Victorian Government Purchasing Board (VGPB)

1. Comparison of old versus new VGPB supply policies Note: only extracts of the relevant policy reference and changes have been outlined in this document.

Previous policy reference Amended policy reference

Policy One: Governance

All sections All sections Assistant Treasurer references throughout the policies. Replaced all Assistant Treasurer references with ‘the Minister’ throughout the policies.

Section 2.1 Mandatory requirements Section 2.1 Mandatory requirements The VGPB can require the accountable officer to audit any aspect of their procurement The VGPB can require the accountable officer to conduct an audit of compliance with activity or practices and report back as directed by the VGPB. VGPB supply policies and to report back as directed by the VGPB.

Policy Two: Complexity and capability

Section 1.1 Mandatory requirements for a complexity assessment Section 1.1 Mandatory requirements for a complexity assessment Organisations are not required to carry out an assessment of complexity for a Organisations are not required to carry out an assessment of complexity of a procurement that is part of an aggregated demand contract to which it is a participating procurement activity where the procurement is from an aggregated demand contract party. where it is a sole supplier arrangement.

Policy Three: Market analysis and review

Section 1.1 Mandatory requirements Section 1.1 Mandatory requirements Note: A souring process is not required when purchasing from a state purchase contract Note: A sourcing process is not required when purchasing from a sole entity contract or or a sole entity contract. a state purchase contract where there is a sole supplier arrangement in place.

Section 2.1.1 Governance arrangements for SPCs Section 2.1.1 Establishment of and reporting for SPCs An organisation must inform the Department of Treasury and Finance (DTF) of any An SPC can only be established after approval by the Minister. Where an organisation analysis of spend or assessment of complexity that indicates grounds for aggregating seeks to establish an SPC: demand.  it must consult with the VGPB regarding the category of goods or services DTF is responsible for the establishment and management of SPCs. DTF may grant lead proposed for aggregation and inform the VGPB of any analysis of spend or

Victorian Government Purchasing Board revised supply policies comparison of old versus new June 2016 agency status to another organisation where: assessment of complexity that indicates grounds for aggregating demand;  the organisation has consulted with DTF regarding the category of goods and  it must have a business case endorsed by the VGPB prior to being approved by services proposed for aggregation; that organisation’s relevant Minister; and  the organisation has demonstrated to DTF that it has the capacity to establish  it must demonstrate to the VGPB that it has the capability to establish and and manage an SPC as the lead organisation; manage the proposed SPC as the lead agency.  DTF has determined that the category of goods and services is appropriate for an The process involved in establishing an SPC may be nominated for strategic oversight by SPC; the VGPB.  DTF assumes an oversight and advisory role throughout the SPC process; and All SPCs may be established as a mandated or non-mandated arrangement. Where an SPC is mandated, all entities within the scope of VGPB supply policy must utilise the  Lead agencies are to report on the use of SPC(s), spend and savings generated to arrangement unless otherwise expressly excluded in the endorsed business case. DTF when requested. Lead agencies are to report to the VGPB on the ongoing use of SPC(s), spend and savings generated.

Section 2.1.2 Process for establishing an SPC Section 2.1.2 Process for extending or replacing an SPC An SPC can only be established after approval by the Minister. Where the lead agency is A lead agency must consult with the VGPB and obtain approval from its relevant outside DTF, a business case must be endorsed by DTF prior to seeking approval by the Minister before extending (not including the exercising of a contractual option) or relevant Minister. replacing an SPC. Such Ministerial approval must be notified to the VGPB. SPCs may be established as a mandated or non-mandated arrangement. The process involved in extending or replacing an SPC may be nominated for strategic Where the SPC is mandated, the business case must identify the organisations required to oversight by the VGPB. participate in the SPC. The lead agency responsible for the SPC must: The accountable officer for the lead organisation responsible for establishing the SPC  take into account any comments made by the VGPB and relevant Minister must: prior to engaging with the market;  take into account any comments made by the Minister prior to engaging with  inform the VGPB and relevant Minister of the outcome of the market the market; engagement process; and  inform the Minister of the outcome of the market engagement process; and  authorise an SPC contract/head agreement on behalf of the Victorian  authorise an SPC contract/head agreement on behalf of the Victorian Government. Government.

Section 2.1.3 Obligations for parties using an SPC Section 2.1.3 Obligations for parties using an SPC A request to extend an existing contractual arrangement is subject to the approval of the SPCs are established primarily for use by State government bodies. Certain non-

3 Victorian Government Purchasing Board revised supply policies comparison of old versus new June 2016 accountable office for lead agency. government entities may uitilise them.

Policy Four: Market approach

Section 1.1 Mandatory requirements for market engagement Section 1.1 Mandatory requirements for market engagement  detail applicable broader government policy and Australian Standards where  specify applicable broader government policy and Australian Standards where relevant; relevant, including but not limited to any supplier charters or codes of conduct;  detail the criteria to be used when evaluating submissions and any criteria  specify the criteria and weightings to be used when evaluating submissions; weightings, if relevant; Section 3 Evaluation, negotiation and selection Section 3 Evaluation, negotiation and selection Evaluating submissions requires high standards of probity and systematic application of Evaluating submissions requires high standards of probity and systematic application of evaluation criteria and weightings. evaluation criteria and weightings (where relevant).

Policy Five: Contract management and disclosure

Section 2.1.1 Contract disclosure Section 2.1.1 Contract disclosure Organisations must disclose the key details for contracts (excluding contracts under head Organisations must disclose the key details for contracts (excluding contracts under agreements), with a total estimated value exceeding $100,000 (including GST) within 60 head agreements), with a total estimated value equal to or exceeding $100,000 days of the award of a contract on a contract publishing system. (including GST) within 60 days of the award of a contract on the contract publishing Disclosure relates to: system, the Tenders VIC website. Disclosure relates to:  individual procurement contracts;  individual procurement contracts that are not contracts under head agreements such as state purchase contracts (SPC) and sole entity purchase contracts (SEPC); Organisations must disclose full contract information for contracts with an estimated value exceeding $10 million (including GST) on a contract publishing system. Organisations must disclose full contract information for contracts with an estimated value exceeding $10 million (including GST) on the contract publishing system. Organisations are to develop protocols and procedures for approving exemptions from disclosure. Organisations are to develop protocols and procedures detailing such exemptions from disclosure.

2. Using this table

This table accompanies the Victorian Government Purchasing Board’s (VGPB) Procurement Policy Review Factsheet.

3 Victorian Government Purchasing Board revised supply policies comparison of old versus new June 2016 For more information, visit the Procurement Victoria website at www.procurement.vic.gov.au.

3 Victorian Government Purchasing Board revised supply policies comparison of old versus new June 2016