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Procurement and Contract Management Unit

Procurement – Meeting Targets in Social

Responsibility

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John RobertsonExecutive DirectorACT Procurement Solutions

• Key strategic tools for delivering desired Government outcomes

– Regulation– Procurement

Procurement is Special!

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Background• What is it?

– Management process used to acquire goods and services that ensures value for money decision making that incorporates appropriate consideration of a supplier’s social and environmental impacts

• Youth Challenges– November 2006 – Social Responsibility– March 2007 – Green Procurement

• Senior Executive– May 2007 – Approved social responsibility in procurement policy

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Kristy Jennings, Senior Manager, Environment and Sustainability Services, Ernst & Young

Why bother?

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• Sustainable procurement:

– carbon neutral office estate by 2012– 30% reduction in carbon emissions by 2020– recycling 75% of waste by 2020– reducing waste generation by 25% by 2020– reducing water consumption by 25% by 2020– increasing energy efficiency by 30% per square metres by 2020.

Mike Burt, MCIPSOGC Director,Government Estate Transformation

UK Sustainable Procurement

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– The average South Australian Aboriginal life expectancy is 25 to 30 years less than non Aboriginal South Australians.

Why bother?

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Principles• Question whether the procurement is necessary• Consider if our citizens or environment can be

supported • Consider earlier rather than later• Implement in a flexible and targeted way• Utilise whole of life costing

2004 - The State of Green Procurement in Australia“It is always important for procurement officers to consider the overall environmental

impacts from product conception to consumption and then disposal”

• Ensure value for money is achieved

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Kristy Jennings, Senior Manager, Environment and Sustainability Services, Ernst & Young

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Financial Benefits• Achievements already rolled out

– DFC Print Policy requires all new print devices to be duplex enabled and network capable

– Management of print devices centralised to facilitate reuse

• Some thoughts on where social responsibility in procurement can further deliver financial benefits

– Use of remanufactured toner cartridges – Demand management - Surplus equipment

database

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Environmental Benefits

• Achievements already rolled out– Hybrid/ LPG Vehicles– Cleaning– Stationery

• Some thoughts on where social responsibility in procurement can further deliver environmental benefits

– Develop markets for sustainable products

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Social Benefits• Initiatives completed or underway

– Disability employers register– Traineeships in Ernabella Aboriginal Community– Encouraging employment of disadvantaged groups

• Some thoughts on where social responsibility can further deliver social benefits

– Support vulnerable groups • Preferred panel of builders for

APY Lands – NGO access to DFC contracts

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Management Benefits

State Procure. Act 2004

Greening DFC

Greening of Govt

(GoGO) Framework

National Strategy for

Eco. Sustain. Develop

DFC Strategic

Plan

South Australian Strategic

Plan

DFC GreenProcure.

Action Plan

• Some thoughts on where social responsibility in procurement can deliver management benefits– Help attract and motivate staff– Enhance DFC reputation– Build closer connections with

businesses and community organisations

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Impact on Suppliers• Lyreco – new DFC stationery supplier

– Offerings• Back to school stationery needs for children under the

guardianship of the Minister • After hours provision of vans and drivers during State declared

emergency• Disadvantaged groups targeted to fill casual employment

positions• Outsource processing projects to organisations such as

Bedfords and Phoenix

– Benefits• marketing• employee satisfaction• Improved customer understanding and relationship

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Implementation• Develop an Action Plan for Social

Responsibility in Procurement– Preferred products and suppliers database– Specification development

• Incorporate social responsibility criteria• Utilise environmental checklists and performance criteria

– Evaluation techniques• Give preference to environmentally friendly goods• Use life cycle costing

– Educate and recognise staff and suppliers

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Target Description: How DFC Procurement can help

T1.26 Aboriginal Unemployment:

Reduce the gap between Aboriginal and non-Aboriginal unemployment rates each year.

Traineeships in Ernabella Aboriginal Community

Preferred panel of builders for APY Lands

T3.7 Ecological Footprint:

Reduce South Australia’s ecological footprint by 30% by 2050.

All new print devices duplex enabled/ network capableManagement of print devices centralisedUse of remanufactured toner cartridges Surplus equipment databaseUse of Hybrid/ LPG vehiclesCleaning – reduce use of harmful chemicalsStationery – increase use of recycled and remanufactured products and packaging

T5.6 Volunteering:

Maintain the high level of volunteering in South Australia at 50% participation rate or higher.

Stationery – Provide drivers/ vehicles during State declared emergency

T6.5 Economic Disadvantage:

Reduce the percentage of South Australians receiving government benefits (excluding age pensions) as their major income source to below the Australian average by 2014.

Disability employers register

Encourage employment of disadvantaged groupsTarget disadvantaged groups to fill casual employment positionsProcessing projects to organisations such as Bedfords and Phoenix

Challenge – SASP Targets

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Summary

• Get excited about Social Responsibility in Procurement

• Get active and surprise your CE with the sorts of government targets that Procurement can support