$25 million Vic Government contract goes to print broker

The Victorian Government sources between 4000 to 6000 printing jobs every year with an estimated value of $15 to $25 million, with orders placed by a large number of individuals spread throughout a range of government departments. Plans are afoot to channel all of the work through a single print broker who will then place orders on behalf of the government.

Ray Keen, Victorian regional president of Printing Industries, has criticised the government's stated position of opening up print tenders to US-based suppliers, labelling it as an outrageous blow to the local industry that could cost the Victorian economy millions of dollars and countless jobs.

“The government has tried to justify opening its tenders to US companies on the basis of Australia's Free Trade Agreement with the US,” says Keen.

“If this is the justification they are using, then it follows that the tenders will also be opened to companies in Thailand, Singapore and New Zealand because we have Free Trade Agreements with them also,” he says.

“China and Malaysian FTAs are currently under negotiation by the Federal Government and will likely be approved, so where does it all end? This is the beginning of the end for Victorian manufacturing and the Victorian economy. Thousands of jobs are at risk if this is allowed to happen.”

Printing Industries has called an urgent meeting with the Victorian Government in response to the changes, with the organisation speaking to representatives from the Department of Premier and Cabinet on Thursday June 15 to state the industry case against overseas outsourcing.

Victorian Government says printing will stay local

Andrew Hockley, Department of Premier and Cabinet, insists the impending changes should not present a worry for regional or small-scale printers or be viewed as a shake up for the industry, it was reported in the Herald Sun.

“We recognise the Victorian Government is a pretty big client in the market. We are not looking to park all of our printing with one big printer or a number of big printers,” says Hockley.

Hockley says the government is aware that a large number of printers are small businesses and confirms that it wishes to continue working with them.

“If one of our departments in Shepparton, for example, needs something printed and they need it urgently, it stands to reason the best printer for the job will be local,” he says.

The government is aiming for greater cost savings and accountability with the new arrangement, estimating that savings as high as 80 per cent could be achieved on some jobs simply by buying more efficiently.

“In a big department there may be 15 people buying printing,” says Hockley. “Not all are as skilled or as knowledgeable about buying as they should be, so it would be better to have specialists to do that job and that be all they do.”

The contract will run for a term of three years with two one-year options to renew. The government emphasises it is looking for a partner to work with it on a daily basis and go through all the necessary transparent and accountable processes.

The contractor will manage requests from different government departments, engage printers to perform the work, generate artwork and manage the story and delivery needs of individual print jobs.

The Department of Premier and Cabinet will be conducting a briefing session on the print management tender on Friday, 16 June 2006 from 2.30 pm at the Treasury Theatre, 1 Treasury Place, Melbourne. Attendees must register beforehand via e-mail at pmc.tender@dpc.vic.gov.au and provide their name, title and the company they represent.