Government Procurement and Sustainability - Local Buy

Government Procurement and Sustainability - Local Buy

‘Sustainable Procurement

– Unleashing the Green


Jane Montgomery-Hribar

Executive Director

Presentation Outline

• About the APCC and Its Role

Government Procurement and


• The ANZ Government Framework for

Sustainable Procurement

• Framework Projects

• Tools and Tips

Who is the APCC

• The Australasian Procurement and Construction

Council Inc. (APCC) was founded in 1967.

• Peak body for Australian government

procurement, construction and asset

management agencies.

• APCC members include:

- Australian Government

- State and Territory Governments

- New Zealand Government

- Papua New Guinea Government (Associate


Who is the APCC

• APCC reports to the Australian

Procurement & Construction Ministerial

Council (APCMC).

• APCMC is a Council Of Australian

Governments (COAG) Ministerial Council.

The role of the APCC

• Drives nationally consistent


• Catalyst for efficiency gains &


• National collaboration of knowledge

& intelligence transfer.

• National interface with industry.

The role of the APCC

• National collaboration increases

purchasing power to leverage

reductions in prices.

• Inter-jurisdictional common

purchasing arrangements have

derived from between 10% - 40%

savings on previous purchasing


Government Procurement & Sustainability

• How can Australian governments

make a significant difference to our


Government Procurement & Sustainability

– Scale of Public Procurement

• Approx $198 billion per annum on

goods, services and capital works by all

levels of Australian governments.

• Equates to approx. 20% of Gross

Domestic Product (GDP).

• Goods, services and capital works is

approx. 20% to 80% of an agency’s


Framework to Guide Change

• Reduced


• Minimise



• Supplier


• Value for money

over whole of

life costs

Framework to Guide Change

• This Framework was a world first

government procurement

framework that incorporates all

three elements of sustainability into

one document - social,

environmental and economical.

Framework to Guide Change

• The Framework sets national

principles on implementing

sustainable public procurement to

minimise environmental impacts,

benefit society and reduce costs.

• It encourages collaboration between

governments to initiate consistent

programs to promote the principles of

sustainable procurement.

Framework Principles

1. Adopt strategies to avoid

unnecessary consumption and

manage demand;

2. In the context of whole-of-life value

for money, select products and

services which have lower

environment impacts across their

life cycle compared with competing

products and services;

Framework Principles

3. Foster a viable Australian and New

Zealand market for sustainable

products and services by supporting

businesses and industry groups that

demonstrate innovation in

sustainability; and

4. Support suppliers to government

who are socially responsible and

adopt ethical practices.

Framework Projects

A series of Sustainable Procurement

Product Guides

• Aim is to provide minimum and best,

practice performance information

and procurement responses for


• Purpose is to influence procurement

of products that has improved

sustainability outcomes over its life


Product Guides & Framework Projects

Office Furniture Product Guide

developed and released in December

2009 (refer

Assessing a Supplier’s Sustainability

Credentials (Supplier Questions) (refer


Both the Office Furniture Product Guide

and Assessing a Supplier’s Sustainability

Credentials (Supplier Questions):

• Aim is to provide a useful set of

sustainability related supplier questions

to procurement officers involved in

developing tender; or

• Request documents or when assessing

the sustainability credentials of a

contracted supplier.

Product Guides

Additional product guides being

developed in order of priority are as


– ICT- desktops and laptops

– Business machines

– Paper

– Print Services

– Cleaning

– Toner Cartridges

– Construction materials

Tools and Tips

Savings from standardisation

• Reduced duplication of effort in tender

preparation across jurisdictions.

• Consistent set of sustainability

questions reduces tendering costs for


• Demonstrates that sustainability is a

key contractual requirement.

Tools and Tips

Savings from standardisation

Government procurement recognises

sustainable suppliers.

Government support for markets to be

more innovative in sustainability.

• Minimum product standards establish

new benchmarks for business and

industry and encourage exports.

Making a Difference

Your procurement decisions can make a


• Every purchase has consequences.

• Sustainable procurement is responsible

and prudent procurement.

• Standardisation will drive efficiencies.

• More efficient use of public resources.

• Your procurement decisions can reduce

adverse environmental impacts.

Making a difference

Your procurement decisions can make a


“ If you carved out 20% of the Australian

economy and called it the Country of

Government Procurement, the Country of

Government Procurement would be bigger

than the economy of Singapore ”

Jane Montgomery-Hribar

Thank you

Australasian Procurement and

Construction Council Inc.


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