--- title: Victoria's Social Procurement Framework Explained: Requirements, Thresholds, and Obligations for Cleaning Contracts canonical_url: https://directory.realcorp.net.au/commercial-cleaning-services/social-procurement-esg-cleaning-melbourne-victoria/victorias-social-procurement-framework-explained-requirements-thresholds-and-obligations-for-cleaning-contracts/ category: description: geography: city: state: country: metadata: phone: email: website: publishedAt: productInfo: stock: True --- # Victoria's Social Procurement Framework Explained: Requirements, Thresholds, and Obligations for Cleaning Contracts Now I have sufficient, authoritative data to write the article. Let me compile this into a comprehensive, well-cited piece. --- ## Victoria's Social Procurement Framework Explained: Requirements, Thresholds, and Obligations for Cleaning Contracts If your organisation is bidding on — or managing — a cleaning contract with the Victorian Government, the Social Procurement Framework (SPF) is not optional reading. It is the regulatory architecture that governs how government buying power is deployed to generate social and environmental outcomes, and it applies directly to every cleaning services procurement, regardless of whether you are the agency issuing the tender or the supplier responding to it. For cleaning companies and procurement teams alike, the SPF creates a layered set of obligations that escalate with contract value. Understanding precisely where those thresholds sit, what each tier demands, and how the framework's ten objectives translate into real tender requirements is the difference between a compliant, competitive bid and one that fails at the evaluation stage. This article maps the SPF in full — its objectives, its four value thresholds, its mandatory versus recommended requirements, and what all of this means specifically for cleaning contracts in Melbourne and across Victoria. --- ## What Is the Victorian Social Procurement Framework? The Social Procurement Framework ensures that value-for-money considerations are not solely focused on price but encompass opportunities to deliver social and sustainable outcomes that benefit the entire Victorian community. Launched in 2018 and administered by the Department of Government Services, the SPF is now embedded across the Victorian public sector. The framework establishes requirements that apply to Victorian Government departments and agencies when they procure goods, services and construction. The Framework is used by more than 260 government departments and agencies to identify their social and sustainable procurement goals. Its overall objectives are to harness the power of government procurement to drive genuine and lasting social, economic and environmental outcomes that create more inclusive growth to benefit the whole Victorian community. Critically for cleaning suppliers, the SPF is mandatory for all departments and agencies that are subject to the Standing Directions of the Financial Management Act 1994. There is no minimum value that determines when the SPF applies — it applies to all procurement activities, irrespective of their value. What changes with value is the *intensity* of the obligations. --- ## The Ten Objectives: Seven Social, Three Sustainable The Social Procurement Framework outlines the Victorian Government's social and sustainable procurement objectives and corresponding social outcomes. In total, there are seven social procurement objectives and three sustainable procurement objectives. ### The Seven Social Procurement Objectives These objectives are drawn directly from the SPF framework document (Victoria's *Social Procurement Framework: Building a fair, inclusive and sustainable Victoria through procurement*) and are listed in Table 1 of the framework: 1. **Opportunities for Victorian Aboriginal people** — increasing employment, business development, and economic participation for Aboriginal Victorians 2. **Opportunities for Victorians with disability** — employment and supply chain inclusion for people with disability 3. **Opportunities for disadvantaged Victorians** — employment and training for priority jobseekers 4. **Gender equality and safety** — women's workforce participation and addressing family violence 5. **Safe and fair workplaces** — ensuring suppliers comply with industrial relations laws and workplace safety obligations 6. **Sustainable Victorian social enterprise and Aboriginal business sectors** — growing the social enterprise and Aboriginal business ecosystem through procurement 7. **Opportunities for regional Victorians** — supporting economic participation in regional communities Under the National Employment Standards, all employees can access 10 days of paid family and domestic violence