The glossary outlines key concepts and terms relating to Local Jobs First. It is a guide and does not replace definitions provided under legislation or other Local Jobs First guidelines or contractual definitions.
The term agency refers to all Victorian Government departments and agencies subject to the Financial Management Act 1994 and the Standing Directions of the Minister for Finance for financial management that apply from 1 July 2016 onwards.
Annualised Employee Equivalent (AEE)
Annualised employee equivalent (AEE) is the measure used to calculate employee related commitments, such as job or apprenticeship numbers associated with a project. It is calculated by dividing the total number of ordinary working hours that an employee worked and paid over the reporting period by the total number of full-time working hours paid per annum.
Australian Industry Participation
The Australian Industry Participation (AIP) policy is the national equivalent to the Victorian Industry Participation Policy (VIPP), by Commonwealth agencies on Commonwealth projects.
Australian Industry Participation National Framework
All Australian jurisdictions signed the Australian Industry Participation National Framework in April 2001, encouraging Australian industry participation to be maximised in major projects in Australia and overseas. Each jurisdiction has its own policies aimed at encouraging Australian industry participation in public and private projects.
Australia New Zealand Government Procurement Agreement (ANZGPA)
The ANZGPA was entered into by Australian state and federal governments and the New Zealand government in 1991. It aims is to maximise opportunities for competitive ANZ suppliers to supply into government projects and reduce costs of doing business for both government and industry. The ANZGPA applies to all Australian and New Zealand local industry participation policies.
Contestable Goods and Services
The contestability of goods and services influences the local content. Goods and services are considered contestable when there are competitive local and international suppliers.
Non-contestable goods and services are those that are local by nature, or those goods and services that can only be sourced internationally.
ICN Analytics is a secure network platform that must be used by all government agencies and their suppliers to collect and monitor local content and jobs data from May 2018, for projects worth $20 million or more. Suppliers can directly enter their project data including local content spend and employment hours into the system using secure logins and passwords. The service is funded by DEDJTR at no cost to industry or agencies.
Industry Capability Network (Victoria) (ICN)
The Industry Capability Network (Victoria) is a not-for-profit organisation funded by the Victorian Government to support the delivery of the Local Jobs First.
Its key responsibilities include: managing the Victorian Local Jobs First Management Centre portal where tenders are registered, identifying local products and services that meet the contract requirements, acknowledging and evaluating bidders’ local content commitments and providing local suppliers the opportunity to register interest in upcoming government projects.
Interaction Reference Number (IRN)
An Interaction Reference Number must be obtained for grant projects as part of the process for complying with the Local Jobs First. An IRN is obtained from the ICN (Victoria).
Australia and New Zealand are treated as a single market for government procurement under the Australia and New Zealand Government Procurement Agreement.
All other jurisdictions are considered ‘international’. In addition, items imported into New Zealand as part of New Zealand-sourced goods and services are considered international.
Local Content refers to all suppliers producing Australian or New Zealand (ANZ) goods or services or when they have added value to imported items.
The ‘local content’ (ANZ value added activity) of a good or service is determined on a cost basis and is the part of a product or service left once the cost of the international component has been subtracted. It can be expressed by the following equation:
Local content = total cost of the good or service less international content
Local Industry Development Plan (LIDP)
A Local Industry Development Plan (LIDP) is a document prepared by a tenderer that outlines the supplier’s commitment to address the minimum local content requirement and other conditions set by government for Local Jobs First Projects. The LIDP must have an ICN acknowledgement letter.
Office of Industry Participation and Jobs
The Department of Economic Development, Jobs, Transport and Resources (the Department) has lead responsibility for Local Jobs First, including policy oversight, preparing the whole-of-government annual report on Local Jobs First compliance under the Local Jobs First Act 2003, developing the Forward Plan of Strategic Projects on a regular basis, contracting the ICN to support Local Jobs First implementation, and providing advice to agencies and the ICN on the application of Local Jobs First. The Office of Industry Participation and Jobs is located in the Advanced Manufacturing Branch of the Employment, Investment and Trade (EIT) Group of the Department.
Project refers to the procurement of goods, services or construction works, that may be limited to a single contract or may involve several contracts under a single broader project. In determining the project value for Local Jobs First purposes, the value of all activities and contracts under the project are to be included.
Regional Victoria and Metropolitan Melbourne
Regional Victoria has the same meaning as the rural and regional Victoria term provided under the Regional Development Act 2002. All other areas are considered to be part of metropolitan Melbourne.
The Minister with responsibility for administering the Victorian Industry Participation Policy Act 2003, namely the Minister for Industry and Employment.
The Local Jobs First - Victorian Industry Participation Policy (VIPP) is an industry development policy that helps ensure competitive local businesses are provided with opportunities to supply into Victorian government projects. The Policy must be applied by all Victorian government departments and agencies for any type of project with a value of $1 million or more in regional Victoria, or $3 million or more in metropolitan Melbourne or for state-wide activities.
Local Jobs First Administrator
Each agency must nominate a Local Jobs First administrator as a coordination point to support and manage an agency’s compliance with VIPP, including the registration of projects with the ICN and coordinating the agency’s monitoring and reporting requirements for the Local Jobs First Annual Report, Strategic Projects Forward Plan and through the agency’s normal financial reporting mechanisms.
Local Jobs First Thresholds
The Victorian Government has established the following thresholds, representing a project’s total budget, from which Local Jobs First must be applied by agencies: $1 million and above in regional Victoria; and $3 million and above in metropolitan Melbourne or state-wide.
Additional requirements apply for projects valued at $50 million and over, or those projects deemed by government to be significant. These projects are referred to as Strategic Projects.
Victorian Local Jobs First Management Centre (VMC)
The Industry Capability Network (Victoria) hosts the VMC, which is the online platform for agencies to register their tenders and for shortlisted bidders to prepare an online LIDP. The VMC also assists businesses and Victorian government agencies to manage their compliance with Local Jobs First.
Local Jobs First Model Clauses
Local Jobs First model clauses must be applied by Victorian government agencies in tender and contract documentation for all Local Jobs First applicable projects. The model clauses can be strengthened by agencies as appropriate to align with their tender and contracting documents where required.