Energy required to operate the scheme, pumping versus gravity and alternatives energy sources considered ~40,000kw/year (projected savings by end of 2020)
• Edinburgh Gardens project used 100% recycled polypropylene materials.

Improved water quality as compared with existing water quality in existing ponds:

• Nitrogen removal from waterway via SWH treatment/irrigation 295 kg/year (projected savings by end of 2020)
• Phosphorous Removal 61 kg/year (projected savings by end of 2020)
• Total Suspended Solids Reduction (61 kg/year) (projected savings by end of 2020)
• Total Gross Pollutants Reduction 2,400 (projected savings by end of 2020)

Recycling in road maintenance

South East Water uses two suppliers who help maintain asphalt, concrete and paved surfaces.

Asphalt FX and Prestige Paving both have a strong focus on recycling and sustainability.

They support South East Water’s 24/7 emergency response team, and are often called upon to repair roads, driveways, footpaths and brick paving once a water or sewer fault is repaired.

Pavel Aronovych, General Manager of Prestige Paving, says:

‘All asphalt excavated during South East Water road work is recycled, and then we re-use the asphalt mix on South East Water road repairs.’

In 2019–20, Asphalt FX recycled 6 792 tonnes of material that came from South East Water’s repair projects and used 1 040 tonnes of recycled materials.

Prestige Paving recycled 980 tonnes from South East Water, and used 253 tonnes.

'We reduce, reuse and recycle construction waste whenever we can, and we're taking practical steps to minimise our carbon footprint.'

Kallan Fabris
Director of Asphalt FX

Moving towards sustainable business practices

The Department of Justice and Community Safety’s environment team administers the organisation’s environmental management system (EMS), which sets out environmentally sustainable design (ESD) requirements that construction projects must adhere to.

These include waste management requirements and minimum requirements for the use of recycled materials in construction work.

Through the ESD guidelines, the department sets standards to reduce resource use and to select sustainable materials. For example, minimum standards stipulate that 50% of the water used in concrete mix must be from non-potable sources, and that a minimum of 80% of construction and demolition waste is diverted from landfill.

In addition, 90% of timber on projects must be reused, recycled or certified in accordance with the relevant schemes.

The team supports these projects by providing advice to project managers and other stakeholders within the department.

Sustainability Victoria takes a similar approach to working with suppliers, and procurement policies now require suppliers to provide an EMS, with 10% of total weighted evaluation criteria assigned to social value and/or environmentally sustainable business practices.

Short stories

Victorian Electoral Commission embraces environmental sustainability

For the ballot materials for the 2020 local government elections, the Victorian Electoral Commission is using 100% recycled paper from Victoria supplier Australian Paper, located in Maryvale, Gippsland. Previously this was sourced from an overseas supplier.

Also, to significantly reduce the amount of physical mail, they are now using an electronic notification system.

Social benefit suppliers and mainstream suppliers

There are two types of government suppliers: social benefit suppliers and mainstream suppliers.

A social benefit supplier operates and has business premises in Victoria and meets one or more of the following criteria:

• is a social enterprise, certified by Social Traders or listed on the online social enterprise Map for Impact
• is an Australian disability enterprise providing ‘supported employment services’ as defined in s. 7 of the Disability Services Act 1986 (Cth)
• is a Victorian Aboriginal business, verified by Supply Nation or Kinaway

To count an engagement in its social procurement activity reports, a department or agency must ensure the social benefit supplier is verified.

A mainstream supplier is any supplier that is not a social benefit supplier.

Direct and indirect social procurement

The Government uses social procurement both directly and indirectly to deliver social and sustainable outcomes. Government buyers consider opportunities to deliver social and sustainable outcomes as part of every procurement activity.

In the direct approach, departments or agencies purchase goods, services or construction from a verified social benefit supplier.

In the indirect approach, departments or agencies purchase goods, services or construction from a ‘mainstream supplier’ using invitations to supply and clauses in contracts to deliver social and sustainable outcomes.

This includes subcontracting social benefit suppliers in supply chains.

What suppliers need to demonstrate

When making purchasing decisions under the Framework, government buyers also consider whether verified social benefit suppliers:

• are suitably qualified
• demonstrate experience and have a proven track record
• have the capacity and scale to deliver the requisite work
• comply with mandatory government agency contract terms
• comply with all relevant industry standards, regulations and legislation
• are competitively priced
• have business practices that align with the Framework, such as a corporate social responsibility policy, gender or disability action plans or engagement with social benefit suppliers

How social procurement benefits suppliers

Social procurement is good for Victorian businesses. As well as integrating positive social and environmental outcomes with core business, being able to demonstrate these outcomes makes suppliers more competitive when bidding for government work.

It also helps to foster workplace diversity, capability and productivity, and contributes to innovative solutions for complex social, economic and environmental problems.

Social procurement strategies and summary of priorities

The Social Procurement Framework applies to more than 275 government agencies and departments. In applying the Framework, each agency or department identifies priority social procurement objectives, and their annual reports will include progress towards the achievement of their social procurement goals. This provides suppliers with useful information about the priorities for the coming year.

The following table shows the objectives prioritised by each of the departments and core agencies in 2019-20.

Table Social procurement objectives prioritised by departments and core agencies in 2019-20

docx 26.94 KB

Reporting of social and sustainable achievements

To support the preparation of the 2020-21 Social Procurement Framework Annual Report, a Local Jobs First / Social Procurement Framework Reporting Solution will be released in December 2020.

The reporting solution allows government buyers to record procurements that include social and or sustainable commitments, and suppliers to report their achievements against those commitments.

This will assist both the government buyer and suppliers to meet their Social Procurement Framework reporting obligations and provide a richer understanding of the achievements made by the more than 275 government entities eligible to report under the Social Procurement Framework. Moving forward, this will assist in setting benchmarks for future gains.

Find out more

For more information on the Social Procurement Framework questions, please contact the Social Procurement Team.

Recycled First is a new Victorian Government policy that requires bidders on government infrastructure projects to demonstrate how they will optimise the use of sustainable products.

Sustainability Victoria’s Buy Recycled directory helps you find products with recycled content.

For industry-specific queries, call Jobs Victoria on 1300 208 575 or email jobsvictoria@ecodev.vic.gov.au

Business Victoria also has information on selling to government.