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Social procurement framework

Learn about the Social Procurement Framework requirements for TAFE projects based on size.

Policy overview

The Social Procurement Framework (SPF) applies to all procurement activities undertaken by Victorian Government departments and agencies, including TAFEs.

The framework focuses on incorporating social and sustainable values into procurement activities to achieve the Victorian Government’s social procurement objectives and outcomesExternal Link .

Project requirements

Project requirements under the SPF vary depending on its dollar value, regardless of the funding source. Projects must also be further classified as either ‘regional’ or ‘metropolitan orExternal Link state-wide.

During procurement planning, you may be required to develop a social procurement planExternal Link if the project is valued over $20m. Smaller sized projects should also include Victorian Government social procurement objectives and outcomesExternal Link within any general procurement planning. This will help you to:

  • understand responsibilities when approaching the market, and
  • ensure that the tender documentation outlines the requirements of tenderers under the SPF.

To ensure social procurement requirements are met, active contract management must be undertaken throughout project delivery. This includes liaising with contractors to supply relevant information as well as measuring and recording this information throughout project delivery. Specific measuring and reporting requirements can be found in section 7.2 of the Social Procurement FrameworkExternal Link .

  • TAFEs are encouraged to either develop an internal social procurement policy or incorporate social and sustainable procurement objectivesExternal Link into internal procurement policies.

    For projects of any value, the SPF should be addressed in procurement planning, even if there are no specific requirements for that project under the SPF.

  • Regional projects under $1m and metropolitan or state-wide projects under $3m

    If the project is regionalExternal Link and has a project value less than $1m, or is metropolitan or state-wideExternal Link with a project value less than $3m, you are:

    • required to incorporate SPF objectives and outcomes into regular procurement planning, and
    • encouraged to seek opportunities, where available, to directly or indirectly procure from social enterprises, Australian Disability Enterprises or Aboriginal businesses.

    It is recommended that these objectives and opportunities be addressed during the initial planning stages of the procurement phase.

    Regional projects between $1m and $20m and metropolitan or state-wide projects between $3m and $20m

    If the project is regionalExternal Link and has a project value greater than $1m and less than $20m, or is metropolitan or state-wideExternal Link with a project value between $3m and $20m, you are required to:

    • incorporate SPF objectives and outcomes into regular procurement planning. This is a project planning requirement under the SPF, and
    • use evaluation criteria (5 to 10 per cent weighting) to favour businesses whose practices support social and sustainable procurement objectives. Further guidance on SPF criteria and evaluationExternal Link is available. For further guidance on the appropriate SPF weighting range to apply to the evaluation, contact your representative at the OTCD.
  • If the project has a project value greater than $20m and less than $50m, you are required to:

  • If the project has a capital value greater than $50m, you are required to:

    • complete a social procurement planExternal Link during procurement planning. This is a project planning requirement under the SPF
    • include targets and contract requirements that facilitate social and sustainable procurement objectives. These targets are measurable outcomes, as opposed to non-measurable performance standards required for projects valued between $20m and $50m, and
    • use evaluation criteria (5 to 10 per cent weighting) to favour businesses whose practices support social and sustainable procurement objectives. Further guidance on SPF criteria and evaluationExternal Link is available. For further guidance on the appropriate SPF weighting range to apply to your evaluation, contact your representative at the OTCD.
  • Each TAFE is required to prepare a social procurement strategy, in line with table 4 of the SPFExternal Link . This will form part of the project planning process during procurement.

    The Buying for Victoria website has templatesExternal Link to support social procurement strategy.

    Annual reporting

    As TAFEs are subject to the Financial Management Act Standing DirectionsExternal Link , each TAFE must report on social procurement activities in their annual reports.

    To support the required reporting on social procurement activities in its annual report, you should measure outputs throughout the year, such as:

    • the number of social enterprises, Australian Disability Enterprises and Aboriginal businesses the TAFE engages with and the total spend with these organisations
    • the proportion of suppliers that offer family violence leave, and
    • the proportion of suppliers with environmentally sustainable practices.

    Reporting through project delivery

    During project delivery, you will need to work with suppliers to gain information on:

    • the employment and training opportunities the supplier provides for disadvantaged Victorians, and
    • the proportion of supplier personnel by gender and with a disability.

    This information, as well as information on any other social procurement project targets, should form part of the detailed evaluation criteria for evaluating bids. Furthermore, these targets should be incorporated in contract documentation to ensure SPF compliance is contractually enforceable. To ensure these contractual targets are met, you may require suppliers to provide this information in the form of a monthly report. This will also support internal project reporting requirements.

    In accordance with the SPF, you should ensure suppliers meet and exceed minimum expectations as outlined in the State’s suppliers code of conductExternal Link .

Reviewed 22 March 2023

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