Achievements since the launch of the Framework in 2018
Victorian Government departments and agencies have invested heavily in Victoria’s social benefit suppliers since 2018, spending:
- $105.7 million with certified Victorian Aboriginal businesses5 and other Aboriginal organisations6
- $56.4 million with certified Victorian social enterprises7
Achievements in this reporting period (1 July 2021–30 June 2022)
Victorian Government departments and agencies have spent:
- $21.7 million with 129 certified Victorian Aboriginal businesses and other Aboriginal organisations
- $24.6 million with 112 certified social enterprises. Of this, $14.9 million was spent with 33 certified social enterprises with a mission for people experiencing disadvantage
- $6 million with 40 Australian Disability Enterprises8 or social enterprises led by a mission for people with disability
- over $235 million with Aboriginal businesses, social enterprises and disability enterprises has been contractually committed in projects that commenced in the reporting period. This spend will occur through supply chains during the contract delivery period
How this compares with the inaugural whole of Victorian Government Social Procurement Framework Annual Report 2018–19
Significant increases have been made in comparison to the strong benchmarks set in the inaugural annual report:
- 237% increase in expenditure with certified social enterprises
- 30% increase in expenditure with certified Victorian Aboriginal businesses and other Aboriginal organisations
A focus on improvements
Social procurement delivers win-win for Victoria
The Victorian Government was recognised for creating social value at the Catalyst 2030 awards in 2022.
Catalyst 2030 is a global movement of social change innovators, including non‑government organisations, social entrepreneurs, and other innovators working to achieve the United Nations Sustainable Development Goals by 2030. The annual Catalyst 2030 awards recognise achievers in sustainable
In June 2022, the Victorian Government’s Social Procurement Framework and 2021–25 Social Enterprise Strategy won the Asia Pacific Government Award in recognition of work by the Department of Jobs, Precincts and Regions (DJPR). Victorian Government departments and agencies that engage social enterprises, Aboriginal businesses and businesses employing people with disabilities contributed to this recognition.
Embedding the Framework into the culture of the procurement community
The Victorian Government continues to work hard to embed the Framework into the hearts and minds of all Victorian public servants procuring goods, services, and construction.
In 2021, the Social Procurement Assurance team was established at the Department of Treasury and Finance (DTF) to support and ensure the Framework is effectively implemented on Government projects valued at $20 million or more. In the 2021–22 financial year, the team supported 53 projects worth an estimated $35 billion – ensuring the Framework was embedded into the procurement process. These projects prioritise outcomes for women and young people to support a more equitable COVID-19 recovery.
Skilled and trained Victorian Government procurement professionals have a significant role to play in creating social and environmental value through the adoption of targeted strategies and by supporting the engagement of diverse suppliers within their supply chains.
Social procurement is increasingly embedded in procurement management training for future procurement professionals. During 2021–22, Swinburne University of Technology approached DJPR to find innovative ways to incorporate the Framework within their procurement training syllabus. DJPR partnered with Swinburne to design and evaluate an assignment for their Procurement Management course. Students had to design an infographic for small business to help them understand the Framework.
Social procurement is now taught as a foundation principle, signalling the importance of the Framework and social procurement principles.
We welcome engagement with education and research institutions to enhance future social procurement.
Strengthening and extending support networks
Having a strong support network for government buyers and suppliers is core to the success of the Framework.
In 2021–22, DJPR had agreements with the following support network partners:
Kinaway Chamber of Commerce
provides business support and advice to Victorian Aboriginal business people and helps improve the visibility and networks of Aboriginal businesses to strengthen relationships and create opportunities.
