Social Procurement Case Study: Brisbane City Council Social Procurement Policy
The Brisbane City Council is committed supporting social procurement within its organisation through the development of a social procurement policy.
Quick Links: Idea - Innovation - Legalities and policy
Brisbane City Council has demonstrated a strong commitment to promote, develop and utilise the services of social enterprises given the positive social impacts they provide. This commitment has resulted in an innovative social procurement policy which recognises that often social enterprises do not have the capacity to compete for most commercial contracts, essentially excluding them from becoming council suppliers.
Brisbane City Council has clear social objectives built into its procurement policy. The council is developing policies and processes to ensure that social enterprises become part of a diverse and dynamic supplier market and that positive social impacts form part of the key deliverables in the council’s procurement practices.
Brisbane City Council has developed a number of approaches to help build the capacity of social enterprises to participate in competitive procurement processes, and eventually compete for commercial tenders for major Brisbane City Council contracts.
Firstly, the council has developed an internal list of social enterprise suppliers within its supplier database. Anyone in the organisation purchasing goods or services is encouraged to consider purchasing from one of the social enterprises listed.
Secondly, the council has disaggregated some of its larger contracts by taking out smaller parts and offering them through a Memorandum of Understanding (MOU) to social enterprises who employ those excluded from the labour market. This is an important step in the development of social enterprises given that as they become exposed to the realities of delivering contracts they will build their capacity to apply for larger contracts. This approach ensures that not only is there a direct social impact, but that the local supplier market remains diverse.
After demonstrating their ability to deliver on council contracts offered through the MOU process, social enterprises have the opportunity to compete against other social enterprises in a ‘social tender’ that offers larger contracts only to social enterprises for tender. Eventually, the aim is that the social enterprise has sufficient capability and capacity to tender for mainstream contracts alongside other commercial suppliers – whilst continuing to deliver positive social impacts.
Brisbane City Council has developed a specific policy for social procurement, including an approved process for social tendering. In certain circumstances some exemptions for compulsory open tendering have been developed when the contract value exceeds the thresholds outlined in their procurement regulations. Highly developed policies and plans for engaging with social enterprises through its supply chain are in place. The approaches implemented by Brisbane City Council offer a clear pathway for social enterprises wishing to become council suppliers and builds their capacity to eventually compete in an open market for council contracts.
