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Procurement profiles

Read procurement profiles of VGPB accredited organisations.

This section summarises the procurement profile and performance of the 10 organisations that reported directly to the VGPB at the end of this financial year.

Organisations generally operate a centralised or decentralised procurement model, or somewhere in between. In a centre-led model, procurement is typically managed by a single dedicated part of the business. In a decentralised model, procurement is carried out across the business. For some organisations, high-value procurements may be carried out centrally, while lower value transactional procurements are carried out by the relevant business unit.

In 2019–20, some organisations needed to re-prioritise their procurement activities to respond to COVID-19 and bushfires. This led to delays in planned procurements and affected saving opportunities. This is reflected in their performance measure results.

Note that:

  • The accountable officer (AO), chief procurement officer (CPO) and internal procurement unit chair (IPU Chair) listed under each organisation is the person in that role at 30 June 2020.
  • Managed spend was introduced this year as a new performance measure, so comparisons with previous years are unavailable.
  • The complexity profile graphic is based on number of contract approvals, not value.

Department of Education and Training

The Department of Education and Training’s (DET) vision is that together we give every Victorian the best learning and development experience, making our state a smarter, fairer and more prosperous place. To achieve this vision, DET delivers and regulates statewide learning and development services to more than one-third of all Victorians, across the early childhood education, school education and training and skills sectors.

Procurement profile in 2019–20

163 one-off supply contract approvals valued at $189.4 million (contracts valued at $100 000 or more).

276 critical incident contract approvals valued at $30.1 million (contracts valued at $100 000 or more).

Highlights:

  • rolled out a government election commitment to provide free pads and tampons in all Victorian public schools and negotiated major savings through direct negotiation with suppliers
  • developed and rolled out online training modules covering the five stages of the procurement process, to align with face-to-face training offerings
  • completed actions from an internal audit of contract management
  • continued to build negotiation capabilities in corporate procurement staff

Top categories of spend:

  • professional services
  • contract recruitment
  • IT services
  • education and training services 

Centre-led procurement function.

Focused and leveraged complexity profile:

  • transactional - 22%
  • leveraged - 35%
  • focused - 40%
  • strategic - 2%

Accountable Officer: Jenny Atta, Secretary, Office of Secretary

Chief Procurement Officer: Tarkan Koman, CPO, Procurement Division

Internal Procurement Unit Chair: Kate Rattigan, Deputy Secretary, People and Executive Services 

Performance

DET's Procurement Division has continued to make incremental improvements to well-established processes. This is particularly visible in the increased value created from overseen procurement activities.

Download this document for DET’s performance in 2019–20, compared with the two previous years:

Department of Environment, Land, Water and Planning

The Department of Environment, Land, Water and Planning (DELWP) employs more than 4 000 staff in 82 locations across Victoria. DELWP brings together planning, local government and infrastructure, environment, climate change, energy and water functions, to ensure an integrated approach to the development of long-term state and regional strategies that build on social, environmental and economic opportunities to provide for future population growth and change.

A significant portion of DELWP’s procurement activity focuses on emergency management related to fire and flood recovery, including a contracted fleet of around 50 aircraft.

Solar Victoria was set up as a portfolio agency under DELWP on 1 July 2019 to deliver the Solar Homes program.

Procurement profile in 2019–20

211 one-off supply contract approvals valued at $250.6 million (contracts valued at $100 000 or more).

15 SEPC approvals valued at $15.1 million (contracts valued at $100 000 or more).

7 critical incident contract approvals valued at $3.9 million (contracts valued at $100 000 or more).

Highlights:

  • completed the design for a new procurement operating model
  • DELWP’s Vendor Management System was adopted as the recommended whole-of-government approach
  • enhanced negotiation capability and improved milestones and metrics in contracts
  • achieved procurement savings of $22 million (including direct and indirect savings)

Top categories of contract approval:

  • professional services
  • aviation services
  • ICT services
  • fire fleet services

Centre-led procurement model.

