Strategic planning for social procurement
This framework establishes a requirement for departments and agencies to develop organisation-wide Social Procurement Strategies. These need to support policy, practice and capability development for staff, suppliers and supply chains. The flexible application of this framework within existing procurement practice seeks to ensure that social procurement is embedded in ordinary government business, with minimal burden on buyers or suppliers.
Tactics to drive social procurement
The framework also promotes the use of best practice sourcing tactics to drive social procurement. Depending on the size, expenditure category, and level of opportunity and risk, there are several tactics that can be applied. Some of the more common approaches are highlighted in the following table.
Table 5: Social procurement sourcing tactics
| Social procurement sourcing tactics | Description |
|---|---|
| Bundle | Increasing the size and scope of a procurement to enable a social or sustainable solution. |
| Unbundle | Decreasing the size and scope of a project/contract where social enterprises, Australian Disability Enterprises or Aboriginal businesses in the supply market do not have the capacity to meet scope. |
| Evaluation criteria or targets for delivering social value | Asking all businesses to demonstrate impact, while communicating to the market the importance placed on social value. |
| Evaluation criteria or targets for subcontracting | Higher value contracts can require or encourage suppliers to incorporate social enterprises, Australian Disability Enterprises or Aboriginal businesses in their supply chain. |
| Expressions of interest | When there is limited knowledge of how social impact could be addressed or there is a desire to encourage innovation from the supply market. |
| Partnerships | Creates long-term opportunities for innovation around shared social and sustainable objectives, including partnering with private sector and support organisations or strategic matching of social enterprise, ADE or Aboriginal business supplier capability with a pipeline of work. |
| Supplier relationship management | Relationships and structured supplier relationship management processes enabling engagement with existing long-term suppliers to explore opportunities to strengthen the delivery of social objectives. |
| Targeted panels | Using panels as an opportunity to encourage and enable market participation by social enterprises, Australian Disability Enterprises and Aboriginal businesses. |
| Targeted sourcing | Allowing direct sourcing from known social enterprises, Australian Disability Enterprises and Aboriginal businesses with demonstrated capability. Initially, this might apply to lower value procurements as sector capability develops. |
Partners and support agencies
The Victorian Government works collaboratively with partners and supporting agencies to:
- develop buyer and supplier capability
- support suppliers with recruiting, pre-employment, on-the-job training and mentoring
- connect buyers to certified social enterprises and certified Aboriginal businesses
The Victorian Government’s current social procurement partnerships include:
Kinaway Chamber of Commerce is the peak body representing certified Aboriginal and Torres Strait Islander business in Victoria.
Kinaway:
- provides business support and advice to Victorian Aboriginal and Torres Strait Islander people
- advocates for Aboriginal and Torres Strait Islander businesses in policy development and industry planning
- builds networks that support Victorian Aboriginal and Torres Strait Islander people to establish and grow their business.
Social Traders is a leading industry body for social enterprise and the national certifier of social enterprises in Australia.
Social Traders facilitates the development of a sustainable social enterprise sector by:
- providing certification for social enterprises
- advocating for their growth
- connecting them with business and government buyers
Supply Nation works to build a prosperous, vibrant and sustainable Indigenous business sector by:
- driving understanding that the purchasing power of businesses can be used to deliver positive social outcomes
- facilitating connections between Indigenous businesses and Supply Nation’s members’ procurement departments
- through its 5-step verification process
Support and development for Victorian priority jobseekers
The Government’s existing employment, inclusion and training programs will help support suppliers to find, employ and train Victorian priority jobseekers.
The Government established Jobs Victoria to provide a comprehensive approach to supporting job seekers at risk of being left behind. Jobs Victoria is supported by arrangements with leading organisations in the community sector and private sector employers.
Social enterprises, TAFEs and other training providers play a significant role in offering Victorians who need the support the skills they need to be job-ready now and in the future. The Government will seek to ensure that training and skills gaps are identified and addressed on an ongoing basis and the training and TAFE system’s role to deliver government and community benefits are acknowledged.
The Government recognises the distinct role that TAFEs have, as public providers who partner with industry and Government on key economic priorities, in leading the training system in excellence and innovation, providing essential life skills and support services, and helping disadvantaged students and communities.
Tools and support
This content on this page is taken from Victoria’s Social Procurement Framework. Access a PDF version in the social procurement document library.
For more information about social procurement, please contact the Buying for Victoria team.
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