By combining demand for commonly used goods and services, government can harness greater economies of scale when negotiating with suppliers. Aggregating purchasing power allows organisations to negotiate competitive pricing and better terms and conditions. It also reduces risk and the administrative burden on buyers and suppliers.
The Victorian Government manages SPCs and registers for commonly purchased goods and services. Some SPCs are mandatory meaning they must be used by all Victorian Government departments and agencies under the remit of the VGPB framework. More than 200 organisations benefit from the time and cost savings offered by SPCs, with a total annual spend under SPCs estimated to be about $3 billion in 2024–25.
Visit About goods and services contracts’ on the Buying for Victoria website for more information on SPCs.
The role of the VGPB in SPCs
The VGPB reviews and endorses business cases for establishing new SPCs before approval by the relevant Minister. The VGPB is also consulted where an SPC is being replaced or varied.
In 2024–25, the VGPB reviewed and endorsed four business cases for new SPCs. The procurement process commenced for three of these in 2024–25, including electricity large sites, professional advisory services and the public charging of fleet electric vehicles. The remaining business case was for a potential new SPC being considered.
The VGPB was also consulted on seven SPC variations in 2024–25. These variations may have extended the contract term or agreed material changes to the contract. This can include adjustments to the contract price, scope of work, or terms and conditions. Variations were made to the following SPCs:
- Cyber security
- Geospatial data and analytics
- Amazon web services contract
- eProcurement platform
- Microsoft
- Electricity small sites
- Victorian telecommunications services.
Requests for tender and contract details are disclosed at www.tenders.vic.gov.au(opens in a new window)
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