The Potential of Social Procurement
What is social procurement?
Social procurement and Indigenous procurement initiatives are on the increase at commonwealth, state and local government level in Australia.
Two key examples are the Victorian Government’s Social Procurement Framework, which commenced in 2018, and the Commonwealth Indigenous Procurement Policy, introduced in 2015.
Social procurement is when an organisation uses its purchasing power to generate social benefits, particularly around the creation of jobs, often targeted at those disadvantaged in the labour market, the stimulation of local industries, and the encouragement of environmental sustainability. Indigenous procurement is specifically targeted at supporting Indigenous-owned enterprises and the training and employment of Indigenous workers.
Melbourne School of Government and social procurement
As our government departments and agencies at federal, state and local levels are the largest purchaser of goods, services and construction projects in Australia, the potential for public expenditure to improve social and economic outcomes through social and Indigenous procurement is extremely significant. This is evidenced by the role that social procurement is playing in stimulating economic and social recovery from the recent Australian bushfires and the COVID-19 pandemic.
MSoG is creating partnerships with government agencies, NGOs and industry to improve the uptake and impact of social procurement initiatives. This program of work will assist government departments and agencies through:
- program evaluation
- research on measuring the value and impact of social procurement programs, optimal design of social procurement criteria, contracts and implementation mechanisms, and the impact of the Modern Slavery Act 2018 (Cth ) on procurement
- co-design of social procurement pilots and trials
- providing recommendations for improvement of existing programs or program expansion
- development of education and training programs
For this project, a multidisciplinary approach is needed to take into account the social, environmental and economic aspects of social procurement. To support this, MSoG will bring in expertise across a number of faculties and schools at the University depending on the project.
There is potential for the findings from this program of work to be adopted by other jurisdictions and countries, as well as across all levels of government.
Want to learn more?
Email government-enquiries@unimelb.edu.au or one of our academics to learn more

Foundations of Social and Sustainable Procurement
Government departments and agencies are the largest purchasers of goods, services and construction projects in Australia. The potential for public expenditure to improve social and economic outcomes is significant, and social procurement policies and initiatives are on the increase across all levels of government in Australia.
Strategic Social and Sustainable Procurement
The course builds on Foundations of Social and Sustainable Procurement by applying the concepts, theories and policies examined, in the context of several priority social procurement areas. Like the foundation course, this MicroCert takes a multidisciplinary approach and draws on a wealth of real-life case studies, as well as key Victorian, Australian and International regulatory social procurement frameworks.


Implementation of Social and Sustainable Procurement
Social and sustainable procurement present a huge opportunity for businesses to increase their impact – but it's vital these practices are implemented effectively. This Melbourne MicroCert is ideal for current procurement professionals, suppliers and those who engage with procurement processes, seeking the tools to confidently adopt these practices and drive more positive outcomes.
Information sheet

Social Procurement Policy Brief
Indigenous procurement in Victoria: The current state of play and future prospects
by John Howe
March 2023
News
Academics
Director
Melbourne School of Government
Lecturer in Social Procurement
Melbourne School of Government
Research Fellow, Social and Sustainable Procurement
Melbourne School of Government
Professorial Fellow
Melbourne School of Government
Research Assistant
Melbourne School of Government
Collaborators
Expert Reference Group
The Social Procurement Reference Group has been established to support consultation between representatives of business, government, non-profit organisations and the Melbourne School of Government (MSoG) to inform the development of research and training programs in the broad area of social procurement. MSoG is an interdisciplinary School at the University of Melbourne in the fields of policy, public administration, and governance. Through its Social Procurement Program, MSoG is seeking to address the needs of governments, private industry and not-for-profit organisations in understanding, operationalising and developing policy frameworks around achievement of broad societal benefit through procurement practices. This includes policies and approaches by both the public and private sector designed to:
- Stimulate local economic development and growth
- Address social disadvantage through purchasing from social enterprise and employment of disadvantaged workers by suppliers
- Drive demand for Indigenous procurement
- Utilise fair and ethical trade, and ensure compliance with modern slavery regulation
- Understanding how supply chain management can improve social outcomes
- Stimulate sustainable business practices to address climate change.
The expert reference group will provide feedback and advice on this agenda, including but not limited to the following issues:
- Challenges facing organisations involved in developing and applying policy and processes for social procurement.
- Opportunities for development of research and education programs at the Melbourne School of Government and more widely at the University of Melbourne.
- Proposals for education and research programs developed by the School.
Membership
ArcBlue
Mark Daniels, Head of Social and Sustainable Procurement
Court Heath Consulting
Pauline Bernard, Director
Department of Jobs, Precincts and Regions
Fiona Sergi, Manager of Social Procurement
Department of Treasury and Finance
Matthew Taylor, Policy Manager – Strategic Sourcing
Department of Treasury and Finance
Lara Morton-Cox, A/Director – Construction Policy
Melbourne Institute
Dr Cain Polidano, Senior Research Fellow
Melbourne School of Design
A/Prof Hemanta Doloi, Associate Professor in Property and Construction Management and Technology
Municipal Association of Victoria
Grace Hamilton, Contracts Manager
Office of Projects Victoria
Luke Belfield, Director – Asset Strategy and Projects
SAP
Gordon Donovan, Intelligent Spend Evangelist
Social Traders
Rhianna Dean, Social Procurement Lead NSW & ACT
Transurban
Deepen Somaiya, Sustainable Procurement Manager