Victorian Government Purchasing Board Annual Report 2020-21

The Victorian Government Purchasing Board sets the policies that govern procurement of non-construction goods and services across all Victorian Government departments and some public bodies.

Our vision is to provide leadership in government procurement of goods and services to deliver value-for-money outcomes for Victoria.

This annual report summarises the work we’ve done to meet our legislative obligations and achieve our vision over the past financial year from 1 July 2020 to 30 June 2021.

This report is required under section 54M of the Financial Management Act 1994.

Reporting on departments and specified entities

We report on the procurement activity, compliance and performance of the departments and specified entities mandated to comply with Victorian Government Purchasing Board policies under the Financial Management Act. Use of the term ‘organisation’ in this report refers to the following:

• Department of Education and Training
• Department of Environment, Land, Water and Planning
• Department of Health / Department of Families, Fairness and Housing
• Department of Jobs, Precincts and Regions
• Department of Justice and Community Safety
• Department of Premier and Cabinet
• Department of Transport
• Department of Treasury and Finance
• Cenitex
• Major Transport Infrastructure Authority
• Victoria Police

The 2020–21 year was an extraordinary one for government procurement and for the Victorian Government Purchasing Board (VGPB). Departments and agencies were required to move quickly and respond to a rapidly changing environment, deliver services in response to the COVID-19 pandemic and operate seamlessly during extended periods with movement restrictions. Many departments and agencies were then required to prepare for, and implement, transformative programs to stimulate economic and social recovery.

Despite these challenges, the VGPB continued to advance the Victorian Government’s procurement reform agenda. A key milestone in this reform program was the expansion of the VGPB’s policy framework to cover an additional 125 agencies from 1 July 2021. This reform will establish consistent processes across government agencies, allow these agencies to achieve greater value-for-money outcomes and provide government with greater oversight of its spending.

Another key milestone in 2020–21 was the establishment of procurement data collection and analytics capability within the Department of Treasury and Finance (DTF). This capability is critical to enable better data-driven procurement decision-making and promote more streamlined processes for buyers and suppliers.

Board renewal

Board renewal remains important, with the focus during the year on maintaining an appropriate balance between experience and fresh perspectives.

Antoinette Brandi retired as Chair in October 2020. I wish to thank Antoinette for her contributions and commitment to the VGPB throughout her five-year tenure. Antoinette led the VGPB through a period of substantial change, culminating in the Government’s decision to implement the expansion reform agenda.

In October 2020, Timothy Lyons retired after five years and in June 2021, Russell Yardley retired after nine years with the VGPB. I take this opportunity to thank both Tim and Russell for their significant contributions to government procurement activities during their time with the Board.

We also welcomed two new members during the year being Samantha Winter and Raoul Wainwright. Samantha and Raoul bring considerable experience to the Board, and I look forward to working with them in this next phase of the VGPB’s development.

Strategic priorities

In 2020–21, the Board revised its strategic priorities in consultation with the departmental chief procurement officers. The four new priorities agreed by the Board encompass the ongoing programs of work to successfully expand the VGPB policy framework to the additional 125 agencies, and continue to grow the data collection and analytics capability within DTF.

The priorities also include new focus areas to build the recognition of procurement as a strategic lever to achieve government objectives, and to streamline and simplify the procurement framework to create better quality procurement outcomes.

The four strategic priorities and related activities this past year are covered under VGPB activities in 2020–21.

Stakeholder engagement

On behalf of the Board, I would like to sincerely thank the Procurement Policy and Reform team in DTF for their continued hard work and support. The team worked diligently during a challenging year to support the VGPB, and to develop and implement activities to support delivery of the strategic priorities.

We also appreciate our close working relationship with the chief procurement officers in the various government departments and agencies, as their input and expertise contribute greatly to the delivery by government of quality procurement practices.

With clear strategic priorities now in place, the focus for the coming years is to deliver action plans against these priorities, and to support the Victorian Government to become a buyer of choice.

With an energised team and a clear focus, we look forward to achieving good procurement outcomes for Victoria in the year ahead.

Nadine Lennie
Chair, Victorian Government Purchasing Board

Strategic priorities

In 2020–21, the Victorian Government Purchasing Board (VGPB) held strategic planning sessions with departmental chief procurement officers (CPOs) to refine the Board’s strategic focus for the next few years. The result of these planning sessions was the development of four clear strategic priorities and a supporting action plan, which will guide the direction of the VGPB through to the end of 2023.

This section outlines the actions completed under each of these strategic priorities.

Vision

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

Strategic priorities 2021–23

• Priority 1: Enhance procurement systems and data
• Priority 2: Deliver the expansion program
• Priority 3: Improve visibility and support for good procurement
• Priority 4: Create fit-for-purpose procurement
• Other activities under the Financial Management Act 1994.

Priority 1: Enhance procurement systems and data

Access to accurate and timely data is critical to driving good procurement outcomes and savings for government. Technology is also key to driving efficiencies in the procurement process and improving the supplier experience.

Under the oversight of the VGPB, the Department of Treasury and Finance (DTF) is leading two technology-related initiatives to improve procurement outcomes.

Improve procurement data and analysis

A significant program of work is under way to improve the collection, aggregation, reporting and analysis of procurement data across government departments. This work will enable greater data-driven identification of savings opportunities for government.

Following a successful pilot in 2019–20, DTF has established a quarterly process to collect and classify accounts payable data from the nine departments, Victoria Police, the Major Transport Infrastructure Authority and Cenitex.

Work is continuing with the Victorian Centre for Data Insights in the Department of Premier and Cabinet (DPC) to automate collection and classification and improve the accuracy of data classification to enable high-quality analysis.

A procurement data analytics function has now been set up to analyse the data collected from these organisations and build procurement data capability to identify saving opportunities and make more data-driven decisions.

State purchase contract (SPC) category managers now have access to regular data analytic reports including dashboards that help identify contract leakage. This data can be used to make SPCs more effective and identify procurement trends and patterns, leading to opportunities to leverage the buying power of government and implement new SPCs.

Deliver a single supplier portal

A new online supplier portal is being developed to give suppliers a single, central point to register their business details for use across government departments and agencies.

Currently, suppliers register separately with every Victorian Government department and agency they do business with. The new portal will reduce this administrative burden, making it easier for suppliers to do business with government. Government will also benefit from a more effective mechanism to manage its supplier base.

A pilot was conducted in 2020–21 and will be deployed across all departments in 2021–22, after consulting with departments on the outcomes of the pilot.

Priority 1: Key achievements

• Quarterly data collection automated – about 1.8 million transactions a year classified for analysis
• Data analytics function established
• Supplier portal pilot near completion
• Analytics dashboard for category managers built.

Priority 2: Deliver the expansion program

A key part of the Victorian Government’s reform agenda is expanding the remit of the VGPB to include agencies subject to the Standing Directions of the Financial Management Act 1994, such as TAFEs, water corporations and catchment management authorities.

An additional 125 agencies will be subject to VGPB supply policies from 1 July 2021 with a transition period to enable compliance.

The broader application of VGPB policies is designed to embed consistent and simplified procurement processes and streamlined procurement governance arrangements across government. This will give greater oversight of government spending, better value-for-money outcomes and make it easier to do business with government.

Suppliers will also experience benefits such as:

• simpler and more consistent tender processes that will help small, medium and local businesses supply to government
• proactive market engagement to help identify new suppliers
• more information released sooner through forward activity plans
• standardised and simplified contracts presented in plain English
• timely and relevant feedback offered to all suppliers

In 2020–21, we updated our goods and services policies to make it easier for agencies to scale the policies to suit their size. Compliance requirements are aligned to an organisation’s procurement risk and complexity profile.

We also developed a communications and engagement plan to inform and support incoming agencies with their transition to VGPB supply policies and SPCs.

Incoming agencies can also make greater use of SPCs, with a two-year progressive transition period starting on 31 December 2021. SPCs are an important mechanism for government to achieve greater value for money and streamline delivery of outcomes, by aggregating demand, centralising due diligence processes and strong supplier relationship management.

Exemptions to an SPC are available where the agency is unable to obtain value for money under the SPC, or where a regional supplier can provide the same or better value.

