Director Commercialisation Strategic Policy and Innovation Social Entrepreneurs Solving problems in a sustainable way Social Entrepreneurs Toms Business model that matched shoes purchased to shoes given Has now resulted in the formation of the One for One movement ID: 531262
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Slide1Slide2
Kylie Hickling
Director, Commercialisation
Strategic Policy and InnovationSlide3
Social Entrepreneurs
Solving problems in a sustainable waySlide4
Social Entrepreneurs
Toms:
Business model that matched shoes purchased, to shoes given. Has now resulted in the formation of the One for One movement.Slide5
Social Entrepreneurs
Water is Life
:
Works with non-profit partners and local governments to provide community-driven initiatives.
Distribution of
The Drinkable Book
which acts as both clean water manual and water filter.Slide6
Social Entrepreneurs
Street Swags:
Portable swags for the homeless. Aid organisations, community and volunteer groups all contribute to production for nation wide distribution.Slide7
Fiftysix
:
Taj
Pabari
- CEO of Fiftysix- a DIY tablet kit, donated 1000 kits to rural Australia and Asia help children discover the world of technology, entrepreneurship and innovation.
Social EntrepreneursSlide8
Social Entrepreneurs
Buffed:
Australia’s
first social franchise business to give marginalised
individuals the opportunity to run their own shoe shine operation.Slide9
UN Global Entrepreneurs Council
A strategic advisory council designed to bring together entrepreneurs and thought leaders, it believes that innovators are uniquely positioned to help solve issues.Slide10
What’s happening around
The Brisbane Social Enterprise Meet-up GroupSlide11
Qld Government Role
Support and encourage collaboration between research, business, industry and government sectors
Improve pathway to commercialisationSlide12
Social Crowdfunding
StartSomeGood.com
Makesomechange.com
Chuffed.orgSlide13Slide14
AUSTRALIA’S GOLD COAST a city in transformation
10 March 2016Slide15
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Peter Morichovitis
Chief Procurement Officer
Northern Queensland Social Procurement Forum and Market Day 2016
10 March 2016
Social Procurement Strategies for Local Social and Economic DevelopmentSlide17
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17
Topics
Social procurement strategy
Social benefits provider procurement
Buy localSlide18
City of Gold Coast
Second largest local government in Australia
One of the largest 250 organisations in Australia
3,200 employees
~ $1.2 billion budget p.a.
Diverse business
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City of Gold Coast
Provides a diverse range of services/facilities including:
animal management
camp grounds
cemeteries
city cleaning
graffiti removal
libraries
lifeguard services
parks, sporting fields
planning and development
swimming pools
tourist parks
water
waste water
waste management
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$750 million procurement spend p.a.
65 FTEs in Procurement Office
6,000 active vendors
350 tenders/large procurements p.a.
100,000 purchase order line items procured p.a.
150,000 invoices paid p.a.
Procurement at the City of Gold Coast
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20Slide21
Purchasing
Inventory management
Warehousing
Accounts payable
Travel management
Sourcing planning
Category & market analysis
Sourcing strategy
Go to market/tendering
Contract & performance mgmt
Long term Procurement Strategy and Planning
Procurement at the City of Gold Coast
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21Slide22
Social procurement strategySlide23
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23
What is social procurement?
A strategic approach to meeting social objectives through procurement
and in particular facilitating employment opportunities.Slide24
Social procurement
Procurement
At a concept level…
Social & Economic DevelopmentSlide25
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25
Social procurement
strategy
at the City of Gold Coast
Using Procurement to facilitate employment opportunities for:
disadvantaged communities on the Gold Coast
e.g. people with disabilities, youth, seniors, multicultural groups, indigenous, etc.
(Social benefits provider procurement)
Gold Coast businesses
(Buy local)Slide26
Social benefits provider procurementSlide27
Use a portion of annual procurement spend to engage suppliers that provide a direct benefit to the disadvantaged communities of the Gold Coast
Offer tender opportunities directly to social enterprises
Work with social groups and suppliers to expand opportunities and identify suitable procurement spend categories for social procurement initiatives
Social benefits provider procurement
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The spectrum of social procurement
Social
clauses
Social benefits subcontracting
“Social benefits provider procurement”
Social tendering
Single quotes from social enterprises
Joint ventures
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Internal cleaning services for Council buildings - administration centres, libraries, branch offices, Councillor offices, aquatic centres, community and youth centres, etc.