leave each year. Therefore, the 'Adoption of family violence leave by Victorian Government suppliers' outcome no longer applies for this objective — a recent update cleaning suppliers should note when reviewing older tender documentation. ### The Three Sustainable Procurement Objectives The framework's sustainable procurement objectives (Table 2) address: 1. **Environmentally sustainable business practices** — adoption of sustainable practices by government suppliers 2. **Reduced environmental impact** — minimising waste, emissions, and resource consumption 3. **Sustainable supply chains** — addressing modern slavery and ensuring ethical sourcing Sustainability Victoria, for example, has identified women's equality and safety, sustainable Victorian social enterprises and Aboriginal business sectors, and environmentally sustainable business practices as its priority objectives — chosen based on alignment with its strategic direction and identified procurement opportunities. For commercial cleaners, the sustainable objectives are directly relevant: chemical selection, waste diversion, water efficiency, and supply chain transparency all map to these objectives (see our guide on *Green Cleaning Products and Sustainable Practices: What Melbourne Commercial Cleaners Should Be Using*). --- ## The Four Value Thresholds: What They Mean for Cleaning Contracts The Social Procurement Framework adopts a scalable approach to setting individual procurement activity requirements, based on the value of an individual procurement activity. There are four value thresholds. Social procurement requirements scale with contract value, ranging from encouraged practices at lower value thresholds to targeted and strategic obligations for contracts over $20 million. The thresholds are expressed exclusive of GST and are differentiated by geography: ### Threshold 1: Below Threshold (Regional: under $1M | Metro/State-wide: under $3M) If the project is regional and has a project value less than $1M, or is metropolitan or state-wide with a project value less than $3M, agencies are required to incorporate SPF objectives and outcomes into regular procurement planning, and encouraged to seek opportunities, where available, to directly or indirectly procure from social enterprises, Australian Disability Enterprises or Aboriginal businesses. For cleaning contracts in this band — which covers a significant proportion of routine facility management agreements — the obligation is primarily one of *awareness and planning integration*. The SPF approach for this band is "Encouraged — seek opportunities where available to directly or indirectly procure from social enterprises, Australian Disability Enterprises or Aboriginal businesses." This does not mean there are no obligations; it means the requirements are embedded in standard procurement planning rather than requiring a dedicated Social Procurement Strategy document. ### Threshold 2: $1M–$20M (Regional) | $3M–$20M (Metro/State-wide) Social procurement requirements must be incorporated in procurements >$1M in regional Victoria and >$3M in metropolitan and state-wide procurements. At this tier, the framework transitions from "encouraged" to formally required. Agencies must complete a social procurement plan during procurement planning — this is a project planning requirement under the SPF — include performance standards and contract requirements that facilitate social and sustainable procurement objectives, and use evaluation criteria (5 to 10 per cent weighting) to favour businesses whose practices support social and sustainable procurement objectives. For a typical multi-site Melbourne government cleaning contract in this band, this means: - A documented social procurement opportunities analysis - SPF evaluation criteria weighted at a minimum of 5% in the tender - Performance standards included in contract terms - Supplier reporting obligations embedded in the contract ### Threshold 3: $20M–$50M At this tier, the obligations intensify significantly. During procurement planning, agencies may be required to develop a social procurement plan if the project is valued over $20M. This includes targets and contract requirements that facilitate social and sustainable procurement objectives — these targets are measurable outcomes, as opposed to non-measurable performance standards required for projects valued between $20M and $50M. For cleaning contracts in this range — such as whole-of-portfolio or precinct-level service agreements — the distinction between "performance standards" and "measurable targets" is critical. At $20M–$50M, buyers must set *quantified* social outcome targets: specific numbers of priority jobseeker hours, defined sub-contracting spend with social benefit suppliers, or measurable