Expanding the VGPB's remit

• 35 departments and agencies
• 125 additional agencies from 1 July 2021

Communication and engagement activities

In 2020–21, we began communication and engagement activities designed to help incoming agencies make their transition as easy as possible. This work will continue throughout 2021–22. It is important to support incoming agencies in their transition process and incorporate feedback loops into the activities via surveys and specific feedback engagements.

These feedback loops will be actively monitored by the Board and used to modify the support programs or change the approach as needed.

The VGPB began its first engagement activities with incoming agencies in June 2021. Workshops will continue until 2023 and cover a full spectrum of topics including understanding policy requirements, applying VGPB guidance, tools and templates and delivering good procurement outcomes. This will enable all expansion agencies to work through the transition process together, with opportunities to check-in during the lead-up to and following key implementation milestones.

The VGPB also began engaging with regional Chambers of Commerce to help suppliers understand the changes. Further support on how to supply to government is being planned with Business Victoria.

Understanding the attestation process

To minimise the administrative burden on incoming agencies, the VGPB will monitor compliance of incoming agencies with the policy framework through the existing Standing Directions attestation process.

Guidance for agencies on this process has been provided through workshops and the Standing Directions Community of Practice. Further guidance materials and dedicated workshops will be provided in the lead-up to the first attestation on 30 June 2022.

Connecting online

An online Expansion Program Community of Practice has been established on the Victorian Government’s intranet to connect with individuals from government agencies looking for expansion information. Members can access guidance materials and invites to information sessions and workshops.

The Buying for Victoria website has been updated with guidance and tools, including an updated Guide to aligning with VGPB supply policies and a self-assessment checklist of requirements.

Priority 3: Improve visibility and support for good procurement

Procurement can contribute significantly to achieving government objectives, whether it’s buying the right product, getting better value for money, or following proper process to safeguard against risks. To maximise the contribution that the procurement profession can make, we need to ensure it has a seat at the table.

The VGPB and CPOs agree that with a greater focus on stakeholder communication and engagement, the VGPB can play a key role in lifting the profile of the profession within government and building awareness of the value that procurement professionals can bring.

The VGPB engages with organisations and other stakeholders on a broad range of procurement activities, enabling the VGPB to monitor compliance more widely, engage and interact with procurement personnel across government and give strategic advice.

The VGPB will also seek to increase its visibility among buyers and suppliers to build stronger understanding of the Government’s procurement policies and create feedback loops to support continuous improvement.

In 2020–21, we developed a stakeholder engagement plan to support this priority. The plan sets out how we will engage with key stakeholders including CPOs, public sector leaders and government buyers and suppliers over the next two years to lift the profile of procurement across government.

We started this engagement activity with VGPB members delivering presentations in the first half of 2021 to the Public Sector Administration Committee, the CPO Forum and the Government Buyers Community of Practice.

The level of stakeholder engagement activity will ramp up in 2021–22, with a series of consultations planned to understand barriers to good procurement under Priority 4, and several Board member engagements with departments, public sector leaders and supplier representative groups.

VGPB meetings

In 2020–21, five organisations presented to the VGPB at their bi-monthly board meeting as follows.

November 2020

DTF presented a draft business case for a proposed SPC.

December 2020

Cenitex presented its audit outcomes

February 2021

DJPR presented on its accreditation

April 2021

DPC and DELWP presented a proposed upgrade of geospatial data and analytics panel arrangements in the eServices SPC

June 2021

DPC presented the Victorian Government Digital Strategy.

Priority 4: Create fit-for-purpose procurement

The VGPB policy framework is based on sound procurement practice that delivers good commercial outcomes and ensures accountability and transparency. As such, it is a ‘fit-for-purpose’ procurement framework.

With the procurement landscape constantly changing, our policy framework and its application must also evolve to stay relevant and aligned with best practice. Under this priority, the VGPB seeks to streamline and simplify the procurement framework, and identify barriers to fit-for-purpose procurement. The VGPB periodically reviews its framework to look for improvements, as well as opportunities to share information and build capability.

The VGPB seeks to help the Victorian Government become a buyer of choice. To support this goal, the VGPB will investigate the complexity of the wider procurement landscape, to identify opportunities to streamline policies and reduce the complexity of doing business with government. Our ongoing work with agencies as part of the expansion rollout also informs our discussions on what fit-for-purpose procurement looks like.

Investigate barriers to fit-for-purpose procurement

Researching barriers

In 2020–21, we began stakeholder consultations into barriers to fit-for-purpose procurement to inform a targeted program of work to improve procurement policies and practices.

In 2021–22, the VGPB will set up a steering committee of VGPB members and departmental CPOs to oversee the stakeholder consultation, and the identification, prioritisation and delivery of improvement opportunities.

This will be an iterative and collaborative process focused on co-designing and implementing solutions.

Procurement research and intelligence function

In 2020–21, we set up a procurement research and intelligence function to track developments and get insights into the Victorian Government’s procurement reform priorities. This will help inform our current and planned policy initiatives and identify new opportunities to enhance procurement policies and practice.

Interjurisdictional engagement

We increased our interjurisdictional engagement with other Australian and international governments and the Australasian Procurement and Construction Council to advance public procurement. For example, our ongoing collaboration with colleagues in the New Zealand Government involved comparing procurement operating models, priorities and initiatives and has informed activities undertaken in relation to this priority.

Address barriers to fit-for-purpose procurement, including focused and coordinated capability building

Capability framework

Just before the end of the 2019–20 financial year, we published a buyer capability framework setting out standardised skillsets for procurement professionals. Skillsets are based on procurement complexity, making it suitable for any size agency.

In 2020–21, we updated the capability guide and tools to align with this framework. The capability assessment tool was also revised in preparation for the expansion rollout to ensure that the rating scale is relevant for smaller agencies.

Collaborative forums

We hosted three procurement community of practice forums during the year, bringing together more than 800 procurement practitioners from across government. Moving this forum online to meet COVID-19 restrictions gave us the additional benefit of extending our reach and having regionally-based agencies participate.

This forum helps build awareness of procurement policies, guides, tools and templates and encourages a culture of procurement knowledge sharing and best practice.

We also host a smaller, more focused group for procurement practitioners called the whole of Victorian Government (WoVG) Procurement Officers meeting. We held six procurement officer meetings during the year, covering a range of topics.

This collaborative forum is focused on the changing procurement landscape, pressing issues and sharing ideas and best practice to improve collective procurement expertise and capability. This is a great opportunity for those working in procurement policy to network and learn from their peers.

Online forums

Our online buyers community of practice on the innovation network expanded from about 600 to 800 members, allowing us to reach even more procurement professionals across government with procurement updates, resources and materials.

Topics on offer at the Whole of Victorian Government procurement officers meetings:

• August 2020 – Independent Broad-based Anti-corruption Commission(IBAC) presented on identifying and dealing with conflicts of interest in procurement
• October 2020 – PepperGreen Farm, an Australian disability social enterprise presented on working with social enterprises
• December 2020 – Social Procurement Framework Practical tools and templates to support government buyers with incorporating social procurement content in their invitations to supply
• February 2021 – Category management in WoVG context with DET and DJCS presenting their category management approach
• April 2021 – Circular economy and sustainability with a single‑use plastic policy update from DELWP and a Zoos Victoria case study
• June 2021 – Workshop on defining fit-for-purpose procurement and identifying barriers to its implementation

Priority 4: Key achievements

• 3 Procurement Community of Practice forums with 533 attendees
• 6 Procurement Officers’ meetings
• 803 government members of our online buyers community of practice (600+ end of last year)

Cleaning contract awarded to Aboriginal company

Other activities

Harmonise goods and services and construction procurement

A review of government procurement in late 2017 noted significant differences in processes for construction procurement and goods and services procurement. The review recommended that departments and agencies seek to harmonise these processes to reduce complexity and the administrative burden for buyers and suppliers.

Benefits of harmonising procurement processes:

• Quick and coordinated delivery of essential services
• More efficient procurement processes
• Less complexity
• Reduced administrative burden
• More consistent application of procurement principles
• A consistent and integrated procurement framework

In 2020–21, in consultation with the VGPB, DTF released a new approach to harmonisation for departments and agencies that procure a combination of goods and services and construction goods and services. These organisations will now harmonise their two policy frameworks where relevant and useful, using existing procurement arrangements and opportunities to maximise benefits for buyers.