Mostly transactional complexity profile:

  • transactional - 81%
  • focused - 11%
  • strategic - 8%

Accountable Officer: John Bradley, Secretary, Office of the Secretary

Chief Procurement Officer: A.J. Karliner, CPO, Finance, Corporate Services

Internal Procurement Unit Chair: Helen Vaughan, Deputy Secretary, Water and Catchments

Performance

Overall, DELWP performed well in 2019–20 with procurement increasingly being seen as a core function of the department. The Central Procurement Team was expanded to cater for increased procurement requirements.

Download this document for DELWP’s performance in 2019–20, compared with the two previous years.

Department of Health and Human Services

The Department of Health and Human Services (DHHS) is responsible for developing and delivering policies, programs and services that support the health, wellbeing and safety of all Victorians.

Procurement profile in 2019–20

75 one-off supply contract approvals valued at $54.4 million (contracts valued at $100 000 or more).

71 critical incident contract approvals valued at $50.4 million (contracts valued at $100 000 or more).

1 SEPC approval valued at $3.5 million (contracts valued at $100 000 or more).

Highlights:

  • procurement officers took on substantial work to help deliver the Government’s response to COVID-19
  • procurement was involved in establishing 447 contracts and received no complaints during the year
  • the Procurement Branch used the new Office 365 tools to improve many functions and process, including automating procurement support for low-value procurements, online forms and workflows systems
  • procurement officers completed Procurement Fundamentals Skillset training
  • DHHS continued to implement social procurement and completed the department’s Aboriginal Procurement Target Implementation Plan

Top categories of contract approvals:

  • specialist providers
  • IT systems, software and support
  • training
  • medical supplies 

Centre-led procurement function.

Predominantly strategic complexity profile:

  • transactional - 12%
  • leveraged 34%
  • strategic - 54%

Accountable Officer: Kym Peake, Secretary

Chief Procurement Officer: Genine Wallinga, Director and Chief Procurement Officer, Procurement, Contract and Business Services

Internal Procurement Unit Chair: Greg Stenton, Deputy Secretary, Corporate Services

Performance

Most performance measure results increased in 2019–20 due to embedding DHHS’ centre-led approach within department operations. The Procurement Branch has a strong commitment to continuous improvement which drives greater performance on all procurement functions, including the performance measures.

Download this document for DHHS’ performance in 2019–20, compared with the previous two years.

Department of Jobs, Precincts and Regions

The Department of Jobs, Precincts and Regions (DJPR) is firmly focused on growing Victoria’s economy and ensuring it benefits all Victorians – by creating more jobs for more people, building thriving places and regions, and supporting inclusive communities.

DJPR was established on 1 January 2019 and is expected to achieve VGPB accreditation by December 2020.

Procurement profile in 2019–20

158 one-off supply contract approvals valued at $84.8 million (contracts valued at $100 000 or more).

33 critical incident contract approvals valued at $116.8 million (contract value excludes contracts where value is still to be finalised).

Highlights:

  • conducted a procurement model review to ensure the recommended model maximises return on investment from procurement activities and aligns with organisational priorities such as Social Procurement and Local Jobs First
  • delivered face-to-face knowledge sharing sessions to internal procurement stakeholders
  • created a dedicated procurement intranet portal
  • updated online procurement evaluation training to reflect current policies and best practice
  • launched DJPR’s social procurement strategy

Top categories of contract approval:

  • professional services
  • IT and telecoms
  • staffing services
  • utilities, property and land
  • agriculture and marine

Centre-led procurement function.

Mostly transactional procurement profile:

  • transactional - 72%
  • leveraged - 4%
  • focused - 13%
  • strategic - 10%

Accountable Officer: Simon Phemister, Secretary

Chief Procurement Officer: Jessica Lambous, Executive Director, Investment and Procurement, Corporate Services Group

Internal Procurement Unit Chair: To be confirmed

Performance

DJPR has improved its procurement capability and is continuing to work towards VGPB accreditation. Procurement in 2019–20 was largely influenced by the procurement activities relating to response and recovery efforts for critical incidents.

