Context

A Strategic Procurement Plan (SPP) is a project management strategy that provides a framework for major procurement.

An SPP identifies procurement opportunities, options for achieving outcomes, potential partnerships and alliances, market capability, performance measures, stakeholders, internal organisational requirements, preliminary costs, risk management issues and may also include a business case.

SPPs are prepared prior to commencing any procurement action in relation to the processes noted below and may involve one or a number of associated contracts.

Key Requirements

1. Procurement Processes Warranting the preparation of an SPP
An SPP must be prepared for:
acquisitions of goods and services over $10 million; and/or
high risk or complex acquisitions regardless of value.
Note: SPPs under this policy do not replace strategic plans that may be prepared for Capital Investments or Partnerships Victoria projects.

2. Approval of SPP Proposal
The APU can approve an SPP within the department’s accreditation limit. An SPP in excess of a department’s accreditation limit must be endorsed by the APU prior to seeking VGPB approval. An SPP must be approved before commencing any approach to the market.

3. Approval of SPP Implementation
The contract manager must submit a Purchase Recommendation Report to the APU detailing the outcome of the SPP. The APU may approve the Purchase Recommendation Report if it is satisfied that the process conforms with the approved SPP.

Other Requirements

1. Management Structure for Effective Procurement Planning

• Consideration must be given to appointing a person with responsibility for overseeing the procurement planning phase.
• Consideration should also be given to establishing a procurement planning support group with a skill mix relevant to the requirements of the project.
• The role of the procurement planning manager and the procurement support group could be continued through the evaluation and selection phase and even into the contract management stage.
• The composition of the support group can change to reflect the knowledge requirements of the particular procurement phase.

Related VGPB Policy and DTF Guidelines

Process Approval for the Procurement of Goods and Services Policy
Contract Management Policy
Procurement and Local Industry Participation Policy (Victorian Industry Participation Policy - VIPP)
Planning for Contract Transition Policy
Risk Management Policy
Strategic Sourcing Policy
State Purchase Contracts (SPC) Policy
Strategic Procurement General Good Practice Guidelines (407 KB)

Related DTF Templates and Forms

Strategic Procurement Plan (58 KB DOC)
SPC Business Case Report Template (229 KB DOC)

Links to relevant Policy websites

Department of Business & Innovation(DBI) Industry Policy

Version Control Information

Version Number	2
Release Date	December 2002