$1.4 million spend p.a. for up to 4 years
Open tender process limited to social benefit providers only
Case study 1 – Cleaning contract
One key tender evaluation criterion:
To create the most jobs under this contract for ‘disadvantaged’ individuals e.g. physical/mental disabilities, medical conditions, age and gender, recency of work experience, educational attainment, English proficiency, country of birth, Indigenous status, stability of residence and criminal convictions
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Results:
Contracts awarded
~30 jobs provided to individuals classified as ‘disadvantaged’ (~50% of the total cleaning FTEs on the contract)
Improved levels of service
$168,000 savings (6%) over the first 2 years
Case study 1 – Cleaning contract
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Recycling services at Molendinar and Reedy Creek Waste and Recycling Centres e.g. recover recyclable waste for the purposes of resale, recycling, beneficial reuse or trading; including metals, paper/cardboard, timber, batteries, household re-sellable goods, and e-waste
$3.2 million spend over 3 years
Open tender process limited to social benefit providers only
Case study 2 – Recycling contract
Again, one key tender evaluation criterion:
To create the most jobs under this contract for ‘disadvantaged’ individuals
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Results:
Contracts awarded
46 jobs provided to individuals classified as ‘disadvantaged’
Work experience provided for the local special schools
On the job training and CERT 11 and possibly CERT 111 in Asset Management (Waste Management)
Case study 2 – Recycling contract
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Benefits
Social procurement delivers benefits to the Gold Coast…
Creating jobs - enabling employment opportunities and inclusive and accessible work environments for young people, older persons, people from culturally and linguistically diverse backgrounds, and people with disabilities
Encouraging local businesses to include social or community objectives into daily business practices
Developing and attracting social enterprises
Building the skills, knowledge and ability of not-for-profit community groups to enable them to access funding and expand services
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Other social initiatives we are working on:
Completed…
Bus services to – Volunteering Gold Coast
Youth services at community centres – to Wesley Mission
Bin enclosures – to Help Enterprises
Pro bono hours for legal services
Ground maintenance at cemeteries – House with No Steps
Future …
Linen laundry for Tourist Parks
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Stakeholder management
Getting the right strategy
Levelling the playing field
Immaturity of the market on the Gold Coast (QLD?)
Evaluation methodology and criteria
Time consuming
But EXTREMELY REWARDING!
Challenges and learnings:
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Buy localSlide37
Buy local
The City of Gold Coast supports the development of local competitive business and industry by:
the issue of quotations to local businesses, in the first instance, for contracts less than $200,000
providing a 15% pricing advantage to local businesses, for tenders leading to contracts with an annual value less than $1,000,000
including in its evaluation criteria for tenders (i.e. > $200,000), a 15% weighting to be apportioned on a sliding scale to local, regional, intrastate, interstate and overseas suppliers
including in its evaluation criteria for tenders, a 2% weighting related to the Gold Coast Business Excellence Awards
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Quotes and RFQs (< $200,000)
the issue of quotations to local businesses, in the first instance, for contracts less than $200,000.
Where quotations are required (< $200,000), quotations will only be issued and received to/from local businesses, in the first instance
Where this is not possible local businesses are to receive:
- a 30% pricing advantage for quotations up to $50,000
- a 25% pricing advantage for quotes between $50,000 - $100,000
- a 20% pricing advantage for quotes between $100,000 - $200,000
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Tenders (> $200,000)
15% pricing advantage to local businesses for tenders $200,000 p.a. to $1,000,000 p.a.
For tenders leading to contracts with an annual value between $200,000 and $1,000,000; if the best value pricing submission is not from a local business and there is a local business with a pricing submission within 15% of the best value pricing submission, then the local business will be awarded the contract.
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Buy local
Local content - 15% weighting in tenders, apportioned on a sliding scale.
Weighting
%
Score
Description
15
100%
15
Developing or established Gold Coast business
15
80%
12
Branch office on the Gold Coast directly employing a minimum of 10 FTEs
15
60%
9
Branch office on the Gold Coast, established for a minimum of six months, directly employing less than 10 FTEs
15
27%
4
Adjacent local government (Logan, Scenic Rim, Redland or Tweed Shire) business
15
13%
2
Queensland business
15
7%
1
Interstate business
15
0%
0
Overseas business
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Buy local
Gold Coast Business Excellence Awards – 2% weighting in tenders.
Where a tenderer has qualified for the Gold Coast Business Excellence Awards’ Hall
of Fame, they score 2 out of 2
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Tender weightings:
15% Local content
2% Gold Coast Business Excellence Awards
83%
‘Capability’ evaluation criteria
100%
The development of local business and industry
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Results:
Procurement spend with businesses on the Gold Coast
was 53% in February 2013
75% today
$116 million of additional spend for local businesses
Buy local
Gold Coast benefit:
Jobs and money spent on the Gold Coast boosting the local economy
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Buy local
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Awards and accoladesSlide46
Chartered Institute of Procurement and Supply (CIPS) - Procurement Professional Awards (Australasia) 2013
“Best Example of Socially Responsible Procurement in Australasia”
Social procurement - awards
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Spinal Injuries Association – Inclusive Community Champions Awards 2013
“Winner - Best Government Department”
Social procurement - awards
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Social Traders – Social Enterprise Awards 2014
Winner –
“Buy Social Award”
Social procurement - awards
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Accolades
“Gold Coast City Council advanced social procurement this month when it offered tender opportunities to ‘social benefit suppliers’…..