An integrated procurement framework template was published to help agencies integrate their separate procurement frameworks, on a case-by-case basis.

Going forward, the VGPB will continue to consider how harmonisation could work more broadly to simplify the procurement landscape.

Update standard contract templates in response to the Fair Payments Policy

The Minister for Small Business announced reforms to the Government’s Fair Payment Policy, with payment terms for contracts under $3 million to move from the current 30 days to 10 days from 1 January 2021. We updated all six VGPB standard contract templates to reflect these changes.

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.

Monitoring compliance with VGPB policies

Under the Financial Management Act 1994 (FMA), the VGPB is responsible for monitoring compliance by departments and specified entities with its supply policies (refer to Scope of VGPB policies under About the VGPB to see which organisations come under the remit of the VGPB).

The VGPB monitors compliance through the seven main mechanisms. This section covers accreditation, compliance reported in annual supply reports, audit results, performance measures and complaints. The VGPB’s engagement activities are covered earlier under Priority 3: Improve visibility and support for good procurement.

Use of the term ‘organisation’ in this section, refers only to organisations (departments and specified entities) mandated to comply with VGPB policies under the FMA.

Compliance mechanisms

Compliance mechanisms include:

• Annual supply reports
• Performance measures
• Audits
• Engagement
• Complaints
• Procurement activity plans
• Accreditation

Accreditation process

Organisations are required to seek VGPB accreditation of their compliance with the goods and services supply policies.

Annual supply report

Organisations submit an annual supply report to the VGPB at the end of each financial year summarising their procurement activity, performance measure results and compliance with the VGPB supply policy framework.

Audit program

Organisations conduct an internal audit of compliance with VGPB policies and submit the audit report to the VGPB every three years. From 2021–22, the audit approach will change, with organisations required to undertake two procurement-related audits every three years. Progress on actions to address findings are monitored by the VGPB.

Performance measures

Organisations monitor performance against five performance measures and report results in their annual supply report. For one measure (supplier satisfaction), the VGPB has commissioned a market research company to manage an ongoing survey of suppliers to assess satisfaction levels and identify areas for improvement in procurement.

Engagement

The VGPB’s engagement model has replaced the former oversight process. CPOs may be invited to VGPB meetings to discuss compliance issues, and are encouraged to discuss procurement strategies, strategic procurements or any other procurement matters with the VGPB at scheduled VGPB meetings or at other relevant forums with VGPB members.

Complaints management

Organisations maintain a complaints management system for supplier complaints related to the process and probity applied during a procurement activity. Organisations list complaints in their annual supply report. Suppliers dissatisfied with complaint outcomes may escalate these with the VGPB for investigation.

Review of procurement activity plans

Organisations publish forward procurement activity plans on their website to give the supplier marketplace forward notice of procurement activity planned in the coming 12 to 18 months. These plans are submitted every year for review by the VGPB.

Accreditation

Departments and some specified entities need to apply for and obtain VGPB accreditation under the goods and services supply policies.

Accreditation involves a department or specified entity preparing a detailed submission for the VGPB with evidence demonstrating compliance with the goods and services supply policies.

Agencies subject to the VGPB expansion do not go through accreditation. However, they will need to align their policies and processes with the VGPB's goods and services supply policies.

If machinery of government changes result in the creation of new departments or significant changes to an existing organisation’s procurement function, the newly formed organisations are required to submit a new accreditation application.

Two departments were accredited in 2020–21 after machinery of government changes in 2019 (see case study below).

On 31 January 2021, the Department of Health (DH) and the Department of Families, Fairness and Housing (DFFH) were formed from a machinery of government change in the former Department of Health and Human Services.

Both departments will undertake VGPB accreditation in 2022, given the substantial changes to their procurement profiles.

Last year, MTIA’s procurement activity was reported under Department of Transport (DoT), in line with the usual practice for administrative offices. MTIA has a substantial goods and services budget and governs and operates its procurement function separate from DoT. MTIA has opted to seek independent accreditation in 2021–22. The VGPB welcomes MTIA’s decision to seek accreditation.

Compliance reported in annual supply reports

Organisations submit an annual supply report (ASR) to the VGPB at the end of each financial year.

In the ASR, organisations self-assess whether they complied with all required components of the VGPB supply policy framework. Unlike the VGPB audit process, it does not assess how well organisations comply with the components, but gives the VGPB a high-level overview of how organisations view their own compliance.

Overall compliance

In 2020–21, organisations reported high levels of compliance with the VGPB supply policy framework.

Download this document for compliance with VGPB policies in 2020–21, including:

• compliance against the 5 goods and services supply policies
• other mandatory requirements
• overall compliance

Table Compliance with VGPB policies in 2020–21

docx 28.23 KB

Compliance by policy area

Policy 1: Governance

All but one organisation reported full compliance with the requirements of this policy in 2020–21.

Victoria Police reported that two components of its procurement strategy (contract management planning strategy and capability development plan) are not complete, however work is under way to address this.

The following table describes compliance with governance requirements in 2020–21.

Policy 2: Complexity and capability assessment

All but one organisation reported compliance with the requirements of this policy.

DELWP did not review its procurement capability development plan in 2020–21. The plan will be reviewed in 2021–22.

The following table describes complexity and capability assessment requirements in 2020–21.

Policy 3: Market analysis and review

All organisations reported compliance with the requirements of this policy.

The following table describes market analysis and review requirements in 2020–21.

Policy 4: Market approach

All organisations reported compliance with the requirements of this policy.

The following table describes market approach requirements in 2020–21.

* Four organisations did not purchase any goods and services under the critical incident procurement protocol in 2020–21.

Policy 5: Contract management and contract disclosure

Two organisations did not fully comply with the requirements of this policy.

DoT disclosed all contracts over $100 000 in 2020–21, but not all contracts over $10 million due to COVID-19 restrictions and staff being unable to attend the office to redact commercial-in-confidence material before publishing. Contracts are being reviewed and will be placed on the Tenders Vic website as soon as possible.

Management of insurance certificates was flagged as an area for improvement for Cenitex in their VGPB compliance audit. Cenitex developed a risk-based classification methodology to support its insurance certification review requirements. More than half of its contracts (62%) and half of all vendors have now been reviewed with this work continuing into 2021–22.

The following table describes contract management and disclosure requirements in 2020–21.

Other mandatory requirements – Supplier Code of Conduct

All organisations complied with these requirements in 2020–21.

The following table describes Supplier Code of Conduct requirements in 2020–21.

Audits

Departments and agencies are accountable for ensuring good procurement practice in line with VGPB policies. Under the VGPB’s audit program, departments and accredited agencies internally audit their compliance with VGPB policies every three years.

The VGPB audit program:

• verifies compliance with VGPB supply policies
• minimises risks
• improves processes to drive better procurement outcomes

The audit measures how well organisations are delivering benefits, efficiencies and better service delivery as a result of improved supplier engagement, increased market engagement and greater rigour in driving value from contracts.

From 1 July 2021, the VGPB will put in place a new process of two targeted audits over a three-year period. The focus of the audits will shift from broad compliance to focus more directly on managing and reducing the most important risks for the organisation and looking for process improvements which align with departments’ broader strategies.

A summary of the audits conducted in the second three-year cycle of the VGPB audit program from 2018–19 to 2020–21 is presented in the downloadable document Table Audit program schedule and results at 30 June 2021.

Two further audits (DoT and DJPR) were also completed in this period and reports provided as part of the requirements for their accreditation applications.

DJCS is due to complete its audit in Quarter 4 of 2021.

Download this document for the audit program schedule and results at 30 June 2021:

Table Audit program schedule and results at 30 June 2021

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Audit findings in 2020–21

Department of Health and Human Services

DHHS (now DH and DFFH) completed its audit in August 2020. The overall audit rating was ‘Acceptable Controls’ – the second highest of four ratings. The audit identified three findings, including gaps in documentation to support completion of procurement/contract management activities (risk rating –medium), limited recording and reporting of SPC usage (risk rating – low-), and gaps in the capture of asset disposal information.

