Procurement reform in Victoria – the impact on business
Changes to procurement will make it easier to
do business with government. Businesses can
expect high standards of probity and
transparency
What is the VGPB?
The Victorian Government Purchasing Board (VGPB)
sets the policies that govern procurement of goods and
services across all Victorian Government departments
and some public bodies. The VGPB aims to provide a
procurement model that allows each organisation to
obtain maximum benefit from the acquisition of goods
and services.
Note: The VGPB does not purchase goods and services on
behalf of the government, nor does it market to government
on behalf of suppliers.
focus on upfront strategic planning will provide a more
consistent market approach and give suppliers visibility
of upcoming procurement opportunities. Other
benefits include:
Visibility of upcoming procurement opportunities
Departments and mandated entities create a
procurement activity plan detailing all planned
procurements over a 12–18 month period. The plan is
published online so that businesses can see what
relevant opportunities are coming up and who to
contact.
Minimising the time and cost of tendering for
government business
Processes and contracts must be kept as simple as
possible to minimise the cost to businesses.
Procurement approach
More interactive market engagement
The VGPB has introduced a procurement framework to
improve the way departments (and mandated entities)
procure goods and services.
Departments and mandated entities
in-depth market analysis before making
to market. They must identify the
capability of the market to supply.
document their supplier engagement
improve relationships with suppliers.
Good procurement saves money, freeing up resources
for other priorities. It improves the delivery of services
to the community and makes it easier for businesses to
access government procurement opportunities.
The policy framework emphasises high standards of
probity and transparency giving businesses fair and
equal access to the government marketplace.
Five policies
The framework is underpinned by five policies that
cover procurement as an end-to-end activity from
identifying needs, planning, and market research
through to contract management.
Transition
Transition to the policy framework has taken place
with all departments and mandated entities now
operating under the new model.
Under the policies, departments and mandated entities
develop a long-term procurement strategy suited to
their unique procurement profile. The strategy will
align with organisational goals and focus on upfront
strategic planning to achieve those goals. Furthermore,
the governance structure will ensure high standards of
transparency and probity.
Benefits for businesses
The policy framework does not require any changes on
the part of suppliers to government. However, there
are a number of benefits for businesses in Victoria. The
conduct an
any approach
capacity and
Departments
processes to
Encouraging innovation and continuous improvement
During the planning stage, an analysis of procurement
practices that leverage competitive markets and
maximise supplier competition in a fair and open
process is conducted.
Equity of access for local businesses and SMEs
Departments and mandated entities consider, at the
market engagement stage, how they can encourage
SMEs and local suppliers to participate. They simplify
their procurement processes wherever possible to
avoid imposing unnecessary barriers to entry for local
providers and SMEs.
Value-for-money procurement decisions
Procurement decisions are based on a balanced
judgement of financial and non-financial factors.
Cheapest price is not necessarily the best value for
money. Businesses are encouraged to show how they
can deliver value for money.
More information
For information on the reform, visit Procurement
Victoria (www.procurement.vic.gov.au).
To learn more about accessing government
procurement opportunities visit Business Victoria
(www.business.vic.gov.au).