Download this document for DJPR’s performance in 2019–20. DJPR was established on 1 January 2019 so no previous performance data is available.

Department of Justice and Community Safety

The Department of Justice and Community Safety (DJCS) leads the delivery of justice and community safety services in Victoria by providing policy and organisational management. Its extensive service delivery responsibilities range from managing the state’s prison system to providing consumer protection and enforcing court warrants.

Procurement profile in 2019–20

82 one-off supply contract valued at $403.3 million (contracts valued at $100 000 or more).

1 SEPC approval valued at $181,600 (contracts valued at $100 000 or more).

95 critical incident contract approvals valued at $38.6 million (contracts valued at $100 000 or more).

Highlights:

  • set up a pilot for category management of IT services
  • implemented a data analysis tool to support the new category management structure
  • started a procure-to-pay project to make it easier to make simple purchases for procurement activities under $250,000
  • upgraded Zycus and completed a simplification project, including DocuSign for electronic signing of contracts
  • exceeded 1 per cent target for Aboriginal procurement

Top categories of contract approvals:

  • outsourced services
  • prisoner services
  • food services
  • forensic services

Centralised procurement model.

Focused and transactional complexity profile:

  • transactional - 33%
  • leveraged - 13%
  • focused - 35%
  • strategic - 19%

Accountable Officer: Rebecca Falkingham, Secretary

Chief Procurement Officer: Thomai Veginis, CPO, Procurement Services

Internal Procurement Unit Chair: Andrew Minack, Deputy Secretary, Corporate Governance and Support 

Performance

DJCS underwent more restructuring in 2019–20, appointing a new CPO and bringing more staff from other business areas into Procurement Services. DJCS is moving towards a category-based procurement model, with more contracts now being managed by the Central Procurement Team.

Download this document for DJCS’s performance in 2019–20, compared with the two previous years.

Department of Premier and Cabinet

The Department of Premier and Cabinet (DPC) leads the public service in delivering the government’s agenda and works across the public service to promote the public interest and create public value. DPC does this by delivering on the public service mandate to uphold integrity, act with purpose and remain uncompromising in the provision of robust, high-quality advice and service delivery.

DPC leads the information and communications technology (ICT) state purchase contract (SPC) arrangements for ICT goods and services used across government. Contracts include software applications and licensing, hardware, telecommunications, and eServices and IT infrastructure registers.

A new agency, Bushfire Recovery Victoria, was set up under DPC during the year.

Procurement profile in 2019–20

64 one-off supply contract approvals valued at $35.1 million (contracts valued at $100 000 or more).

5 SPC approvals valued at $230.5 million (contracts valued at $100 000 or more).

47 critical incident contract approvals valued at $24.9 million (contracts valued at $100 000 or more).

Highlights:

  • updated procurement policies and guides and implemented a process for a central depository for storing procurement documents
  • implemented data capture tools to report on spending with social enterprises, all procurement activity and customer relationship management
  • increased focus on compliance and quality assurance reviews with market invitations, leading to DPC’s best supplier satisfaction scores to date
  • increased capability through group and individual training, partnering with business areas on complex procurements, simplifying forms and templates and updating procurement information on the DPC intranet

Top categories of contract approval:

  • professional advisory services
  • labour contractor services
  • software licensing
  • IT hardware

Decentralised procurement function.

Mostly transactional complexity profile:

  • transactional - 79%
  • leveraged - 4%
  • focused - 4%
  • strategic - 13%

Accountable Officer: Chris Eccles, Secretary

Chief Procurement Officer: Kylie Callander, CPO, Corporate Services

Internal Procurement Unit Chair: Andrew Campbell, Executive Director, Corporate Services; Governance, Policy and Coordination

Performance

In 2019–20, DPC procurement improved across all performance measures after a strong focus on improving governance by addressing VGPB audit recommendations and updating policies and guidelines. DPC worked on improving procurement processes and making it easier for staff to follow them.

