About the VGPB in 2020-21

We are a Victorian Government-owned body corporate established under the Financial Management Act 1994 (FMA). 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

We see 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.

Our procurement model is based on assessing complexity and risk. Each organisation adopts a procurement governance framework scaled to its procurement profile and must have the appropriate 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
• Mange contract
• Review and close
• Dispose of assets
• Back to top

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

Four strategic priorities with multiple initiatives:

• Enhance procurement systems and data
• Deliver the expansion program
• Improve visibility and support for good procurement
• Create fit-for-purpose procurement

Network

In 2020-21, VGPB policies and oversight covered all Victorian Government departments, Cenitex, the Major Transport Infrastructure Authority, 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

Under section 54B of the FMA, the VGPB is responsible for monitoring compliance by departments and specified entities with supply policies.

Departments are defined under the FMA as:

1. a department within the meaning of the Public Administration Act 2004
2. an office or body specified in section 16(1) of that Act.

Administrative offices specified under section 16(1) usually 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.

A specified entity is any entity specified by the Governor in Council under section 54AA for the purposes of Part A: Supply Management, which brings them under the umbrella of the VGPB.

On 29 April 2021, the Governor in Council declared that from 1 July 2021, certain agencies bound by the Standing Directions under the FMA would also need to comply with VGPB supply policies.

This will expand coverage of the VGPB goods and services procurement policy framework to an additional 125 agencies.

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 and is supported by the Procurement Policy and Reform team in DTF.

Departments and specified entities report directly to the VGPB 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), report to VGPB

Board members as at 30 June 2021

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.

Antoinette Brandi (Chair) and Timothy Lyons both left the VGPB in October 2020 and Russell Yardley left at the end of June 2021. The new Chair, Nadine Lennie, was appointed on 10 October 2020. Samantha Winter joined the VGPB on the same day and Raoul Wainwright joined on 1 June 2021.

At 30 June 2021, the VGPB had eight members.

Nadine Lennie (Chair)

Nadine Lennie is a finance professional with more than 25 years of experience in procurement across large-scale programs to deliver projects in both the public and private sectors. Nadine brings to the position of chairperson extensive financial acumen, experience working within government policy frameworks, and leadership and board management expertise.

Claire Thomas

Claire Thomas is an economics professional with a background in public policy and administration. Now an independent public policy consultant, Claire has provided economic and public policy advice to a range of government and not-for-profit organisations.

Claire is a non-executive director of a not-for-profit disability service provider, a member of the Independent Review Panel providing probity oversight over the allocation of gambling licences in Victoria, and an independent member of the DJCS Audit and Risk Management Committee.

Denise Dyer

Denise Dyer is a multi-skilled professional with extensive experience in procurement, property and stakeholder relationship management. She has expertise in delivering major capability and change projects including information technology initiatives across a large, complex government business enterprise.

Denise also has a background in finance, consulting and in achieving social procurement outcomes in sourcing activities. Previously she Chaired the Corporate Real Estate Committee of the Victorian Property Council, and was the Company Secretary of corProcure, a joint venture between major corporations to promote global buying. Her current full-time role is in the Victorian Public Sector as a Senior Manager in property and procurement at William Angliss Institute.

Peter Lane

Peter Lane is an experienced information technology professional, who has worked across the automotive, consumer goods and technology consulting sectors, both in Australia and internationally.

More recently, Peter has been employed in the Victorian Public Sector as Chief Information Officer in DJPR.

Raoul Wainwright

Raoul Wainwright is an experienced industrial advocate, with a strong background in workplace relations and community services. Raoul has substantial experience in public policy development and working with government at all levels.

Raoul brings a practical understanding of the role of procurement in driving social, employment and environmental outcomes, in line with the Government’s commitment to driving deeper value for money from procurement, including through the Social Procurement Framework.

Russell Yardley

Russell Yardley is a successful entrepreneur and business owner. Russell has strong governance skills and is an experienced board member. Russell’s career has focused on innovation, ideas strategy and planning in ICT. Russell retired from the VGPB on 30 June 2021.

Samantha Winter

Samantha Winter is an accomplished finance executive and experienced non-executive director. Samantha is an experienced Audit and Risk Committee Chair, supported by extensive experience as a commercial executive. Samantha brings a wealth of knowledge and experience in strategic planning, ICT, project delivery, business improvement and general management across the private and not-for-profit sectors. Samantha has a sound understanding of complex service organisations overseeing diverse operations and stakeholders.

Seona James

Seona James is a Yorta Yorta woman who has focused her career to date primarily on Aboriginal engagement and relationship-building, both externally with Aboriginal organisations and internally with leadership teams and employees. Seona has been employed with the Victorian Civil and Administrative Tribunal, DHHS East Division, Linfox Logistics Australia, CPA Australia, DJCS and Australia Post in such roles.

Seona is a businessperson who established her business (Indigenous Cultural Connections) in March 2018 and is currently self-employed. She was a member of the Victorian Aboriginal Economic Board from April 2017 to May 2019.

Board meetings

The VGPB meets once every two months to:

• Develop and approve policies
• Provide guidance on strategic procurements
• Discuss procurement policy and practice matters.

The Board held six meetings over the reporting period and two planning sessions to set new strategic priorities. Meeting attendance is listed in the following table.

Assessing the VGPB’s performance

Each year, VGPB members conduct individual and Board assessments of performance over the past 12 months and identify opportunities for improvement.

In line with good practice guidance from the Victorian Public Sector Commission, the self-assessment considers a number of key areas, including fulfilment of legislative requirements, strategic leadership, governance, board meetings and decision-making, integrity, diversity and stakeholder relationships.

Key themes emerging from the Board performance assessment process included recognition of the large number of potential issues and activities, and the need for the Board to remain focused on its key strategic priorities. In particular, the Board agreed on the need for a continued strong focus on stakeholder engagement, and its oversight of important procurement systems and data work.