Procurement

About HSV procurement

Procurement is the process of obtaining goods and services including sourcing, negotiation, ordering, receiving and paying for items.

In partnership with our health service customers, we work to source and procure the goods and services used in Victoria’s public health facilities.

Our role is to establish collective agreement contracts with suppliers that set the terms and conditions, including pricing, for health services to purchase from. Our contracts create value for money through aggregated demand and collective purchasing power.

Best-value procurement outcomes for the state of Victoria are our priority.

We work together with health services

To help us meet health service needs, we facilitate product and service reference groups, undertake workshops and feedback sessions, seek input on the HSV Procurement Activity Plan twice a year, and prioritise one-on-one stakeholder engagement through our dedicated Customer Engagement team.

We also support health services to undertake their own procurement through:

  • health service-led invitations to supply: Health services may conduct their own invitations to supply and we can assist by providing advice, price benchmarking and negotiation support.
  • HSV-led invitations to supply: We can lead an invitation to supply on behalf of health services to help achieve the best commercial and technical outcomes.
  • HSV consolidated purchases: When the requirements of multiple health services align, we can lead an invitation to supply on behalf of a group of health services.
  • Cluster sourcing: To facilitate additional volume-based incentives, health services can choose to pool resources. This process is called cluster sourcing. Cluster sourcing reduces duplication and can achieve better prices and service delivery through economies of scale.

Health services can access our cluster sourcing resources on the Procurement practice resources page.

Our commitment to sustainable and social procurement

We are committed to sustainable procurement and apply the  Victorian Government’s Buying for Victoria Social Procurement Framework (SPF) and Local Jobs First policy to our procurement activity. Applying SPF principles helps to reduce the environmental footprint created by supply chains and increase social benefits for Victorians.

To view the SPF, visit the Buying for Victoria website.

To view the Local Jobs First policy, visit the Local Jobs First website.

Suppliers on HSV collective agreements are required to adhere to the Supplier Code of Conduct and Fair Jobs Code, and to comply with the Modern Slavery Act 2018.

To view the Codes, visit the Buying for Victoria website Supplier Code of Conduct and Fair Jobs Code pages.

Health services can access our sustainable, environmental and social procurement resources – please visit the Procurement practice resources page.

 

 

 

Content reviewed: June 2025