Procurement policies and processes

Our procurement activities are underpinned by high levels of probity, accountability and integrity.

Policies

The Victorian Government Purchasing Board sets the policies that govern procurement of non-construction goods and services across all Victorian government departments and some specified entities.

We are committed to ensuring our procurement activities comply with the board’s policies and procedures.

The  board's procurement framework is supported by five policies.

They are:

1. governance
2. complexity and capability assessment
3. market analysis and review
4. market approach
5. contract management and contact disclosure.

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 are based on an assessment of complexity and our capability  to conduct the procurement. Procurement can only proceed when we determine we have 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

We must continuously apply 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.

Directives

All procurement activity must meet the following directives:

• Value for money
• Accountability
• Probity
• Scalability

Value for money

This means making 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

We work to meet high standards of behaviour and actions in the conduct of procurement processes, including:

• equity
• confidentiality
• avoiding conflicts of interest
• consumer/supplier confidence in the integrity of government procurement processes.

Scalability

Scalability refers to the relationship between the complexity of a procurement project and the capability of the organisation to conduct it to achieve a good procurement outcome.

Annual procurement plan

The summary forecast of our procurement activity for the current financial year, exceeding $100,000, is published in accordance with the Victorian Government Purchasing Board Governance Policy by 31 August each year. It is available on the Department of Treasury and Finance website as part of the department's forward plan.

Supplier Code of Conduct

We are committed to ethical, sustainable and socially responsible procurement. To help ensure our suppliers maintain the same values as the Victorian Government, the government has established a Supplier Code of Conduct.

The code outlines the minimum ethical standards in behaviour that suppliers will aspire to meet when conducting business with, or on behalf of, public sector departments or agencies in the areas of: 

• integrity, ethics and conduct
• conflict of interest, gifts, benefits and hospitality
• corporate governance
• labour and human rights
• health and safety; and
• environmental management.

Visit the Victorian Government Purchasing Board website to view the code, or to access the supplier fact sheet or frequently asked questions documentation.

How to make a procurement complaint

We are committed to ensuring our procurement activities comply with the Victorian Government Purchasing Board’s policies and procedures, and are underpinned by high levels of probity, accountability and integrity.

Find out more about the board’s policies..

To report a concern or complaint about a process or probity matter relating to a procurement activity of the commission, contact our procurement or staff member you are dealing with.

Most issues are the result of misunderstanding or process error and can be rectified quickly and easily. If the issue is not resolved, you can make a formal complaint to us.

Complaints are handled in a fair, consistent and transparent manner. The following process is followed:

Step 1: Making a procurement related complaint

If you have a complaint or concern relating to a procurement or probity activity carried out by us, email procurement@esc.vic.gov.au and provide:

• a concise written statement clearly setting out the basis of your complaint
• specific details for the complaint including an explanation of how the complaint may impact the person or organisation making the complaint
• any relevant background information including prior actions or correspondence involving the commission in relation to the issue
• copies of all relevant documentary evidence supporting the complaint.

Step 2: Complaint investigation process

Within five working days of receipt of your complaint you will receive a written acknowledgement of your complaint.

If further information is required to address your concern, you will be given a minimum of 10 working days to provide the required documentation, unless the matter is urgent.

As soon as all the information is collected, we will work to reach a resolution within 20 working days of receiving your last correspondence.

We will provide you with a written response (an outcome letter) advising you of the outcome of the complaint and any follow-on action.

If additional information is required, or the services of external parties are required to advise on elements of the complaint, there will be an extension of time. This will be based on the number of working days between the request for, and receipt of additional information and/or advice sought.

Step 3: Complaint outcome

If you disagree with the proposed resolution provided in the outcome letter, you may refer your complaint to the Victorian Government Purchasing Board for investigation.

Complaints submitted to the board must be lodged by letter or email within 10 working days of the receipt of the findings by the commission to the following address:

Victorian Government Purchasing Board
Department of Treasury and Finance
GPO Box 4379
Melbourne 3001
Email: vgpb@dtf.vic.gov.au