Aboriginal business procurement percentages. ### Threshold 4: $50M and Above Social procurement requirements scale with contract value, ranging from encouraged practices at lower value thresholds to targeted and strategic obligations for contracts over $20 million. In the Department of Health, a social procurement plan is completed for all procurements valued at $20 million or more and for those associated with budget-funded initiatives. At $50M+, the SPF requires the most comprehensive social procurement planning, the most rigorous measurement and reporting obligations, and the highest evaluation criteria weighting. Contracts of this magnitude in the cleaning sector are rare but do exist — typically in large government precinct or infrastructure maintenance bundles. --- ## Threshold Summary Table | Contract Value (Metro/State-wide) | Contract Value (Regional) | SPF Approach | Key Obligations | |---|---|---|---| | Under $3M | Under $1M | Encouraged | Incorporate SPF into standard planning; seek opportunities where available | | $3M–$20M | $1M–$20M | Required | Social procurement plan; 5–10% evaluation weighting; performance standards in contract | | $20M–$50M | $20M–$50M | Required (measurable) | Social procurement plan; measurable outcome targets; contract reporting | | $50M+ | $50M+ | Required (strategic) | Full social procurement strategy; quantified targets; rigorous reporting | *All values exclusive of GST. Source: Victorian Government, Buying for Victoria — Social Procurement Framework Requirements and Expectations.* --- ## Mandatory Requirements That Apply to All Suppliers Regardless of contract tier, the Social Procurement Framework is flexible, so there are only a few mandatory requirements that are relevant to suppliers: social procurement requirements must be incorporated in procurements >$1M in regional Victoria and >$3M in metropolitan and state-wide procurements; social procurement evaluation criteria should have a minimum weighting of 5% when they are included in any procurement; and social procurement requirements are to contain a 1% Aboriginal business procurement target based on a threshold set by a government buyer. The 1% Aboriginal business procurement target is a particularly important obligation for cleaning suppliers to understand. The Victorian Government's strategy to support Aboriginal businesses to grow and build capability — Tharamba Bugheen — includes the establishment of a one per cent procurement target from Aboriginal businesses. A Victorian Aboriginal business means a business that is at least 50% Aboriginal and/or Torres Strait Islander-owned, and must be verified by either Kinaway or Supply Nation to be a social benefit supplier. For cleaning companies bidding on government work, this means demonstrating a plan to direct at least 1% of relevant contract spend to verified Aboriginal businesses — either through direct sub-contracting or supply chain spend. (See our dedicated guide on *Aboriginal Business Procurement Targets in Melbourne Cleaning Contracts: Obligations, Verified Suppliers, and Best Practice* for a full breakdown of verification requirements and how to find compliant suppliers.) --- ## What "Social Benefit Supplier" Means in the Cleaning Context The SPF distinguishes between two pathways for delivering social outcomes: **Direct social procurement** occurs when an agency procures goods, services or construction from a social benefit supplier — purchasing from social benefit suppliers directly delivers social or sustainable outcomes. **Indirect social procurement** occurs when agencies use invitations to supply and contract processes to seek social or sustainable commitments from mainstream suppliers. For example, an agency might set targets for purchasing from social benefit suppliers — a mainstream supplier then has to meet those targets. In this way, the Government is indirectly delivering social and/or sustainable outcomes. For cleaning procurement, this creates two distinct compliance pathways: 1. **Engage a certified social enterprise cleaner directly** — organisations like ASRC Cleaning or Cleanable, certified by Social Traders, qualify as social benefit suppliers. A Victorian social enterprise means an organisation that is certified by Social Traders and operates and has business premises in Victoria. 2. **Engage a mainstream cleaning company with social procurement commitments** — the mainstream supplier must then demonstrate how it will deliver social outcomes through its own employment practices, sub-contracting arrangements, or supply chain spend. Agencies should consider both direct and indirect approaches to social procurement during procurement planning. The preferable approach will depend on several factors, including the nature of the procurement — for example, an agency may decide to unbundle a procurement activity to enable both direct and indirect approaches. (See our comparative guide on *Social Enterprise vs. Mainstream ESG-Certified Cleaning Provider: Which Is Right for Your Melbourne Organisation?