About the VGPB in 2019-20

The VGPB is a Victorian Government-owned body corporate established under the Financial Management Act 1994. We set the policies that govern procurement of non-construction goods and services across all Victorian Government departments and some public bodies.

Our role is to:

• develop, implement and review supply policies and practices
• monitor compliance with supply policies
• help organisations build procurement capability
• work with stakeholders to make procurement more efficient

Procurement as a core business function

The VGPB sees procurement as a core business function. Effective procurement ensures government uses public money responsibly, procuring the required goods and services to deliver value-for-money outcomes.

The VGPB’s procurement model is based on assessing complexity and risk. Each organisation adopts a procurement governance framework scaled to its procurement profile and must have enough capability to carry out its procurements.

Our five supply policies cover the whole procurement lifecycle.

Procurement lifecycle:

• review procurement need
• conduct market analysis
• develop market approach plan and engage the market
• evaluate, negotiate and select supplier
• create and commit to contract
• manage contract
• review or close contract
• dispose of assets

The policies are underpinned by probity, accountability and scalability, with a strong focus on value for money, more interactive engagement with the market and improving productivity.

Each policy is supported by good practice guides, tools and templates to ensure consistency across government.

The VGPB at a glance

Vision

Provide leadership in government procurement of goods and services to deliver value-for-money outcomes for Victoria.

Mission

Ensure government:

• develops procurement capability
• delivers value-for-money and fit-for-purpose outcomes
• minimises risk
• enables access to procurement opportunities for all businesses

Principles

All procurement activity must meet four principles:

• value for money
• accountability
• probity
• scalability

Policies

Five policies to cover end-to-end procurement activity:

• Governance
• Complexity and capability assessment
• Market analysis and review
• Market approach
• Contract management and contract disclosure

Strategy

Five workstreams with multiple initiatives:

• Victoria’s Social Procurement Framework and reporting
• Governance, extending the reach
• Policy and practice
• Procurement technology
• Capability, process streamline and change management

Network

The VGPB currently covers all Victorian Government departments, Cenitex, Victoria Police and some administrative bodies. We work closely with our stakeholders to ensure our policies are modern, relevant and easy to apply.

Scope of VGPB policies

VGPB policies apply to all Victorian Government departments and any entities specified by the Governor in Council, such as Cenitex.

VGPB policies also apply to the offices or bodies specified in section 16(1) of the Public Administration Act 2004. These offices report to the VGPB via their portfolio department, except for the Office of the Chief Commissioner of Police (Victoria Police), which reports directly to the VGPB.

The Victorian Public Sector Commission is also subject to VGPB policies but does not report directly to us.

For a list of organisations bound by VGPB policy, refer to Goods and services mandated agencies.

Reporting structure

The VGPB reports to the Assistant Treasurer. We are supported by the Procurement Policy and Reform team in the Department of Treasury and Finance (DTF).

Departments and accredited or specified entities report to us directly on their procurement activities, as follows:

• Assistant Treasurer
• VGPB supported by DTF's Procurement Policy and Reform Team, reports to the Assistant Treasurer
• Organisations (Departments and accredited / specified entities), reports to VGPB

Board members

The VGPB has a chairperson and a minimum of six other members. Board members are selected based on procurement experience and expertise. They can be internal or external to government.

In 2019–20, the VGPB had eight members.

Meetings

The VGPB meets once every two months. The Board held six meetings over the reporting period and three one-day planning sessions to set new priorities for 2020–23.

The following table describes meeting attendance:

Assessing the VGPB’s performance

Each year, VGPB members assess their individual performance and the performance of the VGPB as a whole over the past 12 months, and identify opportunities for improvement.

In 2019–20, VGPB members took a new approach to assessing their performance, conducting a critical analysis during the strategic planning sessions to identify areas where the VGPB is doing well and what they should focus their attention on.

Overall, members acknowledged that it had been a challenging time, with COVID-19, bushfires and cyberattacks leading to unemployment and supplier fragility. COVID-19 has highlighted the need to manage supply chain risk and address capability gaps.

Members assessed the VGPB as operating effectively in its capacity as the steering committee for the procurement reform during this time. Members also acknowledged that VGPB membership covered a wide range of procurement skills and a shared commitment to achieving value-for-money outcomes and streamlining processes for buyers.

In 2020–21, the VGPB will carry out a detailed review of its policy framework with a view to providing more focus on identifying and delivering strategic outcomes including risk reduction.