In response to the audit, DHHS reviewed and updated its procurement documentation management, strengthened its communications on procurement requirements with business units and its monitoring of use of SPCs, and updated its asset disposal policy and introduced an online asset disposal management register.

Cenitex

Cenitex completed its audit in August 2020. The audit concluded that Cenitex’s procurement processes and controls were continuing to build in maturity. The audit identified five findings related to:

• Finalising procurement governance strategies and plans
• Strengthening record-keeping and controls to clearly demonstrate that probity, impartiality and transparency during the performance of procurement activities and ‘best value’ procurement outcomes are achieved and captured
• Monitoring currency of supplier insurance certificates
• Opportunities for management to uplift Cenitex’s Procurement Transformation project.

The external auditors attended the VGPB meeting in December 2020 to discuss the audit findings and management actions. Cenitex has subsequently updated four key governance documents, investigated and remediated a small number of complexity assessments and signed contracts not provided to the auditor during the audit, updated induction and records management processes, and started a review of insurance certificate expiry dates to be completed in 2021–22.

Department of Environment, Land, Water and Planning

DELWP completed its audit in December 2020. The overall audit rating in relation to consistency of approach was ‘Inconsistent’ and in relation to maturity of design was ‘Evolving’– both of these ratings were the second lowest of four ratings on their respective scales.

The audit identified three findings:

• DELWP’s current approach to managing and overseeing procurement activity did not support full compliance with VGPB policy requirements (risk rating – significant)
• Processes and controls relating to asset disposal need improvement (risk rating – medium)
• Processes and controls relating to management of procurement complaints need improvement (risk rating – low)

In response to these issues, DELWP has implemented a hub-and-spoke operating model with improved oversight and support from the central procurement unit. It has implemented new procurement systems, strengthened its monitoring of asset disposal, and updated policies and procedures to ensure compliance with VGPB policy requirements by business units undertaking goods and services procurement. A complaints register has also been established to monitor the progress of complaints in line with documented timeframes.

Performance measures in 2020–21

Organisations track their procurement performance each year using the performance measures and methodology listed in Table 11.

The supplier satisfaction assessment is based on a survey sent to suppliers. Results from 2020–21 are listed in Table 12. More information on organisational performance, including a comparison with the previous two years, can be found under each organisation’s profile in the Procurement profiles section.

Performance measure methodology

Value created as a consequence of department procurement activity

Value of direct expenditure savings (and potential expenditure avoided) of the organisation’s procurements conducted during the financial year, as a percentage of total value of the organisation’s contracted spend during the financial year.

Managed spend

The proportion of goods and services procurement spend reviewed or undertaken by an organisation’s central procurement governance unit.

Increase/decrease in procurement capability

Annual assessment of change in organisational procurement capability year-on-year, measured by the VGPB capability assessment tool.

Supplier satisfaction assessment

Satisfaction with the procurement process and service provided by the organisation’s procurement function, based on a survey of supplier experience of individual procurement activities. The survey is conducted with successful and unsuccessful suppliers.

Planned procurement activity as a percentage of actual procurement activity

Number of planned procurements documented in the organisation’s internal forward activity plan against the number of market approaches actually undertaken during the financial year.

Download this document for the summary of performance measures results in 2020–21, including:

• Value created through procurement
• Managed spend
• Increase in procurement capability
• Successful and unsuccessful suppliers
• Planned procurement activity

Table Summary of performance measure results in 2020-21

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Complaints

Organisations must have a complaints management system which sets out the process for addressing complaints by suppliers related to process or probity concerns for a particular procurement. CPOs are responsible for the complaints management process. In 2020–21, all organisations had a complaints management system in place.

Eight complaints related to procurement activity were reported in 2020–21. This compares to four complaints in 2019–20 and 10 complaints in 2018–19.

Organisations investigate and resolve complaints in line with their complaints procedure. If the complainant is dissatisfied with the outcome, they may escalate their complaint for further review to the VGPB.

Download this document for the summary of complaints received in 2020–21:

Table Summary of the complaints received 2020-21

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Resolution of complaints from 2019–20

In 2019–20, DTF reported one complaint related to a late submission to an SPC tender, and an assertion that the process for informing stakeholders was deficient.

The CPO’s investigation found that the integrity of the tender process had not been compromised. The independent probity adviser engaged by DTF also found that the late submission should not be accepted.

The complainant was dissatisfied with the outcome of the investigation and referred the matter in June 2020 to the VGPB for review. The VGPB found no breaches of VGPB policy requirements in how DTF had communicated with the market before release of the tender, nor in how DTF had responded to the complaint. The complainant was advised of the outcome of the complaint in September 2020.

In 2020–21, the VGPB collected procurement data from 12 organisations – the nine Victorian Government departments, Cenitex, MTIA and Victoria Police.

On 31 January 2021, the Department of Health and Human Services was split into two new departments: the Department of Health (DH) and the Department of Families, Fairness and Housing (DFFH) under machinery of government changes. DFFH and DH are reporting the same financial data (including procurement) in 2020–21.

This is the first year that MTIA has reported separately to the VGPB as it progresses towards accreditation in 2020–21. Last year MTIA reported through its portfolio department, DoT.

Snapshot of contract approval data

For contracts valued greater than $100 000:

• 1,231 total contract approvals in 2020–21 (number)
• $2,753.6 million total contract approvals in 2020–21 (value)

Number of contracts (by type of contract) and value

The following table describes the number of contracts (by type of contract) and value:

Complexity profile across government contracts

The following table describes the complexity profile of contracts by number of contracts and value:

About contract approval data

The VGPB collects data on contract approvals of all (non-construction) goods and services contracts valued at $100,000 or more, including GST. This reflects the total estimated value of contracts approved during the financial year. It does not reflect actual spend under contracts, particularly for longer term procurement arrangements such as state purchase contracts (SPCs) and sole entity purchase contracts (SEPCs).

Organisations report on three types of contracts:

One-off supply contracts

A single purchase of a specific quantity of goods or services.

One-off supply contracts are usually procured following standard procurement processes. However, during a critical incident, contracts may be procured under critical procurement protocols, which are designed to enable government to quickly respond to any emergency, crisis or disaster by adopting streamlined and flexible procurement processes.

One-off supply contracts can be established under SPCs and SEPCs, but these are not reported in contract approvals, because the contact value has already been captured under reporting of the head SPC/SEPC agreement.

Sole entity purchase contracts (SEPC)

A standing offer agreement for goods and services commonly used within an organisation. SEPCs are mandatory for the organisation establishing the arrangement.

State purchase contracts (SPC)

A standing offer agreement for goods and services commonly used across the Victorian Government, such as stationery, print management and ICT services.

Contracts approved in 2020–21

In 2020–21, the 12 organisations reported 1 231 procurement contract approvals (with an approved contract value greater than $100,000) with a total combined value of $2,753.6 million, as shown in the document below.

Consistent with previous years, the highest number and value of contract approvals relate to one-off supply contracts.

Organisations continued to procure significantly more goods and services under the critical incident protocol than in previous years due to the procurement response needed to keep Victorians safe during COVID-19.

The number of critical incident contracts approvals valued above $100,000 made up 19.7% of all one-off supply contracts, which is similar to last year (18.9%).

To read more about the critical incident procurement protocol and contracts approved under this policy in 2020–21, refer to One-off supply approvals (critical incidents) later in this section.

Download this document for the number and value of contract approvals in 2020–21 by goods and services:

Table total number and value of contract approvals in 2020-21 by goods and services

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Trends in contract approvals

The document 'Table trends in one off supply, SEPC and SPC contract approvals from 2018-19 to 2020-21' shows the number and value of contracts approved over the last three years. The increase in value this year can be attributed to two high-value SPCs renewed in 2020–21: the Master Agency Media Services SPC valued at $400 million and the Professional Advisory Services SPC valued at $500 million. These contracts both include a three-year contract term and two options to extend. The total estimated contract value encompasses this five-year period.

The number and value of SEPC and SPC approvals varies from year to year based on the specific procurement projects that need to be carried out in any given year, and/or the expiry and need for renewal of SEPCs and SPCs.

