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