Kinaway publishes a list of certified Victorian Aboriginal businesses and provides departments and Victoria Police with support services to identify opportunities to increase engagement with Victorian Aboriginal businesses. Since its launch in October 2018, the number of certified businesses listed on its directory has increased from 15 to 440 businesses by 30 June 2022, an increase of 63 members since the previous financial year.
is focused on making inclusive employment and social procurement work for business. Jobsbank has a unique role in the Victorian ecosystem, building capability among employers and enabling them to participate in the opportunities created by government’s investment in infrastructure, job creation and service expansion.
certifies, strengthens and connects social enterprises with business and government members. By activating the power of social enterprise procurement, Social Traders creates positive impact through jobs, community services and support for the most marginalised. Social Traders provides access to a portal of certified social enterprises with rich search functionality for all Victorian Government departments and agencies.
There were 448 active social enterprises certified with Social Traders as at 30 June 2022, an increase of 22% from the previous year. Victorian social enterprises accounted for 44% of the growth, increasing from 202 certified enterprises to 238 as at 30 June 2022.9
Industry Capability Network
is a network of independent experienced industry procurement and supply chain specialists introducing large and small businesses to projects across Australia and New Zealand. ICN is continuing to develop system capability to capture the Framework commitments and achievements through the Victorian Management Centre platform. The platform is supported by the provision of dedicated industry advisors, training, e-learning modules, guides and toolkits.
Measuring and reporting achievements
Measuring and reporting on outcomes is essential in successful policy implementation. It provides the basis for understanding the components of the policy that have been effectively implemented and those that require further nurturing.
Since 2018, measurement and reporting on the Framework has been informed by:
- the provision of direct spend data by Victorian Government departments, Victoria Police, Cenitex and Major Transport Infrastructure Authority
- case studies on social procurement achievement from all eligible entities.
In April 2021, DJPR, in conjunction with DTF and Industry Capability Network (ICN), developed the Victorian Management Centre (VMC) platform – a system designed to enable government to measure and report on the Framework’s performance and impact. More buyers and suppliers have been using the platform over the past 12 months, including the development and staged transition of the Major Transport Infrastructure Authority agencies to
The VMC allows government buyers to record contracts that include social and sustainable procurement commitments/targets and suppliers to then report their achievements against those commitments/targets. The Social Procurement Assurance and Social Procurement Framework teams will continue to work with ICN to improve data capture and reporting functionality within the VMC. This will assist both government buyers and suppliers to meet their Framework reporting obligations and provide a richer understanding of the achievements made by the government entities required to report under the Framework.
The Social Procurement Framework team will also continue to work with mandated Victorian Government entities to prepare them for reporting for future financial years. ICN provides training and dedicated industry advisors for both government buyers and suppliers to support the effective use of the VMC.
The VMC continues to undergo significant development to enable all 275 eligible entities to comprehensively report against the Framework. This capturing of social and sustainable procurement commitments/targets within a central reporting platform drives incremental improvements to both the outcomes themselves and the way the Victorian Government measures and reports on those outcomes at an entity and whole-ofgovernment level. This data capture can more holistically demonstrate the impact of outcomes within the Framework.
Footnote 5: Certified Aboriginal businesses refers to Victorian Aboriginal businesses that are certified by Kinaway or Supply Nation.
Footnote 6: Other Aboriginal organisations refers to Victorian Aboriginal organisations that are an:
- Aboriginal Community Controlled Organisation (ACCO);
- Aboriginal Community Controlled Health Organisation (ACCHO);
- Traditional Owner Corporation (or Registered Aboriginal Party, RAP); or
- Aboriginal Corporation registered with the Office of the Registrar of Indigenous Corporations (ORIC).
Footnote 7: Certified Victorian Social Enterprises refers to organisations that are certified by Social Traders, and operate with business premises in Victoria
Footnote 8: Australian Disability Enterprises are Commonwealth-funded (and generally not-for-profit) organisations that seek to operate in a commercial context, specifically to
provide supportive employment opportunities to people with moderate to severe disability. Australian Disability Enterprises are listed on BuyAbility’s directory.
Footnote 9: Social Traders’ reporting has changed since the previous reporting year. Social enterprises whose certifications have lapsed (i.e. have not re-certified in over 3 years) are no longer included in totals.
Reviewed 06 October 2023