Download this document for the number and value of contracts approved over the last three years:

Table trends in one off supply SEPC and SPC contract approvals from 2018-19 to 2020–21

docx 23.01 KB

One-off supply contract approvals (standard process)

In 2020–21, organisations reported 964 one-off supply contract approvals valued at $919.6 million, excluding critical incident procurement contract approvals (see Table 17).

This compares to 1,036 one-off supply contract approvals in 2019–20, valued at $1,272 million.

Download this document for the number and value of one-off supply contract approvals by organisation and by goods and services in 2020-21:

Table One off supply contract approvals by organisation and by goods and services in 2020-21

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One-off supply approvals (critical incident process)

The VGPB’s market approach policy allows organisations to adopt streamlined and flexible procurement processes to facilitate an immediate response to an emergency, crisis or disaster (referred to in the policy as a critical incident). This policy applies to all Victorian Government departments and any public bodies that are subject to VGPB supply policies.

Critical incident protocols and processes are invoked when a relevant minister, accountable officer or CPO declares a critical incident to exist in relation to the operation of procurement processes by reason of:

• An emergency within the meaning of the Emergency Management Act 1986
• An incident that causes an organisation's business continuity plan to be activated
• An incident that represents a serious and urgent threat to the health, safety or security of a person or property, or
• A situation that represents a serious or urgent disruption to services provided by an organisation.

During a critical incident, all other supply policies do not apply to the extent that the critical incident makes it impractical to apply them. Regardless, an organisation must:

• Take into account value for money, accountability, information asset security and probity to the extent that they can be applied given the severity and urgency of the incident
• Adopt minimum record-keeping processes
• Adhere to contract disclosure requirements.

Organisations must develop a plan or adopt a format that allows for minimum recording of certain information in relation to procurement decisions during a critical incident.

The accountable officer or CPO is to define a date at which procedures under critical incidents cease, after which organisations resume operating under standard VGPB procurement policies and processes.

This section includes all CIPs approved in 2020–21, including those valued at less than $100,000. Nine of the 12 reporting organisations conducted critical incident procurements in 2020–21, one less than last year. Cenitex reported four critical incident contract approvals in 2019–20, but none this year.

In 2020–21, organisations reported 466 critical incident contract approvals valued at $870.8 million, as listed in the document below.

Most of these contract approvals (95.5%) were for COVID-19 related goods and services, such as:

• Personal protective equipment and deep cleaning
• Testing and contract tracing services
• Supporting frontline and other COVID-19 workers
• Managing quarantine arrangements.

Contract approvals under the ‘Other’ category related to bushfire response (1), avian influenza (17) and state memorials (3).

DH/DFFH and DJCS reported the highest value of critical incident procurements in 2020–21, which is to be expected given that they are lead agencies in Victoria’s COVID-19 response.

Download this document for the number and value of critical incident procurement by organisation in 2020-21:

Table Critical incident procurement by organisation in 2020-21

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Variations

Most variations reported in 2020–21 related to one-off supply contracts. The following table lists the number of contract variations by value range in 2020-21:

An organisation may vary a contract for numerous reasons:

• The project scope or timeframe may change during the contract lifespan, requiring a variation to the original contract
• A lack of suitable suppliers may make it more economical to vary a contract than launch a full tender process
• Organisations may need to extend contracts to provide service continuity after machinery of government changes or while they prioritise their response to emergency events such as bushfires or COVID-19
• A variation can cover a transition period while an organisation prepares for a full tender process.

The following table shows the number of variations reported by organisations in 2020–21:

Note 1: DET keeps full records of all variations but cannot extract number and value from its current procurement system. A new system will be implemented soon to enable this data capture.

Note 2: DELWP provided partial variations data in 2020–21 due to migrating to a new contract management system. This includes contract variation data for contracts above $150 000 from July to December 2020 and for contracts above $200 000 from January to June 2021.

Note 3: DJCS variations data does not include date variations.

Procurement complexity

A key feature of VGPB policies is a requirement for organisations to assess the complexity of a procurement or category of procurements before starting any procurement process, and ensuring that the organisation has the capability in place to match the complexity.

When buying goods and services, organisations complete a complexity assessment and categorise procurements into one of four complexity quadrants. The quadrant guides the sourcing strategy and how to manage risks and contractual arrangements.

Description of complexity quadrants:

Transactional

Low-value and low-risk transactions where approved suppliers (e.g. SPCs) are not available.

Leveraged

Frequently used goods and services in a competitive marketplace that are procured by an individual organisation or whole of government, where the organisation has the ability to drive value.

Focused

Goods and services where a limited number of suppliers are available or where novel commercial arrangements are in place. May include whole of government contracts.

Strategic

Goods and services in a competitive market that are high value, where business criticality is high, and/or where the good or service is of state significance. May include whole of government contracts.

Overview of complexity

VGPB policies require upfront planning, category management and detailed market analysis.

Organisations identify the best approach to market for any given category, while also identifying opportunities to aggregate demand for frequently used goods and services procured from a competitive marketplace, giving them more buying power to drive value for money.

The following table shows the number and value of contract approvals by complexity quadrant in 2020–21:

Most organisations had a predominantly transactional complexity profile in 2020–21. The exceptions were DH/DFFH – 83% of their procurements were assessed as being strategic – and DJCS which reported 36% of contract approvals under the leveraged quadrant, 29% as transactional, 24% as focused and 11% as strategic. Refer to the Procurement profiles section for a breakdown of complexity by department.

The highest average contract value was in the strategic quadrant. This is partly due to four high-value strategic SPCs valued at $984.8 million (see SPCs approved in 2020–21).

DH/DFFH also carried out a high number of strategic procurements due to its role as the lead agency in the response to the COVID-19 pandemic. It reported 152 strategic one-off supply contracts valued at $246.2 million.

Trends in procurement complexity

Download the trends in procurement complexity over three years. Complexity data for 2020–21 includes critical incident procurement, where the previous year does not, making it difficult to compare this year’s data with previous years.

Table trends in procurement complexity from 2018-19 to 2020-21

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By combining demand for commonly used goods and services, government can harness greater economies of scale when negotiating with suppliers.

Aggregated purchasing is grouping together demand for commonly purchased goods and services to make the most of greater economies of scale when procuring from the marketplace.

Aggregating purchasing power allows organisations to negotiate lower prices and better terms and conditions and reduces risk and the administrative burden on buyers and suppliers.

The Victorian Government has a number of state purchase contracts (SPCs) and registers for commonly purchased goods and services.

More than 200 organisations benefit from the time and cost savings offered by SPCs. Total annual spend under SPCs is estimated to be about $2 billion.

Under the VGPB’s expansion program, more organisations will be able to make greater use of SPCs (see Priority 2: Deliver the expansion program under VGPB Activities in 2020–21).

Types of SPC arrangements

SPCs can be sole or multiple (panel) supplier arrangements or register arrangements. Panels can be open or closed. Open panels can accept new suppliers at set or other times during the contract period. Closed panels are restricted to the suppliers engaged at the start of the contract.

Registers consist of prequalified suppliers, compliant where required with the eligibility criteria to provide goods and services to the Victorian Government.

Who can access SPCs?

All government organisations and agencies can access SPCs.

Other organisations that can access SPCs, on application to the relevant lead agency, include local and Commonwealth government organisations and not-for-profit organisations.

Who manages SPCs?

DTF manages almost all non-ICT goods and services SPCs. The only exception is the Legal Services Panel, which is managed by DJCS.

DPC is responsible for ICT SPCs, apart from Rosetta, which is managed by Cenitex.

The role of the VGPB

The VGPB plays a role in endorsing new SPC business cases and is consulted on SPC renewals, replacements and extensions (not including exercising contractual options). In 2020–21, several SPC strategies, proposals and draft business cases were submitted to the VGPB for feedback. This included SPCs such as banking and financial services, fuel, print management and associated services, stationery and workplace consumables, and travel management services.

About the data in this section

The contract values in the tables are estimates. Expenditure occurs as organisations order and consume goods and services over the contract term of the SPC. Total estimated value includes the initial contract term and any options to extend the contract (although these may or may not be exercised).

State purchase contracts approved in 2020–21

In 2020–21, four SPCs were approved with an estimated total value of $984.8 million. This compares to six SPCs approved in 2019–20, with an estimated total value of $295.5 million.

