Victorian Industry Participation Policy

Local Jobs First

Through its Victorian Industry Participation Policy (VIPP), the Victorian Government is committed to improving opportunities for local suppliers to create more new jobs and grow the economy.

The VIPP ensures that small and medium size enterprises (SMEs) are given a full and fair opportunity to compete for government contracts, such as hospitals, schools and road projects, while still achieving value for money.

VIPP requires government departments and agencies to consider competitive local suppliers, including SMEs, when awarding contracts valued at:

  • $1 million or more in regional Victoria, or
  • $3 million or more in metropolitan Melbourne or for state-wide activities

VIPP also has a Strategic Project framework for projects valued at $50 million or more. These projects are automatically granted VIPP strategic project status. VIPP strategic projects have minimum local content requirements and other conditions determined on a case-by-case basis by government. The forward plan of VIPP Strategic Projects provides industry with information on current and future government procurements activities valued at $50 million and above, including information on local content commitments.

VIPP Objectives

The Victorian Industry Participation Policy Act 2003 (the VIPP Act) sets out the main objectives of the VIPP as follows:

  • Promoting employment and business growth by expanding market opportunities for local industry
  • Providing contractors with increased access to, and raised awareness of, local industry capability
  • Exposing local industry to world's best practice in workplace innovation, e-commerce and use of new technologies and materials
  • Developing local industry's international competitiveness and flexibility in responding to changing global markets by giving local industry a fair opportunity to compete against foreign suppliers.

2016 VIPP Review and Reforms

To improve the way local industry benefits from VIPP, the Government undertook a review of the policy in 2016. The Review examined how the policy is applied across government, how it can maximise opportunities for local SMEs and how to reduce red tape.

The government is acting on the recommendations of the Review.

The VIPP reforms are in line with the government's commitment to strengthen VIPP and use its purchasing power to increase economic activity, opportunities for small and medium enterprises and boost local jobs.

Policy Change

Change Expected benefits
Introduction of a formal 10 per cent local content weighting as part of project tender evaluation For the first time, the use of local suppliers will be given formal priority during tender assessment. This will further encourage bidders to use local suppliers in all projects.

 Strengthening Compliance

Change Expected benefits
Random industry audits of VIPP compliance at project completion To improve contractor compliance with the policy as committed in VIPP Plans and Local Industry Development Plans (LIDPs).
Regular reports to Cabinet and the Victorian Secretaries Board on compliance and reform progress. Strengthened compliance across Government.

New Brand –'Local Jobs First'

Change Expected benefits
To sit alongside the legislated VIPP brand To increase market awareness of what the policy aims to achieve.

Strengthening Engagement and Awareness

Change Expected benefits
Twice yearly education and awareness forums industry on Strategic Project pipeline To increase awareness of Government procurement opportunities, facilitate business to business engagement, and assist industry to plan early and make decisions about future investment and employment.
Regular release of forward plan of VIPP Strategic Projects Early notification of major projects inviting industry to register their interest to supply into projects.
Twice yearly forums conducted in partnership with ICN for Government departments and agencies Increased understanding and application of VIPP to capture all applicable projects.
VIPP is clearly referenced as a policy for SMEs Small and medium enterprises (SMEs) are clearly targeted and are given a full and fair opportunity to supply into Government projects.

Reducing Red Tape

Change Expected benefits
Streamlined VIPP Plans & Local Industry Development Plans (LIDP) Reducing red tape by streamlining Government processes and VIPP paperwork for SMEs.
Examine a single prequalification framework Reducing red tape by streamlining Government processes and VIPP paperwork for SMEs.

Download a copy of the Local Jobs First - VIPP Fact sheetLocal Jobs First - Fact Sheet (PDF 66.71 KB)PDF icon

Industry Capability Network (ICN)

The Industry Capability Network Victoria Ltd (ICN) is a not-for-profit organisation funded by the Victorian Government whose primary aim is to maximise opportunities for Victorian Industry.

ICN administers the Victorian Industry Participation Policy (VIPP) on behalf of the Victorian Government. It plays a key role in liaising with government agencies and bidders in VIPP applicable projects and procurements and publishing a forward plan of larger procurement projects to ensure local suppliers have an opportunity to register interest in upcoming government projects.

VIPP Guidelines

The VIPP Agency Guidelines and VIPP Supplier Guidelines are the primary documents used to communicate how the VIPP should be applied to government procurement activities to the two primary audiences.

The VIPP Agency GuidelinesVIPP Agency guidelines (DOCX 109.36 KB)DOCX icon provide steps for how Victorian Government agencies (which covers all public sector bodies) should apply VIPP to their procurement activities.

The VIPP Supplier GuidelinesVIPP Supplier guidelines (DOCX 83.72 KB)DOCX icon outline the steps to be undertaken by businesses to bid for government work when VIPP has been applied.

VIPP Annual Report

The VIPP Annual Report provides information about outcomes for the previous financial year on new projects, completed projects, application of VIPP to grants, VIPP Strategic Projects, and compliance with VIPP.

Contact details

Business tendering for government work

Industry Capability Network

Web: Industry Capability Network Victoria

Telephone: (03) 9864 6700

Email: Email Industry Capability Network Victoria

Government agency queries

Email: Email the VIPP team

Register with ICN

All other queries

Call 13 22 15 or email the VIPP team to begin the VIPP process.

Page last updated: 6 January 2017