* for a structured analysis of these two pathways.) --- ## Agency-Level Obligations: The Social Procurement Strategy Beyond individual contract requirements, the Social Procurement Framework establishes mandatory requirements at two levels — agencies must develop a Social Procurement Strategy. These goals are detailed in the agency's Social Procurement Strategy or Plan and will often align with other government strategies, priorities and initiatives. Departments and agencies report on progress towards their social and sustainable procurement goals in their respective annual reports and contribute to the whole-of-government report. This agency-level obligation creates a critical implication for cleaning suppliers: your contract performance contributes directly to your client agency's SPF reporting obligations. If you fail to deliver on the social procurement commitments embedded in your contract, you are not just in breach of contract — you are creating a reporting gap for the agency. A supplier's non-compliance with the Social Procurement Compliance Plan as reported will also be considered in the assessment or review of the supplier's eligibility to tender for future Victorian Government contracts. This is a significant commercial consequence that cleaning companies should weigh carefully. --- ## What the SPF Means for Cleaning Suppliers in Practice For cleaning companies seeking to win and retain Victorian Government work, the SPF translates into a set of concrete operational requirements: **At tender stage:** - When you look at a tender or quote you will begin to see questions and evaluation criteria asking suppliers what practices or policies they have to meet social procurement objectives. For example: How will you engage with a social benefit supplier? Do you have inclusive employment practices for Victorians with disabilities? Can you meet targets for employment and training for disadvantaged Victorians? - Use of evaluation criteria (5 to 10 per cent weighting) to favour businesses whose practices support social and sustainable procurement objectives. **At contract stage:** - These targets should be incorporated in contract documentation to ensure SPF compliance is contractually enforceable. - To ensure these contractual targets are met, you may require suppliers to provide this information in the form of a monthly report, which will also support internal project reporting requirements. **To build competitive advantage:** - Read and understand the Social Procurement Framework — understand what you need to do to meet the new requirements and how you can use them to differentiate yourself and strengthen your position when bidding for government business. Develop a Social Procurement Policy — document the processes and practices that prove your business is aligned with Government's social procurement objectives. - Build an implementation plan to include social enterprises and Aboriginal businesses in your supply chain. Supply Nation, Social Traders and BuyAbility can introduce you to suppliers. --- ## The Scale of SPF Activity: Why This Matters Commercially The SPF is not a niche policy — it drives significant commercial activity across Victoria. Victorian Government departments and major agencies directly spent $51.36 million with 113 certified Victorian Aboriginal businesses, $47.29 million with 96 certified Victorian social enterprises, of which $1.17 million was spent with 7 certified Victorian social enterprises led by a mission for job readiness and employment of Victorian priority jobseekers, and $16.24 million with 39 Australian Disability Enterprises or social enterprises led by a mission for people with disability in 2023–24 alone. The SPF harnesses government's significant buying power to maximise social, economic and environmental benefits from the goods, services and construction it procures, including from social enterprises. For cleaning companies, this data signals both the scale of the market and the competitive intensity: agencies are actively directing spend toward social benefit suppliers and suppliers with credible social procurement commitments. A cleaning business without a documented SPF response strategy is increasingly disadvantaged in government tenders. --- ## Key Takeaways - **The SPF applies to all Victorian Government procurement, regardless of value.