Social benefit provider procurement
– is a step beyond social procurement. This shift recognises the inherent value of social enterprises and other social benefits providers in providing the social impact the buyer is seeking.”
“While some organisations may include some social benefit criteria in their general tender documents, Council has committed to the next step – to offer tender opportunities to social benefit suppliers, or social enterprises only.”
Councillor Bob La Castra, City of Gold Coast - August 2012
- September 2012
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Accolades
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51
Peter Morichovitis (FCIPS)
Chief Procurement Officer
+61 7 5581 7043
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Questions?Slide53Slide54Slide55
Role of Government
Department of Housing and Public
Works’ (DHPW)
a
pproach to Social Procurement
Neil Willmett
Executive Director
Aboriginal & Torres Strait Islander Strategy Unit
Office of the Director General
Queensland Department of Housing and Public WorksSlide56
Aboriginal & Torres Strait Islander Strategy Unit
Established January 2016 as part of an enhanced focus on the Aboriginal & Torres Strait Islander Agenda by DHPW
Role of the unit:
Provide Strategic Advice
Develop Strategic Policy
Facilitate Engagement
Responsible for the
Department of Housing and Public Works Aboriginal & Torres Strait Islander Procurement Strategy
This strategy compliments and aligns with the Whole-of-Government Procurement Policy and Strategy that DHPW also has responsibility for.Slide57
Why Support Social Procurement & Supplier Diversity
Under the current QLD Procurement Policy provision is made for ‘
our procurement to advance the government’s economic, environmental and social objectives and support our community
’
The DHPW is committed to
Social Procurement (
SP
) and Supplier Diversity (
SD
)
activities and these activities are a key component of our commitment to developing and expanding relationships with businessAlso, the department’s SP and SD activities will enable us to contribute to building stronger communities and this is a key mechanism to generate wider social benefits & impact.Slide58
Benefits of SP & SD
These activities
will link and integrate social and economic agendas.
Some benefits include:
creation of
job and employment opportunities
through
smarter procurement
processes,
targeted clauses &
specifications in contracts and better informed government buyersaddressing complex local challenges, such as intergenerational employmentencouragement of local economic development and growthpromotion of fair and ethical tradesocial inclusion, giving vulnerable groups the opportunity to participate in the community and the economyengagement of small-to-medium sized businesses and social enterprises to play a larger role in delivery of government contracts.Slide59
Engagement
The
Queensland Government spends approximately
$16 billion annually
on the procurement of goods, works and services
A review of Whole-of-Government Procurement has been carried out and due to be finalised soon
The
Department of Housing and Public Works spends billions annually on the procurement of goods, works and
services
The government provides mentoring, online resources and workshops to help small businesses & social enterprises tender for government opportunities. This support can be found at
www.business.qld.gov.auThis support backs up our commitment to social procurement and will generate social outcomes, stimulate and influence markets to develop strategies and processes which generate positive social outcomes.Slide60
Embedding SP & SD into Policies and Plans
Important to do
Work has started and needs to continue. For example, the government has adopted a category management approach to managing and buying all the different types of goods and services it requires
L
everaging the category management approach to strengthen capability in SP & SD will maximise converting strategic buying activity into social & economic outcomes on the ground and in communities.Slide61
Addressing Perceived Risks
Perceived
risks and barriers to social procurement and supplier diversity are frequently cited as arguments against implementing procurement initiatives with social outcomes.
The
most
common arguments are:
SP/SD is discriminatory
The objectives of SP/SD are not consistent with government requirements
Social outcomes cannot be measured
SP/SD requires a compromise on the quality of goods and services
SP/SD is a burdenThe marketplace is not ready.Slide62
Creating Local Opportunities
Social
procurement offers a great vehicle for government in addressing complex social issues in the long term. Slide63
DHPW’s Aboriginal & Torres Strait Islander Procurement Strategy
Why
?
When?
How?Slide64
Key Messages
Government
is committed to social procurement and supplier
diversity through the implementation of the whole-of-government QLD Procurement Policy and DHPW’s Aboriginal & Torres Strait Islander Procurement Strategy
Role of Government is to create the environment and opportunities for businesses to flourish
Embedding social procurement and supplier diversity into departmental policies
&
category plans to influence the way government buys goods & services.Slide65
Contact Details
Neil
Willmett
Executive Director
Aboriginal & Torres Strait Islander Strategy Unit
Office of the Director General, Department of Housing & Public Works
80 George Street, Brisbane
Phone
:
(07) 3008 2930Email: Neil.Willmett@hpw.qld.gov.auSlide66
END OF SESSION
Building
collaborative
partnerships for
successful social procurement
Most
of the successful social tenders currently in
the marketplace
have involved both government
and social enterprises
building collaborative partnerships. Explore a framework for successful tendering partnerships and how to skill up for procurement.Case Studies Working
with Government for social benefit – a Northern Queensland perspective (from local presenters)
The
Role of
Government
Social
procurement within local and state Government
– an
insight
.
Room
8
Room 9
Location:
Hall ASlide67