Procurement reform in the Department
In February 2013, the Victorian Government Purchasing Board (VGPB) introduced a new policy framework.
All government departments and agencies subject to Victorian Government Purchasing Board policy must transition to the new procurement framework by August 2014. To comply with this directive, the department is planning a gradual transition to the new framework during 2014-15.
The Victorian Government Purchasing Board's new procurement framework is supported by five policies. They are:
- Governance: Governance structure embeds procurement across the organisation and ensures alignment with business planning. It encompasses greater focus on upfront strategic planning and transparency to provide consistency of market approach and better value-for-money procurement decisions.
- Complexity and capability assessment: Procurement decisions based on an assessment of complexity and the capability to conduct the procurement. Procurement can only proceed when the department determines that it has the necessary capability to meet the complexity of the procurement activity.
- Market analysis and review: Market analysis determines the capacity of the market to supply and the opportunities for market-based solutions. A review of requirements and processes in response to market analysis determines the most appropriate path to market.
- Market approach: Applying a structured, measured approach to informing, evaluating and negotiating with suppliers.
- Contract management and contract disclosure: Contract management is escalated to a high-level consideration early in the planning process to arrive at an integrated end-to-end procurement framework.
The department will ensure that all procurement activity continues to meet the following directives:
- Value for money: A balanced judgement of a range of financial and non-financial factors, taking into account the mix of quality, cost and resources; fitness for purpose; total cost of ownership; and risk.
- Accountability: The Accountable Officer has the flexibility to conduct procurement activities using appropriate capability to provide value-for-money outcomes.
- Probity: High standards of behaviour and actions in the conduct of procurement processes, including equity, confidentiality, avoiding conflicts of interest, and consumer/supplier confidence in the integrity of government procurement processes.
- Scalability: The relationship between the complexity of a procurement project and the capability of the organisation to conduct it to achieve a good procurement outcome.
All procurement undertaken by the department will be in line with these policies and directives. During the transition period, suppliers may observe that procurement activities of the department are conducted differently to those of some other Departments.
Annual Procurement Plan
The department is in the process of preparing an Annual Procurement Plan with the aim of providing suppliers with an indication of the department’s forthcoming procurement activity. The plan will be published when available. For more information about the department’s Procurement Reform activity contact email@example.com.
Visit Victorian Government Procurement for more information about Victorian Government Purchasing Board frameworks.
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