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What is the VPP?
The Problem
Existing procurement mechanisms prevent the Commonwealth (especially Defence) directly engaging Veterans and their businesses. This increases costs and disadvantages those who have served as detailed in the ASPI Article featured on the home page.
The Background
Using the highly successful Indigenous Procurement Policy (IPP) as a model, Government could establish a Veterans Procurement Policy (VPP).
A VPP creates significant cost savings for Government,
countless opportunities for Veterans and more agile enterprise outcomes.
The Solution
Like the IPP, which uses an exemption to the Commonwealth Procurement Rules (CPR), another exemption can be added to include Veteran-owned companies which allow Government to procure directly from them.
A Mandatory Set Aside (MSA) clause would require Veteran-owned businesses to be given an opportunity to demonstrate value for money before a general approach to market.
How does the Veteran policy use CPR?
Like the IPP, utilising an exemption to CPR will enable Commonwealth buyers to purchase directly from qualified Veteran Businesses for contracts of any size and value. Under this exemption, value for money must still be determined.
Under a VPP, Commonwealth entities can directly approach VPP businesses before approaches to market using standing panels.
Who would use the VPP?
The policy would apply to all Commonwealth non-corporate entities subject to the CPR. All other Commonwealth entities should be encouraged to adopt the policy as best practice as with the IPP.
What is a Veteran and What is a Veteran Business?
The Australian Veterans’ Recognition (Putting Veterans and Their Families First) Bill 2019 defines a Veteran as “a person who is serving or has served in the ADF” with DVA maintaining a record of Veterans via the Veterans Covenant.
A Veteran business is any business that is 50% or more Veteran owned. DVA would maintain a free Veteran business register as per the Veterans Covenant.
What barriers need to be removed for Veterans?
Serving Defence members should have a standing waiver to allow access to VPP work on discharge preventing more ‘Top Secret Real Estate Agents’.
More options
The VPP provides more options for the Commonwealth while it still retains the same control as before.
- Greater transparency means it can still select the best value for money provider, they just are no longer hidden under more subcontractors.
- Greater competition means ‘fair value’ is easier to determine.
- Reduces red-tape and allows services to be engaged in days, not weeks or months.
- More Veterans, with their specialised skillsets, are willing to engage with the Government if the employment process is not convoluted and dominated by middlemen.
OF COURSE, THERE ARE ALWAYS CHALLENGES & OBSTACLES
Click here to review Frequently Asked Questions and join the discussion.
OUR LEADERSHIP TEAM
