Procurement reform in the Department
New Procurement Policies
In February 2013, the Victorian Government Purchasing Board (VGPB) introduced a new policy framework.
All government departments and agencies subject to VGPB policy are required to transition to the new procurement policies and guidelines. The department commenced the transition from 1 July 2014.
Policies and Guidelines
The VGPB's new policy framework seeks to reposition procurement as a core business function for departments. The department will comply with the VGPB policies as defined in the VGPB’s Policies, Guides and Tools - as summarised below. 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.
Procurement Activity Plan
The VGPB’s Governance Policy requires that transitioned Departments publish a summary of procurement activities planned to be conducted over the forthcoming 12-18 months.
The aim of the plan is to provide potential suppliers with an overview of the types of procurement activities (goods and services only) that the department may undertake over this period. The plan will be updated from time to time to reflect other planned procurement activities.
Annual Procurement Activity Plan 2014 - 15
|Procurement Name||Expected Market Approach||Contact Name||Expected Market Approach Date||Approximate spend|
Personal Alert Victoria (PAV)
|Request for Tender||
|Oct - Dec 2014||>$1 mil|
|Clinicians Health Channel||Request for Tender||Andrew Horne
Ph (03) 9096 1455
|Dec 2014 - Feb 2015||>$1 mil|
|Internal Audit Services||Request for Tender||
|Jan - Mar 2015||>$1 mil|
All planned procurement activities are subject to revision or cancellation. The information in this Procurement Activity Plan is provided for planning purposes only and it does not present a solicitation or constitute a request for proposal, nor is it a commitment by the Government to purchase the described goods or services.
This Procurement Activity Plan was last updated on 6 October 2014.
Procurement Complaints Management Process
Procurement Complaints Management System
The Complaints Management System demonstrates the commitment the department places on the conduct of procurement and the department’s interactions with the market. The system gives suppliers surety that there is a mechanism in place to raise concerns about a particular procurement activity.
Complaints will be handled in a consistent, fair and transparent manner using the following process:
Visit Victorian Government Procurement for more information about Victorian Government Purchasing Board frameworks.
Visit Business Victoria for more information on Victorian Government procurement and business opportunities.