The Global Procurement Network
Social Procurement and Economic Development in Greater Western Sydney‘The Business Case’
Chris NewmanDirector ArcBlue [email protected] 0412 318 384
The Global Procurement Network
ArcBlue Government Procurement Development Activity across Australia/NZ
VIC State Government• CIPSA Certification
VIC Local Government• Procurement Roadmap
Development• Contract Management
Guidelines and Training• Procurement Leader’s
Conference
NSW State Government• Accreditation Program –
preparation and assessment• Category Management Programs
NSW Local Government• Roadmap Program with LGP• Procurement Leadership Program• Social Procurement Guidelines• Regional Procurement and
Shared services Programs
State Government
Local Government
SA Local Government• Roadmap Program• Regional Development
Programs
Procurement Capability Assessment / Development
Federal Government• Contract Management
Development• Regional Social
Procurement Development
Federal Government
QLD Local Government• Gold Coast Capability
Development and Contract Management Program
• LG Social Procurement Forum
WA Local Government• Procurement Training
Program
NZ Local Government• Procurement reviews
NZ Government • Departmental
reviews
The Global Procurement Network
• NSW Social Procurement Action Group (SPAG)– 17 cross-sector organisations working support the growth of social procurement– 2012 Launch of ‘Social Procurement in NSW: A Guide to Achieving Social Value
through Public Sector Procurement’
• Social Procurement Australasia (SPA)– A non-profit Association supporting the growing demand for guidance,
networking, and development in the social procurement field– Established to increase the social impact of procurement in Australia and New
Zealand– Founding Members include: Social Traders, ArcBlue, Eco-Buy, Councils, NSW
SPAG, Peak Bodies including the MAV (Vic) and Local Government Procurement (NSW)
– Activities: Forums/ events; Website portal – Case studies, research, clauses, guidance; Newsletters; Advocacy, policy development; Training and support
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Greater Western Sydney – A Picture
Region 2012 2036 Increase
Greater Western Sydney 2,033,161 2,922,854 889,693
Sydney Metropolitan Area 4,343,092 5,601,623 1,258,531
Population Growth• 47% of the population of metropolitan Sydney live in GWS• By 2036, this will be over 50%.• An increase of 890,000 people in GWS by 2036, compared to
only an additional 370,000 for the rest of Sydney.
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Greater Western Sydney – a Picture
Gross Regional Product:• Greater Western Sydney in 2011-12 was $97,150 billion from a total
Sydney GRP of $306,172 billion
Employment:• 706,359 people employed in Greater Western Sydney in 2011 from a
total of 1,961,823 for the whole of Sydney
Youth Unemployment• 11.2% Sydney - 19% Central-west, 13.2% South-west, 13.5% North-west
47% of the population of Sydney• 32% of the Gross Regional Product• 36% of the Employment• 75% of the unemployment (97,000 as at Jan 14)
The Global Procurement Network
Greater Western Sydney – A Picture
Source: AECGroup 2013
516,023
208,218 No. GWS residents working in GWSNo. GWS residents working outside GWS
Employment Containment:• According to the 2011 Census, there were over 724,000 workers
residing in Greater Western Sydney• Of these, 516,000 worked in GWS
The Global Procurement Network
Greater Western Sydney – A Picture
Employment:• The unemployment rate for GWS at February 2014 was 6.8% while for the rest
of Sydney the rate was just 5.0%.• Participation rate for GWS was 63.6% compared to 68.3% for the rest of
Sydney.• The Industry Employment Mix is changing
Industry No. employed in GWS 2011
Increase since 2006
% increase
Manufacturing 104,315 -4,226 -4%Health care & social assistance 81,555 13,385 20%Retail trade 80,501 1,351 2%Construction 61,304 4,781 8%Education & training 58,100 6,135 12%Public admin & safety 45,729 5,660 14%
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Greater Western Sydney – A PictureEducation Levels• Proportion of people with post-school qualifications: Overall in metropolitan
Sydney 55%, while in GWS 46.8%• GWS has a lower proportion of people with degree qualifications and a higher
number of people with certificate qualifications.
