Context

Government purchasing can have a positive impact on local communities, encouraging regional and local firms to grow and innovate, and to generate employment opportunities.

The Victorian Government seeks to maximise opportunities for local suppliers to sell to government and departments should give consideration to regional sourcing in the procurement planning stages.

Key Requirements

1. Maintaining Core Procurement Principles for all Procurement Activities
Value for money determined on a whole of procurement life cycle basis remains the primary criterion in the selection of suppliers.
Departments must give consideration to regional suppliers outside of the metropolitan area where they can offer the same or better value for money.
Normal procurement planning, tendering and contract management apply.

2. Regional Sourcing and Whole of Government Contracts
Departments are not bound to source requirements under $25,000 from a WofG Contract where services are delivered outside of the metropolitan area. However the WofG Contract must be used where it specifically caters for regional supply ie. the contract provides a supplier or outlet in the regional area or the contract conditions note a regional supply obligation.

Other Requirements

Maximising Local Supplier Participation
Departments are to promote opportunities for regional suppliers in government procurement by:

• providing sufficient notice of government opportunities for regional suppliers;
• examining opportunities for regional suppliers to join in supply chain relationships;
• using existing organisations such as the Industrial Capability Network (ICN) and electronic catalogues to identify local industry suppliers;
• encouraging regional suppliers to participate in electronic commerce initiatives;
• examining opportunities for regional suppliers when specifying requirements; and specifying evaluation criteria for regional purchasing requirements, considering criteria that accurately reflect relevant considerations such as transportation, commissioning and support costs.

Related VGPB Policy and DTF Guidelines

Open and Selective Tendering for purchases in excess of $150000* Policy
Obtaining Quotes for purchases up to $150000* Policy
Small to Medium Enterprise and Regional Purchasing Guidelines (120 KB DOC)

Related DTF Templates and Forms

Nil

Links to relevant Policy websites

Nil

Version Control Information

Version Number	2
Release Date	December 2002
Further Information	Strategy and Policy, Government Services Division, Department of Treasury and Finance
Phone	(+613) 868 32944
Email	vgpb@dtf.vic.gov.au