The role of government procurement extends beyond obtaining goods and services. It's an avenue to foster social development and economic inclusivity. Social Traders has lodged a submission in response to the ‘Inquiry into Procurement practices of government agencies in New South Wales and its impact on the social development of the people of New South Wales’. We stand firm in our commitment to empower social enterprises and advance social procurement practices across New South Wales.
The significance of government procurement in shaping New South Wales socio-economic fabric cannot be overstated. As advocates for meaningful change through social enterprises and procurement, we acknowledge the pivotal influence of procurement decisions on community welfare, economic equity, and environmental sustainability.
Our submission, aligned with key terms of reference, aims to optimise government procurement for social benefit:
List of recommendations
Establishing social procurement targets:
We propose initiating a whole-of-government social procurement target, akin to the successful Aboriginal Procurement Policy's spend target of 1%. This aligns with Commonwealth procurement approaches and serves as a catalyst for sustainable social impact.
Certification for social enterprises:
We advocate for integrating Social Traders certification to validate social enterprises, ensuring accountability and efficacy in government procurement while mitigating associated risks.
Social enterprise education:
Our recommendation emphasises leveraging expert intermediaries to educate NSW government procurement teams on social enterprises and procurement best practices. Mandatory training sessions will enhance teams' abilities, fostering societal impact and backing social enterprises through increased government support and awareness.
Tender and threshold processes:
Implementation of standardised evaluation systems incorporating social impact criteria is essential. Mandating justifications for not engaging social benefit suppliers is critical for driving inclusive procurement practices.
Mandatory set-aside:
We propose mandatory set-aside arrangements for social enterprises within the procurement framework.
Understanding impact costs:
Recognition and consideration of additional impact costs incurred by Work Integrated Social Enterprises (WISEs) in contract valuations will ensure fair evaluation and equitable opportunities.
Compliance monitoring and reporting mechanisms:
Robust reporting mechanisms tracking contract allocations to impact suppliers will offer invaluable insights for improvements, enhancing transparency and accountability in procurement practices.
Understanding supply-demand gap:
Partnering with Social Traders to map out the supply-demand gap for certified social enterprise suppliers will strategically align procurement strategies with supplier capability and capacity.
Supporting growth of certified social enterprise suppliers:
Backing expert bodies and state/territory networks will foster the growth of certified social enterprises, nurturing a robust supplier market to meet the surge in demand.
These recommendations collectively aim to modernise procurement practices, fostering inclusive, impactful, and accountable procurement approaches that benefit both procurement teams and social enterprises while driving societal progress in New South Wales.
We envision a transformation in New South Wales procurement landscape, where social enterprises play a pivotal role in creating sustainable, inclusive, and impactful procurement practices. This collaborative effort not only benefits procurement teams by enhancing their capacity to leverage social procurement but also amplifies the positive footprint of social enterprises in our communities delivering social and economic inclusion.