Victorian Industry Participation Policy
Victorian Industry Participation Policy
Local Jobs First
Through its Local Jobs First - 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.
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
The VIPP gives particular attention to Strategic Projects, which are government procurements valued at $50 million or more or as otherwise agreed as strategic by government. These projects have minimum local content requirements and other conditions determined on a case-by-case basis by government, so as to maximise local business and job opportunities.
The latest forward plan of VIPP Strategic ProjectsVIPP-Strategic-Projects-Forward-Plan-August-2017.pdf (PDF 390.87 KB) provides industry with information on Strategic Projects including information on local content requirements.
To deliver better outcomes for local industry and workers, the State Government has reformed the VIPP to ensure that the government's purchasing power provides greater opportunities for SMEs and boosts local jobs. Key changes include:
- Lower thresholds for Strategic Projects
- Introduction of a formal minimum 10 per cent local content weighting as part of project tender evaluation
- Random industry audits of VIPP compliance at project completion
- Twice yearly education and awareness forums for industry on the Strategic Project pipeline
- Regular release of the forward plan of VIPP Strategic Projects
- Twice yearly forums conducted in partnership with ICN for government departments and agencies
- Streamlined VIPP Plans & Local Industry Development Plans (LIDPs)
- Examining a single prequalification framework.
In November 2017, the Victorian Government announced further reforms to strengthen the state's industry participation policy settings.
In particular a Victorian Local Jobs First Commisioner will be established to work with industry and departments to increase access to government contracts for small to medium businesses. The Commisioner will also give specific focus to supporting improved compliance activities so that industry and government can be assured that the promised local business opportunities and jobs are realised.
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.
VIPP Agency and Supplier Guidelines have been developed that make clear how the VIPP is applied to government procurement activities.
VIPP Annual Report
The VIPP Annual Report provides information about outcomes for the each financial year on new projects, completed projects, application of VIPP to grants, VIPP Strategic Projects, and compliance with VIPP.
Industry Capability Network (ICN)
The Industry Capability Network Victoria Ltd (ICN) is a not-for-profit organisation funded by the Victorian Government to support the delivery of the VIPP and maximise opportunity for Victorian industry.
ICN plays a key role in liaising with government agencies and bidders in VIPP applicable projects and procurements, and in ensuring that local suppliers have an opportunity to register interest in upcoming government projects.
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Industry Capability Network
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The Victorian Government's multi-billion dollar pipeline of key infrastructure projects will create tens of thousands of jobs across the State and boost local businesses.Creating local jobs and supporting Victorian businesses
Page last updated: 28 November 2017