From July 2019, the following guidelines come into effect for government public service bodies and public entities that are mandated to comply with Victorian Government Purchasing Board (VGPB) policies:
These guidelines contain updated decision-making and approval requirements for labour hire and professional services use.
Who has to follow these rules
To find out if your organisation is mandated to follow VGPB policies, visit the VGPB Scope of Polices page.
We encourage organisations that are not required to comply with these guidelines to implement them as good practice, where applicable.
When the new rules start
These guidelines come into effect from July 2019. Mandated entities must ensure they have transitioned to and are fully compliant with the new rules by 1 October 2019.
In the interim period between 14 July 2019 and 1 October 2019, the following approval measures for labour hire and consulting engagements will apply for all mandated entities:
- All requests to use labour hire must be approved by a Deputy Secretary (or equivalent) at a minimum.
- All proposals to engage consultants must be approved by a Secretary (or equivalent).
More information on these interim measures can be found in the ‘Compliance with the Guidelines’ section of the new guidelines.
Contracts these guidelines apply to
These guidelines apply to all labour hire and professional services engagements made under:
- the Staffing Services State Purchase Contract (SPC)
- the Professional Advisory Services SPC
- the Legal Services Panel SPC
- the Marketing Services register
- the eServices Panel
Application of service categories
These guidelines apply to an engagement even if it's with a provider that is not on a current SPC panel or register, if it applies to one of the service categories in the SPCs.
These guidelines don't apply to professional services to undertake, service or advise on built environment and infrastructure work, such as construction, infrastructure, engineering or architecture.
Other exemptions under the Public Administration Act 2004 (Vic) are described in the guidelines.
Why we've introduced new rules
A 2018 review found that there has been a significant year-on-year increase in the use of labour hire and professional services in the Victorian Government.
We're committed to secure employment practices and building the internal capability of the VPS. To do this, we're challenging current thinking and practices around use of labour hire and professional services in the VPS. The goal is to change the culture and practices to:
- reduce the use of external suppliers for certain kinds of contracts
- build internal capability
- support secure employment practices
Help with the guidelines
If you're uncertain about how to implement these guidelines or their applicability to your organisation or circumstances, speak to your organisation’s procurement team.
Department of Premier and Cabinet will be monitoring and supporting the transition to these new rules.