Social Procurement Framework requirements and expectations

Find out what requirements and expectations are established by the Social Procurement Framework.

The framework is to be applied to procurement of all goods, services and construction, based on a scalable approach linked to procurement activity expenditure. The thresholds outlined are consistent with those used across government to determine requirements under policies such as Local Jobs First - Victorian Industry Participation Policy (VIPP) and the Local Jobs First - Major Projects Skills Guarantee (MPSG). Two tables are provided:

  • Individual procurement activity requirements – Table 3 outlines buyer requirements and the recommended approach for the inclusion of social and sustainable objectives into procurement planning processes within each expenditure threshold.
  • Government department and agency requirements – Table 4 outlines the requirements for each department and agency to be consistent with the framework’s objectives.

The Government does not expect every procurement to pursue all of the recommended actions in Table 5.

Government buyers are expected to decide which social and sustainable objectives are to be pursued and prioritised in each procurement. While this permits flexibility for government buyers, the recommended approaches are expected to achieve greater commonality across government.

The framework is supported by guidance, tools and templates for the benefit of government buyers and suppliers.

Individual procurement activity

Table 3: Individual procurement activity requirements for government buyers

Thresholds

(Values exclusive of GST)

Below threshold

Regional under $1 million

Metro or State-wide under $3 million

Lower band

Regional $1 to $20 million

Metro or State-wide $3 to $20 million

Middle band

$20 to $50 million

Upper band

Over $50 million

Planning requirements for government buyersIncorporate Social Procurement Framework objectives and outcomes into regular procurement planningIncorporate Social Procurement Framework objectives and outcomes into regular procurement planningComplete a Social Procurement Plan during procurement planningComplete a Social Procurement Plan during procurement planning
Described approach

Encouraged

Seek opportunities where available to directly or indirectly procure from social enterprises, Australian Disability Enterprises or Aboriginal businesses

Proportionate

Use evaluation criteria (5 to 10 per cent weighting) to favour businesses whose practices support social and sustainable procurement objectives

Targeted

Include performance standards and contract requirements that pursue social and sustainable procurement objectives

Strategic

Include targets and contract requirements that pursue social and sustainable procurement objectives

Actions for buyers

Recommended actions for government buyers

Social procurement output

(Values exclusive of GST)

Below threshold

Regional under $1 million

Metro or State-wide under $3 million

Lower band

Regional $1 to $20 million

Metro or State-wide $3 to $20 million

Middle band

$20 to $50 million

Upper band

Over $50 million

Social enterprises

Australian Disability Enterprises

Aboriginal businesses

Seek opportunities to directly or indirectly procure from social enterprises, Australian Disability Enterprises or Aboriginal businessesConsider whether part of the procurement can be unbundled for delivery from social enterprises, Australian Disability Enterprises or Aboriginal businessesSet targets for supplier expenditure with social enterprises, Australian Disability Enterprises or Aboriginal businesses and ask suppliers to demonstrate how they will meet targetsSet targets for supplier expenditure with social enterprises, Australian Disability Enterprises or Aboriginal businesses and ask suppliers to demonstrate how they will meet targets
Priority jobseekers and jobseekers in regions experiencing entrenched disadvantageNo recommended actionNo recommended actionSet supplier targets for employment and training for Victorian priority jobseekers and jobseekers in regions with entrenched disadvantage entrenched disadvantageSet supplier targets for employment and training for Victorian priority jobseekers and jobseekers in regions with entrenched disadvantage entrenched disadvantage
Gender*No recommended actionAsk suppliers to demonstrate gender equitable employment practices in weighted framework criteriaInclude performance standards on labour hours performed by womenInclude industry-appropriate targets for labour hours to be performed by women
DisabilityNo recommended actionAsk suppliers to demonstrate inclusive employment practices for Victorians with disability in weighted framework criteriaInclude performance standards on labour hours performed by Victorians with disabilityInclude targets for labour hours to be performed by Victorians with disability
Fair and safe workplacesNo recommended actionAsk suppliers to demonstrate compliance with industrial relations lawsAsk suppliers to demonstrate compliance with industrial relations lawsAsk suppliers to demonstrate compliance with industrial relations laws
Environmental sustainabilityNo recommended actionAsk suppliers to demonstrate environmentally sustainable business practices in weighted framework criteriaInclude requirements as relevant on recycled content, waste management and energy consumptionInclude requirements as relevant on recycled content, waste management and energy consumption
Climate changeNo recommended actionNo recommended actionWhere procurement includes a design component, include requirements on greenhouse gas emissions and climate change resilienceWhere procurement includes a design component, include requirements on greenhouse gas emissions and climate change resilience

Buyers are advised to consider whether use of this objective is appropriate. See Safe and fair workplaces: social procurement guide.

* The Building Equality Policy is applicable to all publicly funded construction projects valued at $20 million or more. For further information, see the Building Equality Policy guidance.

*Under the National Employment Standards, all employees can access 10 days of paid family and domestic violence leave each year. Therefore, the ‘Adoption of family violence leave by Victorian Government suppliers’ outcome no longer applies for this objective.

Agency planning requirements

Table 4: Government department and agency planning requirement

ElementDescription
Social Procurement StrategyEach department and agency is to prepare a Social Procurement Strategy, which includes consideration of the following areas:
Planning
  • Leadership and governance
    • Key priorities and objectives
    • Roles and responsibilities
    • Consideration of department or agency targets, such as:

a. expenditure with Aboriginal business target (percentage or amount)

b. social enterprise expenditure target (percentage or amount)

c. targets for gender equality and employment of Victorians with disability

d. target for job creation for Victorian priority jobseekers and in regions facing entrenched disadvantage

e. target for proportion of suppliers with environmentally sustainable business practices

  • Policy and process
    • Integration into policy, processes, documentation, tools, and templates.
  • Planning and opportunity analysis
    • Integration into forward procurement planning.
    • Completion of an opportunity and risk analysis.
    • Prioritisation of activities.
  • Action plan
    • Key actions, timeframes, and owners.
Staff and stakeholder communication and education

Communication and education for staff and key stakeholders in delivering against the framework, including:

  • targeted awareness and training programs (e.g. procurement teams, project managers, buyers)
  • provision of access to expertise
Supplier communication, education, and development

Supplier development and education, including:

  • targeted communication to suppliers on expectations and opportunities under the framework
  • targeted awareness sessions for key suppliers and access to training programs as required
  • proposed supplier development activities, including engagement with social enterprises, Australian Disability Enterprises and Aboriginal businesses
Measurement and reporting

Development of a reporting and management framework that includes:

  • a data collection model to track against government requirements and the targets and measures outlined in the Social Procurement Strategy
  • tools and methods for data collection and analysis
  • reporting on achievements against the strategy and organisational targets

Tools and support

This content on this page is taken from Victoria’s Social Procurement Framework. Access a PDF in the social procurement document library.

For more information about social procurement, please contact the Buying for Victoria team.

Updated