The procurement team committed to providing the department with consistent, quality procurement advice and partnering with business areas on complex procurements, all of which contributed to improved capability across DPC.

Download this document for DPC’s performance in 2019–20, compared with the two previous years.

Department of Transport

The Department of Transport (DoT) plans, builds and operates an integrated, sustainable and safe transport system for Australia’s fastest-growing state.
VicRoads and Public Transport Victoria (PTV) transitioned into DoT from 1 July 2019.

One of DoT’s key programs of work is the Major Transport Infrastructure Agency (MTIA), delivered through the Office of the Director-General. MTIA is responsible for the Government’s ‘big build’ transport construction program across five key projects: North East Link Project, Level Crossing Removal Project, Westgate Tunnel Project, Major Road Projects Victoria and Rail Projects Victoria. MTIA has a dedicated CPO.

Procurement profile in 2019–20

218 one-off supply contracts approval valued at $190.9 million (contracts valued at $100 000 or more).

2 critical incident contract approvals valued at $2.3 million (contracts valued at $100 000 or more).

Highlights:

  • after merging DoT, VicRoads and PTV, the Procurement Branch worked with stakeholders to develop an integrated procurement framework, which has since been approved by DoT’s executive board
  • implemented procurement and contract management training modules
  • engaged several Aboriginal enterprises offering labour-hire services for construction, achieving both social procurement and workforce outcomes
  • rolled out a central reporting tool to improve social procurement and Local Jobs First reporting
  • began introducing a single source-to-contract tool to manage the end-to-end procurement process across DoT, VicRoads and PTV

Top categories of contract approvals:

  • professional services
  • rolling stock
  • franchise services
  • ICT services
  • human resources

Centre-led procurement function.

Mainly transactional complexity profile:

  • transactional - 65%
  • leveraged - 13%
  • focused - 20%
  • strategic - 2%

Department of Transport

Accountable Officer: Paul Younis, Secretary

Chief Procurement Officer: Lisa Williams, CPO

Internal Procurement Unit Chair: Janine Haddow, Procurement Advisory Committee Chair 

Major Transport Infrastructure Agency

Accountable Officer: Corey Hannett, Director-General

Chief Procurement Officer: Juliana Tiong, CPO

Internal Procurement Unit Chair: Arthur Apted, Procurement Oversight Committee Chair

Performance

Overall, DoT performed relatively well given the big machinery of government changes in 2019. The department’s new integrated procurement framework and upcoming implementation of a single source-to contract tool (Zycus) will enable the Procurement Branch to build capability, apply controls and use automation to reduce the risk of errors.

Download this document for DoT’s performance in 2019–20. Given the changes to DoT’s procurement profile in 2019, it is not possible to make a meaningful comparison with previous years.

Department of Treasury and Finance

The Department of Treasury and Finance (DTF) provides economic, financial and resource management advice to help the government deliver its policies. DTF’s procurement profile focuses largely on professional services to support these functions and is primarily transactional.

DTF is the lead agency for most non-ICT SPCs through its Strategic Sourcing Group.

Invest Victoria transitioned into DTF as a result of machinery of government changes on 1 January 2019. DTF began overseeing its procurement from 1 July 2019.

Procurement profile in 2019–20

25 one-off supply contract approvals valued at $6.2 million (contracts valued at $100 000 or more).

1 SPC approval valued at $65.0 million (contracts valued at $100 000 or more).

Highlights:

  • implemented the Oracle Cloud finance system, which has improved reporting and strengthened oversight of procurement process and spend
  • released updated contract management guidance to the department
  • increased both successful and unsuccessful supplier satisfaction with results of 100 per cent and 55 per cent respectively
  • continued to focus on increasing engagement of social benefit suppliers
  • drove new and refreshed opportunities for SPCs such as banking and financial services and fuel and associated products

Top categories of contract approval

  • professional advisory services
  • eServices
  • Oracle systems
  • staffing services
  • print management and associated services

Decentralised procurement function.

