What has happened? Recycling Victoria has released a consultation draft for its Strategic Procurement Framework. Recycling Victoria is inviting feedback on the Strategic Procurement Framework consultation draft until 20 September 2024 via the government’s website at engage.vic.gov.au. The final Strategic Procurement Frameworks is due to be published in late 2024 and will provide a framework for Recycling Victoria’s participation in future procurement activities. What you need to know One of Recycling Victoria’s functions is to support best practice procurement and contract management of waste and recycling services, and facilitate strategic procurement for councils and Alpine Resorts Victoria. The purpose of the Strategic Procurement Framework is to define how Recycling Victoria will meet those obligations. Unlike the procurement guidelines that Recycling Victoria may issue under section 58 of the Circular Economy (Waste Reduction and Recycling) Act 2021, the Strategic Procurement Framework does not appear to be a legislative instrument in its own right. However, it does provide an indication of Recycling Victoria’s approach to strategic procurement going forward. When Recycling Victoria was established in 2021 and the metropolitan and regional waste and resource recovery groups were transferred to Recycling Victoria’s responsibility, it inherited a significant number of long-term legacy contractual arrangements in which these groups had facilitated procurements by acting as a lead procurement agency for local councils. The Strategic Procurement Framework represents a departure from that model. Recycling Victoria has made it clear it sees its role as providing assistance and support but not actively participating in procurements or entering into agreements itself on behalf of councils or Alpine Resorts Victoria. The Framework voices concerns regarding the potential conflicts of interest, probity and confidentiality issues that may arise if Recycling Victoria is actively participating in procurements that could cut across its arms’ length regulatory and enforcement functions. There may be state significant circumstances where collaborative procurements may be facilitated by Recycling Victoria using its power to enter into such arrangements under section 56 of the Circular Economy Act. However, these would be the exception. Recycling Victoria has indicated it will develop a three year rolling strategic procurement action plan that sets out its waste, recycling and resource recovery procurement support priorities. Recycling Victoria will consult with stakeholder when developing the plan. The type of support is likely to include: Identifying risks and contingency planning to feed into contractual specifications. Providing market intelligence and data. Identifying long term infrastructure needs. Developing service standards that are incorporated into contracts. Engaging with stakeholders on priorities. Key take aways The key take aways from the draft Strategic Procurement Framework are: Recycling Victoria will not continue the previous practice of the metropolitan waste and resource recovery group of actively participating in procurements. Recycling Victoria will provide assistance and support through a strategic approach to risk management, market intelligence and data, identifying long term infrastructure priorities, development of service standards and stakeholder consultation. Recycling Victoria will develop a three year rolling plan for procurement priorities. The need for large scale collaborative procurements that can aggregate volumes and purchasing power to underpin the business cases for infrastructure investments in the sector is not going away. It remains to be seen how Recycling Victoria can balance that need with its more strategic focus and desire not to get entangled in complex procurement activities for these services. We are here to help If you need any assistance with procurement of waste and resource recovery services and infrastructure, Russell Kennedy has a dedicated team that advises on all aspects of waste and resource recovery procurement and regulatory matters. If you require any further information, please contact Kyle Gillan. If you would like to keep up to date with Alerts, Insights and upcoming events, you can subscribe to our mailing list here.