Download this document for the list of state purchase contracts approved in 2020–21:

Table State Purchase Contracts approved in 2020-21

docx 24.08 KB

Variations to SPCs

Ten variations to SPCs were reported in 2020–21. Most variations related to extending contracts to provide service continuity during COVID-19.

Download this document for a list of variations to state purchase contracts approved in 2020-21:

Table State Purchase Contracts variations in 2020-21

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Looking for new SPC opportunities

DPC

DPC is exploring options to aggregate, improve and drive stronger value proposition for:

• Human Capital Management SAP
• Zycus procurement as a cloud platform
• ServiceNow agreement
• Google agreement.

DPC is also leading an ICT procurement reform that will simplify the way government and industry engage. The program will focus on elevating local, social and small to medium enterprise entities in support of Victoria’s economic and business recovery.

DTF

DTF has developed a procurement analytics capability that will deliver improvements to existing SPCs and identify opportunities for new SPCs.

DTF will harness the procurement analytics capabilities to identify new opportunities for aggregation to drive greater value-for-money outcomes. These mechanisms will also enable DTF to provide ongoing improvements to existing SPCs and management of new SPCs to ensure the benefits provided by these contracts are maximised. Refer to VGPB activities in 2020–21 for more information.

In 2020–21, DTF worked on finalising two SPCs related to banking and financial services and an interjurisdictional fuel and associated products contract with New South Wales and Queensland that will deliver considerable financial savings and social procurement outcomes for Victoria while maintaining excellent state-wide coverage. These SPCs will be finalised in early 2021–22.

Sole entity purchase contracts approved in 2020–21

In 2020–21, 26 SEPCs were approved with an estimated total value of $121.7 million.

This compares to 44 SEPCs with an estimated total value of $98.8 million approved in 2019–20.

The following table lists the sole entity purchase contracts approved in 2020-21:

Appendix: Sole entity purchase contract data

Download this document for a breakdown of SEPCs approved in 2020–21.

Table Breakdown of SEPCs approved in 2020-21

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This section summarises the procurement profile and performance of the 12 organisations that reported directly to the VGPB at the end of this financial year.

In 2020–21, many organisations continued to re-prioritise procurement activities to respond to COVID-19, which affected delivery of planned procurements.

Despite these pressures, we saw a commitment to continuous improvement in procurement practice, particularly in capability. Almost all organisations increased their procurement capability in 2020–21, with DJPR reporting the most significant increase of 25.2%.

DJPR transitioned to a centre-led model during the year, with all procurement above $100,000 now led by its Procurement Centre. It increased the number of procurement specialist staff and invested significantly in strategic sourcing, category management, governance, systems, reporting and procurement advisory business partnering resulting in a large increase in capability.

Most organisations operate a centre-led procurement model where procurement is typically managed by a single dedicated part of the business. DPC and DTF operate a decentralised model where procurement is carried out across the business. DJCS’ procurement model is category based with high-value, complex and strategic procurements managed centrally, while lower value transactional procurements are carried out by the relevant business unit.

Department of Education and Training

The Department of Education (DET) leads the delivery of education and development services to children, young people and adults, both directly through government schools and indirectly through the regulation and funding of early childhood services, non-government schools and training programs.

With education services being impacted by COVID-19 restrictions, DET’s procurement has temporarily refocused on procuring personal protective equipment, more IT equipment and services, and deep cleaning services for schools.

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 168 one-off supplies (standard procurement process) valued at $163.4 million
• 27 one-off supplies (critical incident procurement process) valued at $37.9 million

Complexity profile (no. of contracts approved):

• 31% transactional
• 31% leveraged
• 35% focused
• 3% strategic

Top categories of contract approvals:

• General professional services
• Security services
• Technology consulted/contracted services
• Evaluation of programs
• Commercial and financial advisory services

Highlights:

• Continued efficiency of response to priority procurement needs arising from COVID-19 pandemic/shutdown and recovery-linked government budget initiatives.
• Extended 440 specialist school bus service arrangements by more than $308 million to ensure critical transport options for disabled and special needs students.
• Significant progress by DET in reducing spend on professional services and labour hire, in line with Victorian Government targets.
• Started developing a procurement capability framework for assessment and uplift of Procurement Division staff.
• Identified $37.5 million in savings created by robust procurement processes across all procurements.

Procurement function:

• Centre-led procurement function

Accountability (at 30 June 2021):

• AO: Jenny Atta, Secretary, Office of the Secretary
• IPU Chair: Kate Rattigan, Deputy Secretary, People and Executive Services
• CPO: Sandy Carveth, Acting CPO, Procurement Division

Performance

DET's Procurement Division continues to deliver value for government through its well-established procurement processes. The focus for DET has been on driving commercial outcomes and supporting the government’s policy objectives (Social Procurement Framework, Local Jobs First) through procurement activities.

DET’s performance in 2020–21, compared with the two previous years is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

Download this document for DET’s performance in 2020–21, compared with the two previous years:

Table Department of Education and Training performance in 2020-21

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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.

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 190 one-off supplies (non-critical) valued at $144.9 million
• 4 one-off supplies (critical) valued at $0.5 million
• 10 SEPCs valued at $54.6 million

Complexity profile (no. of contracts approved):

• 73% transactional
• 1% leveraged
• 14% focused
• 12% strategic

Top categories of contract approvals:

• Management and business professionals and administrative services
• Engineering and research and technology-based services
• Information technology broadcasting and telecommunications
• Environmental services
• Farming and fishing and forestry and wildlife contracting services

Highlights:

• Replaced DELWP’s finance and procurement systems with the BusinessHub’s new cloud-based solutions, which includes Oracle and Zycus.
• Streamlined procurement processes with built-in automated workflows to improve accessibility, save time and maintain compliance. Several paper-based forms were consolidated and replaced with online forms available in the DELWP Service Portal.
• Achieved procurement savings of $21.1 million (including $18.6 million in direct savings and $2.5 million in indirect savings), exceeding the 2020–21 savings target of $10 million.
• Approved DELWP’s Social Procurement Strategy on 13 October 2020.
• Continued to promote procurement from verified Aboriginal businesses and raised the exemption threshold for direct selection of an Aboriginal business from $150,000 to $200,000.

Procurement function:

• Centre-led procurement function

Accountability (at 30 June 2021):

• AO: John Bradley, Secretary, Office of the Secretary
• IPU Chair: Helen Vaughan, Deputy Secretary, Water and Catchments
• CPO: Ivy Lee, CPO, Finance, Corporate Services

Performance

Overall, DELWP performed well in 2020–21 with procurement increasingly seen as a core function of the department. DELWP realised procurement savings of $21.1 million, including direct and indirect savings, against a savings target of $10 million. The proportion of procurement spend reviewed by the central governance unit more than doubled during the year, and overall supplier satisfaction improved among both successful and unsuccessful suppliers.

DELWP’s performance in 2020–21, compared with the two previous years is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

Download this document for DELWP's performance in 2020–21, compared with the two previous years:

Table Department of Environment Land Water and Planning performance in 2020-21

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Department of Health/Families, Fairness and Housing

The former Department of Health and Human Services went through a significant machinery of government change this year. On 1 February 2021, two separate departments were formed, the Department of Health (DH) and the Department of Families, Fairness and Housing (DFFH).

DH was established to advance the government’s policy priorities in improving patient outcomes and experience for all Victorians. The department is responsible for health and ambulance services, mental health and ageing portfolios. It is also leading the government’s public health response and recovery associated with the COVID-19 pandemic.

DFFH is focused on child protection, housing, disability, the prevention of family violence, multicultural affairs, LGBTIQ+ equality, veterans, women and youth.

Due to the complexity of separating the two procurement functions, the departments reported joint procurement data this year and will report separately from 2021–22. DH and DFFH are both expected to undertake an accreditation process to the VGPB in 2022.

