State Purchase Contracts

Tabled: 20 September 2018

Overview

The Victorian public sector (VPS) buys a lot of goods and services—$18.6 billion worth in 2016–17. One way that this purchasing power is harnessed is through State Purchase Contracts (SPC), which aggregate demand for commonly used goods and services such as utilities, office consumables, staffing services, information and communication technology (ICT) services and travel services.

In this audit, we assessed whether government agencies realise financial and other benefits through their use of SPC. We focussed the effectiveness of oversight of SPC by VGPB and lead agencies. We also examined whether reported benefits are reliable, and to this end considered also whether there is scope to increase the financial benefits obtained from these arrangements.

We made:

  • one recommendation to VGPB to address the central collection of comprehensive procurement data
  • five recommendations to lead agencies DTF, DPC and DJR to address how they manage SPCs as well as how they set, monitor and report on benefits
  • two recommendations to DTF and DPC address the need to assess user satisfaction with SPC and centrally record applications for exemptions
  • three recommendations for all departments as SPC users to address the need to understand and monitor contract leakage and centrally record applications for SPC exemptions.

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