The Global Procurement Network Social Procurement and Economic
Development in Greater Western Sydney The Business Case Chris
Newman Director ArcBlue Consulting [email protected]
www.arcblue.com.au 0412 318 384
Slide 2
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 Leaders
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
Slide 3
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
Slide 4
The Global Procurement Network Greater Western Sydney A Picture
Region20122036Increase Greater Western
Sydney2,033,1612,922,854889,693 Sydney Metropolitan
Area4,343,0925,601,6231,258,531 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.
Slide 5
The Global Procurement Network 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)
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The Global Procurement Network Greater Western Sydney A Picture
Source: AECGroup 2013 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
Slide 7
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
81,55513,38520% Retail trade 80,5011,3512% Construction
61,3044,7818% Education & training 58,1006,13512% Public admin
& safety 45,7295,66014%
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The Global Procurement Network Greater Western Sydney A Picture
Education 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.
Slide 9
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
Slide 10
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
Slide 11
The Global Procurement Network Strategic Procurement
Procurement is how we spend most of our money NSW State Govt $25bn
and Local Govt $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 7 th 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;
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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 controls Some 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
Slide 13
The Global Procurement Network Procurement Maturity Model
Slide 14
The Global Procurement Network Functional Silos Strategic
Social Procurement Strategic Procurement Social Objectives
Organisation Social procurement - a strategic approach to meeting
social and economic objectives through procurement
Slide 15
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 Govt $25bn/ Local Govt $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;
Slide 16
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