From January 2026, the Queensland Government has taken a meaningful step forward in embedding social impact into public procurement through the updated Queensland Procurement Policy (QPP). The QPP has been refined down to a concise policy document that centers around 5 Pillars, which the government expects will help increase the state’s economy.
The introduction of Pillar 5, Practical economic, environmental and social impact, focuses on practical economic, environmental and social impact, shifting suppliers’ requirements beyond demonstrating intent and requiring real planning and execution of social impact. Social impact is now a formal and weighted part of how tenders are assessed.
Weighted Criteria to Support Social Impact in Queensland Government Tenders
Under the updated policy, social impact is now a requirement that needs to be clearly demonstrated.
For significant procurement, government agencies must apply a purposeful public procurement evaluation criterion. That means:
- A government agency will prioritise up to 4 outcomes from a defined set of 12 purposeful public procurement outcomes for each tender. The 12 purposeful public procurement outcomes revolve around deliverables across economic, environmental and social.
- Up to 20% of the total procurement evaluation score can be tied to the purposeful public procurement outcomes that the agency selects.
- Suppliers need to respond to the agency’s selected purposeful public procurement outcomes and clearly identify how they will deliver against those outcomes through initiatives and programs.
These changes to how the Queensland Government evaluates tenders create a new level of accountability and a real advantage for suppliers who are prepared.
The 12 Purposeful Public Procurement Outcomes
Pillar 5 of the new QPP outlines the 12 outcomes through which the Queensland Government expects suppliers to deliver social impact.
The 12 purposeful public procurement outcomes are:
• local benefits, including local workforces and use of local suppliers in the supply chain
• support for local manufacturing
• regional and community benefits, and impacts on communities
• increase in spend with small and family businesses and medium enterprises
• increase in spend with Aboriginal and Torres Strait Islander businesses
• increase in spend with social enterprises
• increase in spend for female-owned businesses
• improved environmental outcomes, including reduction in waste and increased use of locally recycled materials
• commitment to apprentices and trainees
• increase in spend with Queensland suppliers that are owned by, or employ, veterans, or that support veteran transition from the Australian Defence Force to civilian employment, or that partner with veteran charities or training programs
• encouraging inclusive employment practices in the private sector, including:
» employment of people with disability
» employment of females
» commitment to employment of Aboriginal and Torres Strait Islander peoples
• enduring community value, including housing availability and affordability.
What This Means for Suppliers
For suppliers, the introduction of Pillar 5 and the associated weighting of up to 20% means that suppliers need to deliver social impact when providing the Queensland Government with goods or services.
To stay competitive, suppliers will need to:
- Shift from aspirations of delivering social impact to implementing initiatives that deliver tangible outcomes
- Create supply chain diversity
- Plan employment and training opportunities
- Be able to track and report impact
The Inclusion of Social Impact Requirements in the QPP
reflects a growing trend
The social impact requirements created by the Queensland Government, under Pillar 5, are part of a broader trend across government procurement. States and Territories are increasingly using procurement policies as levers to deliver outcomes in the ‘social’ dimension of ESG.
For suppliers who lean into understanding how they can deliver social impact through social procurement practices, e.g., employment or procurement activities, there is a clear upside. Suppliers will be able to formulate stronger bids and overall help their organisation build long-term capability within their workforce and supply chains.
For the suppliers who do not adopt social procurement practices, the risk of becoming uncompetitive within tender activities is greatly increased.
How The Fair Co. can help you comply with the updated QPP
At The Fair Co., we help organisations turn policy into practical action.
That includes helping you:
- Identify where social procurement can strengthen your bid
- Build credible and achievable delivery plans
- Activate the right supply chain partnerships
- Provide project delivery support, including implementation of strategies and plans and measurement and reporting support
Contact the Fair Co. team to understand the QPP and how your organisation can deliver social impact here.