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 87 one-off supplies (non-critical) valued at $51.4 million
• 96 one-off supplies (critical) valued at $216.7 million

Complexity profile (no. of contracts approved):

• 16% transactional
• 0% leveraged
• 1% focused
• 83% strategic

Top categories of contract approvals:

• Specialist providers
• IT systems, software and support
• Training
• Medical supplies

Highlights:

• Used Office365 tools to improve many procurement functions and processes, including automating procurement support for low-value procurements, online forms and workflows systems.
• Developed a compulsory online training module for contract managers to support compliance and drive best contract management practice across the department.
• Took on substantial work to support the Government’s response to COVID-19.
• Continued to implement social procurement including completing the department’s Aboriginal Procurement Target Implementation Plan.
• Worked on a project to introduce an end-to-end procurement system.

Procurement function:

• Centre-led procurement function

Accountability (at 30 June 2021):

• AO: Euan Wallace, Secretary (DH); Sandy Pitcher, Secretary (DFFH)
• IPU Chair: Greg Stenton, Deputy Secretary, Corporate Services (DH); Andrew Minack, Deputy Secretary, Corporate & Delivery Services (DFFH)
• CPO: Genine Wallinga, Director and CPO, Procurement, Contract and Business Services (DH); Danielle Wise, CPO and Director, Procurement, Concessions and Contract Services (DFFH)

Performance

The department usually sees year-on-year improvements in performance measures. In 2020–21, the department saw a drop in value created and managed spend, most likely due to the department’s focus on the response to the COVID-19 pandemic and reacting quickly to the needs of its business partners. The supplier survey response rate was low. The department will monitor this in 2021–22 to ensure it can gather meaningful feedback.

The procurement branch has a strong commitment to continuous improvement and strives for greater performance on all procurement functions including these performance measures.

DHHS’ performance in 2020–21, compared with the previous two years is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

Download this document for DHHS' performance in 2020–21, compared with the two previous years:

Table Department of Health and Human Services performance in 2020-21

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Department of Jobs, Precincts and Regions

The Department of Jobs, Precincts and Regions (DJPR) is firmly focused on Victoria’s economic recovery and growth, 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. At the time it was established, DJPR adopted all of the procurement policies of the former Department of Economic Development, Jobs, Transport and Resources (DEDJTR). DEDJTR had previously obtained VGPB accreditation. DJPR received VGPB accreditation in April 2021.

DJPR transitioned to a centre-led procurement model in 2020–21. All procurement above $100,000 are now led centrally. This has delivered $1.2 million in cost savings and $2.9 million in cost avoidance.

Under machinery of government changes, Local Government Victoria, Medical Research and the Place Based Reform functions joined DJPR from DELWP, DHHS (now DH) and DPC respectively.

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 128 one-off supplies (non-critical) valued at $107.3 million
• 19 one-off supplies (critical) valued at $11 million

Complexity profile (no. of contracts approved):

• 76% transactional
• 2% leveraged
• 10% focused
• 12% strategic

Top categories of contract approvals:

• Professional services
• Agriculture
• Staffing services
• IT and telecoms
• Facilities management

Highlights:

• Moved to a centre-led procurement operating model. The centre-led model and expanded centralised procurement function has delivered $1.2 million of cost savings and $2.9 million of cost avoidance.
• Established a business partnering model providing a dedicated team for advice and oversight of all procurement activities.
• Implemented Oracle Cloud Source-to-Contract to complement the Oracle Cloud Procure-to-Pay system also implemented in 2020–21.

Procurement function:

• Centre-led procurement function

Accountability (at 30 June 2021):

• AO: Simon Phemister, Secretary
• IPU Chair: Penelope McKay, Associate Secretary, Office of the Secretary
• CPO: Jessica Lambous, Executive Director, Investment and Procurement

Performance

DJPR’s performance in 2020–21 is described in the following document. DJPR was established on 1 January 2019 therefore data is not available for 2018–19.

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Table Department of Jobs Precincts and Regions performance in 2020-21

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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 2020–21

Contract approvals ($100,000+ value):

• 173 one-off supplies (non-critical) valued at $194.7 million
• 52 one-off supplies (critical) valued at $440.9 million
• 2 SEPCs valued at $7.2 million

Complexity profile (no. of contracts approved):

• focused 24%
• strategic 11%
• leveraged 36%
• transactional 29%

Top categories of contract approvals:

• Travel and accommodation (COVID-19 related)
• Communication and technology
• Professional services
• Outsourced services
• Prisoner services

Highlights:

• Realigned procurement team into a category management operating model.
• Piloted ICT category and introduced a professional and staffing services category.
• Adopted greater technology to inform and support operational restructure and allocation of resources.
• Developed and implemented new VGPB-aligned procurement rules to streamline procurement processes.

Refreshed and developed new procurement training content to support staff capability uplift.

Procurement function:

• Category-based procurement function, with high-value, complex and strategic procurements managed centrally

Accountability (at 30 June 2021):

• AO: Rebecca Falkingham, Secretary
• IPU Chair and CPO: Thomai Veginis, CPO, Procurement Services

Performance

In 2020–21, DJCS was focused on supporting the department and Victorian public during the State of Emergency, but continued to transition the procurement function to a category management operating model, supported by greater adoption of technology such as Robobai, Jira and Zycus.

The review of procurement processes culminated in the release and implementation of a new procurement policy, with streamlined processes empowering the business to make low-value, transactional procurements through SPCs and leaving Procurement Services to focus on managing high-value, strategic procurement and detailed category analysis to enable strategic buying.

Work and resources were redistributed within Procurement Services to align with the new operating model. The start of a revised training program toward the end of 2020–21 leaves the department well placed for capability uplift and process improvement in 2021–22.

DJCS’ performance in 2020–21, compared with the two previous years is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

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Table Department of Justice and Community Safety performance in 2020-21

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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 is the lead agency for ICT SPCs. Contracts include software applications and licensing, hardware, telecommunications, and eServices and IT infrastructure registers.

Three new entities were created in DPC in 2020–21: Alternative Quarantine Accommodation, Breakthrough Victoria and Digital Victoria. DPC had several machinery of government changes – two portfolios transferred into DPC (Wage Inspectorate Victoria on 1 July 2020 and Cenitex on 1 August 2020) and three portfolios transferred out (Fairer Victoria, Victorian Multicultural Commission and Victorian Veteran's Council).

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 65 one-off supplies (non-critical) valued at $44.7 million
• 13 one-off supplies (critical) valued at $3.1 million
• 2 SPCs valued at $84.8 million

Complexity profile (no. of contracts approved):

• 81% transactional
• 4% leveraged
• 9% focused
• 6% strategic

Top categories of contract approvals:

• Professional advisory services
• Labour contractor services
• Software licensing
• IT hardware

Highlights:

• Improved contract management capability.
• Best and final offers from 39 procurement activities identified a total saving of $5.8 million.
• Completed VGPB audit recommendation activities.

Procurement function:

• Decentralised procurement function

Accountability (at 30 June 2021):

• AO: Jeremi Moule, Secretary
• IPU Chair: Genevieve Dolan, Executive Director, Corporate Services, Cabinet, Communications and Corporate
• CPO: Kylie Callander, CPO, Corporate Services

Performance

In 2020–21, DPC applied a stronger focus on improving governance. Another priority focus was responsiveness to critical incident procurements related to COVID-19, as was a commitment to procurement service delivery. The Procurement Branch continued to provide the department with consistent, quality procurement advice and partnered with business areas on complex procurements.

An improvement to category management within whole of Victorian Government ICT SPCs, and a focus on savings/benefits realisation contributed to improved capability across DPC.

DPC’s performance in 2020–21, compared with the two previous years is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

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Table Department of Premier and Cabinet performance in 2020-21

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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.

Since 1 July 2019, VicRoads and Public Transport Victoria came together with DoT to create a properly integrated transport department – in step with other global cities. DoT’s purpose is to deliver simple, safe, connected journeys for people and for freight.

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 51 one-off supplies (non-critical) valued at $84.3 million
• 1 one-off supply (critical) valued at $0.16 million
• 1 SEPC valued at $20 million

Complexity profile (no. of contracts approved):

• 62% transactional
• 13% leveraged
• 19% focused
• 6% strategic

Top categories of contract approvals:

• Registration and licensing
• Fisheries and aquaculture – administrative
• IT and telecommunications
• Professional services
• Facilities and property management

Highlights:

• Achieving VGPB accreditation for the integrated DoT.
• Implementing Phase 1 of Zycus and Oracle Cloud in February 2021, with Phase 2 to be implemented in August 2021.
• Awarded $700 000 cleaning contract to Aboriginal supplier.
• Upskilled more than 2 000 staff for Zycus implementation.
• Established the Aboriginal Procurement Working Group, with 34 members, which includes cross-departmental representation and portfolio transport agencies (MTIA, Suburban Rail Loop Project, Rail Projects Victoria, V/Line, VicTrack and Transport Accident Commission).