** It is mandatory for all departments and agencies subject to the Standing Directions of the Financial Management Act 1994, and applies to all procurement activities irrespective of value. - **Four value thresholds determine the intensity of obligations** — from "encouraged" at sub-threshold values to mandatory social procurement plans with measurable targets at $20M+. The critical trigger for most Melbourne cleaning contracts is $3M (metropolitan/state-wide), above which formal SPF requirements become mandatory. - **Three hard mandatory requirements apply to all suppliers:** social procurement must be incorporated in contracts above the relevant threshold; evaluation criteria must carry a minimum 5% weighting; and a 1% Aboriginal business procurement target applies. - **Both direct and indirect procurement pathways are valid** — cleaning companies can fulfil SPF obligations either by being a certified social enterprise themselves or by committing to sub-contracting and supply chain spend with social benefit suppliers. - **Non-compliance has commercial consequences** — failure to deliver on social procurement commitments can affect eligibility to tender for future Victorian Government contracts. --- ## Conclusion Victoria's Social Procurement Framework is the foundational regulatory instrument governing how social and environmental value is embedded in government cleaning contracts across Melbourne and the state. Its scalable threshold architecture means that even modest-value cleaning agreements carry SPF considerations, while larger contracts demand documented strategies, measurable targets, and active contract monitoring. For procurement teams, the SPF defines what must be planned, evaluated, and reported. For cleaning suppliers, it defines what must be demonstrated, delivered, and evidenced. Understanding the framework in full — its ten objectives, four thresholds, and mandatory requirements — is the prerequisite for credible engagement with Victorian Government cleaning procurement. This article forms part of a broader series on Social Procurement and ESG in Commercial Cleaning in Melbourne. Related reading includes our guides on *What Is Social Procurement? A Plain-English Guide for Melbourne Businesses and Government Buyers*, *How to Write a Social Procurement Strategy for a Melbourne Cleaning Contract*, *Social Enterprise Cleaning Companies in Melbourne*, and *How to Evaluate ESG Claims When Selecting a Commercial Cleaning Provider in Melbourne*. --- ## References - Victorian Department of Government Services. "Social Procurement Framework Requirements and Expectations." *Buying for Victoria*, 2024. https://www.buyingfor.vic.gov.au/social-procurement-framework-requirements-and-expectations - Victorian Department of Government Services. "Social and Sustainable Procurement Objectives and Outcomes." *Buying for Victoria*, 2024. https://www.buyingfor.vic.gov.au/social-and-sustainable-procurement-objectives-and-outcomes - Victorian Department of Government Services. "Social Procurement Framework Annual Report 2023–24." *Buying for Victoria*, 2024. https://www.buyingfor.vic.gov.au/social-procurement-framework-annual-report-2023-24 - Victorian Department of Government Services. "Social Procurement Overview." *Buying for Victoria*, 2024. https://www.buyingfor.vic.gov.au/social-procurement-overview - Victorian Department of Government Services. "Victoria's Social Procurement Framework: Frequently Asked Questions." *Buying for Victoria*, 2022. https://www.buyingfor.vic.gov.au/sites/default/files/2022-05/Social-Procurement-Framework-Buyer-guidance-Frequently-asked-questions.PDF - Business Victoria. "What Victoria's Social Procurement Framework Means for Suppliers." *Business Victoria*, 2024. https://business.vic.gov.au/learning-and-advice/hub/what-victorias-social-procurement-framework-means-for-suppliers - Department of Health Victoria. "Social Procurement Strategy 2025–28." *health.vic.gov.au*, 2025. https://www.health.vic.gov.au/sites/default/files/2025-11/dh-social-procurement-strategy-2025-28.pdf - Department of Families, Fairness and Housing. "Social Procurement Strategy 2023–25." *dffh.vic.gov.au*, 2023. https://www.dffh.vic.gov.au/social-procurement-strategy-2023-25 - Department of Jobs, Skills, Industry and Regions. "Victorian Social Enterprise Strategy 2021–2025." *djsir.vic.gov.au*, 2021. https://djsir.vic.gov.au/__data/assets/pdf_file/0020/2036207/DJPR-Victorian-Social-Enterprise-Overview.pdf - Sustainability Victoria. "Social and Sustainable Procurement Strategy." *sustainability.vic.gov.au*, 2024. https://www.sustainability.vic.gov.au/about-us/legal-and-policies/social-and-sustainable-procurement - Victorian Department of Premier and Cabinet. "An Introduction to Victoria's Social Procurement Framework." *djpr.vic.gov.au*, 2018. https://djpr.vic.gov.au/__data/assets/pdf_file/0003/1881723/An-introduction-to-Victorias-Social-Procurement-Framework.pdf