Note for members: the rules and guidelines can make selling to government complicated. Please contact your Victorian Chamber team at policy@victorianchamber.com.au if you require help navigating the process.

LAWS

• Financial Management Act 1994 governs goods and services procurement in Victoria and gives powers to the Victorian Government Purchasing Board.
• Local Jobs First Act 2003 creates the Local Jobs First Policy including the Victorian Industry Participation Policy (VIPP) and the Major Project Skills Guarantee (MPSG) requirements and establishes the role of the Local Jobs First Commissioner. The Department of Jobs, Precincts and Regions administers this Act. 

POLICIES

All projects or purchases over $1 million in regional Victoria and over $3 million if in metropolitan Melbourne or state-wide are subject to these policies:

Local Jobs First Standard Projects:

• Victorian Industry Participation Policy (VIPP) is an industry development policy that encourages the use of competitive local businesses, giving them a fair chance to compete for government contracts.
  
  All tenders, proposals or other submissions for a Local Jobs First project must submit a Local Industry Development Plan (LIDP) that makes clear local content and local job commitments and agrees to monitoring and reporting requirements. See a sample LIDP. 
  
  A minimum 10 per cent weighting is applied for industry development and VIPP commitments when evaluating tenders and proposals
  
  Each agency is also required to nominate a Local Jobs First Administrator, as a coordination point to support implementation, monitoring, reporting and compliance activities.

Social Procurement Framework (SPF):

• The SPF makes clear that assessing value-for-money should not focus only on price but include creating social and environmental outcomes that benefit the Victorian community. Things like supporting Aboriginal businesses and social enterprises; development and employment for people with disability, the long-term unemployed or other disadvantaged community members; or adopting new environmental sustainability practices, above and beyond existing compliance requirements.
• All departments and agencies are required to develop a Social Procurement Strategy outlining their business strategy, priorities and objectives, procurement profile and providing a social procurement opportunity analysis. They must clearly articulate which of the social and sustainable procurement objectives they will prioritise in its procurement activities for the coming year (from Tables 1 and 2 of the SPF) and develop a supplier engagement plan that incorporates social procurement.
  
  The social and sustainable objectives are given weightings of at least 5 and up to 10 per cent in the evaluation of tenders and proposals. The Victorian Government has also committed to a target of 1 per cent procurement from Aboriginal businesses by 2019-2020.

All construction projects over $20 million are subject to:

• Major Project Skills Guarantee (MPSG) helps create opportunities for Victorian apprentices, trainees and cadets to work on some of Victoria’s biggest building and infrastructure projects. Under the MPSG, all construction projects valued at or over $20 million are required to use Victorian apprentices, trainees or cadets for at least 10 per cent of the total estimated labour hours.

All projects and purchases over $50 million:

• are Local Jobs First Strategic Projects and subject to minimum local content requirements of 90 per cent for construction projects and 80 percent for services, maintenance or operational projects.
  
  As with other standard local jobs first projects, all bidders must provide a Local Industry Development Plan (LIDP) which clearly identifies how local content and suppliers will be used to deliver the project, as well as local job commitments, including opportunities for apprentices, trainees, and cadets within the project. See a sample LIDP.
  
  The Victorian Government publishes a Local Jobs First Strategic Projects Forward Plan which lists current and upcoming projects, including set local content requirements. It provides industry with early notification of projects and the opportunity for businesses to register to supply into these projects.

Other policies include:

• Supplier Code of Conduct which outlines the standards of behaviour that suppliers are expected to meet when doing business with the Victorian Government. Suppliers may be asked to provide evidence of how they follow the Code.
• The Victorian Government Call Centre Code which sets out the government’s requirements and expectations in relation to the call centre industry.
• The VGPB Guide to procuring uniforms and personal protective equipment (PPE) which applies to all Victorian government departments and agencies for procurement of uniforms and PPE for use by Victorian Government employees regardless of the dollar value.
  
  The Guide complements the Local Jobs First Victorian Industry Participation Policy (VIPP). If the uniforms and PPE are, or can be, manufactured locally, then they need to be bought from registered suppliers on the Ethical Supplier Register, which is comprised of suppliers of locally manufactured corporate clothing, uniforms, workwear and PPE that have had (or are in the process of having) their local manufacturing supply chain ethically accredited by Ethical Clothing Australia or verified by an independent third party.

The High Value High Risk (HVHR) Framework is a series of project assurance checks and processes for infrastructure and ICT projects identified as high risk (according to a Project Profile Model) or high value (over $100 million), designed to increase the likelihood of achieving their expected benefits and be delivered successfully, on time and to budget. Areas of extra scrutiny under the HVHR framework may include a requirement for approval by the Treasurer.

DEPARTMENTS AND OTHER BODIES

The Victorian Government Purchasing Board (VGPB) sets the policies that govern procurement of non-construction goods and services across all Victorian Government Departments and some public bodies (e.g. VicRoads and Victoria Police).

The VGPB has five policies covering governance, complexity and capability assessment, market analysis and review, market approach and contract management and disclosure. Each policy is supported by good practice guides, tools and templates to ensure consistency across government.

The Victorian Government also uses centralised government contracts called State Purchase Contracts (SPCs) to buy common goods and services. SPCs can be with a sole supplier, or a panel of multiple suppliers.

The Industry Capability Network Victoria (ICN) is a not-for-profit organisation supporting industry development and the implementation of Local Jobs First. Its primary aim is to maximise opportunities for Victorian industry. The ICN conducts contestability assessments and mapping of local supply chain capability, acknowledges and evaluates LIDPs and does post-contract verifications of whether the local content commitments in LIDPs have been achieved.

Local businesses and suppliers can use the ICN website and ICN Gateway to register their business capability, connect with government projects, access project opportunities and other services such as supply chain mapping and support for reporting on Local Jobs First requirements like VIPP and MPSG.

The Victorian Local Jobs First Commissioner reports to the Minister for Jobs, Innovation and Trade and is responsible for working closely with industry and departments to create opportunities for small and medium sized businesses. The Commissioner promotes local companies in specific regions and sectors as well as working with stakeholders to build skills development in relation to project delivery. They also monitor and report on compliance with Local Jobs First Policy and Local Industry Development Plans and take enforcement action in relation to breaches of these policies and plans.

The Department of Treasury and Finance are responsible for policies relating to Victorian public construction procurement through the Public Construction Procurement Committee and the Construction Contracts Advisory Panel (CCAP) including tendering and contracting procedures and mandatory practices. They also manage the High Value High Risk Framework.

The Uniforms and Personal Protective Equipment Monitor has been established to support the Guide to procuring uniforms and personal protective equipment (PPE) and encompasses promotion, advocacy, compliance, monitoring and reporting.

Definitions:

• SPC = State Purchase Contracts (contracts for commonly purchased goods and services across Victorian Government departments and agencies)
• VIPP = Victorian Industry Participation Policy
• ICN = Industry Capability Network
• MPSG = Major Project Skills Guarantee
• LIDP = Local Industry Development Plan
• Panel = a register of pre-qualified suppliers
• Local content = goods that are produced or services delivered by businesses based in Australia or New Zealand.