Context
The intent of the Ethical Purchasing Policy requires a business to meet its obligations to its employees under applicable industrial instruments and legislation.
This Policy introduces checks on businesses prior to awarding a contract and during the life of a contract. The checks will assess whether a business satisfies the Government’s ethical employment standard.
A business may be disqualified from a tender process or may have its contract terminated if it fails to satisfy the ethical employment standard and will have its name placed on the Ethical Employment Reference Register.
A business listed on the Register is not prevented from receiving government work and may still tender for and be awarded government contracts. An assessment of whether a business satisfies the requirements of the ethical employment standard is to be conducted afresh with each new tender process.
The Ethical Purchasing Policy is based on the following principles:
| Openness and transparency | The process for awarding government contracts should be open, clear and defensible |
| Fairness | Businesses tendering for government contracts should be treated fairly |
| Simplicity | The implementation process should be as simple as possible to minimise tendering and contracting costs for businesses and government |
| Opportunity | The process should not discourage SMEs and businesses in regional areas from tendering for government contracts |
| Rule of law | The basis of the Government’s ethical employment standard is compliance with applicable industrial instruments and legislation |
| Current factual information | The assessment of whether a business satisfies the ethical employment standard should be based on the most up-to-date information available |
Key Requirements
1. Applying the Ethical Purchasing Policy
The Ethical Purchasing Policy applies to the purchase of goods and services valued in excess of $100 000. The Policy is also to apply to the purchases of goods and services valued at less than $100 000 from high-risk industries such as textiles, clothing and footwear, cleaning and security services.
2. Applying Standard Tender and Contract Terms
Standard ethical purchasing clauses developed by the Department of Treasury and Finance are to be incorporated into all Request for Tender documents and referred to in obtaining a quote for values less than $150 000 from a high-risk industry.
3. Record of Disqualified Tenderer or Terminated Contractor
The tender or contract manager is to immediately notify the Department of Treasury and Finance (in the form prescribed) of any business which has been disqualified from the tender process, or which has had its contract terminated, because it does not satisfy the ethical employment standard.
Other Requirements
Nil
Related VGPB Policy and DTF Guidelines
Obtaining Quotes for purchases up to $150000* Policy
Open and Selective Tendering for purchases in excess of $150000* Policy
Terms and conditions of Contract Policy
Tender Processes and Tender Documents Policy
Procurement and Ethical Employment (Safety Net) Policy
Related DTF Templates and Forms
Request For Tender (Parts A-E) - Standard Offer Agreements(547 KB DOC)
Request For Tender (Parts A-E) - One-off Supply (601 KB DOC)
Links to relevant Policy websites
The Victorian Government’s Ethical Purchasing Policy – Supporting Fair and Safe Workplaces
www.dtf.vic.gov.au (Information for Victorian Government & Industry Suppliers – Policy & Compliance)
Industrial relations advice and advice regarding high - risk industries:
Industrial Relations Victoria (IRV)
Department of Business & Innovation
www.irv.vic.gov.au
Occupation Health and Safety advice:
Victorian Workcover Authority (Worksafe)
www.worksafe.vic.gov.au
Version Control Information
 Version Number | 2 |
Release Date | December 2002 |
Further Information | Strategy and Policy, Government Services Division, Department of Treasury and Finance |
Phone | (+613) 868 32944 |
| vgpb@dtf.vic.gov.au |