Transactional complexity profile

  • transactional - 96%
  • strategic - 4%

Accountable Officer: David Martine, Secretary

Chief Procurement Officer: Steven Harris, CPO, Strategic Sourcing Group, Corporate and Government Services Division

Internal Procurement Unit Chair: Andrew Witchard, Executive Director, Revenue Group, Economic Division

Performance

DTF has maintained a focus on strong procurement process and controls this year while adapting to working from home. DTF continued to create value from its procurement activity, and managed well the vast majority of its spend by volume. DTF continues to build its overall capability and suppliers expressed satisfaction with DTF’s processes. Planned procurement is increasing as a proportion of total procurement which adds to the controls in place and transparency of the department’s annual activity.

Download this document for DTF’s performance in 2019–20, compared with the two previous years.

Cenitex

Cenitex is an information and communications technology (ICT) shared services agency, providing integrated and reliable ICT infrastructure, application hosting and desktop services for Victorian Government departments and agencies.

Procurement profile in 2019–20

16 one-off supply contract approvals valued at $28.5 million (contracts valued at $100 000 or more).

4 critical incident contract approvals valued at $0.4 million (contracts valued at $100 000 or more).

3 SEPC approvals valued at $3.7 million (contracts valued at $100 000 or more).

Highlights:

  • implemented a source-to-award system to enable authorised business unit representatives to carry out some self-service purchasing
  • started delivering a program of works to improve IT security across government
  • uplifted the capacity and support of several ICT contract to meet the Government’s work-from-home requirements
  • finalised its first social procurement strategy

Top categories of contract approvals:

  • software
  • server/storage equipment and services
  • project and professional services
  • accommodation services

Centre-led team of procurement experts.

Mostly transactional and leveraged procurement profile:

  • transactional - 37%
  • leveraged - 47%
  • focused - 16%
  • strategic - 0%

Accountable Officer: Frances Cawthra, Chief Executive Officer

Chief Procurement Officer: Tim Jones, General Manager Procurement, Finance and Business Services

Internal Procurement Unit Chair: Sharon Copeland-Smith, Executive Director, Strategy and Governance

Performance

Cenitex improved across all performance measures in 2019–20. Cenitex focused on continuing improvements in benefits management, engaging with stakeholders as a business partner rather than a transactional provider, and improved forward planning. Cenitex also strengthened governance after going through its first VGPB audit.

Download this document for Cenitex’s performance in 2019–20 compared with the two previous years.

Victoria Police

Victoria Police is the primary law enforcement agency of Victoria, Australia. It was formed in 1853 and operates under the Victoria Police Act 2013. It provides policing services to the Victorian community 24 hours a day, seven days a week, working to keep all Victorians safe.

Procurement profile in 2019–20

24 one-off supply contract approvals valued at $28.8 million (contracts valued at $100 000 or more).

24 SEPC approvals valued at $76.3 million (contracts valued at $100 000 or more).

36 critical incident contract approvals valued at $18.1 million (contracts valued at $100 000 or more).

Highlights:

  • piloted an online procurement tool and used DocuSign for electronic approvals and workflow management
  • successfully renewed Victoria Police’s Chartered Institute of Purchasing and Supply (CIPS) procurement accreditation and was awarded CIPS Procurement Excellence Standard Award certification

Top categories of contract approvals:

  • forensics
  • corporate support
  • uniform and equipment
  • IT and communications

Primarily centre-led procurement function.

Transactional complexity profile:

  • transactional - 85%
  • leveraged - 8%
  • focused - 6%
  • strategic - 0%

Accountable Officer: Shane Patton, Chief Commissioner of Police

Chief Procurement Officer: Kirsten McFall, Director Procurement and CPO, Procurement Division

Internal Procurement Unit Chair: Chris O’Farrell, Executive and Chair of the Police Procurement Board, Director, Infrastructure Business Services

Performance

Download this document for Victoria Police’s performance in 2019–20 compared with the two previous years.

Reviewed 13 October 2020

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