Procurement function:

• Centre-led procurement function

Accountability:

• AO: Paul Younis, Secretary
• IPU Chair: Janine Haddow, Procurement Advisory Committee Chair (Independent External Committee Chair)
• CPO: Lisa Williams, CPO

Performance

Overall DoT performed relatively well given the impacts of COVID-19. The implementation of a single source-to-contract system will enable procurement to build capability, apply controls and use automation to increase compliance.

DoT’s performance in 2020–21 is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

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Table Department of Transport performance in 2020-21

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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’s work supports decisions on the most effective ways government funding can be used to improve the living standards of all Victorians.

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

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 22 one-off supplies (non-critical) valued at $15.7 million
• 2 SPCs valued at $900 million

Complexity profile (no. of contracts approved):

• 92% transactional
• 0% leveraged
• 0% focused
• 8% strategic

Top categories of contract approvals:

• Professional advisory services
• Staffing services
• eServices
• ICT hosting and services (Cenitex mandated supplier)
• Marketing services register

Highlights:

• Implemented Oracle – Generation 2 as DTF’s financial system.
• Maintained ISO certification including procurement process.
• Improved capacity and capability in the Procurement Resource Unit to support the business and drive better value-for-money outcomes.
• Supported the successful transition of the Social Procurement Framework to DJPR.
• Supported the Government’s procurement reform program by developing a program to collect and analyse departmental spend data from across government (Robobai).

Procurement function:

• Decentralised procurement function (central approvals process for contracts over $10,000)

Accountability (at 30 June 2021):

• AO: David Martine, Secretary
• IPU Chair: Andrew Witchard, Executive Director, Revenue Group, Economic Division
• CPO: Steven Harris, CPO, Strategic Sourcing Group, Corporate and Government Services Division

Performance

During the unprecedented workplace and economic disruption caused by the COVID-19 pandemic, DTF maintained and in some instances improved its procurement function in 2020–21. This is evidenced by the improved value for money, capability and supplier satisfaction outcomes.

DTF’s performance in 2020–21, compared with the two previous years is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

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Table Department of Treasury and Finance performance in 2020-21

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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 is underpinned by a centre-led team of procurement experts who participate in, or oversee all procurement activity.

Cenitex’s major categories of ICT procurement spend are hardware, software, data centre and telecommunications, professional services and corporate services.

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 7 one-off supplies (non-critical) valued at $27.7 million
• 1 SEPCs valued at $6.0 million

Complexity profile (no. of contracts approved):

• 87.5% transactional
• 12.5% leveraged
• 0% focused
• 0% strategic

Top categories of contract approvals:

• Network equipment products and services
• Project and professional services
• Software
• Contractor engagements (individuals)
• Training and development

Highlights:

• Researched, drafted and got executive approval for a toolset roadmap, Modernising the Cenitex Procurement Ecosystem.
• Delivered more than $4 million in independently verified cost savings/avoidance.
• Use of Cenitex panels (hosted in VendorPanel) increased by an average of 228%, showing a successful move to how Cenitex manages low-value, low-risk activity.
• Finalised the market approach and established a contract for Disaster Recovery as a Service.
• Completed Cenitex’s first VGPB audit and related actions.

Procurement function:

• Centre-led procurement function

Accountability (at 30 June 2021):

• AO: Frances Cawthra, Chief Executive Officer
• IPU Chair: Sharon Copeland-Smith, Executive Director, Strategy, Governance and Risk, Strategy, Governance and Risk
• CPO: Tim Jones, General Manager Procurement, Finance and Business Services

Performance

Cenitex’s performance in 2020–21 compared with the two previous years is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

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Table Cenitex performance in 2020-21

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Major Transport Infrastructure Authority

The Major Transport Infrastructure Authority (MTIA) is an administrative office of DoT. MTIA was established on 1 January 2019 to oversee major transport projects in Victoria.

MTIA’s Director-General is accountable to the Secretary of DoT. For operational purposes the DoT Secretary has delegated authority to the Director-General to manage the day-to-day conduct of MTIA.

MTIA is responsible for the Government’s ‘big build’ transport construction program across five key projects: North East Link Project, Level Crossing Removal Project, West Gate Tunnel Project, Major Road Projects Victoria and Rail Projects Victoria.

Procurement profile in 2020–21

Contract approvals ($100,000+ value):

• 54 one-off supplies (non-critical) valued at $35.8 million
• 1 SEPC valued at $4.8 million

Complexity profile (no. of contracts approved):

• 89% transactional
• 9% leveraged
• 0% focused
• 2% strategic

Top categories of contract approvals:

• Professional advisory services
• Advertising and media services
• Human resources
• ICT – Goods and services
• Office expenses – Goods and services

Highlights:

• Achieved uplift in procurement and contract management capability by introducing tailored training for staff working in these functional areas.
• Rolled out extensive integrity awareness training for all members of MTIA including members of procurement and contract management teams.
• Started planning for MTIA to seek VGPB accreditation.
• Significant progress towards implementing new contract management system.
• Improved monthly procurement reporting supported by greater analysis of procurement profile and underlying activities.

Procurement function:

• Centre-led procurement (policy, governance and strategy) with dedicated procurement teams in each project office.

Accountability (at 30 June 2021):

• AO: Corey Hannett, Director-General
• IPU Chair: Arthur Apted, Chair, Procurement Oversight Committee, Independent External Member
• CPO: Juliana Tiong, CPO

Performance

In 2020–21, MTIA completed an external review of the goods and services procurement function in preparation for seeking VGPB accreditation. This review identified key opportunities related to:

• Systems and planning for selection and implementation of a document automation and workflow system to integrate with the current rollout of a new contract management system
• Improved data analytics capability through refinement of spend categorisation and capture of related data
• Refinement of procurement roles and adjusting the procurement capability framework.

A program of work is under way to address the above and other opportunities, and is expected to take 18–24 months to complete.

MTIA’s performance in 2020–21 is described in the following document. MTIA has previously reported its procurement data through DoT so has no comparative data for previous years.

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Table Major Transport Infrastructure Authority performance in 2020-21

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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 2020–21

Contract approvals ($100,000+ value):

19 one-off supplies (non-critical) valued at $49.8 million
25 one-off supplies (critical) valued at $17.3 million
11 SEPCs valued at $29.1 million

Complexity profile (no. of contracts approved):

• 96% transactional
• 2% leveraged
• 2% focused
• 0% strategic

Top categories of contract approvals:

• IT and communications
• Contractors and consultants / corporate support
• Operational support / transportation
• Legal and evidentiary
• Uniform and equipment

Highlights:

• Piloted an electronic procurement tool (Oracle Cloud) on four successful procurement activities (two still in progress). Trained prospective tenderers to use the system. The tool has reduced procurement process time and introduced more efficient processes including remote evaluations where subject matter experts from across the state collaborate on an evaluation more efficiently.
• Piloted DocuSign (electronic signature process) and implementing a change process for a wider deployment.
• Continued to implement the One Procurement reform program with 24 packages of work designed to:
  • Become a trusted partner focused on customer service
  • Be powered by talented and capable people
  • Use right-sized processes and effective tools
  • Deliver the right outcomes

Procurement function:

• Centre-led procurement function

Accountability (at 30 June 2021):

• AO: Shane Patton, Chief Commissioner of Police
• IPU Chair: Susan Middleditch, Executive and Chair of the Police Procurement Board, Deputy Secretary Corporate and Regulatory Services
• CPO: Kirsten McFall, Director Procurement and CPO, Procurement Division

Performance

Victoria Police’s performance in 2020–21 compared with the two previous years is described in the following document. Managed spend was introduced in 2019–20 as a new performance measure, so comparisons with 2018–19 are unavailable.

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Table Victoria Police performance in 2020-21

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