Social procurement framework

TAFEs are encouraged to either develop an internal social procurement policy or incorporate social and sustainable procurement objectives 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 regional and has a project value less than $1m, or is metropolitan or state-wide 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 regional and has a project value greater than $1m and less than $20m, or is metropolitan or state-wide 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 evaluation 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:

• complete a social procurement plan during procurement planning. This is a project planning requirement under the SPF
• include performance standards and contract requirements that facilitate social and sustainable procurement objectives, 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 evaluation 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 capital value greater than $50m, you are required to:

• complete a social procurement plan 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 evaluation 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 SPF. This will form part of the project planning process during procurement.

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

Annual reporting

As TAFEs are subject to the Financial Management Act Standing Directions, 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 conduct.