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Priority 4: Creating fit-for-purpose procurement

A key focus for the VGPB is to simplify and streamline government procurement and help make the Victorian Government a buyer of choice.

A key focus for the VGPB is to simplify and streamline government procurement and help make the Victorian Government a buyer of choice.

In 2021–22, the VGPB oversaw a project to research and consult with government buyers and suppliers to understand barriers to fit-for-purpose procurement and identify opportunities for improvement.

The VGPB also replaced the previous critical incident policy with a new more fit-for-purpose emergency procurement policy.

This annual report has also been streamlined to provide more focus on board activities and showcase procurement success stories through case studies. Detailed contract information is available on the Buying for Victoria Tenders PortalExternal Link (formerly TendersVIC) with additional procurement information reported in departmental annual reports.

Barriers to fit-for-purpose procurement

As the Government seeks to leverage its spending power to achieve a range of policy outcomes for Victorians, the interaction of policies to achieve these broader outcomes can potentially make it complex for buyers and suppliers to navigate the procurement process. The research and consultation conducted in 2021–22 has enabled the VGPB to understand the key barriers to fit-for-purpose procurement and opportunities for improvement, which will inform the VGPB’s future work program. As a starting point, the VGPB identified several initiatives to improve the Buying for Victoria website to help buyers navigate the procurement policy landscape.

Buying for Victoria website improvements

Several structural and content improvements have been implemented on the Buying for Victoria website to help buyers and suppliers navigate the procurement policy landscape. The website has a new filtering tool which searches Word documents uploaded to the website. It has more links to broader policies that influence procurement and a fact sheet to guide buyers through these policies.

New policies and guidance material

During 2021–22, the VGPB progressed work on the policy and guidance material listed below.

New emergency procurement policy and guidance

After extensive consultation, an emergency procurement policy was developed to strengthen government procurement during an emergency. It comes with emergency procurement guidance and a template to better equip buyers with the information and tools they need to plan and prepare their procurement response to an emergency.

The new policy applies learnings from the unprecedented level of emergency procurement needed to support Victoria’s response to the COVID-19 pandemic, building in a greater focus on planning for emergency procurement. Under the new policy, departments and accredited agencies need to prepare an emergency procurement plan as part of their business continuity arrangements to support them during these fast-paced procurements.

The emergency procurement policy replaces the critical incident policy.

Case study: The VGPB’s new Emergency Procurement Policy

Photo of four people wearing personal protective masks reviewing content on a board

During emergencies and critical events, procurement plays a key role in sourcing the goods and services vital to the success of response efforts. An organisation’s procurement framework must enable urgent and effective procurement of goods and services to respond to immediate requirements.

The VGPB’s critical incident procurement protocol played a central role in enabling a rapid government response during COVID-19 enabling those ‘on the ground’ to source critical goods and services directly.

In October 2021, the Victorian Auditor-General’s Office (VAGO) report, Management of Spending in Response to COVID-19External Link , recommended that the VGPB review its market approach policy to include further guidance on when and how departments should activate their critical incident procurement policy.

In preparing the revised policy, the VGPB consulted with CPOs of departments and some agencies. Through this consultation process, the VGPB identified opportunities for improvement above and beyond those proposed by VAGO. A new emergency procurement policy was developed to replace the critical incident policy. Key improvements included:

  • a requirement for agencies to develop an ‘emergency procurement plan that is integrated with their emergency procedures and business continuity plans
  • greater clarity on how and when organisations activate and cease the emergency procurement procedures
  • an allowance for flexible application of the mandatory requirements.

The revised emergency procurement policy now forms part of each organisation’s procurement governance framework, supporting better preparedness to respond during an emergency.

Capability building and collaborative forums

The ‘Procurement Foundations’ micro-credential was developed by RMIT University, with input from DTF, as part of a broader e-learning trial conducted by the VPSC. Interested individuals from departments and specified entities could access the beginner courses designed to build procurement knowledge for new procurers and incidental buyers.

DTF continued to engage with the Australian Procurement and Construction Council and carried out interjurisdictional consultations to identify opportunities to develop capability initiatives to support procurement professionals.

Infographic for Priority 4

Infographic showing 2 Procurement Community of Practice forums, 5 Procurement Officers’ meetings and 760 government members in the online buyer’s group on the Innovation Network.
Infographic for Priority 4
  • 2 Procurement Community of Practice forums
  • 5 Procurement Officers' meetings
  • 760 government members in the online buyer's group on the Innovation Network
Download Infographic for Priority 4

In 2021–22, the VGPB continued to support sharing information and building capability through these forums:

Buyers’ Community of Practice forum

This forum, presented jointly with DTF’s Construction Policy team, encourages a culture of procurement knowledge-sharing and best practice across government. Where previously these were presented in person, the technology adopted to support working from home over the last two years has allowed us to expand the audience, bringing together more than 500 procurement practitioners at two forums from across regional and metropolitan locations.

Whole of Victorian Government Procurement Officers’ meeting

These meetings for procurement practitioners from departments and specified entities focus on peer-to-peer learning and sharing practical experience. Five Procurement Officer meetings were held in 2021–22, covering themes such as supplier relationships, stakeholder relationships and ICT procurement (see Figure 2).

Online Buyer’s forum

The VGPB’s online Buyers’ Community of Practice on the Innovation Network has 760 members, reaching even more procurement professionals across government with procurement updates, resources and materials.

Figure 2: Presentations at Procurement Officer's Meeting

Image showing topics cover throughout the year.  July 2021 - Sharing perspectives on ICT procurement. September 2021 - Exploration of stakeholder relationships and Industry and tender briefings.  November 2021 - Supplier relationships, Tender debriefs and probity. February 2022 - Understanding supplier relationship management. May 2022 - Category management in practice and supplier perspectives.
Figure 2: Presentations at Procurement Officer's Meeting

July 2021

Sharing perspectives on ICT procurement:

  • ICT SPCs (DPC)
  • A case study on delivering ICT (Cenitex)
  • An alternative model to ICT procurement (CivVic Labs)

September 2021

  • Buying for Victoria Supplier Portal (DTF)
  • Exploration of stakeholder relationships (DTF)
  • Active supplier model – Social Value and Inclusion (MTIA)
  • Industry and tender briefings (Melbourne Water)

November 2021

  • Supplier relationships – Tender debriefs and probity (Victoria Police)

February 2022

  • Understanding supplier relationship management (Independent Broad-based Anti-corruption Commission)

May 2022

  • Category management in practice – Transforming your team to a category management system (DJCS)
  • Supplier perspectives – Perspectives of supplying to government (DTF)
Download Figure 2: Presentations at Procurement Officer's Meeting

Reviewed 20 September 2022

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