VICTORIAN GOVERNMENT ABORIGINAL PROCUREMENT BUSINESS STRATEGY2017–2021
Introduction
Opportunities for Victorian Aboriginal people is one of seven social procurement objectives included in the Social Procurement Framework.
Corresponding social outcomes
The Social Procurement Framework identifies two social outcomes corresponding to this social procurement objective:
Purchasing from Victorian Aboriginal businesses
Employment of Victorian Aboriginal people by suppliers to the Victorian Government
These outcomes are addressed separately below
Recommended actions
Individual procurement activity requirements for government buyers (Table 3 of the Social Procurement Framework) recommends the following actions:
For individual procurement activities valued below $1 million (regional) or $3 million (metro or State-wide) (exclusive of GST), government buyers seek opportunities to directly or indirectly procure from Victorian Aboriginal businesses.
For individual procurement activities valued at or above $1 million (regional) or $3 million (metro or State-wide) up to $20 million (exclusive of GST), government buyers consider whether part of the procurement can be unbundled for delivery from Victorian Aboriginal businesses.
For individual procurement activities valued at or above $20 million (exclusive of GST), government buyers set targets for supplier expenditure with Victorian Aboriginal businesses and ask suppliers to demonstrate how they will meet such targets.
Purchasing from Victorian Aboriginal businesses
Benefits for Victorians
The Victorian Government recognises that:
Victorian Aboriginal people, organisations and businesses already make valuable contributions to Victoria's diverse economy;
the Victorian Aboriginal business sector is large, diverse and includes for-profit businesses, social enterprises and community enterprises;
Aboriginal economic development is vital to growing Victoria's wealth generally and to increasing overall economic productivity and competitive advantage; and
Aboriginal economic participation and development is also a vital foundation for self-determination.
Improving the visibility and networks of Aboriginal businesses is a strategic priority of Tharamba Bugheen – Victorian Aboriginal Business Strategy 2017-2021.
The Victorian Government has set a target of 1% of government procurement from small to medium enterprises to be from Aboriginal businesses. The target is to be achieved by 2019-2020.
Model approach for government buyers
There are two model approaches to delivering this outcome:
Direct approach to social procurement – selectively target Victorian Aboriginal businesses or, alternatively, ensure that Victorian Aboriginal businesses are included in any market approach.
AND/OR
Indirect approach to social procurement – require mainstream suppliers to include Victorian Aboriginal businesses within their supply chain (for example, by way of sub-contracting).
Where appropriate, government buyers may also require suppliers to evidence their status, or the status of suppliers in their supply chain, as a Victorian Aboriginal business.
THARAMBA BUGHEEN VICTORIAN ABORIGINAL BUSINESS STRATEGY 2017–2021