Victorian Industry Participation Policy - Aston Smith, VIPP Program ...

Victorian Industry Participation Policy
Major Projects Forum 2011
Aston Smith – VIPP Program Manager
August 2011

Agenda
1. Victorian Industry Participation Policy (VIPP)
2. Assistance & Assessment
3. Shortlisted Tenderers Timeline
4. VIPP Management Centre
5. Contacts

Victorian Industry Participation Policy
• The Victorian Industry Participation Policy (VIPP) was
developed by the State Government to maximise the
involvement of Victorian industry in government-funded
projects and purchases.
• The VIPP ensures that procurement and industry assistance
activities support local (Victorian, Australian & New Zealand)
suppliers when they represent best value-for-money.
• VIPP does not contravene international trade obligations

VIPP Fundamentals
• Value: Value for money will remain the primary consideration
in government purchasing and supply decisions. Includes
whole-of-life costs
• Competitiveness: Local industry’s ability to compete globally
will be strengthened and promoted
• No discrimination: Consistent with our international
obligations, there will be no protectionism.
• Transparency: All government tendering mechanisms and
processes will be open, clear and accountable.

When does the VIPP apply
• The VIPP must be applied to all Victorian Government procurements and
projects which meet or exceed the following thresholds:
Metropolitan Melbourne
or
Statewide contracts
Regional Victoria
• $3 million or more
• $1 million or more
• Procurements and projects include:
– Purchases of goods and services inc. State Purchase Contracts, Panel
Contracts
– Construction activities, inc. Alliance contracts
– Major projects
– Partnerships Victoria projects
– Investment attraction and infrastructure development grants, and
– Funding for major events

When does the VIPP apply
• VIPP is applied at the shortlisting stage of the tender
process.
• If no shortlisting is undertaken then the VIPP applies when the
request for tender is issued, or at the time a grant application
is completed etc
• The VIPP should be considered at the design-phase of project
development, to ensure that local content opportunities are
not “designed-out”.
• If in doubt about whether the VIPP applies, or if a project may
meet the Strategic Project criteria, please contact DBI

Key details in the VIPP
VIPP Plans must include information on:
• Estimated level of local content commitments (ANZ valueadded
activities)
• Estimated number of Employment (FTE created/ retained)
• Apprenticeships/ Traineeships (FTE created/ retained)
• Estimated Training, Skills Development and Technology
Transfer outcomes.
• Detailed outline of the Implementation Process for achieving
these commitments

VIPP - Strategic Projects
• Applies to projects $250 million as measured on a whole-of-life
basis, or with capital costs in excess of $100 million that meet
certain economic and industry development criteria.
• Subject to DBI and agency assessment and finally, Committee of
Cabinet approval.
• Enhanced application of the VIPP including:
– minimum local content percentage, nomination of Strategic Items, etc;
– Local Industry Development Plans (LIDP’s), developed in consultation with
ICN.
• Announced Strategic Projects include Trams Procurement,
Victorian Comprehensive Cancer Centre and Regional Rail Link.

ICN Role
Assistance
&
Assessment
ICN provides a free service in strict compliance with probity and confidentiality
procedures in accordance with Government procurement guidelines. Accordingly,
ICN ensures separation of duties between "assistance to understand VIPP
requirements" and “VIPP Plan certification and evaluation".

ICN VIPP Team and Business Capability Adviser
activities are performed at separate locations
VIPP Assistance – BCA’s provide:
• Advice on the VIPP.
• Feedback to companies that are
developing VIPP Plans.
• Advice to companies so that
they can successfully fulfil
their contract VIPP obligations.
ICN VIPP team:
• Certifies the completeness of the
VIPP Plans.
• Assesses the merits of the VIPP Plan
commitments that are provided to the
responsible government agency.
• Certifies any amendments to VIPP
commitments as a result of Request
For Proposal (RFP) negotiations.
• Provides post-contract certification of
VIPP outcomes.
ICN maintains a clear separation of duties between
Business Capability Advisers and the VIPP Team

ICN Assistance works!
ICN VIPP assistance has helped tenderers
place almost $1 Billion in orders to ANZ
industry since 2001.

Shortlisted Tenderers Timeline
Seek ICN Assistance
via VIPP
Management Centre
ICN will nominate a BCA to work with
each Shortlisted Proponent
throughout the VIPP process
Submit VIPP Plan to
ICN for Certification
At least 2 working days BEFORE
certification due date
Date of certification
requirement
(Certification due date)
Receive Certification
Letter
Submit Certification
Letter to Agency
Receive Noncompliant
Letter
Shortlisted
Proponent contacts
agency to discuss
Agency contacts ICN
to advise how to
proceed

How to use the VIPP Management Centre (VMC)

VMC Tenderer Dashboard

Submit for Assistance

Submit for Certification & Checklist

Contacts
Industry Capability Network Ltd:
Phone: (03) 8689 2500
Visit: www.icnvic.org.au
Email: info@icnvic.org.au
Department of Business and Innovation
Bree Polkinghorne
Phone: (03) 9651 9819
Visit: http://www.dbi.vic.gov.au/vipp
Email: vipp@dbi.vic.gov.au