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Post-school qualifications over 15 years - 2011
SydneyGWS
The Global Procurement Network
GWS - Critical Challenges and Opportunities
• Job Creation– Creating jobs for GWS residents, particularly local and regional jobs
• Business Development– Developing opportunities for and the capacity of local and regional businesses
and attracting businesses to operate and employ in GWS
• Economic Participation– Creating and sustaining opportunities for economic participation for those
excluded or disadvantaged– Specific groups e.g:
» Place-based disadvantage (social housing, specific areas)» Aboriginal community» Disabled – physical/ intellectual» Long-term unemployed» CALD communities/ refugees» Young people
The Global Procurement Network
New Approaches to Achieving QBL Objectives • All levels of Government & (Private Sector) have social, economic,
environmental and Leadership/ Governance objectives (QBL)– Traditional ‘silo’ approach to achieving objectives
• Innovation – Complex issues require new models– New ways to address complex, multi-causal and long-standing
community, economic and environmental issues – Integrating QBLS objectives into procurement, service design and
employment
• For Government these may include:– Breaking cycles of long-term disadvantage– Providing genuine pathways to training and sustainable employment– Achieving ‘Zero Waste’ and carbon footprint reduction targets– Driving local and regional economic development outcomes
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Strategic Procurement
• Procurement is how we spend most of our money – NSW – State Gov’t $25bn and Local Gov’t $9bn each year
» Service delivery, community and civil infrastructure» GWS Local Government expenditure estimate of $1.5bn/ year
– Private development – housing and infrastructure– Major Projects
• Procurement is moving from an administrative activity to a strategic one– NSW Government Accreditation Program – underway across State Departments– NSW Local Government Roadmap Program
» 60 Councils will have participated by June 2014» Regional Programs underway in Southern Sydney, Central and Southern NSW » WSROC Program begins on the 7th of May
• Procurement represents significant market power to:– Deliver high quality, value for money goods, services and works;– Drive sustainable cost savings;– Influence, enable and stimulate the private and social enterprise markets to deliver social, economic
and sustainability outcomes;
The Global Procurement Network
• Professional procurement
• Influencing the business
• Transactional• Order placement
Level 1
Emergent
Level 2
Basic
Level 3
Developing
Centre of Excellence across all expenditure
Procurement foundations in place with improved controlsSome functional and category strategies in place
Focus on meeting legislative requirements
Largely unco-ordinated procurement with gaps in
compliance
Level 4
Advanced
Levels of procurement maturity
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Procurement Maturity Model
Strategic Procurement
External Focus Internal Focus
MissionDeli
very
Enablers Framew
ork
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FunctionalSilos
Strategic Social Procurement
Strategic Procurement
Social Objectives
Organisation
Social procurement - a strategic approach to meeting social and economic objectives through procurement
The Global Procurement Network
Social and Sustainable Procurement - Features
• An efficient way to deliver social impact
• Does not require ‘new’ money – making the most of the money we are already investing– NSW $34bn/ year – State Gov’t $25bn/ Local Gov’t $9bn
» Service delivery, community and civil infrastructure» GWS Local Government expenditure estimate of $1.5bn/ year
– Private development – housing and infrastructure– Major Projects
• Procurement is moving from an administrative activity to a strategic one
• Significant market power to:– Deliver high quality, value for money goods, services and works;– Drive sustainable cost savings;– Influence, enable and stimulate the private and social enterprise markets to deliver social,
economic and sustainability outcomes;
The Global Procurement Network
Social Procurement and Economic Development in GWS
• Expanding range of case studies and activity already underway– International, National, Local
• Challenges– Inconsistent practice – ad hoc rather then mainstream– Need for sustained collaborative GWS solutions
• Priorities– How to we ensure social and economic objectives are built into project design and
procurement practice – creating ‘demand’?» Ensuring that the way ‘Major Projects’ are planned and delivered leaves lasting
legacies for GWS– How do we ensure ‘supply’ capacity to respond to those social and economic
objectives:» Strengthening opportunities and the capacity of local and regional small to
medium businesses and social enterprises to participate in the supply chain» Strengthening pathways to employment for disadvantaged residents
The Global Procurement Network
The Day Ahead
