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Victorian Industry Participation Policy (VIPP)

 
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What is the Victorian Industry Participation Policy (VIPP)?

The Victorian Industry Participation Policy (VIPP) is a Victorian Government initiative designed to promote greater access for small to medium enterprises (SMEs) to work with major projects.

By making local content a primary consideration in its major project tenders, the Government is encouraging bidders for these large projects to increase their use of local suppliers. Since its establishment in 2001, the VIPP has led to over $1B of import replacement - orders for local industry that would otherwise have gone overseas.

The new Victorian Industry Participation Policy (VIPP) connects government buyers with local suppliers.

The Victorian Government has strengthened VIPP to give SMEs greater opportunity to supply goods and services for public procurement activities. The changes will apply from 1 January 2013 and cover a range of public projects.

Key changes include:
  • The introduction of a ‘contestability assessment’. The new VIPP focusses on procurement activities that contain ‘contestable’ goods and services, where local suppliers are competing against international companies, to promote opportunities for local businesses and at the same time avoid the costs to bidders incurred from completing VIPP plans for projects that by their nature will be delivered locally.
  • Greater detail on the opportunities for suppliers. ICN Victoria will now provide a list of the ‘contestable’ goods and services that are relevant to specific procurement activities, available to both government agencies and shortlisted bidders, highlighting business opportunities for local companies at an early stage in the procurement activity.
  • A new electronic VIPP plan with enhanced assistance features for businesses and government agencies. This will help businesses to complete the VIPP process more accurately and efficiently.
  • More robust monitoring and reporting requirements to demonstrate the local content outcomes achieved through the implementation of VIPP, including the introduction of a post-contract verification process.

You can download and print a copy of the new VIPP guidelines from the Guidelines and Templates page.

The new Guidelines will apply to procurement activities that commence on or after 1 January 2013.

How is ICN involved with VIPP?

ICN Victoria facilitates the VIPP on behalf of the State Government, performing certifications and evaluations of VIPP Plans submitted for government-funded tender contracts valued at over $1 million in regional Victoria or $3 million in metropolitan areas.

How can ICN help with the VIPP?

For Government agencies ICN provides:
  • Advice on activities with potential for local industry involvement
  • Guidance in the form of suitable VIPP clauses for use in documentation
  • Nomination of potential metropolitan and regional tenderers
  • Introduction to competitive suppliers
  • Analysis of bidders VIPP Plans
  • Certification of VIPP Plans
  • Certification of post-tender changes and contract outcomes
  • Advice and templates for monitoring VIPP compliance
  • Provide assessment of VIPP Plan to agencies

For tenderers and industry ICN provides:
  • Explanation of VIPP requirements
  • Advice on activities with potential for local industry involvement
  • Guidance on how to complete VIPP Plans
  • VIPP Assistance provided by ICN Business Capability Advisors’
  • Introduction to competitive suppliers
  • Certification and sign-off of VIPP Plans, post-tender changes and contract outcomes
  • Advice and templates for monitoring VIPP activities

ICN service probity policy

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

Strategic Projects

Major projects that have whole-of-life costs of $250M or more can now be declared of 'strategic significance' if they meet certain criteria. The project has to have the potential to make a strategic contribution to the productive capability of Victoria and its ongoing economic wellbeing, as well as the potential to generate local industry participation and the transfer of skills / technology that will build the State's ongoing industry capability.

Strategic Projects will be subject to additional local content requirements, aimed at maximising local industry participation, economic activity and the overall benefit for Victoria.

Further Information

ICN

For tenderer or agency enquiries regarding the VIPP process please contact ICN on 03 9864 6700 or email [email protected]

Department of State Development, Business & Innovation (DSDBI)

For policy or other VIPP enquiries, please contact the Department of State Development, Business and Innovation (DSDBI) on 13 22 15 or visit the VIPP webpage http://www.dsdbi.vic.gov.au/projects-and-inititatives/victorian-industry-participation-policy.

VIPP documentation

Click here to view the VIPP Fact Sheet.